Madeira: The Ideal Destination for Yacht Registration

In the ever-changing maritime industry, ship and yacht owners are increasingly looking for jurisdictions that offer compelling registration advantages. Portugal continues to be placed as a top choice for ship or yacht registration, which is largely due to The Madeira International Shipping Register (MAR).

MAR was established in 1989 as part of the Madeira International Business Centre (MIBC) framework, to offer a credible, EU-compliant alternative to other international shipping registers. As of May 2025, MAR has approximately 1,300 registered ships, and nearly 28 million gross registered tonnage. With it being in the top three EU yacht registers and ranked eleventh in the world, MAR has become a highly attractive jurisdiction for yacht registration.

In this article, we outline the various advantages of registering a vessel in Madeira, and how Fairway’s yacht registration services can assist you in this process.

Benefits of Yacht Registration in Madeira (MAR)

European Union flag benefits & credibility

Vessels registered in Madeira fly the Portuguese flag, which carries full EU credibility and grants unrestricted access to European Union waters. Yacht owners benefit from the freedom to explore EU cabotage rules, allowing seamless movement across member states. The Portuguese flag is widely respected for its strong reputation, and ships bearing EU registration often enjoy enhanced global port access and preferential insurance terms, thanks to the high standards associated with European-flagged vessels.

MAR’s Reputation

Madeira’s yacht registry is known for how well it follows international sea rules. MAR is whitelisted in the Paris and Med MoU, as well as being recognised by all global maritime organisations, including the International Maritime Organisation (IMO). IMO ensures yachts and ships meet the best safety and work standards. Furthermore, it is not and has never been classified as a ‘flag of convenience’ by the International Transport Worker’s Federation (ITF). This ensures vessels registered with MAR are held to comprehensive international standards.

Tax advantages:

One of the key benefits of registering a vessel under the Madeira shipping register is access to the desirable tax incentives that the Madeira International Business Centre (MIBC) offers. Yacht and shipping company owners who incorporate a company within the MIBC and register their vessel under MAR can benefit from strategic advantages including:

• A corporate income tax rate of 5% (one of the lowest in the EU)
• Automatic VAT registration
• Access to Portuguese double taxation treaty network
• Exemption from withholding taxes on the distribution of dividends
• Exemption from withholding taxes on interest, royalties and service fees paid to non-residents
• Exemption from capital duty, notary, and registration fees

To access these tax benefits, vessel owners must establish a licensed company within the MIBC. Registering a vessel independently with MAR, does not grant access to these benefits. However, charter yacht owners registering independently may still benefit from specific VAT exemptions, including:

• Acquisition and registration of the yacht
• Charter activities
• Repairs, maintenance, fuel and oil

Flexible crew requirements

Yacht and ship registration in Madeira comes with flexible crew hiring and management policies. Only 30% of the safety crew must be considered “European”, this includes:

• Citizens of Portuguese-speaking countries (e.g. Brazil, Angola, Mozambique)
• Citizens of EU Member States
• Citizens of other European countries (which may include non-EU states like Norway or Switzerland

This enables the vessel owners to hire a diverse, skilled workforce from a global talent pool. Additionally, crew members are exempt from Portuguese personal income tax and Portuguese social security contributions, provided that some form of insurance coverage is in place. Portuguese crew members are subject to a reduced social security contribution rate.

Madeira’s reputation as a safe and stable jurisdiction 

Portugal, including the autonomous region of Madeira, is known for its political stability and robust legal framework. The Madeira maritime registry operates under Portuguese law, offering shipowners a high degree of legal certainty and protection, an essential factor in an industry where long-term investment security is paramount.

As an autonomous region, Madeira has the authority to shape its own economic and maritime policies while remaining fully integrated within the European Union. This unique status allows shipowners to benefit from both local regulatory flexibility and the broader oversight and advantages of the EU framework.