{"id":3193,"date":"2021-11-15T14:09:47","date_gmt":"2021-11-15T14:09:47","guid":{"rendered":"https:\/\/pgs-legal.com\/practice-items\/invest-in-madeira\/"},"modified":"2022-03-09T19:02:16","modified_gmt":"2022-03-09T19:02:16","slug":"invest-in-madeira","status":"publish","type":"mt_practice_areas","link":"https:\/\/pgs-legal.com\/en\/practice-items\/invest-in-madeira\/","title":{"rendered":"Invest in Madeira"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3193\" class=\"elementor elementor-3193 elementor-2562\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7eb56c6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7eb56c6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4a55bc3\" data-id=\"4a55bc3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7856eaad elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7856eaad\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-490a3cd7\" data-id=\"490a3cd7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b340924 elementor-widget elementor-widget-image\" data-id=\"b340924\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/pgs-legal.com\/wp-content\/uploads\/2019\/01\/investir-na-madeira-zona-franca-1024x512.jpg\" class=\"attachment-large size-large wp-image-3045\" alt=\"\" srcset=\"https:\/\/pgs-legal.com\/wp-content\/uploads\/2019\/01\/investir-na-madeira-zona-franca-1024x512.jpg 1024w, https:\/\/pgs-legal.com\/wp-content\/uploads\/2019\/01\/investir-na-madeira-zona-franca-300x150.jpg 300w, https:\/\/pgs-legal.com\/wp-content\/uploads\/2019\/01\/investir-na-madeira-zona-franca-768x384.jpg 768w, https:\/\/pgs-legal.com\/wp-content\/uploads\/2019\/01\/investir-na-madeira-zona-franca.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db387d0 elementor-widget elementor-widget-text-editor\" data-id=\"db387d0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3 align=\"justify\"><b>Investment in Madeira<\/b><\/h3>\n<p align=\"justify\">There are many advantages available for those who wish who wish to<b>invest in Madeira<\/b>, an autonomous Portuguese Region fully integrated in the European Union, that combines the characteristics of a modern, diversified economy, based in International services, with the benefits <b>of the Madeira Free Trade Zone or International Business Centre of Madeira<\/b>, a preferential tax regime conceived to attract foreign Investment and foster the internationalization of companies.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d6e9e11 elementor-widget elementor-widget-accordion\" data-id=\"d6e9e11\" data-element_type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2251\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-2251\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Why invest in Madeira?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2251\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-2251\"><p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Companies in Madeira<\/b> benefit from a very attractive environment for the development of international activities, thanks to a stable and safe legislative environment, full integration in the European Union, social and political stability, state of the art infrastructures, very competitive operational costs and availability of highly qualified employees, fluent in foreign languages.<\/span><\/span><\/p>\n<ul>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The <\/span><\/span><a href=\"https:\/\/www.newco.pro\/pt\/investir-na-madeira\/centro-internacional-de-negocios-da-madeira\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>development of the International Business Centre of Madeira<\/b><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> was based on principles of transparency, credibility and security, with full observation of the EU and OECD guidelines regarding harmful tax competition. Madeira has never been classified as a tax haven and is not on any international blacklist.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All principles of the Treaty on European Union are applicable to <b>Madeira companies<\/b> and their investors, namely the principle of freedom to establishment and to provide services. The European Court of Justice\u00b4s ruling on the Cadbury Schweppes case strengthened this principle, since this Court confirmed that a company can be located in a specific Member State solely for tax purposes.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Madeira\u00b4s companies<\/b> are automatically ascribed a VAT number, which provides access to the intra-Community market without any type of restrictions.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Madeira is part of the European Monetary System (euro), a fact that provides for reduced operating costs and eliminates exchange rate risk.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All <span style=\"color: #0000ff;\"><u>Community directives<\/u><\/span> are applicable to <b>Madeira<\/b>, guaranteeing a well regulated and modern legal system that protects investors\u00b4 interests.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2252\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-2252\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What are the reasons to invest in Madeira?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2252\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-2252\"><p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities operating within the scope of the <b>International Business Centre of Madeira<\/b> benefit from one of the European Union\u00b4s most advantageous tax system.<\/p>\n<p><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>COMPETITIVE TAX REGIME<br \/><\/b><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities operating within the scope of the <b>International Business Centre of Madeira<\/b>benefit from one of the European Union\u00b4s most advantageous tax system (5% rate of tax on profits) guaranteed up to 2027.<\/span><\/span><\/p>\n<ol>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Reduced corporate income tax rate: 5% (until 2027);<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Participation exemption regime applicable internationally to dividends, reserves, capital gains and capital losses;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">No withholding tax on interest and other forms of payment for shareholders&#8217; loans, capital allowances or advancements made by the shareholders to the company;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Tax credit for international double taxation, both legal and economic;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Exemption from withholding tax in the distribution of dividends to shareholders;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">No withholding tax on royalties, services or interest paid to third parties;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Capital gains tax exemption from the sale of shares in Madeira companies;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Capital gains tax exemption on the sale of subsidiary companies under the conditions of the participation exemption;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">80% reduction on the rates of stamp duty, Real Estate Transfer Tax (IMT), Municipal Property Tax (IMI), regional and municipal surcharge, notary and registration fees;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Reduction of the Special Advance Tax Payment and Autonomous Taxation, in proportion to the applicable corporate tax rate (in this case, a reduction of 66%).<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2253\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-2253\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">DOUBLE TAXATION AGREEMENTS SIGNED BY PORTUGAL<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2253\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-2253\"><p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Madeira, as an integral part of Portugal, benefits from the large network of Double Taxation Agreements that Portugal is party to.<\/p>\n<p><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>REDUCED BUROCRACY<br \/><\/b><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portugal has introduced legislation in the last few years aimed at reducing red tape and simplifying procedures in a wide range of areas, such as the legal, statistics, tax and licensing fields, as well as a host of others.<br \/><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A significant example of this is the fact that since June 2006 it has been possible to perform most legal procedures for companies by private document, without the need for a notary public to intervene. Other significant examples include the formation of a company via the internet and the fact that a capital decrease does not require the approval of a law court, for example.<\/p>\n<p><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>MODERN AND EFFICIENT INFRASTRUCTURES<br \/><\/b><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In recent years Madeira\u00b4s infrastructures have undergone substantial investment, creating modern and efficient infrastructures that make the people of Madeira proud. These infrastructures have been the motor behind the archipelago\u00b4s development. Examples include the modern road network, the commercial port beside Madeira\u00b4s Industrial Free Zone and the modern communications network with high-quality bandwidth and levels of connectivity.<br \/><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Madeira, due to its geographical position, is a node for a number of underwater cables connecting the continent of Europe to America and Africa. This fact guarantees the necessary bandwidth and connectivity with the rest of the world.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2254\" class=\"elementor-tab-title\" data-tab=\"4\" role=\"button\" aria-controls=\"elementor-tab-content-2254\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">OTHER REASONS TO INVEST IN MADEIRA<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2254\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"4\" role=\"region\" aria-labelledby=\"elementor-tab-title-2254\"><p align=\"justify\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Madeira, as an integral part of Portugal, benefits from the large network of Double Taxation Agreements that Portugal is party to.<\/p>\n<p><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>REDUCED BUROCRACY<br \/><\/b><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portugal has introduced legislation in the last few years aimed at reducing red tape and simplifying procedures in a wide range of areas, such as the legal, statistics, tax and licensing fields, as well as a host of others.<br \/><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A significant example of this is the fact that since June 2006 it has been possible to perform most legal procedures for companies by private document, without the need for a notary public to intervene. Other significant examples include the formation of a company via the internet and the fact that a capital decrease does not require the approval of a law court, for example.<\/p>\n<p><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>MODERN AND EFFICIENT INFRASTRUCTURES<br \/><\/b><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In recent years Madeira\u00b4s infrastructures have undergone substantial investment, creating modern and efficient infrastructures that make the people of Madeira proud. These infrastructures have been the motor behind the archipelago\u00b4s development. Examples include the modern road network, the commercial port beside Madeira\u00b4s Industrial Free Zone and the modern communications network with high-quality bandwidth and levels of connectivity.<br \/><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Madeira, due to its geographical position, is a node for a number of underwater cables connecting the continent of Europe to America and Africa. This fact guarantees the necessary bandwidth and connectivity with the rest of the world.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2255\" class=\"elementor-tab-title\" data-tab=\"5\" role=\"button\" aria-controls=\"elementor-tab-content-2255\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">development of the International Business Centre of Madeira<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2255\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"5\" role=\"region\" aria-labelledby=\"elementor-tab-title-2255\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The International Business Centre of Madeira is an economic development instrument for the autonomous region of Madeira. It was created to modernise, diversify and provide for the international expansion of the autonomous region\u00b4s goods and services production structure, and to compensate for the structural constraints resulting from the reduced size of the domestic market and the ultra-peripheral status held by Madeira.