In addition to its scenic beauty, this Portuguese archipelago offers compelling reasons to invest and work in the region, especially in an era where remote work is increasingly prevalent. Here are five key advantages:

1. Full Integration in the European Union

As an autonomous region of Portugal, Madeira Island enjoys full integration into the European Union (EU). Companies operating in Madeira are subject to EU regulations, including principles like freedom of establishment and provision of services. EU directives apply, ensuring a well-regulated and modern legal framework that safeguards investors' interests. Madeira companies receive a VAT number, granting them unrestricted access to the EU market. Furthermore, the region uses the Euro, reducing operational costs and eliminating exchange rate risk.

With more than 10 direct flights every day to Mainland Portugal and dozens to several other European cities, Madeira is conveniently located to anyone with an international outlook.

2. Low corporate tax rates

The standard corporate tax rate in Madeira is 14,7%. Additionally, companies with international activities that meet certain requirements can be licensed in the International Business Centre of Madeira (IBCM) and benefit from a very attractive tax regime. The IBCM offers a corporate income tax rate of 5% on profits from qualifying operations, an exemption from withholding tax on the payment of services, interest and royalties, exemptions on dividends for non-resident shareholders, a competitive participation exemption regime, and reduced tax rates, among other advantages.

3. Residence permits and a special tax regime for non-habitual residents

Non-EU citizens interested in living in Madeira can obtain temporary residence permits through simplified procedures. These permits are available for various purposes, including investment activities, entrepreneurship, innovation, or highly qualified employment. Non-habitual residents (NHRs) in Portugal, whether EU or non-EU citizens, can also benefit from a special tax regime that offers attractive tax incentives.

Although the current NHR tax regime is being cancelled at the end of 2023, Madeira was allowed by the national Government to, as from 1 January 2024, apply a new regime that mimics the benefits of the current NHR – the only exception being the 10% flat rate applying over foreign sourced pension income.

The new regime (that we are calling “NHR 2.0”) will only apply, however, to those willing to relocate and live in Madeira. More eligibility details are expected in the beginning of 2024, but Madeira is expected to become the hotspot for individuals looking to access, in 2024 and beyond, the tax features that were typical of the NHR.

4. Unbeatable Safety and Quality of Life

Portugal is ranked as the third safest country in the world, and within Portugal, Madeira is known for its low crime rates, making it the safest region in the country. Madeira offers an exceptional quality of life, featuring breathtaking landscapes, beautiful beaches, hiking trails along the famous levadas, and opportunities to practice water sports like surfing and diving. With a welcoming local population (most locals are English-speaking) and a diverse expatriate community of over 8,000 residents, Madeira sets an example for integrating and welcoming foreigners.

5. A Paradise Island with Time to Discover

The quality of life is often a primary motivator for relocating, but in some destinations, the ability to truly enjoy it can be challenging. Madeira's mild climate, long days, and short distances provide an opportunity to balance work and leisure. Residents can manage work, and family, engage in physical activities, and still have time to enjoy the stunning natural beauty, whether it's a walk in the Laurel Forest or a dip in the ocean at sunset. In Madeira, combining work and leisure isn't a cliché; it's a reality.

Keep this in mind!

Madeira presents an enticing opportunity for investors and professionals seeking to work and live in the EU with an excellent quality of life, favourable tax incentives, and a stunning natural environment.

With the support of a local partner like NEWCO, moving to this paradise island can be a seamless and enriching experience.

Featuring 30 years of experience and a versatile, multidisciplinary team, NEWCO assists with business setup and management, personal and business accounting, obtaining necessary documents like a NIF and bank account, acquiring a residence permit, and managing your relocation to Portugal.

Whether you're interested in investing or working in Madeira, NEWCO can guide you through the process smoothly and hassle-free.

Contact us today!