Madeira IBC companies are subject to the same rules and regulations as a normal Portuguese company. They must maintain organized accounts, submit all tax forms, VAT returns and reports for Bank of Portugal;

Madeira companies are only granted with tax benefits on their international activity. Any income generated from inland operations will be taxed at “normal” Portuguese corporate income tax rate;

They access all Double Tax Treaties celebrated by Portugal (approximately 70) and all European Directives fully apply to Madeira IBC companies. They are also subject to the EU initiatives on tax harmonization;

From incorporation these companies are automatically granted with a VAT number valid at VIES. No later application is required;

And, more importantly, all tax benefits granted to these companies have been negotiated and pre-approved by the EU Commission. For such reason, at this very moment, whilst other known jurisdictions are under the attack and surveillance of the EU (such as Luxembourg, Switzerland, Malta and Cyprus), the EU Commission has just now approved Madeira IV Regime, extending it up to the 31st December 2027, maintaining most of its tax benefits and, in with regards to dividends, creating additional benefits as further explained.