<br \/><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities operating under the framework of the International Business Centre of Madeira benefit from the most advantageous tax regime of the European Union, in terms of direct taxes (5% of income tax). Additionally, Madeira offers an environment of reduced bureaucracy, political and social stability and low operational costs.<\/span><\/span><\/p>\n<h1 style=\"text-align: left;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Business Activities in the International Business Centre of Madeira<\/b><\/span><\/span><\/h1>\n<p style=\"text-align: left;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Business activities in the following fields can be carried out in the International Business Centre of Madeira:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>International services<\/b><br \/>Trading, consultancy, professional or technical services, holding or any other international services.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Industrial free trade zone<\/b><br \/>Industrial or storage business activities, as long as they do not endanger public safety or national security.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>International shipping register<\/b><br \/>Maritime transportation, registration of ships, oil rigs and commercial or pleasure yachts.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<h1><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Benchmarking<\/b><\/span><\/span><\/h1>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When comparing Madeira to other European Union (EU) jurisdictions, the following differences, to Madeira\u2019s credit, are apparent:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A more competitive, simple and straightforward tax regime;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A state aid plan, previously negotiated with the EU;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Certainty until 2027;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Lower operational costs.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<h1><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Legislation<\/b><\/span><\/span><\/h1>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 500\/80, October 20<\/b><br \/>Authorizes the establishment of the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Regulative Decree no. 53\/82, August 23<\/b><br \/>This Decree regulates several aspects of the functioning of the Free Zone, particularly regarding the types of activities that can be established there and the corresponding customs procedures.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Regional Regulative Decree no. 21\/87\/M, September 5<\/b><br \/>This Decree approves the Regulation of industrial, commercial and service Activities, integrated within the scope of Madeira\u2019s Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 212\/94, August 10<\/b><br \/>This Decree-Law allows the constitution and permanence of Limited Companies, Joint stock companies and one-man companies licensed to operate in the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 250\/97, September 23<\/b><br \/>Subjects to registration and publication the revocation and forfeiture of licenses granted to entities operating in the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 165\/86, June 26<\/b><br \/>This Decree-Law establishes the regime of tax and financial incentives for companies incorporated in the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Article 33 of the Tax Incentive Statute<\/b><br \/>Tax benefits granted to entities licensed before December 31, 2000 to operate within the institutional framework of the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Article 34 of the Tax Incentive Statute<\/b><br \/>Taxable income obtained within the Free Zone of Madeira and Santa Maria Island.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Article 35 of the Tax Incentive Statute<\/b><br \/>Tax benefits granted to entities licensed as of January 1, 2003 to operate within the institutional framework of the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Article 36 of the Tax Incentive Statute<\/b><br \/>Tax benefits granted to entities licensed as of January 1, 2007 to operate within the institutional framework of the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Article 36-A of the Tax Incentive Statute<\/b><br \/>Tax benefits granted to entities licensed as of January 1, 2015 to operate within the institutional framework of the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 325-A\/88, October 3<\/b><br \/>Regulates the establishment and operation of companies or branches of offshore trusts in the Madeira Free Zone.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 149\/94, May 25<\/b><br \/>This Decree-Law regulates the incorporation of fiduciary management instruments (trusts).<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Ordinance of the Autonomous Region of Madeira no. 222\/99, December 28<\/b><br \/>Revises tax rates for entities licensed to operate within the institutional framework of the International Business Centre of Madeira.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 96\/89, March 28<\/b><br \/>Authorizes the establishment of the International Shipping Register of Madeira &#8211; MAR.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Ordinance no. 715\/89, de 23 de August<\/b><br \/>Approves Regulation regarding the International Shipping Register of Madeira.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Decree-Law no. 192\/2003, August 22<\/b><br \/>Approves applicable regulations for recreational crafts registered or to be registered in the International Shipping Register of Madeira.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Ordinance no. 134\/92, May 20<\/b><br \/>Defines tax rates for merchant ships registered in the International Shipping Register of Madeira &#8211; MAR.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Ordinance no. 135\/94, August 1<\/b><br \/>Establishes the regime for applicable taxes for recreational crafts registered under the International Shipping Register of Madeira &#8211; MAR.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Madeira companies<\/b> Madeira companies are <span style=\"color: #0000ff;\"><u>Portuguese companies<\/u><\/span> for all due effects, incorporated under the terms of the Code of Commercial Entities and subject to all the legislation and regulations in force in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">companies that wish to operate in the <\/span><\/span><a href=\"https:\/\/www.newco.pro\/pt\/investir-na-madeira\/centro-internacional-de-negocios-da-madeira\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>International Business Centre of Madeira <\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> (CINM), beyond a<\/span><\/span><a href=\"https:\/\/www.newco.pro\/pt\/investir-na-madeira\/centro-internacional-de-negocios-da-madeira\/regime-fiscal-cinm\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>tax system<\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> extremely advantageous, may take advantage of the Private Deeds Registry Office with full exemption from fees and notary costs. Before incorporation, a name approval certificate and a provisional identification card must be requested to the National Company Registrar (RNPC), and a license from the Regional Government of Madeira must be obtained.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2256\" class=\"elementor-tab-title\" data-tab=\"6\" role=\"button\" aria-controls=\"elementor-tab-content-2256\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Redomiciliation of companies in Madeira<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2256\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"6\" role=\"region\" aria-labelledby=\"elementor-tab-title-2256\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">As any other Portuguese company, a Madeira company may transfer its head office to another country as long as the law of said country allows such re-domiciliation. The company, upon such re-domiciliation, shall keep its legal personality.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The shareholders decision must be taken by at least 75%of the votes corresponding to the share capital. However, this company must <span style=\"color: #0000ff;\"><u>adapt its articles of association<\/u><\/span>in order to comply with the Portuguese law.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Documents required to re-domicile a company to Madeira<\/b><\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In order to re-domicile a company to Madeira, the following documents are requested:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Certified copy of the respective country\u2019s law that foresees the possibility of re-domiciling companies;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Certified copy of the articles of association of the company;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Certified copy of the certificate of registration of the company;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Certified copy of the resolution of the shareholders of the company with the following decisions: <\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">to change its head-office to Portugal;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">to approve the new articles of association adapted to Portuguese law;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">to appoint the director(s).<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All these documents should be legalized with the apostil of the Hague Convention.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Before preparing all these documents it is recommended that a first enquiry\/pre-application is made in advance to the Portuguese authorities regarding the name approval of the company to be re-domiciled. Should the name not be approved in Portugal, then the above mentioned resolution must also mention that the company will adopt another name in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Steps needed in order to complete the re-domiciliation:<\/b><\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To request the approval of the name and object of the company;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To apply for the licence for the company to operate within the scope of the <span style=\"color: #0000ff;\"><u>International Business Centre of Madeira<\/u><\/span>;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To register the company.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2257\" class=\"elementor-tab-title\" data-tab=\"7\" role=\"button\" aria-controls=\"elementor-tab-content-2257\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">TAX And Accounting Information<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2257\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"7\" role=\"region\" aria-labelledby=\"elementor-tab-title-2257\"><h1 class=\"western\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Exit Tax<\/b><\/span><\/span><\/span><\/h1>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">As a rule, exit taxes aim to tax potential gains related to the patrimonial elements held by a taxpayer in the moment he decides to transfer its residency to another State.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Since the transfer of residency determines that the taxpayer will no longer be taxed in the residency State, the goal of these rules is:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To protect the right of the residency state to the revenues generated in its territory;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To work as an anti-avoidance clause in order to prevent tax schemes in which the taxpayer, prior to obtaining a significant gain, transfers its residency to a country with a lower taxation.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">These rules establish that, in order to determine the taxable profit in the period when the taxpayer (with head office and effective management in the Portuguese territory) has ceased its activity or transferred its head office or effective centre of management to another State, the positive and negative components to be consider should correspond to the difference between the market value of the assets and liabilities and their tax value.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">For this exit tax to apply the companies must have their head office and effective management in the Portuguese territory. Please note, in this respect, that our tax law does not require a minimum stay period in Portugal and that the relevant taxable fact is the transfer of residence. This transfer of residence must comprise both the transfer of the head office and of the effective centre of management.