Madeira is a fundamental part of the Portuguese island and is located in the Atlantic Ocean southwest of Lisbon. Its capital city Funchal is the most important centre of the country and has appealed to foreign investors continuously over the years due to its low tax regime and extremely competitive operational costs, in comparison with other EU countries.
The Port of Funchal is the main dock for shipping companies and an important trading point as it has boosted the economy of Madeira by providing a base for commercial activities such as transportation, fishing and tourism. This port is also responsible for 88% imports and 12% exports of Madeira.
Tourism is an important sector in the country’s economy since it contributes 20% of Madeira’s GDP, providing support throughout the year for commercial, transport and other activities and constituting a significant market for local products.
Why do business in Madeira?
- Madeira is a member of the EU and OECD thereby guaranteeing business support from all the 28 member states of the EU;
- The island of Madeira is strategically located with easy and fast access to the European, African, and American markets via air or sea;
- All companies incorporated in Madeira are granted a VAT number that provides unrestricted access to the local and international markets;
- Madeira’s official currency is the Euro and this is beneficial to investors as it reduces cost of operations and eliminates exchange rate risk;
- Madeira has one of the most competitive corporate tax rates in the EU levied at 5%;
- Being a fundamental part of Portugal, Madeira, benefits from the large network of Double Taxation Agreements signed by Portugal;
- The creation of Madeira’s free trade zone known as Madeira International Business Center allows investors an opportunity to enjoy tax holidays and other tax incentives such as exemptions from customs costs;
- World-class infrastructure that simplifies procedures in doing business.