Portugal Madeira

Key Corporate Information

Compare against other jurisdictions

1 Corporate
Tax Rate
5%

(international/outside of Portugal)

2 Substance
Requirements

Yes (1 employee and €75k investment/6 employees)

3 Withholding
Tax

No withholding tax for individuals and corporates for outgoing payments (provided not to a Portuguese blacklisted jurisdiction – 35%)

4 Participation
Holding Exemption

Yes, 10% minimum shareholding of subsidiary for at least 1 year

5 Number of Double
Taxation Treaties

70

6 Time to
Establish Company

3 – 6 Weeks

7 Audit
Requirement

Yes, if an S.A. company, holding company (SGPS only), or if the company exceeds two of the three limits over a two-year consecutive period:

  1. Total assets: €1.5m
  2. Total income: €3m
  3. Number of employees: average of 50
8 Filing
Requirements

Annual Tax filing requirements

9 Stamp Duty on
Transfer of Shares

No Stamp Duty

10 Shareholder Information
Publicly Available

Yes

11 Other
Beneficial Factors
  • Fully registered Portuguese company (not offshore)
  • Automatically registered for VAT
  • Possibility to open a bank account in Portugal
  • Substance criteria approved by EU Commission