Autonomous Region of Madeira – 2024 Budget approved

In brief

Regional Legislative Decree 6/2024/M, of 29 july, approves the 2024 Budget for the Autonomous Region of Madeira. Access the diploma here.

In detail

Corporate Income Tax

• For the year 2024, CIT rates will remain in force, with the reduced CIT rate of 8.75% being extended for the first €50,000 of taxable income for qualified start-up companies that comply cumulatively a set of requirements. 

• Regional surcharge rates remain in force for the year 2024.

• Withholding rates for most payments to non-residents are reduced by 30% (i.e. to 17.5%). Capital income paid to entities resident in black listed jurisdictions or open accounts whose holders are not identified are excluded from this reduction. 

• The changes promoted by the 2024 State Budget Law are extended to the RAM Investment Tax Code, particularly with regard to the possibility of including salary costs for calculating contractual and RFAI tax benefits.

Personal Income Tax

• The thresholds for each PIT bracket are updated by 3%. The rates between the 1st and 5th brackets are also adjusted.

• A reduction of 30% is established in relation to the tax rates provided for in Article 71 of the PIT Code.

Value Added Tax

• The reduced rate decreases from 5% to 4%.

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