Investment ·
Madeira Free Trade Zone: 5% rate extended to 2033
In the State Budget for 2026, Parliament extended by five years the 5% corporate tax rate for companies licensed in the Free Trade Zone.
On 20 November 2025, as part of the State Budget for 2026, the Portuguese Parliament approved the extension of the tax regime of the International Business Centre of Madeira (CINM). Licensed companies keep the 5% corporate tax rate until 31 December 2033, instead of 2028.
The deadline for licensing new companies remains 31 December 2026. Entities licensed by that date have access to the regime until 2033 on the same terms, including the exemption of profits distributed to shareholders.
The extension gives companies setting up now time to make their investment pay off, in line with the duration of regional aid accepted by the European Commission. To learn about the conditions and check whether your project qualifies, see the Invest page or talk to our team.
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The Free Zone has been decisive for the Region (Photo: Regional Government of Madeira) Photo: ECO