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Currently, these rules state that transfers of residence to other countries in the European Union or in the European Economic Area (provided, in this latter case, that an exchange of information agreement has been concluded), deferred tax rules may apply.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2258\" class=\"elementor-tab-title\" data-tab=\"8\" role=\"button\" aria-controls=\"elementor-tab-content-2258\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">PARTNERS OF A COMPANY IN MADEIRA<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2258\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"8\" role=\"region\" aria-labelledby=\"elementor-tab-title-2258\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Partners or shareholders of a Company in Madeira<\/b> are subject to the same legislation and principles applicable to the partners of companies in Portugal. There are however some differences at the level of the tax treatment of non-resident partners or shareholders of companies licensed to operate in the International Business Centre of Madeira, since these may benefit from withholding tax exemption on the distribution of dividends, under certain conditions described hereafter:<\/span><\/span><\/p>\n<h3 class=\"western\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Tax Perspective<\/b><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Provided they are not residents of Portugal or of tax havens, partners or shareholders of Madeira companies (entities and individual\/physical persons) are exempt from tax on profits made available to them, including amortization of shares without reducing capital, provided that such profits derive from income that has benefitted from a reduced tax rate, or if they have not benefitted from such a rate, they derive from income obtained outside of Portuguese territory (except for tax havens).<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the partners or shareholders reside in Portugal (only for entities and not for individual\/physical persons), distribution of profits\/reserves made by the Madeira company shall also be exempt from taxes (withholding tax) if they hold, directly or indirectly, and uninterruptedly for the 12-month period prior to distribution, a shareholding no smaller than 10% of the shareholder capital or voting rights of that company.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Partners or shareholders of licensed companies authorized to work within the IBCM until 31 December 2014 (only entities and not individual\/physical persons) who did not opt to benefit from the new regime of the IBC are exempt from taxation on distribution of profits\/reserves, provided that they comply with the following conditions:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Are resident in another EU Member State or the European Economic Area (EEA*) \u2013 provided that administrative cooperation is guaranteed with respect to taxation in terms equivalent to those established in the EU \u2013 or in a state with which it has signed a convention to avoid double taxation (provided it is in force and the exchange of information);<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Hold, directly or indirectly, and uninterruptedly for the 12-months period prior to distribution, a participation no smaller than 10% of the share capital or voting rights of the Madeira company that distributes the profits or reserves;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the partners or shareholders reside in Portugal (only for entities and not for individual\/physical persons), distribution of profits\/reserves made by the Madeira company shall also be exempt from taxes (withholding tax) if they hold, directly or indirectly, and uninterruptedly for the 12-month period prior to distribution, a shareholding no smaller than 10% of the shareholder capital or voting rights of that company.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">*The Member States of the European Economic Area include the 28 Member States of the European Union, Iceland, Liechtenstein and Norway.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">**Documents with agreements to avoid <\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>double taxation<\/u><\/span><\/span><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> can be read on the website Di\u00e1rio da Rep\u00fablica online (<\/span><\/span><a href=\"https:\/\/www.dre.pt\/\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>https:\/\/www.dre.pt\/<\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">) and Tax Office (https:\/\/www.portaldasfinancas.gov.pt\/). <\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the aforementioned time requirement has not been complied with, the beneficiary entity can request reimbursement of the tax that was withheld at the source, up to two years after actual compliance with this requirement.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the aforementioned conditions have not been met, dividends paid to shareholders shall generally be taxed at a withholding rate of 28% or 35% if payment of the dividends is made to shareholders residing in tax havens;<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Prior to the date when the income is made available to the partner, there must be evidence that the requirements for exemption or reduction have been met, via statement confirmed and authenticated by the relevant tax authorities of the state where the beneficiary resides.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In the case of shipping or industrial activities, the tax exemption on distributed profits\/reserves shall apply even if the partners or shareholders reside in Portugal and the profits derive from income obtained in Portuguese territory.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In the relationship between Madeira and Swiss companies and in the event of failure to comply with the aforementioned requirements, namely with respect to the tax rate that the Swiss company is subject to, the withholding tax exemption on distribution of profits is also applicable, pursuant to the Agreement between the EU and the Swiss Confederation, if the company that is the beneficiary of profits has held a minimum direct participation of 25% in the shareholder capital of the company that distributes the profits for at least 2 years, both entities are subject to income tax without benefitting from any exemption and both take on the form of a limited company. If these requirements have not been met, under the Double Taxation Treaty signed with Switzerland, the minimum rate for withholding tax shall be 5%.<\/span><\/span><\/p>\n<h3 class=\"western\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Legal Perspective<\/b><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Unless something different is agreed in the articles of association of the company or a resolution is passed by a majority corresponding to 75% of the share capital in a general shareholders meeting called for such purpose, half of the yearly net profits, which are distributable, must be distributed to the shareholders.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The distribution of dividends that each shareholder is entitled to matures 30 days subsequent to the respective resolution, unless the shareholder agrees to a deferred payment. However, in exceptional company circumstances, shareholders may request an extension of said period for a further 60 days.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Contudo, existe uma reserva legal m\u00ednima que n\u00e3o pode ser distribu\u00edda aos s\u00f3cios. However, there is a minimum legal reserve that cannot be distributed to the shareholders. A minimum of a twentieth part of the net profits of each year of the company is destined for the legal reserve until it represents 20%of the share capital. The articles of association may set up a higher minimum percentage and higher amounts to the legal reserve. Nevertheless, the legal reserve cannot be less than 2500 Euros.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>The legal reserve may only be used:<\/b><\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To cover the portion of losses in the balance sheet that cannot be covered by the use of other reserves;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To cover the portion of losses from the previous year that cannot be covered by net profits from the present year or by the use of other reserves;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To increase share capital.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Further to the mentioned legal reserve, there are some limitations to the distribution of dividends to the shareholders:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Company assets cannot be distributed to the shareholders when the equity capital, including the year net income, as shown in the approved accounts, is less than the sum of the share capital and the reserves or becomes less than this sum as a result of the distribution;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Dividends cannot be distributed to shareholders if they are necessary to cover accumulated losses or to form or reconstitute reserves required by law or by the articles of association;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Dividends cannot be distributed to shareholders if the incorporation costs or research and development costs are not completely paid, unless the amount of free reserves and retained earnings is at least equal to those costs not paid;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The reserves whose existence and amount does not appear explicitly in the balance sheet cannot be used for distribution to shareholders;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The distributed reserves, in whole or in part, either alone or together with the yearly profits, must be expressly mentioned in the shareholders resolution.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The articles of association may authorize that, in the course of a year, advanced payments of profits are made to shareholders, provided that some rules are followed:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The board of directors approves the advanced payment;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Such resolution shall be supported by a interim balance report, no more than 30 days old and certified by a statutory auditor, showing the existence of available amounts, according to the legal limits and taking into account the results obtained during the elapsed period of the year in which the advance is to be made;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Only one advanced payment is allowed during each year and always in its second half;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The amounts to be advanced cannot exceed half of what would be distributable, as referred before.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Shareholders must return to the company all the assets received in breach of the law, but those who have received dividends or reserves whose distribution was not permitted by law, are only required to refund if they knew the irregularity of distribution or, given the circumstances, should have not ignored it. The company\u2019s creditors can propose legal action for refund of the company regarding these amounts.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2259\" class=\"elementor-tab-title\" data-tab=\"9\" role=\"button\" aria-controls=\"elementor-tab-content-2259\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Tax and Accounting Information in Madeira<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-2259\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"9\" role=\"region\" aria-labelledby=\"elementor-tab-title-2259\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">As in the case of any other Portuguese Company, Madeira companies must abide by the Companies Code and by other relevant tax codes. They are therefore subject to the <span style=\"color: #0000ff;\"><u>tax and accounting information<\/u><\/span> applicable to Portuguese companies.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Additionally, they are also subject to the legislation applicable at the regional level.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies licensed to operate in the <span style=\"color: #0000ff;\"><u>International Business Centre of Madeira<\/u><\/span> must also fulfill the eligibility criteria and requirements that derive from such license.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In this section we highlight the most relevant tax and accounting information for companies with head-office in Madeira.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To learn more about the most relevant tax and accounting aspects for Portuguese companies (including Madeira companies), visit Tax and Accounting Information in Portugal. Madeira companies are also subject to the application of anti-avoidance <span style=\"color: #0000ff;\"><u>rules and autonomous taxation<\/u><\/span> (albeit at reduced rates) in force in Portugal.