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95-642: Since 1987, the MIBC has been managed and promoted by a private company, Sociedade de Desenvolvimento da Madeira S.A. (SDM), in which the Regional Government of Madeira currently holds of 48,86% the shares. The other main shareholder is Pestana Group , holding 51,14% of the shares. As of January 2020, the Vice-Presidency of the Madeira Regional Government announced its intention of acquiring 51% of

190-469: A knowledge economy , with the founding of the University of Luxembourg and a national space program . Luxembourg is described as a " full democracy ", with a parliamentary democracy headed by a constitutional monarch . Executive power is exercised by the grand duke and the cabinet, which consists of several members with the titles of minister, minister delegate or secretary of state, who are headed by

285-663: A soviet worker's republic similar to the ones emerging in Germany , but these attempts lasted only 2 days. In November 1918, a motion in the Chamber of Deputies demanding the abolition of the monarchy was defeated narrowly by 21 votes to 19 (with three abstentions). France questioned the Luxembourgish government's, and especially Marie-Adélaïde's, neutrality during the war, and calls for an annexation of Luxembourg to either France or Belgium grew louder in both countries. In January 1919,

380-545: A Germanic language, is the only national language of the Luxembourgish people and of the Grand Duchy of Luxembourg, French is the only language for legislation, and all three – Luxembourgish, German and French – are used for administrative matters in the country. With an area of 2,586 square kilometers (998 sq mi), Luxembourg is Europe's seventh-smallest country . In 2024, it had

475-705: A Habsburg possession, the Duchy of Luxembourg became, like many countries in Europe at the time, heavily involved in the many conflicts for dominance of Europe between the Habsburg-held countries and the Kingdom of France . In 1542, the King of France , François I , invaded Luxembourg twice, but the Habsburgs under Charles V managed to reconquer the Duchy each time. Luxembourg became part of

570-414: A Prime Minister. The current Constitution of Luxembourg , the supreme law of Luxembourg, was originally adopted on 17 October 1868. The Constitution was last updated on 1 July 2023. The grand duke has the power to dissolve the legislature , in which case new elections must be held within three months. But since 1919, sovereignty has resided with the nation, exercised by the grand duke in accordance with

665-569: A combination of theoretical frameworks and analysis of the avaialable tax revenue at the time. According to the study published by the Portuguese Catholic University , on April 4, 2019, should all the companies benefiting from the International Business Centre of Madeira cease to operate then: On April 30, 2022, the media and JPP leaked the conclusions of the study carried out by Coimbra University , on behalf of

760-513: A company of the Luxembourgish Army rebelled, declaring itself to be the army of the new republic, but French troops intervened and put an end to the rebellion. Nonetheless, the disloyalty shown by her own armed forces was too much for Marie-Adélaïde, who abdicated in favor of her sister Charlotte 5 days later. The same year, in a popular referendum , 77.8% of the Luxembourgish population declared in favor of maintaining monarchy and rejected

855-415: A consciousness of independence and a national awakening took place in the 19th century. The people of Luxembourg began referring to themselves as Luxembourgers , rather than being part of one of the larger surrounding nations. This consciousness of Mir wëlle bleiwe wat mir sinn (" We want to remain what we are ") culminated in 1890, when the last step towards full independence was finally taken: due to

950-703: A founding member of the United Nations in 1945. Luxembourg's neutral status under the constitution formally ended in 1948, and in April 1949 it also became a founding member of NATO . During the Cold War , Luxembourg continued its involvements on the side of the Western Bloc . In the early fifties a small contingent of troops fought in the Korean War . Luxembourg troops have also deployed to Afghanistan, to support ISAF . In

1045-639: A mortgage system and access to European continental and island cabotage . The MIBC was created the year that Portugal became a member state of the European Union . The tax benefits approved for Madeira would be considered state aid under EU law , and subject to approval by the European Commission . Approval of such tax benefits by the European Commission is covered by Article 349 of the Treaty on

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1140-404: A population of 672,050, which makes it one of the least-populated countries in Europe , albeit with the highest population growth rate ; foreigners account for nearly half the population. Luxembourg is a representative democracy headed by a constitutional monarch , Grand Duke Henri , making it the world's only remaining sovereign grand duchy . The County of Luxembourg was established in

