On 28 June 2016 Regional Decree-Law 24/2016/M was published under which a specific set of tax incentives is set forth for the Madeira region. Following the publication of the Investment Tax Code for mainland Portugal, a particular Madeira Investment Tax Code was enacted granting similar but particular incentives to investment projects in the region.
Some of the highlights of this new regime, which is in place until 2020 and can last up to 10 years, are the possibility of getting a corporate income tax credit of up to 35% of the investment, exemption or reduction of the municipal real estate tax, exemption or reduction of the real estate transfer tax and exemption of stamp duty. Other benefits are also available such as a tax deduction for reinvested profits.
These benefits are contingent to the type and amount of the investment and also the promotion of the region and the creation of employment.
[Photo: Reiseuhu, available at: unsplash.com]