The numbers people ask about most, in one place. Each one names the legal text it comes from. They apply to 2026 and are reset every year.
Corporate income tax (IRC)
- General rate in Madeira: 13.3% (14% before).
- Qualifying SMEs and small mid-caps with an agricultural, commercial or industrial activity: 10.5% on the first €50,000 of taxable profit, 13.3% above that.
- Madeira International Business Centre licensed companies: 5% on qualifying profits, see the MIBC guide.
Source: Regional Legislative Decree 8/2025/M, article amending Decree 2/2001/M.
Personal income tax (IRS) for Madeira residents
Madeira applies its own table in place of the national one. The rate in the first column applies to the part of income above the previous bracket, as set out in the decree.
| Taxable income (€) | Rate |
|---|---|
| Up to 8,342 | 8.75% |
| 8,342 to 12,587 | 10.99% |
| 12,587 to 17,838 | 14.84% |
| 17,838 to 23,089 | 16.87% |
| 23,089 to 29,397 | 21.77% |
| 29,397 to 43,090 | 24.43% |
| 43,090 to 46,566 | 30.17% |
| 46,566 to 86,634 | 31.22% |
| Over 86,634 | 33.60% |
The regional government says the table keeps a 30% reduction against the mainland rates. Source: the same decree, article amending Decree 3/2001/M.
VAT (IVA)
Madeira: 4% reduced, 12% intermediate, 22% normal. Mainland: 6%, 13% and 23%. Source: Tax Authority circular 25045/2024.
Minimum wage and social security
- Madeira monthly minimum wage: €980 from 1 January 2026 (Regional Legislative Decree 1/2026/M). National: €920.
- General social security rate: employer 23.75%, employee 11%.
How to use this page
Use it to sanity-check a quote or a model, not to file a return. Special regimes, deductions and surcharges change what you actually pay, so confirm your case with a certified accountant.
Official and primary sources
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