FAQ
20 questions, 20 answers
The questions that come up most often — about Madeira taxes, regimes, calculators, and the directory. Sources cited where it matters.
Frequently Asked Questions
Is Madeira Contabilidade an accounting firm?
No. We are an independent editorial directory. We are not certified by the Ordem dos Contabilistas Certificados (OCC). We do not file returns. For your situation consult an OCC-certified accountant — we list several in Madeira at /accountants.
How is the information kept up to date?
Every calculator and table shows a "Last verified" date. We refresh brackets every January and publish mid-year updates when AT / Finanças changes rules. See Editorial Policy.
How do you make money?
Featured listings paid by the firm (€150-400/mo), per-lead referrals when readers hire via the directory, and accounting-software affiliate fees. All disclosed on the About page.
How much IRS do I pay in Madeira 2026?
Depends on income. Since Jan-2026 Madeira applies the maximum 30% reduction to all 9 IRS brackets. A resident pays up to 30% less than a mainland resident on the same income. Use the /calculators/irs-2026-madeira tool.
What's the 30% regional differential?
The max reduction the Autonomous Regions Finance Law permits. Since DLR 8/2025/M (Dec-2025) it applies at the maximum across all 9 IRS brackets. Previously capped at the lower brackets.
What is IFICI?
IFICI (Innovation Fiscal Incentive) is the NHR replacement. Active since Jan-2025. 20% flat rate on PT-sourced employment and professional income for 10 years, for EQF Level 6+ qualified professionals in strategic sectors.
Can I still apply for NHR?
No. NHR closed to new applicants at end of 2023, with transition through 2024. Residents after Jan-2024 apply via IFICI. Existing NHR holders keep the regime through their 10-year window.
Are foreign pensions exempt under IFICI?
No. Unlike old NHR (10% flat), IFICI taxes foreign pensions at standard progressive IRS rates (after any applicable double-taxation treaty). This is the biggest loss vs NHR for retirees.
What is the Madeira IBC / Zona Franca corporate tax rate?
5% on export profits until Dec-31-2033. New IBC licences can be issued through Dec-31-2026 and benefit through 2033. After that, the regime reverts to standard IRC unless extended.
How much Social Security do I pay as a freelancer?
21.4% of 70% of gross monthly revenue. Min €20/mo, max 12×IAS (€6,445.56/mo in 2026 with IAS = €537.13). Quarterly payment (Jan, Apr, Jul, Oct).
Is there a first-year SS exemption?
Yes — 12-month exemption if you opened activity and had no independent activity in the prior 3 years. Also exempt if you combine with a salary ≥€537.13/mo as employee AND freelancer monthly income ≤ 4×IAS.
When do I need to register for VAT?
When annual turnover exceeds €15,000 (2026 threshold). Madeira general VAT = 22% (vs 23% mainland). Quarterly regime by default; monthly if revenue ≥ €650K.
Crypto — when is it taxed in Portugal?
28% flat on gains if held <365 days. Zero if ≥366 days. WATCH OUT: crypto-to-crypto swap (e.g. BTC→ETH) resets the holding period. Staking + DeFi yield may be reclassified as professional activity (Category B + SS).
When is the IRS 2026 filing window?
April 1 – June 30, 2026. Tax payment due by August 31. Expense validation (e-fatura) by Feb 25; family composition update by Feb 15.
Do I need an accountant to file IRS?
Legally no — Portal das Finanças allows self-service. But for foreign income, crypto, capital gains, IFICI applications, or simplified vs organized decisions, an accountant reduces error risk. Typical cost: €80-250 per return.
How do I verify an accountant is OCC-certified?
On portal.occ.pt (public member search). All our confirmed listings ('OCC verified' badge) have been cross-checked against that registry. Pending listings are clearly flagged on the profile.
Do Madeira accountants speak English?
Some, not all. Filter by language in /accountants to see only EN-declared firms. Madeira Corporate Services (MCS) is the dominant English-first player; several other firms have multilingual teams.
Can I "move to Madeira" just for the tax differential?
Only if you become a real tax resident — centre of life, 183+ days, primary home. AT audits suspect domiciles. The differential is for people who actually live in Madeira, not paper addresses. Consult an accountant + lawyer before deciding.
Does the simplified regime pay off vs organized accounting?
Simplified assumes 25% of revenue is expenses (services: 75% taxable). If real expenses exceed 25%, organized wins. If below, simplified wins (especially with accountant cost €60-200/mo). Break-even depends on activity code — see /guides/simplified-regime.
Does Madeira have its own IRC regime beyond IBC?
It has a regional IRC differential (typically 15% vs 19% mainland for SMEs in 2026), but the standout regime is the IBC / Free Trade Zone at 5% on exports. Regime choice depends on activity (export-driven or not) and substance (jobs).
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