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15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the CMVM authorisation, including banking and payment rails.
Forex license in Madeira: CMVM licence, outside the 5% regime.
A forex license in Madeira is a Portuguese investment-firm authorisation from the Comissão do Mercado de Valores Mobiliários (CMVM); there is no Madeira licence. A market maker needs €750,000 of capital, and the CMVM decides within six months of a complete file. The free zone's 5% rate excludes financial firms, so a Funchal broker pays 13.3% corporate tax in 2026. We run the file from our own Funchal office.
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Licenses obtainedlicenses obtained
Updated · Reviewed by the Prifinance team
Madeira in brief
Forex license in Madeira: a Portuguese licence, without the 5% rate.
Madeira has no forex licence of its own. A broker based in Funchal is a Portuguese investment firm (empresa de investimento) authorised by the CMVM under the investment-firm regime (Regime das Empresas de Investimento, REI) approved by Decree-Law 109-H/2021 of 10 December. That decree-law transposed the IFD, replaced Portugal's separate types of investment firm with a single type whose duties follow the scope of its authorisation, and concentrated the supervision of these firms in the CMVM. The REI has applied since 1 February 2022. Services are those of arts. 290.º and 291.º of the Securities Code (Código dos Valores Mobiliários, CVM), and a CFD market maker needs dealing on own account. Capital follows IFD Art. 9: €750,000 for dealing on own account, €150,000 for a firm holding client money, €75,000 for one holding neither. MiFID II Art. 7(3) gives the CMVM six months from a complete application.
The 5% rate does not apply. Madeira's International Business Centre (IBC) regime, in art. 36.º-A of the Tax Benefits Statute (Estatuto dos Benefícios Fiscais, EBF), taxes companies licensed by 31 December 2026 at 5% until 31 December 2033, and for services only on income from non-residents and other IBC entities. Each company must create jobs within six months and, with fewer than six, invest at least €75,000 in fixed assets within two years. Art. 36.º-A n.º 8 a) then excludes entities whose main activity falls in NACE Rev. 2 section K, financial and insurance activities (non-financial holding companies aside), and SDM, the IBC concessionaire, says brokerage does not qualify. The regime works for qualifying non-financial businesses; a broker is not one. A CMVM-licensed broker in Funchal pays the regional corporate tax instead: 13.3% in 2026 under Decreto Legislativo Regional (DLR) 8/2025/M, 10.5% on the first €50,000 for SMEs, against 19% on the mainland.
A Portuguese investment-firm authorisation from the CMVM under the REI (DL 109-H/2021): capital €75k/€150k/€750k, six months from a complete file, passport to the other 29 EEA states.
Madeira's 5% IBC rate excludes NACE section K, so brokers cannot use it. A Funchal broker pays 13.3% regional tax in 2026 and 10.5% on the first €50,000 if it is an SME.
The two regimes
One CMVM licence, and a 5% regime it cannot use.
Since 2022 Portugal has had one type of investment firm, licensed by the CMVM wherever in the country its seat is. The Madeira free zone is a tax regime rather than a licence, and a broker cannot enter it.
One national CMVM licence; the IBC 5% regime excludes brokers.
01 - CMVM INVESTMENT FIRM · DEALING
The Portuguese investment firm in Funchal
A Funchal CFD broker holds the national CMVM authorisation for dealing on own account, often with execution and reception and transmission beside it, and €750,000 of initial capital. An agency broker holding client money needs €150,000. From the end of the third month after authorisation, the CMVM charges a supervision fee of at least €750 a month.
A Funchal CFD broker holds the national CMVM authorisation for dealing on own account, often with execution and reception and transmission beside it, and €750,000 of initial capital. An agency broker holding client money needs €150,000. From the end of the third month after authorisation, the CMVM charges a supervision fee of at least €750 a month.
- ✓Dealing on own account for market making
- ✓€750,000 initial capital, IFD Art. 9
- ✓€150,000 agency class with client money
- ✓CMVM fee from €750 a month
- ✓Retail CFDs under Regulation 5/2019
- ✓Passport to the other 29 EEA states
02 - IBC FREE ZONE · 5%
NACE section K excludedThe 5% rate a broker cannot use
EBF art. 36.º-A gives IBC companies licensed by 31 December 2026 a 5% rate until 31 December 2033. Its n.º 8 a) shuts out entities whose main activity is in NACE section K, which is where an investment firm sits (only non-financial holding companies are carved back in), and SDM lists brokerage among the services that do not qualify. A group's non-financial companies in Madeira are a separate question, checked against the same article.