1235-961: A pro- NATO , pro-US foreign policy. Luxembourg is considered a European capital, and is the site of the Court of Justice of the European Union , the European Court of Auditors , the European Investment Bank , the Statistical Office of the European Union ( Eurostat ) and other vital EU organs. The Secretariat of the European Parliament is located in Luxembourg, but the Parliament usually meets in Brussels and sometimes in Strasbourg . Luxembourg

1330-468: A profound effect on the historical memory of the country and its citizens. However, many republican ideas of this era continue to have a lasting effect on Luxembourg; one of the many examples features the implementation of the Napoleonic Code Civil which was introduced in 1804 and is still valid today. After the defeat of Napoleon in 1815, the Duchy of Luxembourg was restored. However, as

1425-569: A succession crisis the Dutch monarchy ceased to hold the title Grand-Duke of Luxembourg. Beginning with Adolph of Nassau-Weilburg , the Grand-Duchy would have their own monarchy , thus reaffirming its full independence. In August 1914, during World War I , Imperial Germany violated Luxembourg's neutrality by invading it in order to defeat France. Nevertheless, despite the German occupation , Luxembourg

1520-615: A succession crisis, precipitated by the lack of a male heir to assume the throne. Since Sigismund and Elizabeth of Görlitz were both heirless, all possessions of the Luxembourg Dynasty were redistributed among the European aristocracy. The Duchy of Luxembourg become a possession of Philip the Good , Duke of Burgundy . As the House of Luxembourg had become extinct and Luxembourg now became part of

1615-514: Is 5% of taxable income. However, if the company conducts business activities with other Portuguese companies which are not licensed to operate in the MIBC, the tax rate on profits is the normal 20%. Since companies licensed in the MIBC are Portuguese companies for all legal purposes, they may qualify (under certain conditions) for the Portuguese-European participation exemption regime applicable to dividends and capital gains . Apart from

1710-603: Is also known for having founded the Schueberfouer in 1340 and for his heroic death at the Battle of Crécy in 1346. John the Blind is considered a national hero in Luxembourg. In the 14th and early 15th centuries, three more members of the House of Luxembourg reigned as Holy Roman Emperors and Bohemian Kings: John's descendants Charles IV , Sigismund (who also was King of Hungary and Croatia ), and Wenceslaus IV . Charles IV created

1805-853: Is also site of the EFTA Court , which is responsible for the three EFTA members who are part of the European Single Market through the EEA Agreement . The Luxembourgish army is mostly based in its casern, the Centre militaire Caserne Grand-Duc Jean on the Härebierg in Diekirch. The general staff is based in the capital, the État-Major . The army is under civilian control , with the grand duke as Commander-in-Chief . The Minister for Defense , Yuriko Backes , oversees army operations. The professional head of

1900-553: Is bordered by Belgium to the west and north, Germany to the east, and France to the south. Its capital and most populous city, Luxembourg City , is one of the four institutional seats of the European Union (together with Brussels , Frankfurt , and Strasbourg ) and the seat of several EU institutions, notably the Court of Justice of the European Union , the highest judicial authority. Luxembourg's culture , people, and languages are greatly influenced by its much larger neighbors France and Germany; for example, Luxembourgish ,

1995-534: Is generally known as the Second Partition of Luxembourg . To compensate the Duchy for this loss, it was decided to elevate the Duchy to a Grand-Duchy , thus giving the Dutch monarchs the additional title of Grand-Duke of Luxembourg . After Belgium became an independent country following the victorious Belgian Revolution of 1830–1831 , it claimed the entire Grand-Duchy of Luxembourg as being part of Belgium, however,

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2090-530: Is non-existent in Portuguese law ). In a Madeiran trust, the settlor designates the law regulating the trust. Since the 1980s, MIBC tax benefits have evolved. Their core principle is the reduction of the corporate tax rates in the Portuguese tax code . Under the current set of tax benefits applicable to the MIBC tax benefits, the applicable corporate income tax rate—known in Portugal as IRC—for licensed companies

2185-791: Is one of the two organs of self-government of the Autonomous Region along with the Regional Legislative Assembly , to which it is politically accountable . The President of the Regional Government is appointed by the Representative of the Republic in light of the results of the elections to the Regional Legislative Assembly . The remaining members of the Regional Government are appointed and discharged by

2280-661: The Abbey of Echternach in AD 698, and is celebrated annually in the dancing procession of Echternach . For a few centuries the abbey would become one of northern Europe's most influential abbeys. The Codex Aureus of Echternach , an important surviving codex written entirely in gold ink, was produced here in the 11th century. The so-called Emperor's Bible and the Golden Gospels of Henry III were also produced in Echternach at this time. When

