International Shipping Register of Madeira – MAR

Entities licensed within the framework of the International Business Centre of Madeira and whose activity is that of maritime transportation will be part, for all due effects, of Madeira’s IBC.
Such entities with vessels registered in MAR will fully benefit from the tax incentives provided by Madeira’s IBC.

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Advantages

● A register of high quality, credible and secure, listed in the Paris MOU white list on Port State Control;
● All international agreements to which Portugal is a signatory are applicable;
● Registration does not require the incorporation of a company;
● Allows registration of both commercial vessels and yachts;
● Not classified as a “flag of convenience” by the I.T.F.;
● European community register. Vessels fly the Portuguese flag and can access European Union cabotage;
● Access to one of the most competitive tax systems in Europe if the vessel’s owner is a company operating in the International Business Centre of Madeira.
● The crew members aboard commercial vessels and yachts registered in MAR exempt from personal income tax and Portuguese social security, provided some form of insurance is guaranteed.

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Crew

● Flexibility relative to crew composition: only the captain and 50% of the safety manning have to be European nationals and/or nationals of an official Portuguese-speakingcountry (Portugal, Brazil, Angola, Mozambique, Cape Verde, São Tomé and Príncipe, Guinea-Bissau and East Timor); vessels owned by Spanish nationals are also authorised to have crew from official Spanish-speaking countries;
● There are no citizenship requirements imposed on the crew of pleasure and commercial yachts, but the people on board must be duly qualified and licensed to operate the yacht.
For commercial yachts until the limit of 60 miles from a safe haven and 25 miles from coast, it’s only required a Yachtsman’s license in agreement with the law in force at the country where the yacht is operating.

 

Vessels

● There are no nationality requirements for the owners of vessels registered in MAR;
● Highly competitive registration and service fees; bulk discounts available;
● Mortgages of vessels registered in MAR can be governed by the laws of a different country

IVA (VAT)

● In the case of a yacht being involved in activities, there will be a full refund of VAT paid at registration and no VAT will be applicable to ocean-going  commercial yachts being on repair and maintenance operations, as well as fuel and oil supply in open sea according to Article 14 of the Portuguese VAT Code.
● The present regime of tax benefits allows the incorporation of new entities within the ambit of the IBC until the end of 2013, granting significantly reduced corporate tax rates until 2020.
● The distribution of dividends to shareholders of shipping companies operating within the legal framework of the IBC of Madeira is exempt from withholding taxes, regardless of nationality or place of residence of the shareholder.

Rate to Operate on IBC (International Business Center)

● Companies licensed to operate in the International Business Centre of Madeira are subject to installation fees, annual and operational ones established by the Regional Government of Madeira.