General Overview. Local authorities established an offshore financial centre in cooperation with the Portuguese government complying to the EU outlined principles. It is possible to incorporate an offshore company, an offshore bank and an offshore trust in Madeira. The jurisdiction is also known for its shipping registry and Free Trade Zone.

Banking Sector. It was advantageous from the taxation point of view to establish and mange offshore banks in Madeira until 2002, but after this year new entities which wish to conduct banking business are no longer allowed to operate according to the Free Trade Legislation. The existent banks’ services correspond to international standards, but Madeira is definitely not the most cost-effective offshore jurisdiction for conducting a banking management activity at present.

Holding Companies. Each corporate structure should be studied individually, according to a particular business model, countries of operations and objectives, but an offshore holding company in Madeira may be a cost and tax-effective solution in certain cases.

Trust Management. Madeira is a Civil law jurisdiction, as Portugal is. Therefore, a trust as such, typical of a Common law jurisdiction, does not exist in the above mentioned jurisdictions. However, the Free Trade Zone introduced an opportunity to establish and manage offshore trusts in Madeira. Property of such a trust must be located outside Portugal and a trust must generate income abroad as well.  A trustee company must be authorized by local authorities to provide trustee services. An offshore trust established in Madeira must follow local rules and regulations.

Shipping Registry. Several types of ships and yachts may be registered in Madeira complying with the Free trade Zone legislation.