MadeiraLab / Services / Company formation
Services & Expertise

Company formation
in Madeira.

We open and run your EU company under the 5% IBCM tax regime - articles, bank account, payment rails, monthly accounting, and your D2 residency. Four to eight weeks.
§ 02 - Overview

An EU company on Atlantic time.

One mandate: an EU company, a Portuguese bank account, and a residence card.

The Madeira International Business Centre (IBCM) is the only 5% corporate-tax regime fully approved by the European Union - run by Portugal under EU State Aid rules, valid through 2033.

It is not offshore. Your company has a normal EU VAT ID, banks with European banks, signs contracts under Portuguese law, and stays off every grey-list.

We deliver the whole working company: incorporation, banking, accounting - and the residence card that lets you live next to it.

RegimeIBCM · Madeira Free Zone, Law 27/2009
Tax rate5% corporate income tax · 0% derrama
Dividends0% withholding to non-resident
VAT22% Madeira reduced (vs 23% mainland)
Entity typesLda · SA · SGPS (holding)
Substance1 job (founder qualifies) · €75k capex over 2 yrs
Valid until2033 (existing companies grandfathered)
§ 03 - What you get

Nine deliverables, one contract.

A complete, working company by day 60 - not a shell, not just paperwork.
D1 · Structure

Entity incorporation

Lda, SA or SGPS - articles, share capital, statutory administrator, registered office in Funchal.

Week 3
D2 · Identity

NIPC + EU VAT ID

Portuguese tax number, EU VAT registration, social security registration for the company.

Week 4
D3 · Licence

IBCM 5% licence

Application and approval under the Madeira Free Zone regime - substance plan filed with the regulator.

Week 3–4
D4 · Banking

Corporate bank account

EU IBAN with Millennium / Santander / Novo Banco. Debit cards, online banking, multi-currency.

Week 5–7
D5 · Rails

Payment integrations

Stripe (EU), Wise Business, Revolut Business onboarded against your new Madeira entity.

Week 6–8
D6 · Operate

Accounting on retainer

SAFT-PT monthly bookkeeping, quarterly VAT, payroll, year-end IES filing. First year included.

Continuous
D7 · You

D2 entrepreneur visa

Application built around the new company. Family reunification, NIF, residence card - all handled.

Month 4–9
D8 · Compliance

NHR 2.0 registration

Non-Habitual Resident status (innovation track) - flat 20% IRS for 10 years on qualifying income.

Month 5–7
D9 · Counsel

Partner desk, ongoing

Direct line to your assigned partner. Contracts, hires, tax planning - no gatekeepers.

Continuous
§ 04 - Sequence

Six steps. Four to eight weeks to a working entity.

Each stage has a fixed deliverable. You sign three documents in total.
01
Consultation

Read of situation

Free 90-min call. Business model, tax residency and target structure.

You sign:NDA only
Week 1 · 90 min
02
Design

Structure memo

Entity type, ownership, substance plan, tax blueprint and banking.

You receive:Structure memo
Week 2
03
Incorporation

Company opens

Articles, share capital, NIPC, EU VAT, IBCM licence, social security registration.

You receive:NIPC + statutes
Week 3–5
04
Banking

Account & rails

EU corporate account, multi-currency treasury, Stripe / Wise / Revolut onboarding.

You receive:IBAN · cards
Week 5–7
05
Operate

Accounting on

SAFT-PT bookkeeping, VAT, payroll, quarterly close. Monthly P&L in your inbox.

We deliver:Monthly close
Continuous
06
Residency

You move in

D2 visa, family reunification, NIF, NHR 2.0, housing intro, school & healthcare onboarding.

You receive:Residence card
Month 4–9
§ 05 - Will this work for you?

Who the IBCM regime is actually for.

Five honest checks. If three or more say good fit, the structure is for you.
A · Activity SaaS, B2B services, IP licensing, consultancy, e-commerce, holding/SGPS.Most digital businesses qualify under 'international services' code. Good fit
B · Revenue €80k+ taxable profit per year.Below this, savings vs. setup costs are marginal - we'll tell you honestly. Good fit
C · Substance Willing to create 1+ qualifying job on Madeira - your own founder salary counts.This is the EU's quid-pro-quo for the 5% rate. We design it so it costs nothing extra. Required
D · Residency Non-EU passport-holder seeking EU residence card, or EU citizen wanting Portugal tax residence.We handle either path - D2 entrepreneur visa or tax-only relocation. Good fit
E · Banking Clean source-of-funds documentation, AML-friendly profile.EU bank onboarding is real KYC - we prepare your file in advance. Standard

Not sure? One call settles it.

