The government of the autonomous region of Portugal, the Madeira archipelago, has announced its intention to attract high-tech companies in the cryptocurrency industry by providing a wide range of preferences.

The regional government’s finance minister, Rogerio Gouveia, promised that Madeira would expand the powers of the free trade zone, give tax breaks to crypto companies, exempting them from capital gains tax and giving one of the lowest corporate tax rates in the European Union.

“For companies looking to establish themselves in the region, the greatest tax incentive lies in the Madeira Free Zone or International Business Centre. This zone offers a preferential tax regime, limiting the corporate tax rate to a competitive maximum of 5%,” the official explained.

Madeira is betting on attracting high-tech startups to strengthen its economy. Now the digital finance sector already represents up to 30% of the island’s business, and its support is vital for Madeira, which has traditionally focused on international tourism.

Earlier, a similar point of view was expressed by the President of the regional government of Portugal on the island of Madeira, Miguel Albuquerque. The politician announced his intention to turn the archipelago into an innovative cryptocurrency hub.