Investing in Madeira. The right place, the right time.
At Madeira Company, we’re passionate about the island we live on. As an autonomous region of Portugal, Madeira has a wealth of benefits making it the ideal place to invest, gain access to the European Economic Area, and build a family. Today, we’ll be exploring why you should invest in Madeira and Portugal and how to get started.
Why invest in Madeira and Portugal now?
Portugal was affected by the 2008 financial crisis as much as any other European nation, and Portugal is still rated as a bad place to invest by many rating agencies. But Portugal and Madeira have worked hard to improve their infrastructure. Offering working and relocation visas which are affordable and easy to obtain, Madeira is attracting young professionals from abroad, looking to grow their business in Europe.
Since the pandemic, a vast number of digital nomads have chosen Madeira as their long-term base, due to the attractive climate, cost of living, low crime rate, cuisine, and friendly locals. With designated ‘Nomad Villages’, co-working spaces, retreats and nomad-friendly accommodation, Madeira has so much to offer for remote workers, entrepreneurs, and highly skilled professionals.
What are the advantages of investing in Madeira?
We think that these are the five strongest reasons to move your business, open a branch, or invest in Madeira.
- Talented workforce
Madeira has a young, bilingual, and well-educated workforce. The cost of employing a Portuguese national is lower than in many European countries, with the basic salary being €822.50 per month.
- Quality of Life
Madeira is a safe, multicultural region, with excellent weather year-round. The island has many things to offer, with hikes and adventure activities in areas of outstanding natural beauty, beautiful beaches, great restaurants, and great quality produce available in stores.
Madeira is situated in the Atlantic ocean, 600 miles from Lisbon. With daily flights to many major European cities, Madeira is well connected and easily accessible.
- Access to markets and support
Madeira benefits from being part of the European Economic Zone, with special tax regimes in place for new businesses formed within the MIBC, or Free Trade Zone of Madeira. Ex-pats can also register for Portugal’s Non-habitual Residents scheme, which offers attractive tax benefits for up to ten years.
Madeira’s infrastructure is ranked highly, with strong healthcare for residents and citizens, good public transport, access to ports, airports and high-quality, stable, internet and cellular connections.
Whilst there are many positives, it is also important to highlight some of the disadvantages of working in Portugal and Madeira. Generally, bureaucracy can be slow, making it difficult and even frustrating to advance your projects. This is not always the case, but ex-pats do often raise concerns about working with local government institutions. The political climate in Portugal tends to avoid discussing meritocracy. Whilst Madeira is an autonomous region with its own government, it can still be influenced by Portuguese law.
What options are available for investment in Madeira?
While Madeira may seem like an island paradise for tourists enjoying their retirement, the island has recently been through a major brand overhaul, fixing its position as one of the leading island destinations in all of Europe. The Madeira Belongs to All marketing campaign has been viewed as widely successful, building on visibility among younger travellers and remote workers.
Alongside this change in image, the regional government is keen to capitalise on overseas investment in the region and has been quick to adapt to trends, with lucrative investment opportunities available.
Investing in a Franchise, keeping its name, company structure, policies, and resources is an age-old business method. Many companies are looking to expand to Madeira, with opportunities available in food & beverage, real estate, web development, construction and more.
Compared to many European destinations, the cost of real estate in Madeira is considered relatively low, and many avenues for real estate investment and construction are available. With a strong market for tourism, hotels and short-term accommodation are increasingly in demand. If you’re exploring property in Madeira and are looking for reliable and trustworthy real estate agents to help you with your search, then visit Madeira Estate. We have a wide variety of properties across the Island and an experienced team to help you find your dream home.
Since the pandemic, Portugal, and especially Madeira have really capitalized on the remote work market, creating a haven for Digital Nomads and Entrepreneurs looking to start new businesses in the Portuguese territory. StartUp Madeira was founded to support entrepreneurs, help them develop their business plans, register patents, secure funding, and nurture their new businesses until they grow. With affordable private workspaces, co-working spaces, and a knowledgeable team, they have been influential in many new startups since 2020.
Recently, Portugal has been working to implement an effective sustainability policy that is inclusive and transparent on all levels. A large focus on environmental and social sustainability has created many jobs throughout multiple sectors. Investment opportunities exist in renewable energy, the reduction of greenhouse gases and reducing the carbon footprint of Portuguese society.
Bio & Organic Agriculture
In 2020, Portugal featured in the European Bioeconomy Innovation Scoreboard cementing its position as a strong innovator, with the country’s economy contributing almost €20 billion annually. With a biomass feedstock, ready to rapidly expand into bio-based activities on both regional and national levels, there is no better time to enter this space. Some examples of bioeconomic activities include Agriculture, Forestry, Fisheries and the Blue Economy, Food and beverage, Wood Products and many more.
Zona Franca da Madeira (MIBC)
Zona Franca da Madeira or the Madeira International Business Centre as it is commonly known offers a series of benefits to new companies formed in Madeira. Approved by the European Union and guaranteed until at least 2027, companies in the MIBC benefit from access to the European Economic Area, reduced corporation tax of 5% and exemption of taxation on dividends. We’ve compiled all the information you need on the MIBC in our blog which can be found here.
Apart from traditional forms of investment, Madeira and Portugal are becoming attractive destinations for non-EU citizens who wish to relocate to Portugal through a variety of Visas that lead to citizenship.
Residency by Investment
Madeira continues to offer the Golden Visa, a fast-track residency by investment scheme introduced by Portugal to attract overseas wealth to lower-density population areas. After an investment of €500,000 in property, you and your family can obtain Portuguese residency and eventually citizenship. You can read our dedicated blog on Madeira’s Golden Visa here.
As you can see, Madeira is well-positioned as a destination for investment, with a wealth of avenues available. At Madeira Company, our team of qualified and professional business and tax consultants can help you invest in Madeira and relocate to Portugal. For more information, or to speak to a member of our team, contact us today.