Madeira: Country and Foreign Investment
Madeira is not a traditional volume-based tax haven with elaborate laws and procedures designed to protect secrecy. The financial center was set up with the full approval of the European Community and the tax incentives have been structured in such a manner as to avoid Madeira being perceived in the negative way that many traditional tax havens are currently viewed.
The type of clients that Madeira attracts are those who wish to have access to the single market of the European Union and who are prepared to comply with the regulations emanating from Brussels and Lisbon. Unlike other offshore jurisdictions, supervision remains very strict, in fact exactly the same supervision as applies to mainland Portuguese companies. Madeira tends to be a more expensive financial center than some since it is used by sophisticated international groups who seek the assistance of international tax lawyers and advisers before implementing their structures
The allocation of a VAT number to a Madeiran company means unrestricted access to the European single market. A company licensed to operate under the Free Trade Zone legislation (see below) pays 22% VAT from April, 2012 (16% previously).
As a result of heavy government investment telecommunications are excellent.