Portugal free zones

Portugal free zones

    free zone company registration in Portugal

  1. The Portuguese government operates two (non-offshore) free trade zones: i) the Madeira International Business Center and ii) the Santa Maria Island Free Trade Zone;
  2. These FTZs offer advantages including i) corporate tax rate of 5% for profits realized with entities not Portugal-based ii) no property transfer tax iii) no tax on capital gains and dividends remitted to a company based in EU/EEA or a country with a DTA treaty with Portugal and iv) 50% reduction of taxable income for qualifying companies;
  3. To qualify for these tax deductions, companies must obtain a license by either i) investing in Madeira at least €75,000 on a two years period resulting in 1 job created or ii) creating at least 6 jobs in Madeira. Please note that corporation licensed before December the 31st 2014 are guaranteed the listed fiscal advantages until 2020.
Free zone comparisonMadeira IBCSanta Maria FTZ
FTZs used mostly by which industry?Holding & trading companiesHolding & trading companies
Average annual Industrial space rent per 1000 sq. m.€12,500€10,000
VAT standard rate22%18%
Corporate tax standard rate5%5%
How long to set the company up?6 weeks6 weeks
How long to open company bank account?3 weeks3 weeks
Quality of utilitiesGoodAverage
Allowed to sign sales contracts with Portugal Clients?YesYes
Allowed to invoice Portugal Clients?YesYes
Corporate tax payable in PortugalYesYes
Corporate bank accountYesYes
Physical office space requiredYesYes
Allowed to import raw materials?YesYes
Allowed to export goods?YesYes
Can be wholly foreign ownedYesYes
Can the entity hire expatriate staff in Portugal?YesYes
Minimum number of directors11
Minimum number of shareholders11
Tax registration certificate requiredYesYes
Individual shareholders allowedYesYes
Corporate shareholders allowedYesYes
Corporate director(s) allowedYesYes
LLC company allowed?YesYes
Annual audited financial statementsYesYes

Frequently asked questions

Contact us

For additional information on our free zones services in Portugal, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
portugal global bportugal visit portugal ministry of economy government website