Healy Consultants reports on tax benefits in Madeira and why investors are wary

SINGAPORE - June 26, 2016 - PRLog -- Last month, the president of Madeira Development Company, Francis Costa, stated that the commotion surrounding the Madeira International Business Centre (CINM) as a result of the ongoing debate on offshore financial centres has caused potential investors to withdraw from investing.

Madeira constitutes of an international ship register, an industrial free trade zone as well as international services including management of companies and trusts benefiting from an attractive tax regime. At present more than 1500 companies generating at least Euro135 million in tax returns are registered with the CINM, a bigger percentage of which is owned by foreign investors and entrepreneurs.

"We have already received specific information that in certain sectors of the country there has been some hesitation, some movement to wait and see how this agitation, this turbulence artificially created around the Madeira International Business Centre because of the question of the Panama Papers develops," said Costa.

Speaking at a recent news conference in Funchal, Madeira's capital, the SDM chairman insisted that Madeira should not be considered an offshore centre but as a jurisdiction offering preferential fiscal regime, monitored by European Union institutions, fostering economic development in the island.

The European Commission approving the Regime IV of the IBCM tax system late last year stated that the regime will reinforce Madeira as a very attractive, stable and very credible alternative for international investment and operations, with all benefits guaranteed until the end of 2027.

Under the terms agreed with the EC, legal entities licensed to operate within the Madeira IBCM will enjoy among others, a reduced corporate tax rate of 5% until the end of the year 2017; one of the lowest tax rates in the European Union.

Such entities will additionally benefit from exemption from withholding taxes on payment of dividends among other exemptions and reductions, as well as from the Portuguese tax regime dispositions including global participation exemptions.

Healy Consultants is a professional corporate services provider headquartered in Singapore and with a presence in Madeira since the year 2003. The company helps global entrepreneurs looking to establish their international businesses in different sectors of the economy with, among others, company registration, tax and vat registration, assistance with obtaining business licenses and official business addresses, opening a corporate and merchant bank account and obtaining work or residence visas.