IV Regime - Main Features

» Full integration within the EU legal framework;
» IBC companies can freely access the EU market;
» E.U VAT system is fully applicable and Madeira IBC companies are automatically registered for VAT in the European Union with number validated at VIES
» European Directives apply to Madeira;
» Subject to the EU initiatives on tax harmonization;
» Regime of benefits authorized by the European Commission;
» Wide network of Double Tax treaties (app. 70).

Approved Regime of Benefits: Madeira IBC companies benefit from a reduced corporate income tax rate of 5%. The reduced corporate tax rate applicable is limited to a ceiling linked to the annual taxable income, which varies and is dependent on the number of jobs created as follows:

Job creation Reduced Tax Rate applies to the following taxable income
1 -2 € 2,73 Million
3 - 5 € 3,55 Million
6 - 30 € 21,87 Million
31 - 50 € 35,54 Million
51 - 100 € 54,68 Million
over 100 € 205,50 Million


The application of the reduced corporate income tax rate will also imply the fulfilment by the Company of a minimum investment of € 75.000,00 euros within the first 2 years of activity. Such requirement, however, is waived if the Company creates 6 or more jobs within the first six months of activity.