Dmitri Mihhailov
Managing Partner
Founder of Prifinance. 15+ years structuring international companies, banking and licensing for founders worldwide.
Register a company in Madeira, five percent, fully European.
Set up in Madeira remotely: the EU-approved International Business Centre taxes qualifying international income at 5%, inside Portugal, inside the union, with treaties and directives attached. The deal is explicit - the 5% is bought with real jobs and investment, benefit caps scale with headcount, and the regime runs on windows we track.Madeira remotely: the EU-approved IBC taxes qualifying international income at 5%, inside Portugal, treaties attached. The deal: the rate is bought with real jobs and investment, and we track the regime's windows.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
6,000+
companies servedcompanies served
Updated
Madeira · at a glance
Legal formLda · Portuguese LLC
Time to set up1-2 weeks
IBC rate5% - qualifying income
Standard Madeira rate14.7% · SME 8.75%
SubstanceJobs + investment - real
Remote setupYes - by POA
4.7
★★★★★
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Madeira in brief
The EU's legal five percent.
Madeira is Portugal with a superpower: the International Business Centre (IBC), a state-aid regime approved by Brussels itself, taxes licensed companies at 5% on qualifying international income - with EU directives, Portuguese treaties and a real European flag attached. Even outside the IBC, the island undercuts the continent: Madeira's standard corporate rate is 14.7% with 8.75% on an SME's first €50,000. Add the MAR, one of Europe's most-used international ship registers, and an island that made itself a magnet for remote teams, and the geography starts earning its keep.
The 5% is a contract, not a loophole, and it reads like one: licensed companies must create jobs (from one, with €75,000 invested within two years - or six-plus jobs without the investment test) and the tax benefit is capped in proportion to headcount. Brussels approves the regime in windows; admissions and benefits run to fixed dates we confirm live at application, not from memory. Financial services sit outside the IBC's scope. This is substance-priced Europe at 5%: teams, shipping and international services that genuinely operate qualify beautifully. A letterbox won't survive the audit, and we tell you which side you're on before anything is filed.
Portugal with a superpower: the Brussels-approved IBC at 5% on qualifying international income, the MAR ship register, and, without any licence, a 14.7% standard rate with 8.75% on an SME's first €50k. Remote talent moves here voluntarily.
The 5% is a contract: one job in six months plus €75k invested (or six jobs), benefit caps scaling with headcount, admission windows set with Brussels. Finance sits outside the scope. Real teams qualify beautifully; letterboxes don't.
Packages & pricing
Madeira company - cost & packages.
01 - LDA · SOCIEDADE POR QUOTAS
Company
from€2,900EUR · all-in
Remote registration of a Madeira Lda - founding documents, commercial-registry filing, tax and VAT numbers and the first year of the registered address included. IBC licensing scoped alongside.
✓Founding documents & registry filing✓IBC licence application where it fits✓NIF tax numbers for company & owners✓Registered address in Funchal - first year✓Tax & VAT registration handled✓Free pre-incorporation consultation
Optional add-ons: IBC licence & substance plan - scoped per case · MAR ship registration - scoped per case · accounting - from €250/month · renewal - from €2,200/year.Add-ons: IBC licence per case · MAR registration per case · accounting from €250/month · renewal from €2,200/year.
Start with Company →02 - LDA · SOCIEDADE POR QUOTAS
Most popularCompany + Bank Account
from€4,900EUR · all-in
A working Madeira Lda with an account - a Portuguese bank or fintech, euro-native, arranged with our support.
✓Everything in Company✓Account with a Portuguese bank or fintech✓Account application & KYC file preparation✓Introduction to 2-3 suitable institutions✓Compliance onboarding support✓Dedicated account manager
Start with Banking →Prices below are openers; the fixed quote precedes the work. Registry and IBC licence fees are itemised.Opening figures; the fixed quote precedes the work. Registry and licence fees itemised.
What you can do
Popular uses for a Madeira company.
An Lda may run almost any lawful business; the IBC covers international services, trading and shipping. Financial services sit outside its scope, full stop.The IBC covers international services, trading and shipping; finance sits outside, full stop.
International services at 5%licensed
Consulting, IT, marketing and management services to non-Portuguese clients. The IBC's core.
International tradinglicensed
Goods flows routed through an EU company taxed at 5% on qualifying profit.
Shipping - MARlicensed
One of Europe's most-used ship registers, with IBC taxation and EU standing.
Tech & remote teams
The island courts them deliberately. Hire where your developers already want to live.
Holding structures
Portugal's participation exemption layered on IBC or standard rates.
E-commerce
EU VAT machinery with Madeira's rates underneath.
Services at 5%licensed
The IBC's core case.
International tradinglicensed
EU company, 5% qualifying.
Shipping - MARlicensed
EU flag, IBC economics.
Tech & remote teams
Talent already wants in.
Holding structures
Participation exemption.
E-commerce
EU VAT, island rates.
Why Madeira
Key advantages of the jurisdiction.
✓
5% with EU blessing
A state-aid regime approved by Brussels. Not a haven, a licensed European rate.Licensed, not loopholed.