5% until 2033, but NACE section K is excluded.
- ✓5% until 31 December 2033
- ✓Licences issued until 31 December 2026
- ✓1-5 jobs and €75,000, or 6+ jobs
- ✓Services income: non-residents, IBC firms
- ✓Section K excluded - n.º 8 a)
- ✓Dividend exemption tied to 5% profits
Costs and timelines are confirmed for your case before any work begins. The CMVM's one-off authorisation fee is confirmed with the CMVM before we quote, with contributions to the Sistema de Indemnização aos Investidores (SII) and the regional surcharge (derrama regional) itemised beside it.
Why Madeira
What Funchal gives a CMVM-licensed broker.
Madeira cuts a broker's corporate tax by 30% against the mainland rate in 2026; it does not open the free-zone 5%.
✓
13.3% against the mainland's 19%
DLR 8/2025/M, Madeira's budget for 2026, sets the regional corporate tax at 13.3% in art. 19.º, where mainland companies pay 19% for periods starting in 2026 under Lei 64/2025. The 2026 budget keeps the maximum regional reduction of 30%.Against 19% on the mainland.
✓
10.5% on the first €50,000
SMEs and Small Mid Caps pay 10.5% on the first €50,000 of taxable profit in Madeira in 2026. On the mainland the same slice is taxed at 15%.First €50,000 for SMEs.
✓
The 5% is not for brokers
EBF art. 36.º-A n.º 8 a) excludes entities whose main activity falls in NACE section K, financial and insurance activities. A CMVM licence does not change that, because the exclusion turns on the activity, whoever the regulator is.Section K excluded, n.º 8 a).
✓
One national licence
A seat in Funchal changes nothing on the licensing side. The CMVM authorisation is the national one, and it passports into the other 29 EEA states on notification under MiFID II Art. 34.Passport to the other 29 EEA states.
✓
Supervision from €750 a month
Portaria 60/2022 sets the CMVM's monthly supervision fee at a minimum of €750, or €9,000 a year, from the end of the third month after authorisation. A firm authorised to register and hold clients' instruments pays by the value held, up to €37,500 a month.CMVM supervision fee minimum.
✓
One firm type since 2022
Since DL 109-H/2021 Portugal has one kind of investment firm, with duties set by the services authorised, and registration follows automatically from the CMVM's authorisation. A broker no longer picks a legal category before it picks its services.Since DL 109-H/2021.
How it compares
How Madeira differs from other routes.
Malta reaches 5% for a broker through a shareholder refund; Cyprus taxes at 15% and Spain at 25%. In 2026 Madeira's 13.3% sits below Cyprus and Spain, with no refund cycle and, for now, no regional rate set beyond the year.
Madeira vs other jurisdictions
| Feature |  Madeira | Other jurisdictions |
|---|---|---|
| Corporate tax 2026 | 13.3% regional · 10.5% on first €50,000 | 19% mainland Portugal · 15% Cyprus · 25% Spain |
| 5% rate for a broker | No - NACE section K excluded | Malta: 5% effective after refund |
| Supervision fee | CMVM from €750 a month | Malta €17,500 minimum (2026) · Spain 0.1% of required own funds |
| Retail CFD rules | CMVM Regulation 5/2019 · 30:1 to 2:1 | Spain adds a retail CFD ad ban (2023) |
Corporate tax 2026
Madeira13.3% regional · 10.5% on first €50,000
Other jurisdictions19% mainland Portugal · 15% Cyprus · 25% Spain
5% rate for a broker
MadeiraNo - NACE section K excluded
Other jurisdictionsMalta: 5% effective after refund
Supervision fee
MadeiraCMVM from €750 a month
Other jurisdictionsMalta €17,500 minimum (2026) · Spain 0.1% of required own funds
Retail CFD rules
MadeiraCMVM Regulation 5/2019 · 30:1 to 2:1
Other jurisdictionsSpain adds a retail CFD ad ban (2023)
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Madeira | CMVM investment firm - REI | 13.3% regional IRC (2026) | IFD €75k-€750k, CMVM fee from €750/month |
 Cyprus | CySEC CIF | 15% CIT (2026) | IFD €75k-€750k, EU passport |
 Malta | MFSA investment services licence | 35% · 5% after refund · 15% final option | IFD €75k-€750k, €15,000 fee (2026) |
 Spain | Sociedad de valores - CNMV | 25% · 23% below €10m turnover | €750k SV / €150k AV, €10,000 fee, ad ban |
MadeiraLicense typeCMVM investment firm - REI
Taxation13.3% regional IRC (2026)
RequirementsIFD €75k-€750k, CMVM fee from €750/month
CyprusLicense typeCySEC CIF
Taxation15% CIT (2026)
RequirementsIFD €75k-€750k, EU passport
MaltaLicense typeMFSA investment services licence
Taxation35% · 5% after refund · 15% final option
RequirementsIFD €75k-€750k, €15,000 fee (2026)
SpainLicense typeSociedad de valores - CNMV
Taxation25% · 23% below €10m turnover
Requirements€750k SV / €150k AV, €10,000 fee, ad ban
European Union
Forex licences in neighbouring jurisdictions
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Before you apply
Forex license requirements in Madeira: what the CMVM checks.Madeira forex license requirements.