2375-554: The Bock rock by Siegfried, Count of the Ardennes , in 963 through an exchange act with St. Maximin's Abbey, Trier . Around this fort , a town gradually developed, which became the center of a state of great strategic value within the Duchy of Lorraine. Over the years, the fortress was extended by Siegfried's descendants and by 1083, one of them, Conrad I , was the first to call himself a " Count of Luxembourg ", and with it effectively creating

2470-675: The Burgundian Netherlands , this would mark the start of nearly 400 years of foreign rule over Luxembourg. In 1482, Philip the Handsome inherited all of what became then known as the Habsburg Netherlands , and with it the Duchy of Luxembourg. For nearly 320 years Luxembourg would remain a possession of the mighty House of Habsburg, at first under Austrian rule (1506–1556), then under Spanish rule (1556–1714) , before going back again to Austrian rule (1714–1794) . With having become

2565-637: The Carolingian Empire was divided many times starting with the Treaty of Verdun in 843, today's Luxembourgish territory became successively part of the Kingdom of Middle Francia (843–855), the Kingdom of Lotharingia (855–959) and finally of the Duchy of Lorraine (959–1059), which itself had become a state of the Holy Roman Empire . The recorded history of Luxembourg begins with the acquisition of Lucilinburhuc (today Luxembourg Castle ) situated on

2660-828: The Dalheim Ricciacum and the Vichten mosaic , on display at the National Museum of History and Art in Luxembourg City. The territory was infiltrated by the Germanic Franks from the 4th century, and was abandoned by Rome in AD 406, after which it became part of the Kingdom of the Franks . The Salian Franks who settled in the area are often described as the ones having brought the Germanic language to present-day Luxembourg, since

2755-571: The European Union  (green) Luxembourg ( / ˈ l ʌ k s əm b ɜːr ɡ / LUK -səm-burg ; Luxembourgish : Lëtzebuerg [ˈlətsəbuəɕ] ; German: Luxemburg [ˈlʊksm̩bʊʁk] ; French: Luxembourg [lyksɑ̃buʁ] ), officially the Grand Duchy of Luxembourg , is a small landlocked country in Western Europe . It

2850-510: The King of the Netherlands , would become, in personal union , the head of state. To satisfy Prussia, it was decided that not only the Fortress of Luxembourg be manned by Prussian troops , but also that large parts of Luxembourgish territory (mainly the areas around Bitburg and St. Vith) become Prussian possessions. This marked the second time that the Duchy of Luxembourg was reduced in size, and

2945-460: The Luxembourg Crisis . Luxembourg is a developed country with an advanced economy , and has one of the world's highest GDP (PPP) per capita as per IMF and World Bank estimates. The nation's levels of human development and LGBT equality are ranked among the highest in Europe. The historic city including its fortification was declared a UNESCO World Heritage Site in 1994 due to

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3040-768: The Nine Years' War in 1684, France invaded Luxembourg again , conquering and occupying the Duchy until 1697 when it was returned to the Spanish in order to garner support for the Bourbon cause during the prelude to the War of the Spanish Succession . When the war broke out in 1701 Luxembourg and the Spanish Netherlands were administered by the pro-French faction under the governor Maximilian II Emanuel, Elector of Bavaria and sided with

3135-524: The Portuguese Catholic University , an economic and sustainability study on the importance of the taxation regime the island's economy, as well as filling a formal complaint and legal opinion to the European Commission's preliminary evaluation of the taxation regime. On December 4, 2020, the European Commission concluded that the III Regime of the MIBC scheme was not implemented in line with approved conditions and that breaching companies would need to give back

3230-450: The Red Lands ' rich iron-ore grounds in the beginning of the 20th century drove Luxembourg's industrialization. After the decline of the steel industry in the 1970s, the country focused on establishing itself as a global financial center and developed into the banking hub it is reputed to be. Since the beginning of the 21st century, its governments have focused on developing the country into

3325-501: The Regional Government , Pedro Calado, the revenue is crucial to maintaining the region's fiscal autonomy from the Republic . As of December 31, 2017 the employment generated by companies licensed within the International Business Centre was the following, by sector: In 2018 the MIBC was responsible for generating 13,3% of the total tax revenue of the archipelago and 42,8% of the total corporate tax revenue. Such amount of taxes generated

