The Madeira International Business Centre, formally the International Business Centre of Madeira (MIBC, also CINM), is a special economic zone created by the Portuguese government in the early 1980s to bring international investment into the Autonomous Region of Madeira.
This is not an offshore scheme. The MIBC is built into the Portuguese and European legal systems. It runs as an EU State Aid regime, approved by the European Commission as regional aid for an outermost EU region, and it follows OECD and BEPS standards. A company licensed in the MIBC is a Portuguese company in every sense. It uses Portugal's full network of double taxation treaties, benefits from EU directives, and trades freely across the European single market.
Key tax advantages
- 5% corporate income tax (IRC), one of the lowest rates in the EU
- 0% withholding tax on dividends, interest and royalties paid to non-resident shareholders
- 0% capital gains tax on qualifying share disposals (Participation Exemption)
- 80% exemption on stamp duty, property tax (IMI) and property transfer tax (IMT)
- No municipal surtax in most Madeiran municipalities, including Funchal
- Access to Portugal's network of 79+ double taxation treaties
- Full use of the EU Parent-Subsidiary and Interest & Royalties Directives
- The only jurisdiction in Portugal where trusts can be incorporated
Eligible activities
The range of permitted activities is broad. The full list sits in Article 36-A of the Portuguese Tax Incentives Statute and covers most international service activities, including:
- International trading, import and export, and procurement
- E-business, telecommunications and digital platforms
- Management consulting, technical services and professional services
- Intellectual property ownership, licensing and development, including software
- Real estate investment and development
- Holding of participations in other companies, including through SGPS structures
- Shipping and yacht ownership companies, via the MAR ship register
- Industrial and warehousing activities, via the Industrial Free Trade Zone
Pure financial services provided to third parties, specifically banking, insurance and brokerage, do not qualify for the 5% rate. Companies in these sectors can still incorporate in Madeira, but income from those activities is taxed at the standard rate.
SGPS, the Portuguese pure holding company
A common MIBC structure is the SGPS (Sociedade Gestora de Participações Sociais), a Portuguese holding company whose only statutory purpose is managing shareholdings in other companies. An SGPS can be set up as an Lda or an SA, and it can also provide services to, and in some cases lend to, its subsidiaries. Combined with Portugal's Participation Exemption, an MIBC-licensed SGPS can receive dividends and capital gains from EU and international subsidiaries largely free of Portuguese tax.
Legal framework and timeline
The current regime (Regime IV) is fully EU-approved. Companies licensed in the MIBC before 31 December 2026 keep the 5% IRC rate until 31 December 2033, following the extension approved by the Portuguese Parliament in November 2025.
Every company must keep its registered office in Madeira and start activity within six months of licensing (twelve months for shipping, aviation and industrial companies). The MIBC is managed by SDM (Sociedade de Desenvolvimento da Madeira S.A.) under the Madeira Regional Government and the Portuguese Tax and Customs Authority. MadeiraLab works directly with SDM on licensing and ongoing administration.
Licensing fees
Fees are set by the Regional Government of Madeira. Service companies pay a €1,000 application fee and a €1,800 annual operating fee. SGPS (holding) companies pay the same application fee, with a €1,800 annual fee for the first year. From the second year, the annual fee is €1,800 plus 0.5% of the prior year's profit, with the first €1,000,000 of profit exempt and the variable part capped at €30,000.
The licensing window closes on 31 December 2026.
Contact MadeiraLab to check whether the MIBC regime fits your structure.