The main purpose of the CINM is to attract foreign investment, diversify the local economy and create jobs, offsetting the structural disadvantages arising from Madeira’s outermost-region status.
Its principal objective is to foster investment and Madeira’s socio-economic development through a special tax and customs regime, fully aligned with European Union (EU) State aid rules, which the EU has specifically approved and authorised for the CINM.
The CINM was established by Decree-Law no. 500/80 of 20 October 1980, with later implementation and regulation through Decree-Law no. 165/86 of 26 June 1986 and Regional Regulatory Decree no. 21/87/M of 5 September 1987, which approved the regulation of integrated industrial, commercial and service activities.
The key tax benefit is the possibility of a reduced Corporate Income Tax (IRC) rate of 5% on profits from eligible activities — significantly below the general Portuguese rate and even the standard rate applicable in Madeira. These benefits apply at least until 31 December 2028 for companies licensed until the end of 2026.
To benefit from this regime, companies must meet certain criteria, such as job creation and the effective performance of their activities in Madeira (economic substance), with benefits subject to maximum limits on taxable profits.
The regime covers a wide range of eligible activities, including international services (e-business, consultancy, marketing), intellectual property management and the industrial free zone (manufacturing and assembly).
The regime operates under the ongoing approval and monitoring of the European Commission, ensuring compliance with EU competition and State aid rules. The Regional Legislative Assembly has submitted a bill to the Portuguese Parliament proposing a longer extension of the Madeira Free Trade Zone regime to 2033, maintaining the reduced 5% corporate tax rate; this is currently under negotiation.
QBA handles the entire process — from company incorporation and the respective licence to operate within the CINM — also providing legal, tax, accounting support and annual maintenance.