Germany’s recent tax-evasion quarrel with Lichtenstein, which has been labelled an “unco-operative tax haven” by the Organisation for Economic Co-operation and Development, has highlighted how tight regulation of tax jurisdictions can be used as a competitive advantage to attract legitimate investors.
Madeira’s International Business Centre (IBC) has adopted this approach since it began offering investors substantial tax benefits 20 years ago as a means of helping the semi-tropical Portuguese island overcome its disadvantages as a small, peripheral economy lacking in natural resources.
