DREM releases data on foreign affiliates in the Autonomous Region of Madeira

The Regional Directorate of Statistics of Madeira (DREM) releases today the final data on Statistics of foreign affiliates in the Autonomous Region of Madeira (ARM) for the year 2022. The information is derived from the Integrated Business Accounts, which results from a process of integrating statistical information on enterprises, based on administrative data, with particular emphasis on Simplified Business Information (IES). The main economic indicators characterizing the structure, evolution, and origin of capital control of foreign enterprise affiliates in the ARM are made available.

A foreign affiliate in the ARM is an enterprise resident in Madeira, controlled by a non-resident institutional unit in Portugal. Control is understood as the power to determine the general policy of an enterprise, choosing, if necessary, its administrators.

In the scope of this study, only enterprises constituted in the legal form of a company were considered, as the entirety of foreign affiliates in the ARM and even in Portugal assume this legal form.

In 2022

Turnover of foreign affiliates almost tripled compared to the previous year

In 2022, there were 233 affiliates of foreign enterprises in the Autonomous Region of Madeira, a 4.5% increase compared to 2021, representing 2.1% of the total non-financial societies, the same percentage as in the country.

Foreign branches in the ARM employed about 4,559 persons (+10.3% compared to the previous year), representing 6.5% of the total employment of non-financial companies in this region (18.4% in the country). On average, each affiliate employed 20 persons in 2022, a value higher than that of companies headquartered in the ARM (6 persons).

The Turnover of foreign affiliates in the Autonomous Region of Madeira increased by 181.0% (15.7% of the total share of the Turnover of regional non-financial companies) between 2021 and 2022, reaching 1,369.2 million euros.

The Gross Value Added (GVA) of foreign affiliates in the ARM was 315.8 million euros, concentrating 12.8% of the total GVA of regional companies. Compared to the previous year, there was an increase of 87.9%, substantially higher than the increase in GVA of all enterprises headquartered in the ARM, which was 36.6%.

At the country level, the GVA of foreign affiliates grew by 19.9% in 2022, above the increase in the GVA of non-financial enterprises in Portugal (+18.1%), constituting 28.4% of the total GVA of non-financial companies.

In 2022, 63.5% of foreign enterprise affiliates in the ARM, 72.7% of the employees, 32.2% of the Turnover, and 47.4% of the GVA corresponded to enterprises whose headquarters were in the European Union.

In the reference year, 80.3% of foreign enterprise affiliates in the ARM and 95.9% of the GVA corresponded to enterprises whose headquarters were on the European continent, followed by the American continent, with 15.5% of affiliates and 3.6% of GVA.

In the ARM, among the 5 countries contributing the most to Turnover, all belong to the European continent.

The country of origin of capital control with the greatest share in terms of the number of the Autonomous Region of Madeira affiliates was Malta, with 18.0% (18.4% in 2021). In terms of GVA, affiliates with decision-making centres in Luxembourg concentrated 31.9% (33.2% a year earlier) of the GVA of affiliates.

In 2022 in the ARM, by sector of activity, "Other services" and "Construction and Real Estate Activities" stand out with 88 and 55 foreign affiliates, respectively (89 and 51 affiliates in the previous year).

According to the analysis made by DREM, foreign enterprise affiliates licensed in the International Business Centre of Madeira (CINM) represent 19.7% of the total affiliates in the ARM, 7.6% of employees, 17.6% of Turnover, and 23.8% of GVA of enterprises owned by entities headquartered in foreign countries.

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