Madeira

Madeira - Overview - Offshore companies

The Madeira archipelago is located in Atlantic Ocean and is composed by Islands of Madeira, Porto Santo, Desertas and Selvagens. It is a Portuguese archipelago which has an important strategic role due to its geographic location, being situated between Europe and the Caribbean Islands.
Companies licensed to operate within the Madeira Free Trade Zone are for all purposes Portuguese resident, and therefore can in most cases benefit from the double tax treaties signed by Portugal.
Portugal has signed double tax agreements with the following countries: Austria, Belgium, Bulgaria, Brazil, Czech Republic, Finland, France, Germany, Hungary, Ireland, Italy, Mozambique, Norway, Poland, Republic of Korea, Spain, Switzerland, United Kingdom and Venezuela. Negotiations are nearing completion with other countries. Principal Corporate Legislation applies for Limitada Company is Portuguese Companies Code.
You have several entity types you can incorporate in Madeira: Limitada (Lda's) or Sociedade Anónima (SA).

Madeira jurisdiction is a civil law jurisdiction and subject to Portuguese law which is a member of EU. The main attraction for foreign investors regarding the jurisdiction is an International Business Center and the access to the European single market with a reduced payment of 12%VAT as opposed to normal Portuguese rate of 17%. Also there is no formal exchange control, although substantial transactions need to be reported to the Central Bank of Portugal, which regulates the banking sector. Regarding offshore company regulation, because Madeira jurisdiction is an integral part of Portugal, the companies registered there qualify for the benefits of the Portuguese double taxation agreements.


Madeira Free trade zone offers a wide range of both tax and customs incentives, therefore Madeira can be of great benefit for non-European companies wishing to penetrate into the EU Single Market more easily and also for European companies aiming at reducing their operational cost and enhancing their tax efficiency. Some of the most relevant advantages you can benefit of incorporating an offshore company in Madeira are: income and corporation tax regime; the shareholders of the offshore companies are exempt from any withholding tax on profits received from those companies; there is an exemption from custom duties for many goods and raw materials imported; advantages of the exemptions from VAT on movement of goods; VAT on supply of telecom and digitalized services; complete freedom from exchange controls for offshore companies.

Madeira

General Information

Type of Company

Limitada

Type of Law

Civil

Shelf company availability

Yes

Company Registration Timescale

*

Corporate Taxation

Varies

Double Taxation Treaty Access

Yes

Share Capital or Equivalent Requirements

Standard currency

Euro

Permitted currencies

None

Minimum paid up

€5,000

Usual authorized

€5,000

Directors

Minimum number

One

Local required

No

Publicly accessible records

Yes

Location of meetings

Anywhere

Shareholders

Minimum number

Normally two (One is possible)

Publicly accessible records

Yes

Location of meetings

Madeira (by proxy)

Company Secretary

Required

No

Local or qualified

No

Accounts

Requirement to prepare

Yes

Audit requirements

No, but larger companies must

Requirement to file accounts

Yes

Publicly accessible accounts

Yes

Recurring Government Costs

Minimum Annual Tax / License Fee

€1,000

Other

Requirement to file annual return

No

Change in domicile permitted

Yes

Madeira Incorporation Costs

Company registration

2,500 Euro

Registered office and administration services

1,000 Euro

Taxes for local employee salary

1,500 Euro

Government License fee

750 Euro

Government Annual Maintenance fee

1,300 Euro

Bank account

 390 Euro

Annual Tax (from 2nd year)

 4,000 Euro

Optional/Additional costs

*Seychelles Nominee Services / Year    

1,200 Euro

Accounting services

1,500 Euro

Local Nominee Shareholder / year

 800 Euro

Certificate of Good Standing

 200 Euro

Power of Attorney

200 Euro

Apostil/document

200 Euro

Company seal

50 Euro

Courier Delivery

80 Euro

 

*optional