90-minute partner consultation. We model your taxes against your real numbers, identify substance options, and tell you yes or no - no obligation, no fee.

  • Real numbers, not generic estimates
  • Direct conversation with a partner
  • Written follow-up memo in 5 business days
  • No obligation, no fee, no upsell
Book the call →
§ 06 - Tax calculator

What you actually pay- €100k revenue startup, SaaS / B2B.

Move the sliders. We model your tax bill in mainland Portugal vs. Madeira IBCM in real time. EUR · 2026 rates.
A · Annual revenue€100,000
€50k€500k€1M€2M
B · Operating costs (incl. founder salary)30% of revenue
10%30%50%70%
Annual revenue
€100,000
Operating costs
€30,000
Founder salary
€30,000
Taxable profit
€70,000
Tax lineMainland PT · Madeira IBCM
Corporate tax (IRC)21% mainland vs. 5% IBCM on profit
€14,700
€3,500
Municipal surcharge (Derrama)Up to 1.5% mainland · 0% in Madeira
€1,050
€0
Dividend withholding28% mainland · 0% IBCM to non-resident
€15,190
€0
Founder salary tax~28% IRS mainland vs. 20% NHR 2.0 in Madeira
€8,400
€6,000
Total tax burden / year
€39,340
€9,500
¹IBCM regime requires 1 job created & minimum substance - covered by founder's own salary under our structure.
²0% withholding applies to dividends, interest and royalties paid to non-resident shareholders within the EU and treaty network.
³NHR 2.0 (Non-Habitual Resident, science & innovation track) - flat 20% IRS for 10 years for qualifying founders.
Net savings vs. mainland PT
/ year
29,840= 76% less tax · €149,200 over 5 years

Corporate tax burden / profit · by jurisdiction

GermanyGmbH + Gewerbe
~30%
FranceSAS · IS standard
~25%
PortugalMainland · IRC + derrama + WHT
~44%
CyprusIRC 12.5%
~12.5%
Madeira IBCM5% qualifying income
5%
And unlike Cyprus or other low-tax jurisdictions, Madeira is fully EU, OECD-compliant, and not on any grey list. You bank with European banks, invoice EU clients with a regular EU VAT ID, and live in Schengen.
Disclaimer

Illustrative simulation based on 2026 headline rates. Effective tax may differ depending on activity classification, treaty network, progressive IRS brackets, social security, IBCM substance thresholds and applicable EU directives. For your specific case - book a consultation.

§ 08 - Honest answers

Things clients ask before signing.

Direct answers - no hedging. If we don't know, we say so.
Q1

Is Madeira IBCM offshore? Will my bank flag it?

No. Madeira is an autonomous region of Portugal - a full EU member state. The 5% IBCM regime is approved State Aid, notified to Brussels, and listed on every white-list. Your EU customers see a normal Portuguese VAT number. Your bank sees a Portuguese SME.

Q2

How long until I'm fully operational?

Company filed: 3 weeks. NIPC + VAT: 4 weeks. Bank account live: 5–7 weeks. Stripe/Wise rails: 6–8 weeks. Residence card: 4–9 months. We work in parallel - most clients are invoicing through their Madeira entity by week 6.

Q3

Do I have to live in Madeira to get the 5% rate?

No - the rate applies to the company, not to you personally. But you do need substance: at least one job created within 6 months, and minimum capex (typically the founder's salary covers both). Many clients run the company from Madeira; others run it remotely with a local administrator.

Q4

What happens after 2033 when the regime expires?

Companies already operating under IBCM are grandfathered through the end of the licence period. The regime has been renewed every cycle since 1980 - and the EU re-approved it in 2021 for the 2024–2033 window. Renewal is the political base case.

Q5

What is NOT included in the package?

Personal property purchase, schooling tuition, your own travel, and any litigation. Notary fees and government filings are included in the quoted price. There are no hourly add-ons - if scope changes (e.g. you decide on SGPS instead of Lda), we re-quote upfront.

Q6

Can you work with my existing accountant?

Yes. Many clients keep their home-jurisdiction CPA for personal matters and use us only for the Madeira company. We coordinate intercompany flows and treaty documentation directly.

§ 09 - Next step

Open the company.
Then we'll get you here.