offshore in Madeira

[baban]

The Autonomous Region of Madeira is composed of Madeira Island, Porto Santo Island, Desertas Islands and Savage Islands. Funchal, the capital of Madeira Island, is on the south coast of the principal island.
The archipelago lies about 360 miles from the coast of Africa, 535 miles from Lisbon, 230 miles from Gran Canaria, and 480 miles from Santa Maria, the nearest of the Azores.
The setting-up of the Free Industrial Zone has led to the installation, under more favourable conditions, of infrastructure, production shops and essential services for small and medium-sized industrial enterprises. The Free Zone of Madeira, also called the Madeira International Business Centre, being a tax-privileged economic area, provides an incentive for companies, offering them financial and tax advantages via a whole range of activities exercised in the Industrial Free Zone, the Off-Shore Financial Centre, the International Shipping Register organisation, and the International Service Centre.

[OffshorePrivacy]

Um, and why would someone want to incorporate there? I have seen a IBC's priced at between 5k-8k.

Also it has a corporate tax rate that will go from 3% to 9% over the next several years......

[slogold]

there are many reasons, why do people set u comapnies on Cyprus, tax rate is 10%, but there are other benefits

[Shayla69]

Originally Posted by OffshorePrivacy

Um, and why would someone want to incorporate there? I have seen a IBC's priced at between 5k-8k.

Also it has a corporate tax rate that will go from 3% to 9% over the next several years......

Portuguese people apply there every time because:

They have the same language,
Is the same country,
Inside EU,
Is not offshore country,
bank secrecy,
VAT 13%
The professional people are ones of the best to avoid taxes in EU (They have the tax avoidance in the veins).

Why? VAT is 21% in Portugal and the corporate annual tax is 26,5%.
The taxes of corporate society in Madeira are 0.00 if you make business outside Portugal until 2011.
The shareholders have got 0.00 taxes of the annual profit.

The bad thing is the expensive registration.

Maybe if you are portuguese you prefer apply in Seychelles, Dominica (0.00 taxes)...but if you are a mega corporation you will apply there or in Ireland like Microsoft Europe.

Cheers

[OffshorePrivacy]

We have formed many Belize corporations for Portuguese from both Portugal and Brasil, so the launguage issue does not seem to bother them since they can obviously get a MUCH cheaper corp in Belize than Madeira by about 5k and zero tax forever.

[MoneyOfDoom]

Have to agree Slogold and Shayla. This is simply a matter of convenience. I've met people, who based their entire new company structure and banking connection solely on communication issues and then degraded that parts of tax and location. So it is in many cases also a matter of the client itself.

So I don't see any problem with Madeira. I mean, consultents shouldn't underestimate the clients and their background for re-search