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MadeiraLab / Tax calculator
Portugal vs. Madeira IBCM

What you
actually pay.

Set your revenue and cost base - we model the full yearly tax bill for the same company in mainland Portugal and in Madeira's IBCM, line by line.
Start calculating → Book a free call
Corporate tax5% IBCM vs. 21% mainland
Dividends0% withholding to non-residents
Founder salary20% flat under NHR 2.0
RatesHeadline 2026
§ 01 - Simulation

A €250k 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.

§ 02 - Method

How the numbers
are built.

A deliberately simple model - four lines of tax, the same inputs on both sides.
01 · Inputs

Revenue & costs

Operating costs are taken as a share of revenue and treated as founder salary - the typical setup for an owner-run company.

02 · Company

Profit taxes

Taxable profit is revenue minus costs. Mainland: 21% IRC + 1.5% derrama. Madeira IBCM: 5% and no derrama.

03 · Shareholder

Dividends

Profit after corporate tax is distributed. Mainland withholds 28%; IBCM pays 0% to non-resident shareholders.

04 · Founder

Salary tax

Approx. 28% IRS on the founder's salary on the mainland vs. a flat 20% under NHR 2.0 for qualifying founders in Madeira.

§ 03 - Your case

Get the exact numbers
for your structure.

Activity type, shareholders, residency and substance all move the result. A partner will model your real case on a free 30-minute call.

Book a free consultation → Company formation