The International Business Centre of Madeira
The lowest VAT rate in the EU (14%)
The MIBC is designated to attract foreign investment in order to diversify and modernize the island’s economy. It has been conceived as a programme of State aid fully approved and supported by Portugal and the European Union, with the objective of providing the investor with a unique package of benefits, offering a wide range of solutions to enhance the efficiency and performance of various forms of investment. The wide scope of activities which may be carried out in the MIBC, ranging from manufacturing and trading to shipping activities, and the various synergies which can be found among themselves, demonstrate that the MIBC has been carefully structured to serve the investor with a global package.
A win-win location for e-business
All companies based outside the EU that sell digital products to private consumers within the EU will need to comply with the EU VAT Directive 2002/38/EC on digital sales applicable as from July, 1st, 2003. The Directive covers digital goods and services supplied in electronic form only, as opposed to physically, over the internet and downloaded by the purchaser. Digital goods and services include broadcasting, web-hosting, software, images, databases, music, videos, films and games, online gambling and distance learning. Companies based outside and inside the EU and making a significant volume of sales to individuals residing in the EU will be required to:
- Register for VAT in one of the EU Member States;
- Charge the VAT rate applicable in that Member State to all EU e-services provided to individuals and unregistered traders;
- Introduce quarterly on-line returns.
- Significantly low corporate taxes, ranging from 1% to 3%;
- Exemption from withholding taxes on dividends, interests and royalties;
- The lowest VAT rate in the EU (14%), with the automatic effects resulting there of.
About Madeira
The Madeira archipelago is a portuguese region situated in the Atlantic Ocean . By plane it takes no longer than tree hours from London , on regular flights.
The archipelago, discovered by the portuguese in 1418, is composed of Madeira and Porto Santo. Actually, the archipelago has nearly 250 thousand inhabitants.
Madeira’s economy is based on tourism – with its high quality hotels, spectacular golf courses, beautiful mountain landscape and a wonderful deep blue sea – has a strong International Business Center, all major services, and a moderate climate all year round.
A modern international airport, a good road network, several hospitals, a public university and an organized wealth care system are granted. Annually, Madeira is visited by 900 thousand tourists, especially from the United Kingdom and Germany . Because Madeira is open to many visitors, the English language is commonly used.
As part of Portugal , the Madeira archipelago is included in the European Union since 1986. The growing “per capita” income is now approximately of the EU average, and the island is known as a very safe region.