The Madeira Regional Government has welcomed the approval of a bill on the Madeira Free Zone (ZFM) regime, as announced by the national government. In a statement from the Regional Secretariat for Finance, it described the decision as a positive step for the continuity and strengthening of a strategic tool for the regional economy.
Under the approved text, the regime will apply to entities licensed between 1 January 2027 and 31 December 2033, with effects until 31 December 2037. The special 5% corporate tax rate is maintained, alongside 80% exemptions on stamp duty, municipal property tax, property transfer tax and local surcharges.
Companies may also claim a 50% deduction on tax due if they meet at least two of several criteria, including innovation, job creation, energy transition and diversification. Economic substance requirements apply, including the employment of a full-time worker in the Region.