<\/span><\/span><\/p>\n<h1 class=\"western\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>ANTI-AVOIDANCE RULES AND AUTONOMOUS TAXATION<\/b><\/u><\/span><\/span><\/span><\/h1>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Anti-tax Avoidance General Rule (GAAR)<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The anti-evasion general rule determines the inefficiency in tax matters of acts or legal transactions, essentially or mainly directed to the reduction, elimination or deferral of taxes that would be due to facts, acts or legal transactions of identical economic purposes, through artificial means, fraud and abuse of legal forms, or to obtain tax advantages that would not be achieved in whole or in part, without the use of such means. <\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In these cases, and given the ineffectiveness of such acts or transactions, the taxation of such income is made in accordance with the applicable rules without the desired tax benefits.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>CFC RULES<\/b><\/u><b>:<\/b> <\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Under Portuguese tax legislation, shareholders who reside in Portugal are attributed profits obtained by companies residing in tax havens in proportion to said shareholders\u2019 share and regardless of distribution, provided that the shareholder directly or indirectly holds a share of at least 25%.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the non-resident company is directly or indirectly more than 50% held by resident shareholders the share in question must be at least 10%.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">These rules also apply whenever the profits or income ensue from an indirect participation held via a proxy, trustee or intermediary.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This attribution corresponds to the profit obtained by the company after deducting tax on profit applicable under the tax regime of the country where the company resides.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Not only entities residing in the countries of the official Portuguese list of tax havens are considered tax haven residents, but also those who are not taxed in such countries or who do not pay the equivalent of corporate income tax or when the tax paid is equal to or less than 60% of the legally applicable general corporate income tax rate.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This system does not apply to non-residents of Portuguese territory whose profits or income, in a proportion of at least 75%, come from an agricultural or commercial activity in the territory where they are established, or from an industrial activity or service that is not predominantly directed at the Portuguese market.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Transfer pricing<\/b><\/u><b>:<\/b><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portuguese rules regarding transfer prices are in line with OECD recommendations and thus within the standard for developed countries.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Legal Persons Income Tax Code (CIRC) clearly states that for commercial operations, including operations or a series of operations regarding goods, rights or services and financial operations performed between a taxpayer and any other entity, whether or not they are subject to corporate income tax, with which there are special relationships, terms or conditions that are substantially identical to those that would normally be contracted, accepted and practiced between independent entities concerning comparable operations must be employed.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>This principle is applicable to:<\/b><\/span><\/span><\/p>\n<ol type=\"i\">\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Related-party transactions performed between the corporate <span style=\"color: #0000ff;\"><u>income taxpayer<\/u><\/span> or <span style=\"color: #0000ff;\">personal income taxpayer<\/span> and a non-resident entity; <\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Operations performed between a non-resident entity and its stable establishment, including those performed between a stable establishment located in Portugal and other stable establishments of the same entity located outside Portugal;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Operations between a resident entity and their stable establishments located outside Portugal or between the stable establishments located outside Portugal;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Related-party operations performed between entities residing in Portugal and corporate income taxpayers or personal income taxpayers.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Special relationships are considered to exist between two entities in situations where one has the power to directly or indirectly exercise significant influence over the management decisions of the other, which is verified namely between:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">An entity and the holders of the respective capital or their spouses, ascendants or descendents that directly or indirectly hold a stake of no less than 20% of the capital or voting rights;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities in which the same holders of capital, respective spouses, ascendants or descendants directly or indirectly hold a stake of no less than 20% of the capital or voting rights;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">An entity and the members of their governing bodies or any administrative bodies, boards of directors, management or auditing bodies and respective spouse, ascendants and descendants;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities in which most of the members of the governing bodies or members of any administrative bodies, boards of directors, management or auditing bodies, whether they are the same persons or different persons, are linked to each other by marriage, legally recognized cohabitation or line of descent;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities linked by subordination or same level group contract or any other contract of an equivalent level;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies that are in a dominating relationship in accordance with applicable legislation;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entities whose legal relationship allows, as per their terms and conditions, that one affects the decisions of the other in accordance with the facts or circumstances that are foreign to the actual commercial or professional relationship;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A resident or non-resident entity with a stable establishment located in Portugal and an entity subject to a clearly more favourable tax regime residing in a country, territory or region on the list approved by Ministry of Finance Order in Council.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">As such, companies must adopt, in order to determine the terms and conditions that would normally be agreed, accepted or practiced between independent entities, the method or methods that are likely to ensure the highest level of comparability between operations or series of operations that they perform and other substantially identical ones under normal market conditions or situations free of special relationships.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>The following methods shall be used:<\/b><\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The comparative market price method, the resale-minus method or the cost-plus method;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The profit split method, the net operating margin method or any other method when the methods mentioned in the previous paragraph cannot be applied, or if they can be applied, do not permit the most reliable measurement of the terms and conditions that independent entities would normally agree to, accept or practice.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies are obliged to maintain a tax documentation file for each taxation period in good order for a period of 12 years at an establishment or installation located in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This file must contain the company\u2019s organized documentation related to its transfer price polices, including the directives or instructions pertaining to its application, contracts and other legal acts formed with entities with whom the company has a special relationship, indicating the modifications that have occurred and information regarding respective compliance, documentation and information related to such entities and the companies and goods or services that are used as comparatives, functional and financial analyses and sector data, as well as information taken into consideration to determine the terms and conditions normally agreed, accepted or practiced between independent entities and used to select the method or methods used.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Similarly, companies are obliged to indicate the existence or inexistence of operations, for the respective taxation period, with entities with whom they have special relationships in their annual accounting and tax information declaration.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Taxpayers may ask the Tax Authorities for a <i>ruling<\/i>Taxpayers may ask the Tax Authorities for a ruling to establish a prior method or methods of determining the terms and conditions that would normally be agreed, accepted or practiced between independent entities with respect to commercial and financial operations, including intragroup services and cost sharing agreements made with entities with whom they have special relationships or involving operations performed between the head office and the stable establishments.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Such a<i>ruling<\/i> can be bilateral or multilateral in the case of operations with entities residing in a country with whom Portugal has signed an agreement to avoid double taxation. The taxpayer must request that the ruling be submitted to the respective applicable authorities within the scope of the amicable procedure instituted for such purposes.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Tax Authorities may undertake the necessary corrections to determine taxable profit as a result of special relationships with another <span style=\"color: #0000ff;\"><u>corporate income taxpayer<\/u><\/span> or or <span style=\"color: #0000ff;\"><u>personal income taxpayer<\/u><\/span>, which implies that when determining the taxable profit of the personal income taxpayer the appropriate adjustments must be made to reflect the corrections made when determining the corporate income taxpayer.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Tax Authorities can also undertake the correlative adjustment referred to in the previous paragraph when it is the result of international conventions signed by Portugal, as per the terms and conditions stipulated therein.