The MIBC, with its advantageous tax regime, provides a unique location for the establishment of yacht owning companies and offers a highly competitive package of tax benefits. Its reduced direct taxation, with effective corporate income tax rates ranging from 4% to 5% until 2020, combined with an exemption from withholding tax (providing the shareholders are resident in an EU jurisdiction) on payments of dividends, interest and royalties to non-residents of Portugal, makes it an attractive location for yacht operating companies.

Madeira companies also benefit from automatic VAT registration on incorporation and are instantly provided with a VAT registration number. This makes it easier for such companies to take advantage of the various benefits available.

Madeira yacht owning companies are exempt from the initial yacht registration fee and receive a 20% reduction in the annual yacht registration fee.

Withholding taxes on dividends can be eliminated by routing the investment in the Madeira company through an EU holding company such as Malta.

As an EU register, MAR offers unrestricted access to European waters, full compliance with international maritime conventions, and high regulatory standards. It is included on the Paris MoU White List and is not classified as a flag of convenience, reinforcing its credibility with financiers, charterers, and authorities.

MAR combines robust maritime standards with a competitive fiscal and operational framework that is fully aligned with EU and OECD requirements.

Key Registration Advantages

• EU credibility and access: Unrestricted navigation and cabotage across EU waters
• Flexible ownership and crewing: No nationality requirements for owners; limited EU or Portuguese‑speaking crew thresholds with flexible social security arrangements
• Competitive cost structure: No annual tonnage taxes and competitive registration fees
• Mortgage flexibility: Parties may agree on the governing law applicable to vessel mortgages
• Operational efficiency: Recognition of leading international classification societies and availability of temporary (bareboat) registrations

Tax & Operational Benefits

• Reduced corporate tax (MIBC): Shipping and maritime companies licensed within the MIBC may benefit from a reduced corporate tax rate on qualifying income (subject to conditions and time limits)
• Crew taxation: Crew wages for commercial vessels and yachts registered in MAR may be exempt from Portuguese personal income tax, with potential relief from social security contributions for non‑Portuguese crew
• VAT efficiencies: Commercial yachts genuinely engaged in charter operations may benefit from VAT exemptions or reductions on acquisition, fuel, repairs, and related services

Portugal’s civil aviation registry, overseen by INAC, offers a streamlined pathway for aircraft registration with global recognition and strong financing credentials.

Key Aircraft Advantages

• No nationality requirements: Aircraft can be registered irrespective of owner nationality.
• Rapid process: Efficient registration timelines and low registration charges.
• Secure mortgage register: Portugal’s aircraft register is widely trusted by banks and financial institutions, supporting financing and leasing arrangements.
• Operational VAT benefits: Air operators with an Air Operator Certificate (AOC) can be entitled to VAT deductions on fuel, maintenance and other inputs where international operations meet qualifying criteria.

INAC is the regulatory authority for civil aviation in Portugal. Portugal has an excellent reputation within the aviation sector.

Key Advantages and Features of the Portuguese Aircraft Register

• There are no nationality requirements for aircraft owners to register an aircraft with INAC. Registration charges are extremely low, and the registration process is rapid (average 10 days).
• Portugal has pioneered fractional aircraft ownership registration and INAC officers are experienced in this field.
• INAC is a secure mortgage register – due to its international reputation and safety standards it is on the banks’ and financial institutions’ white list of aircraft registries.

To obtain an Air Operator Certificate (AOC) from INAC the licence applicant must have its principal place of business in Portugal and must be at minimum 50% owned and controlled by an EU member state or by an individual from an EU member state.

Air operators with a valid AOC granted by INAC are entitled to deduct the VAT on the: fuel supply, maintenance, lease, transfer, and repairs to the aircraft. They are also entitled to deduct VAT on the acquisition, maintenance, repair and transfer of equipment incorporated into the aircraft or used in its exploitation. This is provided that 50% of the aircraft’s flights are international.

Owning or operating high‑value assets like superyachts, ships, or aircraft involves more than registry paperwork. We provide a full‑service advisory approach:

• Structuring and entity advice – we help design ownership and operational structures that align with your business goals, tax planning, and any international expansion strategies you may wish to consider in the future.
• Registration and compliance – from documentation to coordinating maritime or aviation authorities, we help ensure a smooth process for both vessel and aircraft registry.
• Ongoing support – we support owners with annual compliance, tax filings, crew payroll services, corporate maintenance and evolving strategic advice.