What substance criteria are applicable?

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Although Madeira and Portugal do not have specific substance requirements to comply with, to take advantage of its double taxation treaty network, as mentioned above, substance does need to be maintained.

Detailed below are some examples of how this may be achieved:

Maintaining an open and active bank account;
A registered office address and/or premises for the exclusive use of the company;
A qualified director and/or permanent employee;
Making important business decisions in Portugal and evidencing these through minutes macedonia mobile database of board meetings; and/or
Ensuring sufficient commercial activity occurs in Portugal for the related business.
Specific substance criteria required for the International Business of Madeira (IBCM) are as follows:

Following the incorporation of the company:
Within the first 6 months of activity, the IBCM company must hire at least, one worker, and undertake a minimum investment of €75,000 in fixed assets, within the first 2 years of activity. OR;
If it hires six employees, during the first 6 months of activity, it will be exempt from undertaking the minimum investment of €75,000.
On an ongoing basis, the company must have at least one full time employee on its payroll, paying Portuguese personal income tax and social security. This employee can be the Director or a Board Member of the IBCM company.