The CMVM applies the same national rules to a Funchal applicant as to any other in Portugal, on top of the MiFID II minimum. The ten items below are what a market maker's file has to show.
01
Portuguese company - registered office and head office both in Portugal (MiFID II Art. 5(4)); a Funchal seat meets the rule, and the IBC's head-office conditions play no part in the licence.
02
Initial capital - €750,000 for dealing on own account, €150,000 for an agency firm holding client money, €75,000 for one holding neither, the IFD Art. 9 levels that DL 109-H/2021 transposed.
03
Programme of operations - the CVM art. 290.º and 291.º services applied for, the business model and the organisation, with the content set by Delegated Regulation (EU) 2017/1943.
04
Management - at least two persons who effectively direct the business, each of good repute and with the knowledge, skills and time the role needs (MiFID II Art. 9).
05
Qualifying shareholders - every holder of 10% or more shown to be suitable under MiFID II Art. 10-13, which also set a 60-working-day assessment for later acquisitions.
06
Control functions - compliance, risk management and internal audit, and any outsourcing arranged so that the firm keeps its substance (MiFID II Art. 16).
07
Client money - segregated, never used for own account, and deposited with a central bank, an EU credit institution or a qualifying money-market fund (Delegated Directive 2017/593 Art. 2-4).
08
Investor compensation - participation in the Sistema de Indemnização aos Investidores (SII) under DL 222/99, compulsory for investment firms with their seat in Portugal.
09
Retail CFD conduct - CMVM Regulation 5/2019: initial margin from 3.33% (30:1) to 50% (2:1), close-out at half the initial margin, negative balance protection, no benefits beyond realised profits, and a risk warning recalculated every quarter.
10
AML/CFT - a programme under Lei 83/2017, with the CMVM as AML supervisor of investment firms and suspicious transactions reported to the DCIAP and the Unidade de Informação Financeira (UIF).
01
Head office in Portugal: Funchal works.
02
Capital per IFD class.
03
Programme of operations.
04
Two managers directing the business.
05
10% shareholders suitable.
06
Compliance, risk, internal audit.
07
Client money segregated.
08
SII participation.
09
Regulation 5/2019 conduct.
10
AML under Lei 83/2017.
Reflects DL 109-H/2021, CMVM Regulation 5/2019, Portaria 60/2022 and MiFID II as of October 2026. The CMVM's forms and the current text of the REI are checked again before filing.DL 109-H/2021 + Regulation 5/2019 + Portaria 60/2022 + MiFID II, as of 2026.
Verify it yourself
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawTax Benefits Statute art. 36.º-A - Madeira Free Zone regime - Portal das Finançasinfo.portaldasfinancas.gov.pt
- LawMadeira 2026 regional budget (Decreto Legislativo Regional n.º 8/2025/M) - Diário da Repúblicafiles.diariodarepublica.pt
- RegulatorCMVM Regulation 5/2019 on CFDs and binary options - Diário da Repúblicafiles.diariodarepublica.pt
- FeesCMVM supervision fees (Portaria n.º 60/2022) - Diário da Repúblicafiles.dre.pt
- GuidanceIBC of Madeira (SDM) - International Servicesibc-madeira.com
How it works
From the tax check to the CMVM authorisation.
