Duty-Free Zone Madeira
Besides individual regional supporting programs, in compliance with valid EU directives, the duty-free zone was established for the trading and industrial companies. For certain companies established in Madeira up to the end of 2006, the European Commission re-approved the tax preferences.
The tax allowances are realised in a form of lower income tax rates amounting 2 per cent (2005-06) and 3 per cent (2007-11), instead of common 25 per cent in Portugal.
Whether the tax privileges can be required for being recorded into the tariff register, the Commission decides about it. Certainly, that the formed company must fall under some of the specified fields appointed by a law (agriculture, forestry, fishery, car trade, wholesale, transport and communications, real estates, services for companies, universities, as well as the cultural and sport activities, tourism or personal services). Banks, policies, financial services for companies, etc. are explicitly excluded.
Along with the classification with the branch, the company must either have more than five working places or it must invest more than EUR 75,000 in the first two years, to be able to apply for preferences. Thanks to lower rates, the eventual savings depend on number of working positions created by a company.
Our co-operating partner in Porto is competent for all questions regarding the company formations and support within the Madeira free-trade zone!
Service of INTERNATIONAL ECONOMICS AUSTRIA (IEA)