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Fiduciary
Services
in Madeira
Why does Locartis have an Affiliate in Madeira
Island? Why is there a business centre in the middle of the
Atlantic Ocean? Because Madeira has a Free Trade Zone with unique
tax incentives for foreign companies who wish to structure their
taxes in a different way.
Mind you, this is not an “offshore”
jurisdiction where there is no control of the companies operating
in the country. Madeira is white listed because the Free Trade
Zone (FTZ), based on Portuguese law and decisions by the European
Commission, is tightly controlled by the Bank of Portugal and
the Ministry of Finance. Many medium sized companies in Europe
“outsource” some of their turnover to Madeira in
order to structure their operation in a more efficient manner. |
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An example:
A German construction company, building a refinery in France
with parts coming from Asia, will use a daughter in Madeira
to invoice the deal. The revenues are duly declared in Germany,
and with the double taxation treaty between Portugal and Germany,
the taxes on dividends out of this deal are quite low. Beneficial
owners, depending on their home country, face a tax around 8
to 10%.
Many trading companies also use the concept as
the goods don’t have to pass thought the island to reach
the client. Only the invoicing needs to be done in Portugal.
In the FTZ itself, space is available at low cost to install
production, warehousing and distribution and the door to Europe
is wide open.
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