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>List of countries, territories and regions with favourable tax systems:<\/b><\/u><\/span><\/span><\/p>\n<dl>\n<dd>\n<table width=\"98%\" cellspacing=\"0\" cellpadding=\"2\">\n<tbody>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Anguila<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ant\u00edgua e Barbuda<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Antilhas Holandesas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Aruba<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ascens\u00e3o<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Bahamas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Bahrain<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Barbados<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Belize<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Bermudas<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Bol\u00edvia<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Brunei<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas do Canal <sup>1<\/sup><\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Cayman<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Cocos e Keeling<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Cook<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Costa Rica<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Djibouti<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Dominica<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Emirados \u00c1rabes Unidos<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Falkland ou Malvinas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Fiji<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">G\u00e2mbia<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Grenada<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Gibraltar<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Guam<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Guiana <\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Honduras<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Hong Kong<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Jamaica<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Jord\u00e2nia<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas de Queshm<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Kribati<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Koweit<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Labu\u00e1n<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">L\u00edbano<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Lib\u00e9ria<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Liechenstein<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Maldivas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Man<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Marianas do Norte<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Marshal<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Maur\u00edcias<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">M\u00f3naco<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Monserrate<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Nauru<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Natal<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Niue<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha Norfolk<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Sultanato de Oman<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas do Pac\u00edfico <sup>2<\/sup><\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Palau<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Panam\u00e1<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Pitcairn<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Polin\u00e9sia Francesa<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Porto Rico<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Qatar<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas de Salom\u00e3o<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Samoa Americana<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Samoa Ocidental<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Santa Helena<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Santa L\u00facia<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">S\u00e3o Cristov\u00e3o e Nevais<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">S\u00e3o Marino<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de S\u00e3o Pedro e Miguelon<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">S\u00e3o Vicente e Grenaldinas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Seychelles<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Suazil\u00e2ndia<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Svalbard (aquip\u00e9lago Spitsbergen e Ilha Bjornoya) <sup>3<\/sup><\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha de Tokelau<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Tonga<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Trinidad e Tobago<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha Trist\u00e3o da Cunha<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Turks e Caicos<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilha Tuvalu<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Uruguay<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Rep\u00fablica de Vanuatu<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Virgens e Brit\u00e2nicas<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"31%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Ilhas Virgens dos Estados Unidos da Am\u00e9rica<\/span><\/span><\/p>\n<\/td>\n<td width=\"37%\">\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Rep\u00fablica \u00c1rabe do I\u00e9men<\/span><\/span><\/p>\n<\/td>\n<td width=\"32%\">\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/dd>\n<\/dl>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>VAT &#8211; Taxable amount:<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In determining the taxable amount for VAT on transactions between taxable persons who have special relations, but only in certain situations, the prevailing criteria is of its normal value, rather than the value of the consideration obtained or to obtain from the purchaser, consignee or a third party.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">However, this deviation from the general rule for determining the taxable value, may be dismissed if there is proof that the difference between the normal value and the consideration is justified by circumstances other than the special relationship between the parties.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Thin capitalization rules<\/b><\/u>:<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Net financing costs contribute to determining taxable profit up until the greater of the following limits: 1 million euros or 30% of EBITDA.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Net financing costs that are not deductible under the aforementioned terms can also be considered when determining taxable profit of one or more of the subsequent taxation periods, after net financing costs for this period, taking into account the aforementioned limitations.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Whenever the amount of financing costs deducted is less than 30% of the result before Net financing costs that are not deductible under the aforementioned terms can also be considered when determining taxable profit of one or more of the subsequent taxation periods, after net financing costs for this period, taking into account the aforementioned limitations., amortization, net financing costs and taxes, the unused part of this limit shall be added to the maximum deductible amount up until the 5th period subsequent taxation period.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">These rules apply to the permanent establishments of non-resident entities, with the necessary adaptations<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Exit Tax: <\/b><\/u>As a rule, exit taxes aim to tax potential gains related to the patrimonial elements held by a taxpayer in the moment he decides to transfer its residency to another State.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Since the transfer of residency determines that the taxpayer will no longer be taxed in the residency State, the goal of these rules is: <\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To protect the right of the residency state to the revenues generated in its territory;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">To work as an anti-avoidance clause in order to prevent tax schemes in which the taxpayer, prior to obtaining a significant gain, transfers its residency to a country with a lower taxation.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">These rules establish that, in order to determine the taxable profit in the period when the taxpayer (with head office and effective management in the Portuguese territory) has ceased its activity or transferred its head office or effective centre of management to another State, the positive and negative components to be consider should correspond to the difference between the market value of the assets and liabilities and their tax value.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">For this exit tax to apply the companies must have their head office and effective management in the Portuguese territory. Please note, in this respect, that our tax law does not require a minimum stay period in Portugal and that the relevant taxable fact is the transfer of residence. This transfer of residence must comprise both the transfer of the head office and of the effective centre of management.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Currently, these rules state that transfers of residence to other countries in the European Union or in the European Economic Area (provided, in this latter case, that an exchange of information agreement has been concluded), deferred tax rules may apply.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>Exit taxes may be paid:<\/u><\/span><\/span><\/h2>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Immediately, comprehending the total amount of CIT due upon exit;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">During the year following that in which any asset being transferred out of Portugal is sold, written off, or detached from the company\u2019s activity, provided such sale is made to a country other than the EU or the EEA (in this latter case, if there is an exchange of information agreement with Portugal); and<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Annually, over a fifth of the total amount of the tax due. <\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Upon the change of residence, the taxpayers must opt for one of the above alternatives. However, the following tax consequences must be taken into account:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The deferral of the tax payment triggers late payment interest (currently the annual late payment interest rate is of 5,476%);<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Under certain circumstances, the possibility to defer the exit taxes will be subject to the provision of a guarantee corresponding to the amount of tax due plus 25%;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In case the taxpayer opts to defer the taxation to the moment when the capital gains are obtained, he must submit annually, and on an ongoing basis, a tax return, since the failure to comply with this obligation may trigger the payment of the tax due.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In the event the taxpayer selects option 3, the payment of the tax should occur: (a) he first 1\/5 upon the submission of the tax return referring to period when the activity was ceased or the when the transfer occurred, and (b) the remaining 1\/5 every year until the last day of May (the late payment interests due should be accrued to the amount of tax). The failure to comply with one of these payments determines the maturity of the whole tax due;<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If, after electing option 2 or 3, the taxpayer decides to subsequently transfer its residence to a non-EU or non-EEA Member State, it must pay the total amount of tax still due. The change of residence results in the termination of activity for CIT purposes and in the assessment of gains and losses determined by the difference between the market value and the tax value of the assets and liabilities.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All assets and liabilities comprise fixed tangible assets, intangible assets, non-consumable biological assets, investment properties, financial instruments except those recognized at their fair value, and all other assets owned by the company and part of its inventory.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The gains obtained under these exit tax rules should be determined in accordance to the ones established in case of onerous transfer of assets, i.e., the coefficient of currency devaluation should be considered, as well as any amortizations or depreciations.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Normally, the transfer of residence should not trigger the taxation of the respective shareholders.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Inability to benefit from capital gains tax exemption<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The system of exemption from capital gains with the onerous transfer of shares, other securities, <\/span><\/span><em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">autonomous warrants<\/span><\/span><\/em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> ssued by entities resident in Portugal and traded on regulated stock markets and derivative financial instruments made on regulated stock markets, by entities or individuals that are not domiciled in Portugal and there is no permanent establishment to which said income is imputable, is not applicable if resident in a tax haven.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Inability to reinvest capital gains<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The possibility of reinvestment of capital gains made by way of the transmission with consideration of parts of the share capital, including remission and amortization with reduction of share capital, is void where such transmissions with consideration and the acquisitions of parts of the share capital are carried out with entities resident in Tax havens.