There is a great demand to invest on the island as Madeira island offers a warm climate all year round and also it is considered as one of the safest islands in the world where crime is very minimum. Economically, Madeira has been a favorite of investors especially for the English, German, French, Russian and Northern European countries. Each year, more tourists are slowly but surely becoming acquainted with the charms offered by this Atlantic Ocean paradise
Portugal has what is called a non-habitual resident (NHR) tax regime. In effect, it is a program that allows qualifying individuals the opportunity to become tax residents of a “white-listed” jurisdiction and still legally eliminate their taxes on most foreign-source income.
The tax residency is good for 10 years and does not come with the typical obligation that you visit or live in Portugal part of the year to maintain your resident status there.
The biggest draw of the program is the opportunity to reduce your income tax to zero.
This is possible, in part, due to Portugal’s 71 double taxation treaties. According to the regime, as long as the source country of your income has the power to tax your income (regardless of whether or not they actually apply the tax), Portugal will not tax your foreign-sourced income.
The list of income sources that will not be taxed under this set-up includes foreign-source self-employment, royalties, eligible occupations, occupational pensions, capital gains and investment or rental income.
It is important to note that capital gains from the sale of securities will be taxed, as will income sourced from a blacklisted tax haven that does not have a double tax treaty with Portugal.
Finally, if you happen to have Portugal-sourced income, it will be taxed at a flat rate of 20%.
The island has a fine reputation as Europe's leading island resort destination and is much loved by those who live on or visit the beautiful island. It has won the following awards:
Madeira and its islands are extremely safe and secure, with the lowest crime rate per capita in Europe. Madeira has 15 local police stations.
There are 3 hospitals and over 25 health center’s or surgeries located in various parts of the island. Madeira also has the 4th highest doctor to patient ratio in Europe, with over 1200 doctors serving around 250,000 residents.
Investors should take consideration in Madeira as it is a safe investment. The island has everything to offer from a safe environment, pollution free, great education, great health care, sea views all around the island, nature and in general a calm place to live. It is a place to live without many worries making Madeira a winner!