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IN213 - Opportunities for Investment into Angola Using a Madeira Company
A Double Taxation Agreement is currently under negotiation between Angola and Portugal. As yet this has not been signed and ratified.
Advantages in the use of a Portuguese Company (licensed in Madeira) for Investment into Angola
- If investment into Angola takes place through a Madeira company, an attractive tax rate is applied when receiving the dividends distributed by the Angolan subsidiary. The Madeira company will be subject to a 0% (old regime) or 4% - 5% (new regime) tax rate on the dividends received, subject to a tax credit, taking into consideration any withholding taxes applied by the Angolan Tax Authorities.
- Investing through the branch of a foreign company is the most common way to invest into Angola. If a Madeira company is used, the profits repatriated by the branch to the parent company will be subject to tax at 0% (old regime) or 4% - 5% (new regime) in Madeira.
- Madeira withholding taxes can be reduced through use of an appropriate Double Taxation Agreement, or eliminated altogether through application of the EU interest and Royalties Directive. Where the ultimate holding company is outside the EU, use of a Malta company, in addition to the Madeira company, can eliminate withholding taxes. Dixcart has offices in both Madeira and Malta.
Investment Protection Agreement
An Investment Protection Agreement exists between Portugal and Angola. This means that investments made by Portuguese companies in Angola have a high degree of protection against any local discrimination or nationalisation.
Other Links Between Portugal and Angola
- Angola gained independence from Portugal in 1975 and close cultural links continue to exist between the two countries
- The official language in Angola is Portuguese
Contact
For additional information regarding the use of a Madeira company for investment into Angola, please speak to your usual Dixcart contact or to João Dias at the Dixcart office in Madeira: joao.dias@dixcart.pt or contact us.