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Derogation of banking secrecy<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Tax administration has the power to access all banking information and documents and is not contingent upon any previous consent from the holder of the account and protected information:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When there is evidence of tax fraud;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When there is evidence of the lack of veracity regarding the filed tax return, or when the tax return does not comply with the necessary requirements;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When there is evidence of unjustified increase in wealth;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">For the purposes of confirming information submitted in the supplemental documents of the taxable entities under the organized accounting regime;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When the need exists to control the basis for privileged tax regimes that a taxable entity benefits from;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">When it is not possible to verify the direct and exact quantification of taxable items, and in general, when the grounds for a request of evaluation have been checked.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The tax administration also has the power to directly access bank documents, in situations of refusal of disclosure or authorization to review documents by family members or third parties that have a special relationship with the taxable entity.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All of the above referenced actions are subject to legal appeal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In this context, we advise all of our clients to solely perform bank transactions related to the licensed activities of their companies in Portugal, which should be duly reported and fully supported with documents by the company.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Payments unduly justified<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Under Portuguese law, payments made by Madeira companies to entities residing in Tax havens are not deductible for the purpose of calculating taxable profit, but are subject to a specific tax at the rate of 35%, unless the purchaser can prove that said charges correspond to operations effectively implemented in circumstances that are not abnormal and the amount involved was also not excessive.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Similarly, it shall not be deductible amounts paid or due, indirectly, to entities resident in tax havens, where the taxpayer has or should have known of the destination of such amounts, unless it can demonstrate that such costs correspond to operations effectively implemented in circumstances that are not abnormal and the amount involved was not excessive.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">It is presumed to exist such knowledge when there are special relations between the taxpayer and the entity resident in the tax haven, or between the taxpayer and an agent, trustee, or intermediary.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Autonomous Taxation\/Vehicles<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Charges incurred or paid related to lightweight passenger vehicles, lightweight commercial vehicles and motorcycles, excluding vehicles powered exclusively by electrical energy, shall be taxed autonomously.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Charges related to lightweight passenger vehicles and motorcycles include depreciation, rentals, insurance, maintenance and conservation, fuels and taxes on their possession or usage.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the motor vehicle is used personally by a worker or member of a governing body and creates costs for the employer, and if there is a written agreement between the worker or member of the governing body and the employer regarding attribution of the vehicle to the worker or member of the governing body, then the aforementioned autonomous taxation shall not apply, since taxation shall be applied via income tax.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The aforementioned autonomous taxation rates shall be increased by 10 percentage points for taxpayers who report a tax loss during the period of the respective taxation occurrences.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies licensed to operate within the <span style=\"color: #0000ff;\"><u>International Business Centre of Madeira<\/u><\/span>benefit from a reduction of the autonomous taxation rates, in proportion to the applicable corporate tax rate (in this case, a reduction of 76,2%).<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Confidential or undocumented expenses<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The tax rate applicable to confidential or undocumented expenses made by companies in Portugal is 50% and these are not deductible for the purpose of calculating taxable profit. The applicable rate shall be increased by 10% to companies that have tax losses in the respective year.<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u><b>Entertainment expenses<\/b><\/u><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Entertainment expenses, which are basically expenses related to receptions, meals, trips, excursions, and shows offered to clients, suppliers or any other entities, are taxed at the rate of 10%, irrespective of whether the company is exempt from corporate income tax or not.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies licensed to operate within the International Business Centre of Madeira benefit from a reduction of the autonomous taxation rate, in proportion to the applicable corporate tax rate (in this case, a reduction of 76,2%).<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22510\" class=\"elementor-tab-title\" data-tab=\"10\" role=\"button\" aria-controls=\"elementor-tab-content-22510\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Tax residence<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22510\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"10\" role=\"region\" aria-labelledby=\"elementor-tab-title-22510\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The characteristics of Portugal and its various regions are reason enough to justify a new life in this country, but the tax advantages on offer are the icing on the cake for anyone who wishes to invest and live in Portugal. In 2009, in order to attract high net worth individuals to Portugal, a new and more favourable personal income tax regime (IRS), applicable for a period of 10 consecutive years, was created for non-habitual residents.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Who is deemed to be non-habitual resident in Portugal?<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Expatriates, who establish their tax residence in Portugal but have not had resident status during any of the previous five years, are not considered to have habitual residence in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Where Portugal is concerned, as a general rule, Portuguese residents are those persons who remained in the country for more than 183 consecutive or non-consecutive days, out of any period of 12 months that starts or ends during the year in question, or if the person remained for fewer days, has a domicile on any given day of that period, exhibiting conditions that lead one to believe that there is an intention to maintain and occupy it as an habitual residence. However, it is important to analyse the double taxation agreements that may exist between Portugal and the non-habitual resident\u2019s home country, in order to avoid possible conflicts between the two places of residence. The taxpayer must register as a non-habitual resident at the taxpayer registry of the Tax and Customs Authority upon registering as a resident of Portugal or subsequently up until 31 March, inclusive, of the year that follows the year in which the taxpayer becomes a resident of Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Accordingly, the non-habitual resident acquires the right to be taxed as such for a period of ten consecutive years. Each year, the the taxpayer must be considered a tax resident for income tax purposes.<\/span><\/span><\/p>\n<h3 class=\"western\"><a name=\"Regime\"><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Advantages for non habitual residents? <\/span><\/span><\/h3>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Non-habitual tax residents benefit from a more competitive tax regime that functions on two levels:<\/span><\/span><\/p>\n<h4 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Income from Work<\/span><\/span><\/h4>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This exemption applies wheneverincome is subject to taxation in another country with which Portugal has signed a double taxation treaty; <u>if<\/u><\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">there is no double taxation treaty, the exemptionwill also apply as long as the income is taxed abroad<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">and the source is not considered to be Portuguese as per Portuguese domestic law.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<h4 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Professional income, capital income, capital gains and rental income<\/span><\/span><\/h4>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In such cases (excepting professional income), the exemption applies whenever income is taxable in another country with which Portugal has signed a double taxation treaty; <u>or<\/u>:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">, in the absence of a double taxation treaty, the income is taxable in another country, region or territory in accordance with the OECD Model Tax Convention on Income and on Capital, interpreted in accordance with the observations and reservations made by Portugal,<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">and the income is not considered to be from a Portuguese source, in accordance with Portuguese domestic legislation. In relation to professional income, the exemption shall only apply in the above-mentioned conditions to services that are considered to be of added value of a scientific, <\/span><\/span><a href=\"https:\/\/www.newco.pro\/pt\/investir-em-portugal\/informacao-contabilistica-e-fiscal-em-portugal\/regras-anti-abuso-e-tributacao-autonoma\/paraisos-fiscais\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>artistic and technical nature, <\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">or intellectual property and transfer of know-how.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<h4 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Income from Pensions<\/span><\/span><\/h4>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Regarding pensions, income obtained by non-habitual residents abroad, which is, for the same portion which was considered taxable, not considered tax deductible in Portugal, is taxed at a 10% rate.<\/span><\/span><\/p>\n<h3 class=\"western\"><span style=\"color: #000000;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>Notes:<\/u><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Income which is exempt from Personal Income Tax (IRS) under the above stated terms, is mandatorily included for the purposes of determining the taxable amount on remaining income, except in the case of:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Capital Gains from Securities;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Dividends and interest owed by non-residents, when not subject to withholding at source;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Income from employment or self-employment, subject to the above referenced special tax rate of 20%.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Non-habitual residents, whose income is not taxable under the Personal Income Tax, per the above referenced terms, may opt to use the method of tax credit provided for by the international double taxation (in lieu of exemptions), and in this case, income is mandatorily included for the purposes of taxation under the general terms of the Personal Income Tax (IRS) code, except:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Gratuities earned for services rendered or due to the performance of work, when not attributed by employer;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Capital Gains from Securities;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Dividends and interest owed by non-residents, when not subject to automatic withholding;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Income from employment or self-employment, subject to the above referenced special tax rate of 20%.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22511\" class=\"elementor-tab-title\" data-tab=\"11\" role=\"button\" aria-controls=\"elementor-tab-content-22511\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Participation Exemption<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22511\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"11\" role=\"region\" aria-labelledby=\"elementor-tab-title-22511\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>Participation exemption<\/b> is the term generically used to refer to the tax exemption applicable to dividends received from a subsidiary and any possible capital gains ensuing from the sale of that participation.