Investment ·
Regional Budget for 2026: 13.3% corporate tax and personal income tax 30% below the mainland in every bracket
Madeira's 2026 budget applies the maximum 30% reduction to corporate tax, to personal income tax in every bracket, to the regional surcharge and to the reduced VAT rate.
The Budget of the Autonomous Region of Madeira for 2026, approved by Regional Legislative Decree 8/2025/M of 30 December, includes tax measures worth around €222 million, within a €2,329 million budget and a €1,002 million investment plan.
For corporate tax, the standard rate becomes 13.3%, the SME rate on the first €50,000 10.5%, and the rate for start-up SMEs and SMEs in low-density areas 8.75%. The regional surcharge (derrama) falls by 30%, to 2.1%, 3.5% and 6.3%.
For personal income tax, the 30% reduction against the mainland now applies to every bracket, not only up to the sixth. For VAT, the reduced 4% rate covers essentials such as fruit, dairy, bread, rice, oils, meat and fish.
These figures are already in the site's calculators and in the new "Taxes in Madeira in 2026" section of the Invest page.
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Photo: ECO