3420-581: The Spanish Netherlands in 1556, and when France and Spain went to war in 1635 it resulted in the Treaty of the Pyrenees , in which the first partition of Luxembourg was decided. Under the Treaty, Spain ceded the Luxembourgish fortresses of Stenay , Thionville, and Montmédy , and the surrounding territory to France, effectively reducing the size of Luxembourg for the first time in centuries. In context of

3515-441: The old Frankish language spoken by them is considered by linguists to be a direct forerunner of the Moselle Franconian dialect , which later evolved into, among others, the modern-day Luxembourgish language . The Christianization of Luxembourg is usually dated back to the end of the 7th century. The most famous figure in this context is Willibrord , a Northumbrian missionary saint, who together with other monks established

3610-434: The 11th century, as a state within the Holy Roman Empire . Its ascension culminated in its monarch, Henry VII , becoming the Holy Roman Emperor in the 14th century. Luxembourg came under Habsburg rule in the 15th century, and was annexed by France in the 18th century. Luxembourg was partitioned three times, reducing its size. Having been restored in 1815 after the defeat of Napoleon , it regained independence in 1867 after

3705-409: The 1950s, Luxembourg became one of the six founding countries of the European Communities , following the 1952 establishment of the European Coal and Steel Community , and subsequent 1958 creations of the European Economic Community and European Atomic Energy Community . In 1993, the former two of these were incorporated into the European Union . With Robert Schuman (one of the founding fathers of

3800-416: The 2nd century BC, Celtic tribes settled in the region between the rivers Rhine and Meuse . Six centuries later the Romans named the Celtic tribes inhabiting these exact regions collectively as the Treveri . Many examples of archaeological evidence proving their existence in Luxembourg have been discovered, the most famous being the Oppidum of Titelberg . In around 58 to 51 BC, the Romans invaded

3895-419: The Battle of Worringen helped the Counts of Luxembourg to achieve military glory, which they had previously lacked, as they had mostly enlarged their territory by means of inheritances, marriages and fiefdoms. The ascension of the Counts of Luxembourg culminated when Henry VII became King of the Romans , King of Italy and finally, in 1312, Holy Roman Emperor . With the ascension of Henry VII as Emperor,

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3990-495: The Bourbons. The duchy was subsequently occupied by the pro-Austrian allied forces during the conflict and was awarded to Austria at its conclusion in 1714. As the Duchy of Luxembourg repeatedly passed back and forth from Spanish and Austrian to French rule, each of the conquering nations contributed to strengthening and expanding the Fortress that the Castle of Luxembourg had become over the years. One example of this includes French military engineer Marquis de Vauban who advanced

4085-475: The Constitution and the law. Legislative power is vested in the Chamber of Deputies , a unicameral legislature of sixty members, who are directly elected to five-year terms from four constituencies . A second body, the Council of State ( Conseil d'État ), composed of 21 ordinary citizens appointed by the grand duke, advises the Chamber of Deputies in the drafting of legislation. Luxembourg has three lower tribunals ( justices de paix ; in Esch-sur-Alzette ,

4180-421: The Dutch King who was also Grand Duke of Luxembourg, as well as Prussia, did not want to lose their grip on the mighty fortress of Luxembourg and did not agree with the Belgian claims. The dispute would be solved at the 1839 Treaty of London where the decision of the Third Partition of Luxembourg was taken. This time the territory was reduced by more than half, as the predominantly francophone western part of

4275-455: The EU), Pierre Werner (considered the father of the Euro ), Gaston Thorn , Jacques Santer and Jean-Claude Juncker (all former Presidents of the European Commission ), Luxembourgish politicians contributed substantially to the EU's formation and establishment. In 1999, Luxembourg joined the eurozone . Thereafter, the country was elected non-permanent member of the United Nations Security Council (2013–14). The steel industry exploiting

4370-425: The European Commission was heavily criticized by Madeiran stakeholders, such as the Regional Government, the Madeiran Chamber of Commerce and Sociedade de Desenvolvimento da Madeira , who called the decision to be politically motivated and favouring the low taxation lobbies of certain Member-States who do not face the permanent economic constraints that an outermost region faces. Pedro Calado, then Vice-President of

