SFM New Jurisdiction: Setting up a Company in Portugal (Madeira)

We at SFM are passionate about continuously providing the best service and options for our clients, which is why we extensively research the best jurisdictions where to setup companies. This month we are adding Portugal (Madeira) to our list of jurisdictions.

Officially the Autonomous Region of Madeira (Portuguese: Região Autónoma da Madeira), is one of two autonomous regions of Portugal, the other being the Azores. It is an archipelago situated in the North Atlantic Ocean, in a region known as Macaronesia, just under 400 kilometers to the north of the Canary Islands and 520 kilometers west of the Kingdom of Morocco. Madeira is geologically located on the African Tectonic Plate, notwithstanding being culturally, sociologically, economically, and politically European as is its southern archipelago neighbor.

What are the benefits of establishing a company in Madeira?

The Island of Madeira serves as an important financial, commercial and tourist hub. This is but one of the reasons for the constant influx of entrepreneurs and self-employed freelancing nomads who wish to register a company in Madeira and open an account with a local Portuguese bank.

As well as the low Corporate Tax rate of 14.7% (11.9% up to 25,000 € taxable profit), there are many other benefits of setting up a company in Portugal. For example, the island of Madeira is an autonomous region of Portugal and part of the European Union.

Moreover, one can safely expect lower operation and maintenance costs when forming a company. In addition to the above, enthusiastic entrepreneurs and digital nomads can expect the following favorable conditions for starting their own business in Madeira:

• High rates of economic growth
• A sustainable socio-political situation
• A developed transport infrastructure
• A very secure environment
• Reasonable prices for real estate, goods, and services
• A wonderful attitude towards foreign investment from the authorities
• A modern banking sector
• The opportunity and freedom to hire skilled labor
• A loyal and beneficial tax system
• Low cost of living when compared to other locations, with good quality of life
• Highly evolved IT technology infrastructure, which is great for the nomadic at heart.

The benefits you can expect from this desired jurisdiction do not just end there. In addition, investors from non-EU countries may be eligible for a special visa, enabling them and their immediate family to work or study legally in the country and to travel within the Schengen area, provided that certain minimum amounts are invested.

The investment must be maintained for a minimum period of 5 years. After this initial period, the investor may immediately apply for a permanent residency permit, followed by full Portuguese citizenship application.

Furthermore, Portugal has also established other specialized types of Visas, namely the “Start Up Visa” and “Tech Visa”, with the aim of providing a residence visa for non-EU-Schengen start-up founders who want to establish their businesses and to reside in Portugal, also ensuring that highly qualified staff, especially from the technological area from outside the European Union, can access jobs created by Portuguese companies in a simplified way.

Portugal in general and Madeira (as well as the Algarve) have, over the years, become one of the top European destinations for purchasing property for investment and retirement. This is due to Portugal’s political and social stability, geographic location enabling people from across Europe to fly over in a couple of hours and obviously the fantastic climate.

Being part of the European Union, Euro Zone and Schengen Agreement, the country provides an excellent quality of life and with its wonderful climate, is certainly the main reason it is a premium tourism destination.

These are all factors to consider, making Portugal and Madeira in particular, an excellent choice of location for individuals who wish to gain access to Europe, or for Europeans who wish to obtain a less aggressive personal taxation.

We at SFM, are proud to constantly enhance our scope of services with quality products and services, and the formation of your next company in Madeira will not be the exception.

Contact SFM today to incorporate your Madeira company.