The Madeira International Business Centre (MIBC), also called the Madeira Free Trade Zone, is a licensed regime inside Madeira that offers a reduced corporate tax rate to qualifying companies. It has been open to new entities for decades, and the rules have been renewed several times.
Who it suits
The regime is aimed at companies with international activity. It has covered areas such as services, industrial activity, international trading, shipping registered in the Madeira register, and certain financial activities. Not every activity qualifies, and the list is set in the legislation.
How it works
- Licensing. A company applies for a licence through the body that administers the centre. The licence is not automatic and depends on the activity and on meeting the conditions.
- Substance. Licensed companies must show real activity in Madeira, usually through minimum job creation and local expenses. The thresholds depend on the regime in force when you are licensed.
- Tax. Qualifying profits can be taxed at a reduced corporate rate for a fixed period. Profits outside the qualifying activity are taxed normally.
What to check before you plan around it
The centre’s own information site and Portuguese press reports agree on the main points:
- Deadline for new licences. New entities can be licensed under the regime until 31 December 2026.
- How long the benefit lasts. Parliament approved the extension on 20 November 2025 in the 2026 State Budget debate. Companies licensed by the end of 2026 keep the reduced rate until 31 December 2033. Older pages that say 2028 describe the earlier regime.
- The rate. 5% on qualifying profits. Business with Portuguese-resident companies is taxed at the regional rate, currently 13.3%.
- Substance. The centre lists two ways in: create 1 to 5 jobs within six months and invest at least €75,000 in fixed assets within two years, or create 6 or more jobs within six months. The benefit is capped by the number of jobs, and EU limits also cap it against gross value added, labour costs or turnover.
- Activities. The reduced rate covers international services (operations with non-residents or other centre companies), shipping, and industrial production, assembly and warehousing in the free-trade zone.
The regime sits under EU state-aid rules, and conditions are set in the legislation, so have an adviser check them against your plan before you apply.
Most of the material online comes from firms that sell setup services, so rely on the official sources below and on your own adviser for the final numbers.
Official and primary sources
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