Madeira - Subsidiary Registration

Simplification of the issues relating to the requirement to register for VAT may well be achieved by opting for the registration of a subsidiary company in Madeira, where the VAT rate is one of the lowest within the EU. This will enable a supplier to retain an ongoing competitive advantage over other local EU suppliers. The complication of the need to clarify the location of the customer within the EU will then not arise as local Portuguese VAT regulations would apply and the entity would be regarded as a normal EU enterprise.

Madeira’s special tax regime would enable the profits within the company operating in Portugal to not be liable for corporate tax and or withholding tax on distribution of profit.