Investment ·
New Free Trade Zone regime: methodology agreed with the European Commission
The Regional Government wants the fifth Free Trade Zone regime published by the end of 2026, so that new companies can still be licensed in 2027.
The methodology and principles of the new, fifth regime of the Madeira Free Trade Zone have been agreed between the Regional Government and the European Commission. "These talks with the European Commission have taken place, and the new methodology and its foundations have been agreed. We are now in a dialogue phase with the Government of the Republic", said Regional Secretary for Finance Duarte Freitas on 29 July 2026.
The next step is drafting the legal instrument with the Portuguese Government. The aim is to publish it by 31 December 2026, to avoid any break in new licences from 1 January 2027.
Until then the current regime applies: companies licensed by 31 December 2026 benefit from the 5% corporate tax rate on their profits until 31 December 2033.
