About Madeira

Madeira Island is in the North-Atlantic, about 700 km from the African cost and about 1000 km from Lisbon, approximately on the same latitude as Casablanca. Madeira belongs to Portugal.

Of the total population of 270,000, approximately half lives in Funchal, the capital of the island.

 
Law

Madeira is an autonomous region of Portugal with its own government and legislative assembly. However, the assembly cannot override the decisions of the Government in Lisbon.

Madeira has essentially jurisdiction under civil law, whose private law, including inheritance law and rights of succession are inspired by the Code Napoléon.

 
European Union

As part of Portugal, Madeira is a fully-fledged component of the European.

The currency on Madeira is the Euro.

 
Taxes

Private individuals, who are domiciled on Madeira for more than six months are subject to income tax with their worldwide income.

So-called "Offshore" companies with a license at the International Business Center (IBC) Madeira, enjoy considerable tax advantages. These are guaranteed by the European Union (EU) until the end of 2020. See also IBC News - June 2009

There is no business tax, tax on assets or capital gains tax.

Turnover tax on Madeira totals 14% which is different to the level in mainland Portugal. Madeira therefore has one of the lowest turnover tax rates in Europe.

All double taxation agreements concluded by Portugal also apply to Madeira.

Madeira offers an international register for ships and yachts. This can mean considerable savings on taxes and social costs for boat owners.