🇵🇹 Madeira Free Trade Zone Free Zone

Madeira (Portugal) International Business Centre offers reduced tax rates. Portugal's crypto-favorable tax regime applies with additional free zone benefits. EU/MiCA regulations apply.

Overview

Statuscrypto_friendly
Risk Score15/100 (Low Risk)
Regioneurope
CurrencyEUR

Tax Information

Capital Gains (Personal)0% for holdings >365 days (general exemption, not NHR-dependent); 28% for holdings <365 days. NHR original regime closed to new applicants since 1 Jan 2024. NHR 2.0 (IFIC) applies 20% flat rate on qualifying Portuguese income for eligible innovation/science workers.
Capital Gains (Corporate)5% MIBC rate
VAT on CryptoNo
Staking Tax28% flat rate as Category E (investment income) for occasional staking. Professional/regular staking taxed at progressive rates as business income. AT guidance issued May 2025 specifically addressed staking as taxable investment income.
Airdrop TaxNo specific guidance

No crypto-specific tax guidance available.

Licensing & Registration

RequiredYes
RegulatorBanco de Portugal / CMVM
FrameworkMiCA (EU Regulation 2023/1114, fully applicable 30 Dec 2024) + Law No. 69/2025 (Portuguese MiCA implementing law, 22 Dec 2025) + Law No. 83/2017 (AML) as amended by Law No. 70/2025 (Travel Rule implementation)

Enforcement Activity

Level: Low

No significant enforcement actions reported; jurisdiction actively encourages crypto business

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: Legal

No specific DeFi regulation; generally permissive environment

Stablecoins

Status: regulated

MiCA stablecoin rules fully applicable since 30 Dec 2024. Asset-Referenced Tokens (ARTs) require prior authorization from Banco de Portugal. E-Money Tokens (EMTs) restricted to licensed credit institutions or e-money institutions. Significant ARTs/EMTs supervised at EU level by EBA. Law No. 69/2025 designates BdP as competent authority for ART/EMT supervision in Portugal.

NFTs

Status: no_rules

No specific NFT regulation; generally permitted

Mining

LegalYes
Electricity Cost$0.15/kWh
Renewable Energy30%
Infrastructuregood

Mining is legal within Madeira Free Trade Zone with moderate electricity costs and good infrastructure.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index56/100
Banking Accessopen

Risk Factors

Madeira as part of Portugal and EU. No sanctions. Portugal's CPI score declined to 56/100 in 2025 CPI (ranked 48th globally), down from 62 previously. EU member with full market access and MiCA passporting rights.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Madeira Free Trade Zone?

Madeira (Portugal) International Business Centre offers reduced tax rates. Portugal's crypto-favorable tax regime applies with additional free zone benefits. EU/MiCA regulations apply.

What is the FATF status of Madeira Free Trade Zone?

Madeira Free Trade Zone is classified by FATF as: compliant.

Are VASPs licensed in Madeira Free Trade Zone?

Yes, licensing is required for VASPs.

What is the AML/KYC regime in Madeira Free Trade Zone?

KYC is mandatory for crypto businesses.

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Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map

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