Madeira (Portugal)Company formation, tax and banking

Why people choose Madeira (Portugal)

• 5% company tax on income from outside Portugal, for licensed companies
• EU-approved, with full use of EU rules and Portugal's tax treaties
• Dividends and gains from qualifying shareholdings are exempt
• In most cases, no tax kept back on dividends to shareholders abroad
• The MAR shipping register gives an EU flag with competitive crewing rules

Where Madeira (Portugal) fits

• Shipping registration
• International services
• EU trading

Where Madeira (Portugal) fits in a structure

Typical role · Licensed EU trading or services company

The Madeira company is a real EU company, licensed in the Madeira International Business Centre, that trades, ships or provides services to clients outside Portugal. Its income from outside Portugal is taxed at 5%, with the benefit capped by how many people it employs. The current scheme runs to the end of 2028 and has been renewed before, subject to the European Commission's approval.

What it depends onThe 5% rate depends on licence conditions: one to five jobs in Madeira within the first six months, at least EUR 75,000 invested in assets if you have only one or two staff, and owners' names are public.

A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.

Opening a bank account

Portuguese banks (Millennium BCP, Novo Banco, Banco Santander Totta) and their Madeira branches serve companies in the scheme. You'll need to show the Madeira licence, local staff and a business plan. EU payment firms are used while the bank account is being opened.

How tax works here

5% company tax on income from outside Portugal for licensed companies, compared with 20% on the Portuguese mainland. Dividends and gains from qualifying shareholdings are exempt. In most cases no tax is kept back on dividends paid to shareholders abroad. The benefit is capped by job and investment thresholds.

Real presence, and who can see the owners

To get the 5% rate you must create one to five jobs in Madeira within the first six months and, if you have only a few staff, invest at least EUR 75,000 in assets. Owners' names are public, as on the mainland. The presence rules are enforced through the licence conditions, not after the fact.

When to choose it

Choose Madeira when you need an EU company with a genuinely low tax rate and can support real local jobs — international trading, shipping and management services are the natural fits.

You get a written comparison, not a sales pitch.

Every Madeira (Portugal) recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.