✓
Portugal's full toolkit
Treaties, directives, participation exemption and the euro. Everything Lisbon has, Madeira has.Treaties, directives, euro.
✓
14.7% without the licence
The standard regional rate already beats most of Europe; SMEs pay 8.75% on the first €50k.SMEs 8.75% first €50k.
✓
The MAR register
EU-flag shipping with IBC economics. Quality tonnage chooses it deliberately.Quality tonnage chooses it.
✓
Talent that wants in
Remote workers move to Madeira voluntarily. Hiring substance here is easier than it sounds.Hiring substance made easy.
✓
Substance, priced upfront
Jobs-linked caps mean the regime rewards real teams. Which is why it survives Brussels review.Why it survives Brussels.
How it compares
Madeira next to the low-rate EU shortlist.
The Canaries' ZEC runs a similar logic at 4% with its own caps; Malta refunds its way to ~5% through complexity; Ireland and Cyprus charge 12.5% without job strings. Madeira sells the licensed 5% with Portuguese plumbing. Figures current as of 2026.ZEC: 4%, Spanish plumbing. Malta: refund maze to ~5%. Ireland & Cyprus: 12.5%, no job strings. Madeira: the licensed 5%. As of 2026.
| Regime | Effective rate | Conditions | Signature edge |
|---|---|---|---|
| Madeira IBC | 5% | Jobs + investment | EU-approved · MAR shipping |
| Canary ZEC | 4% | Jobs + investment | Same logic, Atlantic Spain |
| Malta refunds | ~5% | Refund mechanics | Complexity as a feature |
| Ireland | 12.5% | Trading substance | English + ecosystem |
| Cyprus | 12.5% | Light | Non-dom dividends |
Madeira IBC5% licensed
Effective rate5%
Conditionsjobs + invest
Canary ZEC4%
Effective rate4%
Conditionsjobs + invest
MaltaRefunds
Effective rate~5%
Conditionsmechanics
Ireland12.5%
Effective rate12.5%
Conditionstrading
CyprusNon-dom
Effective rate12.5%
Conditionslight
Requirements
What the IBC actually demands.
01
One shareholder - Individual or company, any nationality. 100% foreign ownership is standard.
02
Director - At least one; NIF tax numbers for all involved. The practical first step we handle.
03
Jobs - From one employee within six months (with €75k invested in two years). Or six-plus jobs without the investment test.
04
Benefit caps - The 5% applies to taxable bases capped by headcount tiers. More jobs, more capacity. We model yours.
05
Registered address - A Madeira seat - included; real offices arranged where the substance plan needs them.
06
Accounts & filings - Portuguese accounting, e-invoicing and annual filings. Our accountants carry them.
How it works
From application to a licensed company in weeks.
Our lawyers run the registry and the IBC administration (SDM) in parallel; you sign by POA, and the licence travels with the incorporation.NIFs, incorporation, SDM licence, tax activation: one to two weeks plus the licence; the hiring clock calendared at once.
01Same day
Free consultation
We test the substance math first: jobs, caps, investment. If standard Madeira or another flag fits better, that is what we propose.
022-4 days
NIFs & KYC
Portuguese tax numbers for founders, passports, proof of address.
033-5 days
Incorporation
The Lda registers at the commercial registry.
041-2 weeks
IBC licence
The SDM licence application lands the company in the regime.
053-5 days
Tax & VAT
Registrations activated; e-invoicing configured.
061-2 weeks
Banking & hiring
Account opened; the first hire's clock starts. We calendar it.
Quick facts
Legal formLda
IBC rate5% qualifying
Standard rate14.7% · SME 8.75%
Jobs requirement1+ (with €75k) or 6+
Standard timeline1-2 weeks + licence
VAT (Madeira)22%
Renewal & accountingFrom €2,200/year
The six-month hiring clock is the deadline clients underestimate - we calendar it at licensing, not at the audit.
On the ground
On the ground in Madeira.
Prifinance - Madeira
Funchal
Funchal, Madeira, Portugal
01
IBC specialists
Your setup is run by a team that files Madeira licences and Portuguese incorporations every month.
02
Registry & SDM handled
NIFs, incorporation, the IBC licence and tax activation. Sequenced correctly the first time.
03
Substance built to audit standard
Hiring plans, offices and the jobs calendar sized to your benefit caps. So the 5% survives review.
04
Also in Tallinn, London, Dubai & more
A network of offices across Europe, the Gulf and the Americas. One team for your whole international structure.
We also have offices in
Tallinn
Estonia
Roseni 13
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Berlin
Germany
Rankestraße 26
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
Dubai
UAE
33 Level, Al Saqr Business Tower
Toronto
Canada
1110 Finch Avenue West, suite 406
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Almaty
Kazakhstan
Republic Square 13
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation 2026
Five licensed, fifteen standard.