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Profits and reserves distributed to Portuguese companies by their associated companies, along with <b>capital losses or gains<\/b> occurring due to the transfer of shares in these companies at a cost in any form, and regardless of the percentage of the share transferred, shall not contribute to their taxable profit, provided that:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Portuguese company holds, directly or indirectly, and uninterruptedly, for the 12 months that precede the distribution or transfer, a participation that is no less than 10% of the shareholder capital or the voting rights of the entity that distributes the profits\/reserves or whose participation has been transferred (in the case of distribution of profits, if the participation has been held for less time, it must be maintained throughout the time necessary to complete the 12 months);<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The entity that distributes the profits\/reserves or whose participation<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">has been transferred is subject to and not exempt from corporate income tax (Portuguese companies), any tax referred to in the Parent-Subsidiary Directive (companies resident in the EU) or a tax of an identical or similar nature to that of corporate income tax, provided that the rate applicable to said entity is not less than 60% (12.6%) of the corporate income tax rate (other cases); * <b>*<\/b><br \/>The entity that distributes profits\/reserves or whose participation was transferred is not resident in a tax haven;<br \/>The distributed profits\/reserves do not correspond to costs deductible by the entity that distributed it; The company is not subject to a tax transparency regime.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>* This requirement shall be dispensed with when the following conditions have been cumulatively met:<\/b><\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><span style=\"color: #696969;\"><b>a)<\/b><\/span> The proportion of the respective profits or income derived from the performance of the following is at least 75%:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">An agricultural or industrial activity within the territory where they are established;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A commercial or service activity that is not predominantly directed at the Portuguese market;<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><span style=\"color: #696969;\"><b>b)<\/b><\/span>The main activity of the non-resident entity is not included in the following operations:<\/span><\/span><\/p>\n<ol>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Operations pertaining to the banking activity, even if not performed by credit institutions;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Operations related to the insurance industry when the respective income results mostly from insurance related to goods located outside the residential territories of the entity or insurance pertaining to persons who do not reside in that territory;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Operations related to shareholdings accounting for at least 5% of shareholder capital or voting rights, or any participations held in entities residing in a tax haven, or operations related to other securities, intellectual or industrial property rights, supply of information pertaining to experience acquired in the industrial, commercial or scientific sector or the supply of technical assistance;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Rental of goods, except real estate, in the territory of residence.<\/span><\/span><\/p>\n<\/li>\n<\/ol>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Elimination of international double taxation<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">For cases in which the Participation Exemption does not apply, there is a unilateral tax credit for international economic double taxation, namely income tax paid abroad by the entity residing outside Portugal on profits\/reserves distributed to the Portuguese company, provided that the first two aforementioned requirements are complied with in terms of the <\/span><\/span><em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">participation exemption<\/span><\/span><\/em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">There is also the possibility of making use of the unilateral tax credit for international legal double taxation, applicable when the taxable amount includes income obtained abroad and income tax has been paid abroad on such income.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This tax credit shall be determined according to the country, taking into account the total income from each country, with the exception of income attributable to permanent establishments located outside Portugal, the deduction of which is calculated individually. The deduction provided for can be made within the 5 taxation periods that follow.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Reinvestment of capital gains<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the capital gains are not exempt because the Participation Exemption requirements <\/span><\/span><em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Participation Exemption<\/span><\/span><\/em><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">have not been met, there is also the possibility of only half (50%) of the capital gains being considered if the capital gains are reinvested, subject to certain conditions.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22512\" class=\"elementor-tab-title\" data-tab=\"12\" role=\"button\" aria-controls=\"elementor-tab-content-22512\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Double tax relief mechanisms in Portugal<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22512\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"12\" role=\"region\" aria-labelledby=\"elementor-tab-title-22512\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portugal provides for the following mechanisms for eliminating double taxation on income taxed at source in a foreign country:<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>a)<\/b> Application of <span style=\"color: #0000ff;\"><u>double taxation treaties<\/u><\/span> (over 70 treaties signed by Portugal);<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>b)<\/b> <b>Unilateral tax credit for international economic double taxation<\/b>, namely income tax paid abroad by the entity residing outside of Portuguese territory on profits\/reserves<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">distributed to the Portuguese company, provided that:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The Portuguese company holds, directly or indirectly, a participation that is no less than 5% of the shareholder capital or the voting rights of the entity that distributes the profits\/reserves or this participation has been owned by the Portuguese company uninterruptedly for the 2 years preceding distribution, i.e. maintained during the time necessary to complete such a period;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The associated entity does not reside in a tax haven.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><b>c) Unilateral tax credit for international legal double taxation<\/b>, applicable when the taxable amount includes income obtained abroad and income tax has been paid abroad on such income.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This tax credit shall be determined according to the country, taking into account the total income from each country, with the exception of income attributable to permanent establishments located outside Portugal, the deduction of which is calculated individually.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The deduction provided for can be made within the 5 taxation periods that follow.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22513\" class=\"elementor-tab-title\" data-tab=\"13\" role=\"button\" aria-controls=\"elementor-tab-content-22513\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Tax Information Exchange Agreements<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22513\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"13\" role=\"region\" aria-labelledby=\"elementor-tab-title-22513\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">All documents are available on<\/span><\/span><a href=\"https:\/\/www.dre.pt\/\" target=\"Di\u00e1rio da Rep\u00fablica Electr\u00f3nico\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>Di\u00e1rio da Rep\u00fablica Electr\u00f3nico<\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"> and<\/span><\/span><a href=\"https:\/\/www.portaldasfinancas.gov.pt\/\" target=\"Portal das Finan\u00e7as\"><span style=\"color: #0000ff;\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\"><u>portal das financas<\/u><\/span><\/span><\/span><\/a><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">, and their responsability is of INCM &#8211; Imprensa Nacional &#8211; Casa da Moeda e da Dire\u00e7\u00e3o Geral dos Impostos, respectively.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22514\" class=\"elementor-tab-title\" data-tab=\"14\" role=\"button\" aria-controls=\"elementor-tab-content-22514\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Tax Information Exchange Agreements related to Fiscal affairs<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22514\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"14\" role=\"region\" aria-labelledby=\"elementor-tab-title-22514\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portugal currently has <b>Tax Information Exchange Agreements with the following 15 countries\/territories<\/b>: Andorra, Antigua e Barbuda, Belize, Bermudas, Dominica, Estado de Guernsey, Gibraltar, Ilhas Caim\u00e3o, Ilha de Jersey, Ilha de Man, Ilhas Virgens Brit\u00e2nicas, Ilhas Turks e Caicos, Lib\u00e9ria, Santa Lucia, St. Kitts and Nevis.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The aforementioned agreements are legal instruments that will enable the Portuguese authorities to request details relevant to the combat against fraud and tax evasion from the competent authorities of each country\/territory, including information about financial transactions and the ownership of companies, foundations, trusts, or other kinds of operation created in said countries\/territories.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The agreements are equally relevant with regard to obtaining exemption from personal or corporate capital gains tax, applicable to companies within the Madeira International Business Centre, on the sale of shares and other securities, since this is only applicable to entities domiciled outside Portugal, in a country, territory or region where a Double Taxation Agreement or a Tax Information Exchange Agreement is in force. where a <b>Double Taxation Agreement<\/b>or a Tax Information Exchange Agreement is in force.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22515\" class=\"elementor-tab-title\" data-tab=\"15\" role=\"button\" aria-controls=\"elementor-tab-content-22515\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Distribution of profits\/dividends<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22515\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"15\" role=\"region\" aria-labelledby=\"elementor-tab-title-22515\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Profits\/dividends distributed by a Portuguese company to its shareholders who are <b>natural persons<\/b> shall be taxed in accordance with the Personal Income Tax Code (28%) unless they are not resident in Portugal and the company is licensed to operate within the scope of the <span style=\"color: #0000ff;\"><u>International Business Centre of Madeira<\/u><\/span> or a double taxation treaty is applied.