Company formation in Madeira

Updated 6 October 2026

A Portuguese EU company with 5% tax in the Madeira International Business Centre: conditions, timing and what the benefit requires in 2026.

A Madeira company is a Portuguese company, and so an EU company with a tax number and access to the European market. Its key feature is the Madeira International Business Centre: companies licensed there pay 5% corporate tax on income from international activities instead of the usual rates. The benefit is granted not for an address but for real presence on the island: jobs and investment. Companies without a centre licence pay the regional corporate tax, about 13% in Madeira against 19-20% on mainland Portugal. Dollar amounts use the European Central Bank rate of 5 October 2026, $1.12 per euro.

The 5% rate in the International Business Centre

• Term. Companies licensed by 31 December 2026 benefit from the 5% rate until 31 December 2033.
• Condition 1. Create one to five jobs in the first six months and invest at least €75,000, about $84,100, in fixed or intangible assets within the first two years.
• Condition 2. Or create six or more jobs in the first six months.
• Benefit cap. The profit taxed at 5% is capped depending on the number of jobs; above the cap the standard rate applies.
• The licence is issued by the centre's managing company, and activity must genuinely be carried out from Madeira.

Company requirements

• Form: a private or public limited company under Portuguese law.
• Tax numbers for the company, directors and foreign founders.
• An address and office in Madeira matching real activity.
• Staff registered with social security, which is checked for the benefit.
• Beneficial owner register: owner details are filed with the Portuguese register.
• VAT in Madeira is 22%, on the mainland 23%.

How registration works

1. Structure and business plan: the activity, number of jobs and investment, and whether the benefit fits.
2. Tax numbers for founders and directors.
3. Company registration in the Portuguese commercial register.
4. Licence application to the International Business Centre.
5. A bank account, paying in capital, an office and hiring staff.
6. Registration for VAT and social security.

Why problems arise

• No real presence: staff not hired or investment not made on time, so the benefit is withdrawn and tax reassessed.
• Profit above the cap is taxed at the standard rate.
• Management actually from another country: a risk of tax residency there.
• The bank will not open an account without a clear business and link to Madeira.

What we do

Murblz specialists assess whether the centre's regime suits you, prepare a business plan for the jobs and investment conditions, register the company, obtain the centre licence, open an account and support the company afterwards. Company formation is €24,600, about $27,600; annual government fees from €1,000, about $1,130; legal maintenance €4,900 a year, about $5,500.

Fees

See also

Investment property

FAQ