What are the requirements for the 5% rate in Madeira?

Create 1–5 jobs in the first 6 months of operation and invest €75,000 in fixed assets within the first 2 years, or create 6 or more jobs. The company must begin operating within 6 months of licensing.

Which income does the 5% rate apply to?

Profit from operations with non-residents of Portugal or other MIBC companies — up to a ceiling that depends on the number of employees (from €2.73M with 1–2 employees). Operations with Portuguese companies are taxed at Madeira's regional rate of 13%.

Is Madeira an offshore jurisdiction?

No. MIBC is an official state-aid regime approved by the European Commission. Companies. An MIBC company is a full Portuguese EU company with access to all double-taxation treaties.

PORTUGAL · MADEIRA · IBC

A company in

Q: Until when can you get an MIBC license with the 5% tax?

Licenses under the current regime (Regime IV) are issued until 31 December 2026. The 2026 State Budget locked in the benefits for licensed companies until 31 December 2033. A new post-2026 regime is still under negotiation with the EU, so it's worth securing your license during 2026.

Madeira

A 5% corporate tax rate in the Madeira International Business Centre

BOOK A CONSULTATION

Take advantage of the special tax regime of the Madeira International Business Centre (IBC). Madeira's free trade zone offers an attractive environment and significant tax benefits for companies across many sectors

TAX BENEFITS

Key benefits of
a Madeira company

Reduced IRC rate

For operations with non-resident companies or other MIBC companies. Operations with Portuguese companies use the standard rate

Dividends, interest, royalties

Non-residents of Portugal (except blacklisted jurisdictions) receive dividends with no withholding tax. 0% also applies to payments of interest, royalties and services abroad

−80%

Local taxes and duties

An 80% exemption from stamp duty, property tax (IMI) and property-transfer tax (IMT) on assets used in MIBC activities

A window of opportunity: new licenses under the current regime are issued only until 31 December 2026. The 2026 State Budget locked in the benefits for licensed companies until 31 December 2033. The next regime is still under negotiation with the EU, so registration should be completed in 2026

REQUIREMENTS · SUBSTANCE

Conditions to access
the 5% rate

MIBC is not an offshore scheme but a regime approved by the European Commission. The benefits are available to companies with a real presence on the island — we help you meet the requirements: from hiring staff to a registered address

Create 1–5 jobs in the first 6 months + invest €75,000 in fixed assets within 2 years — or create 6+ jobs with no investment

Begin actual operations within 6 months of receiving the license (12 months for industrial and shipping activities)

The 5% rate applies up to a profit ceiling based on the number of employees: €2.73M (1–2), €3.55M (3–5), €21.87M (6–30)

Permitted activities: international trade and e-commerce, consulting and management services, IT and telecoms, intellectual-property holding, holding companies, and shipping (the MAR register)

PRICE · PACKAGE

Registration and license
done for you

SERVICE FEE

€3500

Full support for registering the company and obtaining the IBC license in Madeira

BOOK A CONSULTATION

What's included

Company registration

Full support for registration and obtaining the Madeira IBC license

Corporate account

Help opening a corporate bank account

Additional services

Sourcing and hiring staff in Madeira

FAQ

Frequently asked
questions

Didn't find your answer? Ask us during the free express consultation

Until when can you get a license with the 5% tax?

Licenses under the current regime are issued until 31 December 2026, with benefits running to 2033. We recommend completing registration before December 2026 — the procedure takes a few weeks

Do I have to live in Madeira?

No. The shareholder and director can be non-residents. But the company must have a real presence: a registered address and at least one employee who is a Madeira tax resident. We help with hiring

How are operations within Portugal taxed?

The 5% rate applies only to international operations. Income from Portuguese counterparties is taxed at Madeira's regional rate — 13% (still below the mainland's 19%)

OFFICIALLY IN PORTUGAL SINCE 2019