European Commission reinforces tax benefits provided by the IBC of Madeira

The European Commission has agreed to increase by 36,7% the ceilings up to which the taxable profit of companies licensed to operate in the International Business Centre of Madeira (IBCM) may enjoy a reduced corporate tax rate of 5%, one of the lowest in the European Union.

The official approval reinforcing the tax benefits provided by the IBC of Madeira is a clear and positive message to both international investors already operating or interested in developing activities in the International Business Centre of Madeira.

This approval also reflects confidence by the highest European entities in the IBCM’s project, in the medium and long term, given its clear contribution for the diversification, modernization and overall balance of the regional economy.

The decision taken by the European Commission not only enhances the attractiveness of the International Business Centre of Madeira as a preferential tax regime, but it also strengthens Madeira as a solid and credible jurisdiction, formally approved and supported by the European Union, with all the consequent advantages from such status.

Attachments:

European Commission Decision on the State Aid SA.34160 (2011/N) – Amendment of Zona Franca da Madeira scheme