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

The Regional Directorate of Statistics of Madeira (DREM) released today the final data of the Foreign Affiliates Statistics for the Autonomous Region of Madeira (ARM) for the year 2024. The information is sourced from the Integrated Business Accounts System (IBAS), which results from a process of integration of statistical information on enterprises based on administrative data, with particular emphasis on the Simplified Enterprise Information (IES). The main economic indicators characterising the structure, evolution and origin of capital control of foreign affiliates in the ARM are presented.

A foreign affiliate in the ARM is defined as an enterprise resident in the ARM that is controlled by a non-resident institutional unit in Portugal. Control is understood as the power to determine the general policy of an enterprise, including, where necessary, the appointment of its management.

Within the scope of the present study, only enterprises constituted as companies were considered, given that all foreign affiliates in the ARM, as well as in Portugal as a whole, assume this legal form.

In 2024, employment in foreign affiliates in the ARM exceeded 5 000 for the first time

In 2024, there were 243 foreign affiliates in the ARM, representing an increase of 7.5% compared with 2023. These accounted for 1.9% of the total number of non-financial companies headquartered in the ARM, a proportion lower than that observed at the national level (3.4%).

Foreign affiliates in the ARM employed approximately 5 078 persons (+1.9% compared with the previous year), corresponding to 6.3% of total employment in non-financial companies in the Region (18.3% at the national level). On average, each affiliate employed 21 persons in 2024, a figure significantly higher than that recorded for companies headquartered in the ARM (6 persons).

The Turnover of foreign affiliates in the ARM increased by 7.8% between 2023 and 2024, reaching 1 416.3 million euros, and accounted for 14.1% of the total turnover of regional non-financial companies.

The Gross Value Added (GVA) of foreign affiliates in the ARM amounted to 420.6 million euros, representing 13.2% of the total GVA of regional companies. Compared with the previous year, GVA increased by 27.5%, a growth rate higher than that recorded for the total of companies headquartered in the ARM (+14.4%).

At national level, the GVA of foreign affiliates grew by 7.4% in 2023, exceeding the increase observed in the GVA of non-financial companies in Portugal (+7.2%), and accounted for 27.9% of total GVA of non-financial companies.

In 2024, 67.1% of foreign affiliates in the ARM, 86.6% of employment and 60.2% of turnover corresponded to enterprises whose headquarters were located in the European Union.

In the reference year, 78.6% of foreign affiliates in the ARM were controlled by enterprises headquartered in continental Europe, followed by the American continent, which accounted for 18.1% of affiliates.

In the ARM, among the five countries with the largest contribution to turnover, four were European countries.

The country of origin of capital control with the highest share in terms of the number of affiliates in the ARM was Malta, accounting for 15.2% (17.7% in 2023). In terms of GVA, affiliates whose decision-making centre was located in Luxembourg accounted for 37.9% of the GVA of foreign-controlled affiliates (34.1% one year earlier).

In 2024, by economic activity, the sectors “Other services” and “Construction and Real Estate Activities” stood out, with 78 and 55 foreign affiliates, respectively (81 and 53 affiliates in the previous year).

According to the analysis carried out by DREM, foreign affiliates licensed within the Madeira International Business Centre (CINM) represented 17.7% of the total number of affiliates in the ARM, 8.4% of employment, 15.5% of turnover and 24.0% of the GVA of enterprises controlled by foreign entities.

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