01
Activity and tax check
Market maker or agency, and a written check that the main activity sits in NACE section K, so the model starts from 13.3% and never from 5%.Section K confirmed; 13.3% modelled.
02
Company in Funchal
Incorporation with registered and head office in Funchal, the capital for the chosen class and the managers in place.Funchal seat, capital, managers.
03
CMVM application
The programme of operations, policies and people filed with the CMVM, with the one-off fee confirmed with the CMVM beforehand.Filed with the CMVM.
04
Review
Questions answered until the CMVM holds a complete file. MiFID II Art. 7(3) then gives six months.Six months from a complete file.
05
Authorisation and launch
Registration follows automatically, the supervision fee starts after the third month, SII participation begins and the passport notifications go out.Fee after month three; passports.
Quick facts
RegulatorCMVM
RegimeREI · DL 109-H/2021
Own account€750,000
With client money€150,000
CMVM supervision feeFrom €750 a month
Statutory decision6 months · MiFID II Art. 7(3)
Madeira tax 202613.3% · no 5% IBC rate
Our planning range9-12 months
MiFID II's six months run only from a complete file, and drafting and incorporation come first. We plan for 9-12 months from the first draft to the CMVM's authorisation.
On the ground in Madeira
Run from our own Funchal office.
Prifinance - Madeira
Funchal · Madeira, Portugal
Rua da Alegria 31, 1F, Funchal, Madeira
01
Funchal company formation
A Portuguese company with registered and head office in Funchal, its capital paid in, and two managers the CMVM can assess.Seat and head office in Madeira.
02
The CMVM file
The programme of operations, policies, control functions and the Regulation 5/2019 conduct pack, assembled at Rua da Alegria 31 and filed with the CMVM.Programme, policies, conduct pack.
03
Tax model before the seat
Regional IRC at 13.3%, the derrama regional above €1.5 million of profit and dividend withholding, modelled before incorporation, with no 5% rate assumed anywhere.13.3%, derrama, dividends; no 5%.
04
SII and passports
Participation in the investor compensation scheme, then a passport notification for each EEA state the business plan names.Compensation scheme, EEA notifications.
We also have offices in
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of forex brokers in Madeira.
13.3% regional corporate tax in 2026, 10.5% on the first €50,000 for SMEs and a derrama regional above €1.5 million of profit - without the 5% rate and without the IBC dividend exemption.
Regional IRC 13.3% in 2026
Art. 19.º of DLR 8/2025/M amends DLR 2/2001/M and sets the Madeira rate of corporate income tax (IRC) at 13.3% for 2026, down from 14% in 2025.DLR 8/2025/M, art. 19.º.
10.5% for SMEs
An SME or Small Mid Cap pays 10.5% on its first €50,000 of taxable profit in Madeira in 2026, after 11.2% in 2025.First €50,000.
The mainland rate is falling
Lei 64/2025 of 7 November cuts mainland IRC from 19% in 2026 to 18% in 2027 and 17% from 2028. Madeira has set no regional rate beyond 2026, so the gap after next year is not yet known.18% in 2027, 17% from 2028.
Derrama regional above €1.5 million
Where the mainland adds derrama estadual of 3% on taxable profit between €1.5 million and €7.5 million, 5% up to €35 million and 9% above, Madeira levies a derrama regional instead, and the 2026 budget keeps the maximum 30% reduction on it.Above €1.5m of profit.
Dividends to non-residents
A CMVM broker's dividends start from the general rule: 25% for non-residents without a Portuguese permanent establishment (CIRC art. 87.º n.º 4), 35% in listed privileged-tax jurisdictions. The IBC shareholder exemption needs profits taxed at 5%, so it does not apply; Madeira's 30% reduction of withholding rates, treaty and EU relief are confirmed per structure.25% general rule; 35% listed.
VAT-exempt FX and securities
CIVA art. 9.º n.º 27 exempts operations in currencies (d) and operations in shares, bonds and other securities, negotiation included (e); simple safekeeping and management stay outside.CIVA art. 9.º n.º 27.