IBC-licensed companies pay 5% on qualifying international income, within caps that scale with jobs; income outside the regime pays Madeira's standard 14.7% (8.75% on an SME's first €50,000, already the EU's low end). Dividends from IBC income flow to non-resident shareholders without Portuguese withholding, and the participation exemption covers qualifying stakes.5% on qualifying IBC income within jobs-linked caps; 14.7% standard (8.75% SME); 0% WHT on IBC dividends out; VAT 22%.
IBC - 5%
Qualifying international income, capped by headcount tiers. The contract with Brussels.Capped by headcount tiers.
Standard - 14.7%
Madeira's regional rate beats most of Europe even without the licence; SMEs at 8.75% first.8.75% on SME's first €50k.
Dividends out
IBC profits reach non-resident shareholders free of Portuguese withholding.0% WHT from IBC income.
VAT - 22%
Madeira's regional VAT, a point below the mainland; exports and intra-EU zero-rated.A point below the mainland.
Levies in 2026
IBC qualifying income5%
Standard Madeira rate14.7%
SME first €50k8.75%
Dividends (IBC, non-res.)0% WHT
VAT (Madeira)22%
Renewal & accountingFrom €2,200/year
Regime windows have fixed admission and benefit dates set with Brussels; we confirm the live calendar at application rather than quoting from memory.
Your team
The specialists who'll handle your case.
Eugeniu Bevziuc
International Business Consultant
Guides clients from the first consultation to a working setup - companies, accounts and substance in 60+ jurisdictions.
Alex Danila
Corporate Services Specialist
Handles incorporation paperwork, KYC and bank introductions so your Madeira company launches without delays.
Follow Prifinance
Active across our channels.
Watch: opening a company in Madeira with Prifinance
The EU's licensed five percent - company, licence, substance and bank in one properly-built project. Full support, start to finish.
Talk to a specialist →FAQ
How the IBC really works.
Can I open a Madeira company without visiting?+
Yes. NIF numbers, incorporation, the IBC licence and tax registrations all run by power of attorney; Portuguese banks and fintechs onboard mostly by video. Many founders first visit Madeira when they hire there - which, given the island, tends to happen.
How much does it cost?+
Turnkey registration starts from €2,900 including registry fees and the first-year address, with the IBC licence scoped alongside. With banking, packages start from €4,900. Renewals with accounting run from €2,200 a year; substance costs (salaries, office) depend on your benefit plan and we model them upfront.
How does the 5% actually work?+
Licensed IBC companies pay 5% corporate tax on qualifying international income (services and trade with non-Portuguese counterparties) within a taxable-base cap that grows with your headcount tier. Income above the cap or outside the scope pays Madeira's standard 14.7%. It is a Brussels-approved contract: real benefits for real jobs, and we size both before you commit.
What are the job requirements exactly?+
The entry ticket: create at least one job within six months and invest €75,000 in fixed assets within two years, or create six-plus jobs and skip the investment test. The benefit cap then scales with employment. Madeira's remote-work boom makes hiring here easier than the paper suggests; we build the hiring plan into the licence calendar.
Until when does the regime run?+
The IBC operates in windows agreed with Brussels: fixed admission deadlines and benefit horizons, extended repeatedly but never guaranteed. We confirm the live dates at your application rather than quote from memory, and structure so the company remains excellent even at standard Madeira rates.
What if I don't take the IBC licence?+
Madeira still holds up on its own: 14.7% standard corporate tax, below Ireland's headline, and 8.75% on an SME's first €50,000, with Portugal's full treaty network and participation exemption. For businesses that can't or won't carry the jobs commitment, the unlicensed island is a legitimate answer in itself.
What is the MAR ship register?+
Madeira's international shipping register: an EU flag with IBC taxation, real port-state standing and none of the flag-of-convenience smell. Quality tonnage and yacht structures choose it deliberately, and we run vessel registrations alongside the corporate work.
How is banking?+
Portuguese-normal: Millennium BCP, Novo Banco, Santander and fintechs onboard foreign-owned companies with standard EU KYC: ownership chain, business story. The IBC licence reads as legitimacy, not risk. We prepare the file and route to the institution that fits.
Madeira or the Canary Islands ZEC?+
The Atlantic twins: ZEC offers 4% with its own jobs-and-investment conditions under Spanish plumbing; Madeira offers 5% with Portuguese treaties, the MAR register and, many clients find, the easier hiring story. Shipping and lusophone flows lean Madeira; Spanish-market plays lean ZEC. We run both files side by side.
How long does it take?+
Plan one to two weeks for the company and tax setup, with the IBC licence adding one to two more. The clocks that matter start after: six months to the first hire, two years to the investment test. We calendar them at licensing - deadlines here are commitments, not suggestions.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
More from Prifinance
Other jurisdictions & licenses.
Free consultation
Start your Madeira company today.
Tell us about the business, and a specialist replies within one business day: IBC licence, standard Madeira or a different flag, with a timeline and a fixed quote.A Madeira specialist replies within one business day with a recommendation, a timeline and a fixed quote.
✓No obligation; the first consultation is free✓Substance math tested before you spend✓Transparent fixed fees, confirmed up front✓EN · RU speaking team