Are you planning to set up a company in Madeira?
Updated: Apr 14
If you are planning to start a company, make sure your goals and activities are clear. Will your company’s income be coming from within or outside of Portugal and what kind of income and profit are you expecting? Find out about the different types of companies that would fit your goals and activities. Portugal has a high taxation rate for activities that earn income inside of Portugal. There are various programs that provide tax benefits. Although some of them sound extremely favorable, choosing the wrong one can have an adverse effect on your finances. For example, registering a company with the International Business Center of Madeira (also known as Madeira Free Trade Zone) offers one of the lowest corporate taxation rates in Europe and attracts many international corporations to Madeira. However, this comes with annual fees and special accounting requirements that could be costly for a small company whose activities do not really benefit from such tax advantages. It would be better to register a simple company within the Chamber of Commerce. An accounting firm may encourage you to register with the Free Trade Zone and you will be paying a relatively high monthly retainer for their special accounting services without really needing it. It is wise to ask a lot of questions and analyze your options before you make such decisions.