Autonomous Region of Madeira – Budget for 2026 approved

Corporate Income Tax (CIT)

• The CIT rate for legal entities provided for in §§1 and 5 of Article 87 of the CIT Code, applicable in the Autonomous Region of Madeira, is 13.3% (previously 14%). 
• For taxpayers who carry out, directly and as their main activity, an economic activity of an agricultural, commercial or industrial nature, and who qualify as a small or medium-sized enterprise or a small-mid capitalisation company (Small Mid Cap), the CIT rate applicable to the first € 50,000 of taxable income is 10.5% (previously 11.2%), with the rate provided for in paragraph 1 applying to the excess. 
• The CIT rate of 8.75% remains in force for the first € 50,000 of taxable income for companies that carry out, directly and as their main activity, an economic activity of an agricultural, commercial, industrial or service-provision nature, and that qualify as micro, small or medium-sized enterprises or small-mid capitalisation companies (Small Mid Cap), in the beneficiary territorial areas of the Autonomous Region of Madeira, as determined under paragraph 10 of Article 41-B of the Tax Benefits Code. 

Tax Benefits 

Taxpayers who become fiscally resident in the Autonomous Region of Madeira from 1 January 2026, under Article 17 of the PIT Code, and who have not been resident in Portuguese territory in any of the previous five years, and who exercise a highly qualified profession in entities with headquarters or a permanent establishment in Portuguese territory that cumulatively fall under the codes of the Portuguese Classification of Professions and the sectors of activity of the Portuguese Classification of Economic Activities to be defined in a regional regulatory decree, will benefit from the scientific research and innovation tax incentive regime (“incentivo fiscal à investigação científica e inovação“ or IFICI).