4465-464: The First World War, under the German occupation of Luxembourg during World War II , the country was treated as German territory and informally annexed to the adjacent province of Nazi Germany , Gau Moselland . This time, Luxembourg did not remain neutral as Luxembourg's government in exile based in London supported the Allies , sending a small group of volunteers who participated in the Normandy invasion , and multiple resistance groups formed inside

4560-433: The French army. Their sacrifices have been commemorated at the Gëlle Fra . After the war, Grand-Duchess Marie-Adélaïde was seen by many people (including the French and Belgian governments) as having collaborated with the Germans and calls for her abdication and the establishment of a Republic became louder. After the retreat of the German army , communists in Luxembourg City and Esch-sur-Alzette tried to establish

4655-415: The Functioning of the European Union , which states that specific measures are to be implemented in the EU's outermost regions to offset structural, social and economic situations compounded by "remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development". Among the measures foreseen in

4750-521: The Government of the Autonomous Region of Madeira. In the historic centre of Funchal , next to the Cathedral , stands the Building of the Regional Government of Madeira. This property was erected in the 17th century to house the Santa Casa da Misericórdia do Funchal and its hospital, having undergone numerous changes since then until the 20th century. Currently, different regional public services are based in this space. Luxembourg – in Europe  (green & dark gray) – in

4845-402: The Holy Roman Empire and elsewhere, Wenceslaus, annexed the County of Chiny in 1364, and with it, the territories of the new Duchy of Luxembourg reached its greatest extent. During these 130 years, the House of Luxembourg was contending with the House of Habsburg for supremacy within the Holy Roman Empire and Central Europe. It all came to end in 1443, when the House of Luxembourg suffered

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4940-445: The MIBC: Linked to the MIBC is the International Shipping Register of Madeira (MAR) which offers specific operational advantages, apart from the MIBC tax benefits which are applicable to both vessels (excluding fishing vessels), yachts , shipping and yachting companies incorporated in MIBC. Under the MIBC rules shipping companies with vessels registered in MAR and their respective non-Portuguese crew are exempt from contributing to

5035-443: The Portuguese Government, where it stated that should the International Business Centre of Madeira cease to exist mainland Portuguese taxpayers would be required to subsidized not only the Madeira's Regional Governments coffers but also the island economy due the massive economic recession that end of the tax benefits would bring upon Madeira and Porto Santo. The MIBC has attracted considerable criticism for its low taxation relative to

5130-402: The Portuguese mainland and due to the scandals surrounding companies licensed with it. After the publication of the Panama Papers , the European Parliament inquiry committee on the scandal, and criticism from MEPs such as Ana Gomes and Markus Febber , the European Commission began in 2018 an audit to the MIBC. The audit concerned the job posts created during the so-called Regime III which

5225-547: The Portuguese mortgage law be applicable to vessel registered. Surveys Surveys of yachts registered within MAR can be delegated on classification societies, or on other recognized entities duly approved by the Portuguese Government. Under current register's rules only eight classification societies are recognized as competent to conduct surveys within MAR: American Bureau of Shipping , Bureau Veritas , Det Norske Veritas , Lloyd's Register , Registro Italiano Navale , Rinave Portuguesa, Germanischer Lloyd and ClassNK . Given

5320-448: The Portuguese social security, under the condition that some form of private insurance is guaranteed. Alternatively, crew members may opt for the Portuguese voluntary social security regime or any other type of protection scheme. In addition to the social security benefits, crew of commercial vessels and yachts registered in MAR are also exempt from personal income tax . In the case of yachts there are no citizenship requirements imposed on

5415-478: The Regional Government, has also criticized the Government of the Republic's response to the job post criteria and vowed to present a different bill to the Assembly of the Republic, as he consideres that the changes presente to the law would close Madeira's economy to the rest world. Regional Government of Madeira The Government of the Autonomous Region of Madeira is the local government of this Portuguese autonomous region . The Regional Government

5510-401: The Representative of the Republic upon proposal of the Government's President. The dissolution of the Regional Legislative Assembly causes the removal of the Regional Government. According to article 60 of the Political-Administrative Statute of the Autonomous Region of Madeira, the Regional Government is to exercise the following powers: Quinta Vigia serves as the seat of the Presidency of

5605-448: The VAT payment overseas in case of inspection. On the other hand, should the acquisition of the yacht be made through a Portuguese company (either duly licensed in the MIBC or not) and the vessel be accounted as part of its fixed movable assets, the Regime of Intra-Community Supply of Goods should apply. In this case the Madeira Company should use the VAT reverse charge mechanism (it makes the declaration of both its purchase (input VAT) and