Tax summary
Regional IRC 202613.3% · 14% in 2025
SME first €50,00010.5%
IBC 5% rateNot available · section K
Dividends to non-residents25% general rule · 35% listed · regional cut per structure
VAT on currency and securities dealsExempt · CIVA art. 9.º n.º 27 d), e)
*As of 2026 per EBF art. 36.º-A, CIRC arts. 87.º and 87.º-A, DLR 8/2025/M and CIVA art. 9.º. Group and founder-level outcomes are modelled per structure.
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Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Portuguese company in Funchal, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed broker.
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Madeira · CMVM
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Full-service assistance - from the tax check and the Funchal company to the CMVM authorisation and the passport notifications - run through our own Funchal office.
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Madeira, the CMVM and the 5% question, answered.
Is there a Madeira forex licence?+
No. A forex or CFD broker in Funchal is a Portuguese investment firm authorised by the CMVM under the REI, approved by DL 109-H/2021. The licence is national; the International Business Centre rules concern tax only and add nothing on the licensing side.
Can a forex broker use Madeira's 5% tax rate?+
No. EBF art. 36.º-A n.º 8 a) excludes entities whose main activity falls in NACE Rev. 2 section K, financial and insurance activities, and SDM, the IBC concessionaire, states that brokerage does not qualify. A CMVM-licensed broker in Funchal pays the regional 13.3% in 2026.
How much capital does the CMVM require?+
€750,000 for dealing on own account, €150,000 for an agency firm holding client money and €75,000 for one holding neither - the IFD levels DL 109-H/2021 transposed. IFR own funds sit above that floor, and the credit-institutions regime (RGICSF, art. 3.º m)) treats firms authorised under its special art. 21.º-A regime, the very largest, as credit institutions.
How long does a forex license in Madeira take?+
MiFID II Art. 7(3) gives the CMVM six months from a complete application to decide. Drafting, incorporation in Funchal and the CMVM's questions come before that clock starts, so we plan for 9-12 months end to end.
What does a forex license in Madeira cost?+
A market maker needs €750,000 of capital and pays the CMVM a supervision fee of at least €750 a month, €9,000 a year, from the end of the third month after authorisation. The CMVM's one-off authorisation fee is confirmed with the CMVM before we quote, and SII contributions are confirmed in the quote.
Which retail CFD rules apply in Portugal?+
CMVM Regulation 5/2019, with its CFD article in force since 1 August 2019: 3.33% initial margin on major currency pairs (30:1) down to 50% on crypto (2:1), close-out at half the initial margin, negative balance protection, no benefits beyond realised profits. Binary options are banned for non-professional investors, with narrow exceptions.
Does a Funchal licence passport across the EU?+
Yes. A CMVM authorisation is a MiFID II licence: the firm notifies the CMVM, which forwards the notification within one month, and the firm may then serve the other 29 EEA states (Art. 34). Branches follow the Art. 35 procedure.
How are dividends from a Madeira broker taxed?+
At 25% under the general rule for non-resident shareholders without a Portuguese permanent establishment, and 35% for those in listed privileged-tax jurisdictions (CIRC art. 87.º n.º 4). The IBC dividend exemption covers only shareholders of companies taxed at 5%, so it is closed to a broker; Madeira's 30% withholding reduction and treaty relief are confirmed per structure.
Madeira or Malta for a tax-led CFD broker?+
Malta, if the 5% figure drives the plan: its six-sevenths shareholder refund takes trading income to an effective 5%, or a company elects a final 15%. Madeira is simpler: 13.3% paid once with no refund cycle, and a CMVM fee from €750 a month, €9,000 a year, against Malta's €17,500 minimum annual fee in 2026.
Why Prifinance for Madeira?+
Our own Funchal office at Rua da Alegria 31 builds the file on the ground: the company, the CMVM application and the Regulation 5/2019 conduct pack. We run the tax check first, so nobody signs a lease in Funchal expecting 5%.
Madeira licence?+
No: a national CMVM authorisation.
5% rate?+
Not for brokers: section K excluded.
Capital?+
€75k/€150k/€750k by class.
How long?+
6 months statutory; 9-12 planned.
Cost?+
From €750 a month; one-off fee quoted.
Retail CFDs?+
Regulation 5/2019, 30:1 to 2:1.
Passport?+
To the other 29 EEA states.
Dividends?+
25% general rule; no IBC exemption.
Vs Malta?+
Malta reaches 5%; Madeira is simpler.
Why you?+
Our own Funchal office, tax first.
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, CMVM) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.