Substance Requirements in Madeira |
Companies which aim to benefit from reduced income tax (4% to 5%) until the end of 2020 should begin activity within six months, in the case of international services, and one year, in the case of industrial or shipping activities, starting from the date of licensing, and should observe the following requirements of eligibility:
a) The company must include in its payroll (full-time or part-time) at least one employee or Director;
Only one employee or director must be resident in Madeira.
b) If the company has less than 6 workers (or directors), the company should make an investment of at least €75.000 toward the acquisition of fixed tangible or intangible assets, within the first 2 years of activity. We call your attention to the fact that, the purchase of shares or of any sort of intellectual property worth more than €75,000 is enough to fulfill this requirement.
Holding companies (SGPS) or pure holding companies are not subject to any of these requirements.
As listed below, tax benefits have limits, depending on the number of employees (or directors) under the above referenced conditions:
i) Eur 2 million of taxable goods - 1 to 2 employees
ii)Eur 2,6 million of taxable goods - 3 to5 employees
iii)Eur 16 million of taxable goods - 6 to 30 employees
iv) Eur 26 million of taxable goods - 31 to 50 employees
v) Eur 40 million of taxable goods - 51 to 100 employees
vi) Eur 150 million of taxable goods - more than 100 employees
If taxable goods exceed the limit, the excess will be taxed at 25%.
For more information regarding how to fulfill the above referenced requirements, efficiently, please contact us. | 