5700-450: The city of Luxembourg , and Diekirch ), two district tribunals (Luxembourg and Diekirch), and a Superior Court of Justice (Luxembourg), which includes the Court of Appeal and the Court of Cassation. There is also an Administrative Tribunal and an Administrative Court, as well as a Constitutional Court, all of which are located in the capital. Luxembourg is divided into 12 cantons , which are further divided into 100 communes . Twelve of

5795-425: The city's nickname the Gibraltar of the North . Luxembourg was annexed by France, becoming the département des forêts (department of forests), and the incorporation of the former Duchy as a département into France was formalised at the Treaty of Campo Formio in 1797. From the start of the occupation the new French officials in Luxembourg, who spoke only French, implemented many republican reforms, among them

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5890-404: The communes have city status ; the city of Luxembourg is the largest. Luxembourg has long been a prominent supporter of European political and economic integration . In 1921, Luxembourg and Belgium formed the Belgium–Luxembourg Economic Union (BLEU) to create a regime of inter-exchangeable currency and a common customs . Luxembourg is a member of the Benelux Economic Union and was one of

5985-402: The competing County of Vianden (and with it St Vith and Schleiden ) had either been incorporated directly or become vassal states to the County of Luxembourg. The only major setback during their rise in power came in 1288, when Henry VI and his three brothers died at the Battle of Worringen while trying unsuccessfully to add the Duchy of Limburg to their realm. But despite the defeat,

6080-416: The country (but also the then Luxembourgish-speaking part of Arelerland ) was transferred to the new state of Belgium, thereby giving Luxembourg its modern-day borders. The treaty of 1839 also established full independence of the remaining Germanic-speaking Grand-Duchy of Luxembourg. In 1842, Luxembourg joined the German Customs Union ( Zollverein ). This resulted in the opening of the German market,

6175-474: The country when Julius Caesar conquered Gaul and part of Germania up to the Rhine border, thus the area of what is now Luxembourg became part of the Roman Empire for the next 450 years, living in relative peace under the Pax Romana . Similar to those in Gaul, the Celts of Luxembourg adopted Roman culture, language, morals and a way of life, effectively becoming what historians later described as Gallo-Roman civilization . Evidence from that period includes

6270-443: The crew. However present regulations stipulate that 30% of the safe manning of all other types of vessels must be European, either EU and non-EU Member-States, or citizens of Portuguese-speaking countries . This requirement applicable to vessels can only be eliminated whenever if duly justified. Yacht owning companies duly registered in the MIBC have access of a discount of 20% on registration and annual fees due to MAR, apart from all

6365-407: The development of Luxembourg's steel industry , and expansion of Luxembourg's railway network from 1855 to 1875. After the Luxembourg Crisis of 1866 nearly led to war between Prussia and France, as both were unwilling to see the other taking influence over Luxembourg and its mighty fortress, the Grand Duchy's independence and neutrality were reaffirmed by the Second Treaty of London and Prussia

6460-437: The dynasty of the House of Luxembourg not only began to rule the Holy Roman Empire , but rapidly began to exercise growing influence over other parts of Central Europe as well. Henry's son, John the Blind , in addition to being Count of Luxembourg, also became King of Bohemia . He remains a major figure in Luxembourgish history and folklore and is considered by many historians the epitome of chivalry in medieval times. He

6555-425: The establishment of a republic. During this time, Belgium pushed for an annexation of Luxembourg. However, all such claims were ultimately dismissed at the Paris Peace Conference , thus securing Luxembourg's independence. In 1940, after the outbreak of World War II , Luxembourg's neutrality was violated again when Nazi Germany 's Wehrmacht entered the country , "entirely without justification". In contrast to

6650-414: The exceptional preservation of its vast fortifications and historic quarters. Luxembourg is a founding member of the European Union , OECD , the United Nations , NATO , and the Benelux . It served on the United Nations Security Council for the first time in 2013 and 2014. The first traces of settlement in what is now Luxembourg are dated back to the Paleolithic Age , about 35,000 years ago. From

6745-402: The fact that Madeira is an integral part of Portugal and the EU, all international conventions, either by IMO or ILO , ratified by Portugal are fully applicable to and binding to MAR. In 2017, the MIBC represented 20 percent of the total revenue of the Regional Government of Madeira and 50 percent of the total corporate tax revenue of the autonomous region. According to the Vice-President of

