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EU special economic zone with 5% corporate tax rate
Region
WESTERN EUROPE
Corporate Tax
5%
Setup Time
2 weeks
Currency
EUR
Madeira, Portugal's autonomous Atlantic island region, operates an International Business Centre with favorable taxation. The territory's company registration framework within Portuguese and EU law supports specific business setup strategies.
With a population of 250,000, Madeira offers Atlantic island living with Portuguese character. Portuguese is the official language, with English in tourism. The subtropical climate is mild year-round.
Healthcare is good through Portuguese health service. Safety is excellent. The cost of living is moderate, lower than Portuguese mainland.
The dramatic volcanic landscape, wine tradition, and tranquil atmosphere attract lifestyle migrants.
The Madeira International Business Centre offers reduced corporate tax rates of 5% until 2027 for qualifying companies, within EU state aid limits. Full Portuguese tax rates of 21% apply otherwise. Personal income tax follows Portuguese progressive rates.
Madeira uses the Euro. Companies must meet substance requirements including local employment and activity. The regime operates within EU state aid rules.
Company registration follows Portuguese requirements with Madeira residence. LDA (limited liability companies) are common. The International Business Centre requires licensing for preferential treatment.
Company formation takes approximately 2-4 weeks. Minimum capital is EUR 1 for LDA. Substance requirements apply for preferential taxation. Annual compliance includes Portuguese accounting standards.
Madeira follows Portuguese crypto regulation. The Banco de Portugal registers virtual asset service providers. The environment implements EU frameworks without specific Madeira provisions.
Portugal's national gambling regulation applies. Online gambling licensing in Portugal is established but administered from the mainland rather than specifically through Madeira.
Substance requirements mean companies must maintain genuine Madeira presence. The 2027 regime expiration creates planning uncertainty for longer-term structures. Geographic remoteness affects logistics.
Banking access is available through Portuguese banks. Professional services exist for International Business Centre operations.
Madeira suits businesses meeting substance requirements seeking reduced EU taxation for their business setup.
Local: Lda
Local: SA
| Corporate Tax Rate | 5% |
| Personal Income Tax Rate | 0% |
| VAT / Sales Tax | 0% |
| Capital Gains Tax | 0% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | LOW |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / MiCA |
| Business Plan Required | Comprehensive business plan with AML/KYC policies, risk assessment, and operational procedures required |
| Personnel Required | Local director, AML officer, compliance personnel with relevant qualifications |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank of Portugal VASP register |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Bank of Portugal (Banco de Portugal) |
| Licensing Fee | $1,000 |
| Licensing Fee Details | €1,000 MIBC license application fee; additional Bank of Portugal registration fees apply for VASP/CASP authorization |
| Permitted Business Models | Exchange, Custody, Trading, Wallet Services, Token Issuance |
| Permitted Activities | Crypto exchange, custody services, crypto-to-fiat conversion, wallet provision |
| Restricted Activities | Banking services without credit institution license; securities tokens require CMVM authorization |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed business plan demonstrating technical capacity, financial stability, and player protection measures |
| Personnel Required | Directors with gaming industry experience, compliance officers, technical staff |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | SRIJ licensed operators register |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Serviço de Regulação e Inspeção de Jogos (SRIJ) |
| Licensing Fee | $12,000 |
| Licensing Fee Details | €12,000 license issuance fee per license type; €18,000 initial technical system homologation; €2,000 per game type; €500,000 security deposit required |
| Permitted Business Models | B2C online gambling, land-based casino (via concession) |
| Permitted Activities | Online sports betting (fixed-odds), online casino games, poker, bingo |
| Restricted Activities | Live dealer casino games currently under review; land-based casino requires concession; cryptocurrencies not permitted for payments |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant / PSD2 |
| Business Plan Required | 3-year business plan with financial projections, risk management framework, governance structure |
| Personnel Required | Managing directors, compliance officer, AML officer, internal audit function for larger institutions |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Bank of Portugal register of authorized institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Bank of Portugal (Banco de Portugal) |
| Licensing Fee | $25,000 |
| Licensing Fee Details | Application fee varies by institution type; EMI €350,000 minimum capital; PI €20,000-€125,000 minimum capital depending on services |
| Permitted Business Models | EMI, Payment Institution, Credit Institution |
| Permitted Activities | E-money issuance, payment services, money remittance, account information services, payment initiation |
| Restricted Activities | Deposit-taking without credit institution license; lending restrictions for non-credit institutions |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |