Employment and tax revenues generated by the IBC boost Madeira’s economy

The most recent data concerning tax revenues and job creation in Madeira clearly demonstrates that the International Business Centre of Madeira (IBCM) is a fundamental tool for the development of the regional economy, particularly during this time of pandemic crisis.

As highlighted by the personal income tax generated by the companies operating within the IBC of Madeira, which increased from 4,7% to 6,6% of the total revenue generated, respectively, in 2019 and 2020, the growth of the employment figures in the IBC reflects that, in spite of the world’s pandemic crisis, these companies have shown resilience and ability to continue to contribute to Madeira’s economy and to be a relevant source of employment.

According to the official data released by the Madeira Regional Statistics Department, 3.122 direct jobs were created by the companies operating within the framework of the IBC of Madeira in 2019, which represents an increase of 7,8% in relation to 2018.

The contribution of the IBCM on the island’s economy is further shown by its impact on the overall tax revenues generated in Madeira.

In fact, the data released by the Regional Tax Authority shows that in 2020 nearly 70% of the corporate tax paid on the island was originated by companies from the IBCM.

Moreover, in a particularly difficult year for the regional economy, especially for the tourism sector, which suffered strongly due to the international pandemic crisis, the IBC of Madeira was able to increase its contribution in terms of the overall tax revenues. In fact, the tax revenues generated by the regional economic activities decreased more than €100M in 2020 whilst the sum of the overall tax revenues generated by the companies operating in the IBC amounted to more than €108M. Such amount represents a contribution of 12,7% of the total tax revenue raised on the island.