Service 09 · Special Regime · Madeira
Madeira Free
Trade Zone.
Portugal's most advantageous tax regime. 5% CIT, VAT and withholding tax exemptions for international companies licensed under IBCM, exclusive to Madeira.
What we offer
FTZ benefits and services
5% Corporate Income Tax
The lowest CIT rate in Portugal, 5% on profits, versus the standard 21%. Applicable to income generated within the FTZ under OECD-compliant conditions.
VAT & Withholding Exemptions
VAT exemption on transactions between FTZ companies. Withholding tax exemption on dividends, interest and royalties paid to non-residents.
IMT & IMI Exemptions
Exemption from Municipal Property Transfer Tax (IMT) and Municipal Property Tax (IMI) on properties used for FTZ activities.
FTZ Company Formation
Full support in forming an IBCM-licensed company: Lda., SA, Holding. Management of the entire licensing and registration process.
FTZ Accounting & Compliance
Specialist accounting with knowledge of FTZ-specific rules. Compliance reports on access conditions (employment and investment requirements).
International Tax Planning
International tax structuring with FTZ for holdings, shipping, yachting and international trading companies. BEPS and OECD compliance.
Who can access the FTZ
Eligible sectors
International Industry
International trading companies, manufacturing, financial services and consultancy with activities outside Portugal.
Holdings & Management
Share management companies (SGPS) and international holdings with stakes in European and global companies.
Shipping & Yachting
Vessel and ship registration under the Portuguese flag. Favourable tax regime for international maritime operators.
Shared Services
Shared service centres, information technology and back-office services for international groups.
FAQ
Questions about the
Madeira Free Trade Zone
To access the FTZ regime, the company must create at least 1 job within the first 6 months and make a minimum investment of €75,000 in tangible or intangible fixed assets within the first 2 years (for 1-2 jobs).
The exact conditions vary with the number of jobs created under the current Third FTZ Regime in force since 2015.
Not entirely. The 5% rate applies only to the taxable base derived from income generated in transactions with non-resident entities or other FTZ companies. Income from Portuguese sources (outside the FTZ regime) is taxed under the standard regime.
There is also a maximum eligible taxable base, ranging from €2.73M to €205M depending on the number of jobs created.
Yes. Shareholders and directors of an FTZ company can be non-resident in Portugal. The company must be registered in Madeira and meet the real economic substance requirements (job creation and investment).
We provide full local administration of the company, including registered office, accounting, tax compliance and representation with IBCM.
The current regime (Third FTZ Regime) is EU Commission-approved until 31 December 2027. Companies licensed by that date can benefit from the regime until 31 December 2034.
Portugal and Madeira have a track record of negotiating extensions with the European Commission. We keep our FTZ clients updated on any legislative developments.
Yes. The Madeira Free Trade Zone is an EU State aid regime approved by the European Commission and compatible with OECD rules, provided the company has genuine economic substance in Madeira (real employment and genuine activity).
It is not a tax avoidance scheme, it is an EU-approved investment incentive regime with a solid legal framework. We guide our clients to full compliance with all requirements.
5% CIT · Madeira
Ready to explore
the Madeira FTZ?
We assess your company's eligibility and structure access to the regime. Specialist and confidential consultation.
Request specialist consultation