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Profit or dividends distributed by a Portuguese company to <b>shareholders that are legal persons<\/b>, are exempt, provided that:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">They are residents: <\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">&#8211; of Portugal or any other European Union Member State; <\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">&#8211; of another Member State of the European Economic Area provided that administrative cooperation is guaranteed with respect to taxation in terms equivalent to those established in the European Union; <\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">&#8211; of a State with which Portugal has signed a currently valid agreement for avoiding double taxation and allowing for exchange of information;<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Are subject to and not exempt from Corporate Income Tax (Portuguese companies), a tax mentioned in the Parent-Subsidiary Directive (companies resident in the EU) or a tax that is identical or similar to Corporate Income Tax, provided that the rate applicable to the entity is not less than 60% (12.6%) of the corporate income tax rate (other cases);<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">They hold, directly or indirectly, a participation that is no less than 10% of the shareholder capital or the voting rights of the Portuguese company;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">They hold a participation in the Portuguese company in a manner that has been uninterrupted during the 12 months prior to the distribution date;<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">This exemption does not apply in cases where:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The entity which makes the profits and reserves available has not complied with the reporting obligations laid down in the Legal Framework of the Central Registry of the Effective Beneficiary; <\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The actual beneficiary(s) of the Portuguese company declared under the terms of the Legal Framework of the Central Registry of the Effective Beneficiary have their residence in a tax haven, unless they prove that the company benefiting from such income is not part of a construction or series of constructions considered not genuine, taking into account all the relevant facts and circumstances (a construction or series of constructions is considered not genuine to the extent that it is not carried out for valid economic reasons and does not reflect economic substance).<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">If the Portuguese company is licensed within the scope of the <span style=\"color: #0000ff;\"><u>International Business Centre of Madeira<\/u><\/span>,the respective partners or shareholders (including natural\/individual persons), provided that they are not residents of Portugal or of tax havens, pay no tax on profits made available to them, including amortization of shares without reducing capital, provided that such profits derive from income that has benefitted from a reduced tax rate.<\/span><\/span>.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-22516\" class=\"elementor-tab-title\" data-tab=\"16\" role=\"button\" aria-controls=\"elementor-tab-content-22516\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">European directives<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-22516\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"16\" role=\"region\" aria-labelledby=\"elementor-tab-title-22516\"><p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">As a member of the European Union, Portugal is subject to and benefits from the application of the European Directives, which aim to reduce the tax obstacles in cross-border operations and minimize situations of double taxation.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Parent-Subsidiary Directive<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Council Directive 2011\/96\/EU of 30 November 2011 (previously Directive 90\/435\/EEC) regarding the common tax regime applicable to parent companies and affiliate companies of different Member States is fully applicable to Portuguese companies.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Through this directive, distribution of profits by a Portuguese company to companies residing in the European Union (EU) shall benefit from withholding tax exemption, providing that the following conditions exist:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Both companies meet the criteria of one of the corporate forms stipulated in the Directive Annex;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Both are subject to and not exempt from the income tax referred to in the Directive;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The shareholder has directly or indirectly held a share in the subsidiary &gt;= 10% for at least 2 years.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Portuguese companies fulfil the first two requirements. If the third is also met, it shall be possible for entities resident in another EU Member State to pay dividends to Portuguese companies without paying withholding tax in the State of origin and vice-versa.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Under article 15 of the Agreement between the EU and the Swiss Confederation, the aforementioned exemption is also applicable to the relationship between companies in Portugal and Swiss companies if the company benefitting from the profit has had at least a 25% direct stake in the capital of the company distributing the profits for at least two years, if both entities are subject to income tax without exemptions, and if they are both limited companies.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Similarly, if the requirements of this Directive have been complied with, the distribution of profits made by companies that reside in the European Union to a Portuguese company shall be exempt from withholding tax.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Merger Directive<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Directive 2009\/133\/CE adopted by the council on October 19, 2009, regarding a common system of taxation applicable to mergers, divisions, transfers of assets, and trading of shares that are of interest to companies of different Member States, is fully applicable to companies in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Mergers, division of assets and exchanges of shares between companies established in the EU, as well as transferring headquarters within the EU, are carried out with Corporate Income Tax neutrality, as long as the companies involved embody one of the legal forms of constitution provided for in the Directive, and are subject to income tax.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">In certain instances, transmission of unused tax losses is allowed.<\/span><\/span><\/p>\n<h2 class=\"western\"><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Interest and royalties directive<\/span><\/span><\/h2>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Council Directive 2003\/49\/EC dated June 3, 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States, is applicable to companies in Portugal.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Payment of interest and royalties between companies in the EU are exempt from withholding tax, if:<\/span><\/span><\/p>\n<ul>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Both companies embody one of the legal forms of constitution provided for in the Appendix to the Directive;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Both are subject to Income Tax;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">There is an existing association of capital between them &gt;= 25%, or if both are directly held in &gt;= 25% by a third company, which complies with the two requisites stated above, so long as in either of the cases, the subsidiary is held for a minimum of two years;<\/span><\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">The company to which the interest or royalty payments are made is the beneficial owner of such income, which shall be deemed to be the case when it earns the income for its own account and not as an intermediary, and where a permanent establishment is deemed to be the beneficial owner, the credit, right or use of information from which the income derives is effectively related to the activity carried out through its intermediary and constitutes taxable income for the purpose of determining the profit attributable to it in the Member State in which it is situated.<\/span><\/span><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Companies in Portugal comply with the first two requirements. If the 3rd and 4th are also fulfilled, it is possible for entities in other Member States to pay interest or royalties to the company in Portugal without automatic withholding at source.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Under the Agreement between the EU and Switzerland, tax exemption on the payment of interest and royalties shall also apply to the relationship between Portuguese and Swiss companies, provided that both are limited companies and fulfil the above-mentioned requirements.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">A significative advantage of Madeira companies in relation to companies under the Portuguese general tax regime is that, with the application of the tax regime available within the International Business Centre of Madeira, payment of interest to third parties is exempt from withholding tax.<\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, sans-serif;\"><span style=\"font-size: small;\">Partners or shareholders of Madeira companies, as long as non-resident in Portugal or in tax-havens, are also exempt from tax on the payment of income deriving from interest or other form of remuneration of shareholder loans, allowances or advances of capital that they have made to the company.<\/span><\/span><\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-28bf4df4\" data-id=\"28bf4df4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-67591277 elementor-widget elementor-widget-heading\" data-id=\"67591277\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Areas of expertise<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25d0071f elementor-widget elementor-widget-shortcode\" data-id=\"25d0071f\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><div class=\"sidebar widget_recent_entries\"><ul><li><a href=\"https:\/\/pgs-legal.com\/en\/practice-items\/family-and-minors\/\">Family and Minors<\/a><\/li><li><a href=\"https:\/\/pgs-legal.com\/en\/practice-items\/public-law\/\">Public Law<\/a><\/li><li><a href=\"https:\/\/pgs-legal.com\/en\/practice-items\/residence-and-investment-law\/\">Residence and Investment Law<\/a><\/li><li><a href=\"https:\/\/pgs-legal.com\/en\/practice-items\/investing-in-portugal\/\">Investing in Portugal<\/a><\/li><li><a 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and Arbitration<\/a><\/li><\/ul><\/div><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c23e48 elementor-widget elementor-widget-text-editor\" data-id=\"8c23e48\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h5 class=\"white-color\">Need help?<\/h5>\n<p>Contact us.<\/p>\n<p><strong>Phone:<\/strong> (+351) 234 378 460\/3<br \/><strong>Email:<\/strong> geral@pgls-lawyers.com<\/p>\n<p><strong>Mon to Fri:<\/strong> 9AM to 5PM<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-97eaa29 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"97eaa29\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a2dcb88\" data-id=\"a2dcb88\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-590a351 heading-subtitle white elementor-widget elementor-widget-heading\" data-id=\"590a351\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<span class=\"elementor-heading-title elementor-size-default\">Contact us<\/span>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eebab79 heading-title white elementor-widget elementor-widget-heading\" data-id=\"eebab79\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Find out what we can do for you<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-06ff6eb elementor-widget elementor-widget-heading\" data-id=\"06ff6eb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">Call (+351) 234 378&nbsp;460\/3 and schedule an apointment with one of our team members.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5c77028 btn-white-el elementor-widget elementor-widget-button\" data-id=\"5c77028\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">schedule appointment<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>There are many advantages for those who wish to invest in Madeira, an autonomous Portuguese Region fully integrated in the European Union, that combines the characteristics of a modern, diversified economy, based in International services, with the benefits of the Madeira Free Trade Zone or International Business Centre of Madeira, a preferential tax regime conceived to attract foreign Investment and foster the internationalization of companies.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-3193","mt_practice_areas","type-mt_practice_areas","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/mt_practice_areas\/3193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/mt_practice_areas"}],"about":[{"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/types\/mt_practice_areas"}],"version-history":[{"count":6,"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/mt_practice_areas\/3193\/revisions"}],"predecessor-version":[{"id":3632,"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/mt_practice_areas\/3193\/revisions\/3632"}],"wp:attachment":[{"href":"https:\/\/pgs-legal.com\/en\/wp-json\/wp\/v2\/media?parent=3193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}