What Types of Business are Best Placed to take Advantage of a Madeira International Business Company?

Madeira International Business Centre: A Business-Friendly Environment

The Madeira International Business Centre (MIBC) is a Portuguese government initiative that offers a number of benefits to companies that are registered with this body. These benefits include lower taxation, state-of-the-art infrastructure, and efficient local support services.

What Key Benefits Are Available Companies Registered in the MIBC?

One of the key benefits of registering a company in the MIBC is the lower taxation rate. Companies registered in the MIBC are subject to a rate of 5% corporate tax. This is significantly lower than the corporate tax rate in many other countries, making the MIBC an attractive option for businesses that are looking to optimise tax efficiencies.

The reason MIBCs enjoy a lower tax rate is because the regime is recognised as a form of state aid which has been approved by the EU Commission. The regime is compliant with the principles of the OECD, BEPS and the European Tax Directives.

In addition to low taxation, the MIBC also offers a number of other benefits to companies that are registered there. These benefits include:

  • State-of-the-art infrastructure: The MIBC is located in Madeira, which is a Portuguese island with a modern infrastructure, digital solutions, data storage, and a favourable business environment.
  • Efficient local support services: The MIBC has a number of support services available to companies, such as legal, accounting, human resources and tax advice.
  • Low operational costs: The cost of doing business in Madeira is relatively low, which can help to reduce companies’ overhead costs.

What Activities Can be Undertaken by Companies Registered in the MIBC?

The MIBC offers a wide range of business activities that can be conducted companies registered there. These activities include:

  • International services: This includes a wide range of activities, such as e-business and telecommunications, educational activities, technical and consultancy services.
  • International wholesale trading: This includes import and export of various goods such as trading of textiles, products and/or other items, including freight forwarding.
  • Ownership and maintenance of intellectual property: this may include acquiring, holding and managing IP rights (patents, trademarks, copyrights and other IP rights) and the commercialisation of intellectual property (licensing, franchising, sale of intellectual rights).
  • Industrial activities: This includes manufacturing, assembling, and warehousing activities within the MIBC’s industrial park.
  • Ship registration: The MIBC also offers a ship registration service, which allows you to register your commercial vessels and yachts in the Madeira International Shipping Register (MAR). Madeira has quickly grown to be the third largest shipping register in Europe.

It is important to note that financial services are excluded from the regime.

Why Choose the Madeira International Business Centre?

There are many reasons why you might choose to register a company in the Madeira International Business Centre. Here are just a few of the benefits:

  • Low taxation: Companies registered in the MIBC are subject to a corporate tax rate of 5%.
  • Exemption from withholding tax on dividend payments (to individuals not registered in Portugal or in a ‘tax haven’ jurisdiction).
  • Application of the participation exemption regime.
  • State-of-the-art infrastructure.
  • Efficient local support services.
  • Low operational costs.
  • Attractive location, Madeira is a beautiful island with a mild climate, making it a great place to live and work.
  • The MIBC maintains appropriate substance rules which are in line with international tax planning principles. Please see: The Madeira (Portugal) Free Trade Zone – What Tax Benefits Does It Offer And Substance Requirements for more details.

If you are looking for a business-friendly environment with low taxation and a favourable business climate, then the Madeira International Business Centre may be a great option to consider.

Reach out to Dixcart Portugal

If you are interested in learning more about the Madeira International Business Centre, please feel free to reach out to Dixcart Portugal for more information: advice.portugal@dixcart.com.

We would be happy to answer any questions you may have and help you get started.

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