Portugal has decided to appeal the European Commission’s decision according to which the Madeira Free Zone scheme – the objective of which was to contribute to the economic development of the outermost region of Madeira through tax incentives, was not implemented in line with approved conditions.
In December 2020, the Commission determined that Portugal’s Madeira Free Zone scheme (which expired in 2014) constituted illegal State aid and required Portugal to recover aid granted under the scheme to companies that did not meet certain conditions (i.e. job creation in Madeira and activities effectively and materially performed in Madeira). For more details on the decision please refer to E-news 124.
For more information on the appeal, please see Case T-95/21.
Source KPMG
