International Business Centre of Madeira

Decree-Law n. 500/80
Government of Portugal
  • Authorizes the creation of a free zone in the Autonomous Region of Madeira
Citation1980, c. 3493
Territorial extentAutonomous Region of Madeira
Enacted13 Augusto 1980
Assented to11 October 1980
Signed byAntónio Ramalho Eanes
Commenced21 October 1980
Administered byEuropean Commission
Ministry of Finance
Regional Government of Madeira
Portuguese Tax and Customs Authority
SDM - Sociedade de Desenvolvimento da Madeira, S.A.
Amends
Implementing Decree n. 53/82
Decree-Law n. 165/86
Regional Implementing Decree n. 21/87/M
Decree-Law n. 352-A/88
Decree-Law n. 234/88
Decree-Law n. 96/89
Ministral Order n. 715/89
Ministral Order n. 134/92
Decree-Law n. 215/89
Ministral Order n. 135/94
Decree-Law n. 149/94
Decree-Law 212/94
Decree-Law n. 250/97
Ministral Order n. 222/99
Decree-Law n. 192/2003
Ministral Order n. 4/2010
Law n. 54-B/2011
Law n. 20/2012
Law n. 83/2013
Law n. 83-C/2013
Law n. 75-A/2014
Law n. 64/2015
Law n. 21/2021
Related legislation
Corporate Income Tax Code
Municipal Property Tax Code
Municipal Property Transfer Tax Code
Stamp Duty Tax Code
Tax Benefits Statutes
Summary
Regulates the Madeira Free Trade Zone Tax Regime.
Keywords
State Aid
Status: In force

The International Business Center of Madeira (IBCM) or Madeira International Business Centre (MIBC), formally known as the Madeira Free Trade Zone, is a set of tax benefits authorised by Decree-Law 500/80 in 1980, legislated[1][2] in 1986, and amended throughout the years by the Portuguese government to favor the Autonomous Region of Madeira. Its objectives are to attract foreign investment to the region and internationalise Portuguese companies by allowing them to benefit one of the lowest corporate taxation rates in Europe and in the OECD member countries.[3][4]

Since 1987, the MIBC has been managed and promoted by a private company, Sociedade de Desenvolvimento da Madeira S.A. (SDM), in which the Regional Government of Madeira currently holds of 48,86% the shares. The other main shareholder is Pestana Group, holding 51,14% of the shares.[5] As of January 2020, the Vice-Presidency of the Madeira Regional Government announced its intention of acquiring 51% of the shares of SDM.[6]

The International Shipping Registry of Madeira (locally known as MAR[7] or RIN-MAR[8]), created by the Portuguese government to develop its blue economy, is associated strongly with the MIBC. As one of Europe's largest[9] ship and yacht registries, MAR accepts the registration of all types of commercial vehicles. In 2016, MAR had a total of 516 registered vessels. The registry offers benefits to shipping companies and ships, oil rigs and yachts, including a mortgage system and access to European continental and island cabotage.[10][11]

  1. ^ "Lei 9/86, 1986-04-30". Diário da República Eletrónico (in Portuguese). Retrieved 2019-02-15.
  2. ^ "Decreto-Lei 165/86, 1986-06-26". Diário da República Eletrónico (in Portuguese). Retrieved 2019-02-15.
  3. ^ "Madeira International Business Center - MCS". mcs.pt. Retrieved 2020-03-18.
  4. ^ "Corporate tax", Wikipedia, 2020-03-08, retrieved 2020-03-18
  5. ^ Sousa, Jorge Freitas. "Paulo Prada presidirá à Sociedade de Desenvolvimento da Madeira". www.dnoticias.pt (in European Portuguese). Retrieved 2020-02-22.
  6. ^ Orlando Drumond. "GR espera concretizar aquisição de 51% do capital da SDM "o mais rapidamente possível"". www.dnoticias.pt (in European Portuguese). Retrieved 2020-02-22.
  7. ^ "Ship Registration and Shipping Companies". www.ibc-madeira.com. Archived from the original on 2020-08-07. Retrieved 2021-02-05.
  8. ^ "Ship and Oil Rig Registration - Madeira Corporate Services". Retrieved 2021-02-05.
  9. ^ "Registo de Navios da Madeira é o 4º maior da UE". www.ibc-madeira.com (in Portuguese). Retrieved 2019-02-15.[permanent dead link]
  10. ^ "Ship Registration and Shipping Companies". www.ibc-madeira.com. Archived from the original on 2020-08-07. Retrieved 2019-07-09.
  11. ^ "Ship and Oil Rig Registration - Madeira Corporate Services". mcs.pt. Retrieved 2020-03-18.