EU approves Madeira's Tax Regime until the year 2020

Funchal, 2nd of July 2007 – European Commission’s press release on the extension of the regime of the Free Trade Zone of Madeira, approved last 27th of June, states that “the aid is intended to promote regional development in Madeira by enabling companies established in this outermost region to overcome their structural handicaps”.

The European Commission has approved the extension of Madeira's preferential tax regime until the year 2020. As such, new companies licensed as of this year and until the end of 2013 will enjoy reduced corporate tax rates of 3% between 2007 and 2009, 4% between 2010 and 2012 and 5% between 2013 and 2020, in addition to various others tax benefits.

Companies licensed to operate within Madeira's International Business Centre before the year 2001 will continue to benefit from a full exemption from corporate tax until the end of 2011. As of 2012, such companies will fall under the new regime now approved by the EU and which shall be valid until the year 2020.

For further information and reference, please visit the European Commission's press release issued last Wednesday, June the 27th.