Newly approved IV Regime

Reduced corporate tax rates (5%) until 2027;

No withholding taxes on dividend (and reserves) payments to non resident shareholders (provided the same are not resident in Portugal or in blacklisted jurisdictions) and no taxation (corporate income tax) on dividends and reserves received from subsidiaries (applicable criteria) as these profits are removed from the taxable income;

No taxation of capital gains upon sale of subsidiaries (applicable criteria) and, as well, on capital gains originated upon disposal - by non-resident shareholders - of participation held in Madeira IBC Company;

No withholding taxes upon payment of royalties and services to non-resident entities, as well as upon interest payment (under certain conditions), as well as possible application of the EU Directive on Interest and Royalties);

Possible tax credit mechanism (in order to avoid international double taxation) and possibility to use tax credit for 5 years;

No capital duty as well as no Registration or Notarial fees;

Taxation on to Stamp Tax, Real Estate Transfer Tax (IMT), Annual Municipal Tax on Real Estate (IMI), Municipal Surtax (“derrama municipal”) and Regional Surtax (“derrama regional”)shall be exempt up to 80% of said taxes.