Autonomous Region of Madeira – Budget for 2025 approved
07/04/25
In brief
The Budget of the Autonomous Region of Madeira for 2025 was approved by Regional Legislative Decree no. 2/2025/M, of 2 July.
The amendments introduced shall take effect from 1 January 2025.
In detail
The Budget of the Autonomous Region of Madeira for 2025 was approved by Regional Legislative Decree no. 2/2025/M, of 2 July.
The amendments introduced shall take effect from 1 January 2025.
The following should be highlighted:
Personal Income Tax (PIT)
Income Brackets
The maximum differential of 30% compared to the national rates is now applied up to the 6th income bracket, thereby extending the benefit to more taxpayers.
There is also a further reduction in the higher brackets, as follows:
- 7th bracket: reduction of 15% (previously 3%);
- 8th bracket: reduction of 9% (previously 3%);
- 9th bracket: reduction of 3% (previously 1%).
Self-employed
A 30% reduction is applied to withholding tax rates for self-employed covered by the table in Article 151 of the Personal Income Tax Code.
Consult PwC Tax Guide 2025 – PIT– PIT rates, following this [link].
Corporate Income Tax (CIT)
General CIT Rate
The general IRC rate is set at 14% (previously 14.7%).
SMEs and Small Mid-Caps
The CIT rate applicable to small and medium-sized enterprises (SMEs) and small mid-cap companies engaged in agricultural, commercial, or industrial activities, for the first € 50,000 of taxable income, is 11.2% (previously 11.9%).
Consult PwC Tax Guide 2025 – CIT – CIT Rates, following this [link].
Regional Surtax
The Regional Surtax regime remains unchanged for 2025, with the existing rules and limits continuing to apply.
Consult PwC Tax Guide 2025 – CIT – Regional Surtax, following this [link].
Withholding Tax Rates on payments to non-residents
The withholding tax rates on income paid to non-residents continue to benefit from a 30% reduction, except in specific situations provided for by law.
Consult PwC Tax Guide 2025 – CIT – Withholding tax rates, following this [link].
© 2025 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.
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