6840-632: The fortifications around and on the heights of the city, fortification walls that are still visible today. During the War of the First Coalition , Revolutionary France invaded the Austrian Netherlands, and with it, Luxembourg. In the years 1793 and 1794 most of the Duchy was conquered relatively quickly and the French Revolutionary Army committed many atrocities and pillages against the Luxembourgish civilian population and abbeys,

6935-599: The founding members of the European Economic Community (now the European Union). It also participates in the Schengen Group (named after the Luxembourg village of Schengen where the agreements were signed). At the same time, the majority of Luxembourgers have consistently believed that European unity makes sense only in the context of a dynamic transatlantic relationship, and thus have traditionally pursued

7030-451: The full application of the MIBC regime to the Autonomous Region of Madeira could lead to a significant improvement in its fiscal health, potentially resulting in a budget surplus. He argues that the MIBC regime could attract a substantial influx of international businesses and investments to the region. This, in turn, would increase the regional government's tax revenue and stimulate local economic growth. Pinto-Correia supports his argument with

7125-590: The independent County of Luxembourg (which was still a state within the Holy Roman Empire). By the middle of the 13th century, the counts of Luxembourg had managed to gain considerable wealth and power and had expanded their territory from the river Meuse to the Moselle . By the time of the reign of Henry V the Blonde , Bitburg , La Roche-en-Ardenne , Durbuy , Arlon , Thionville , Marville , Longwy , and in 1264

7220-410: The job creation was implemented and having it depend on the companies' taxable profit. Furthermore, the number employees per company was higher, before the employment requirement was established, since companies would hire on a need basis and not in accordance with law dictates. Licensed companies, operating within the MIBC framework are subject to one of the following annual maximum limits applicable to

7315-570: The licensed company is to hire less than six employees. Although labor costs in Madeira are among the lowest in the Western Europe, the minimum regional wage being €850 (in 2024), the requirement concerning the need to create job posts has also been harshly criticized by stakeholders, namely the concessionary Sociededade de Desenvolvimento da Madeira who reported a mass exodus of companies to competitor jurisdictions, such Luxembourg and Malta , after

7410-518: The long-lasting Golden Bull of 1356 , a decree which fixed important aspects of the constitutional structure of the Empire. Luxembourg remained an independent fief (county) of the Holy Roman Empire, and in 1354, Charles IV elevated it to the status of a duchy with his half-brother Wenceslaus I becoming the first Duke of Luxembourg . While his kin were occupied ruling and expanding their power within

7505-512: The most infamous being the massacres of Differdange and Dudelange , as well as the destruction of the abbeys of Clairefontaine , Echternach and Orval . However the Fortress of Luxembourg resisted for nearly 7 months before the Austrian forces holding it surrendered. Luxembourg's long defense led Lazare Carnot to call Luxembourg "the best fortress in the world, except Gibraltar", giving rise to

7600-566: The occupied country. With 2.45% of its prewar population killed, and a third of all buildings in Luxembourg being destroyed or heavily damaged (mainly due to the Battle of the Bulge ), Luxembourg suffered the highest such loss in Western Europe, but its commitment to the Allied war effort was never questioned. Around 1,000–2,500 of Luxembourg's Jews were murdered in the Holocaust . The Grand Duchy became

7695-480: The other MIBC benefits applicable to duly lincensed companies. Provided that the importation occurs outside of Portugal, although made by a Portuguese company, there will be not Portuguese VAT liability as the yacht will not enter into Portuguese waters and shall not, assuredly, be subject to custom clearance in Portuguese territory. Nevertheless, the Portuguese tax authorities can, nevertheless, request an evidence of

7790-578: The principle of laicism , which led to an outcry in strongly Catholic Luxembourg. Additionally French was implemented as the only official language and Luxembourgish people were barred access to all civil services. When the French Army introduced military duty for the local population, riots broke out which culminated in 1798 when Luxembourgish peasants started a rebellion. Even though the French managed to rapidly suppress this revolt called Klëppelkrich , it had

7885-488: The reduced corporate tax rates, are only granted if the following substance requirements are met: Although the European Commission does not state anywhere in its regime approval, local stakeholders are of the understanding that the employees to be hire need to be on a full-time basis and resident , for tax purposes, on the Autonomous Region of Madeira. The minimum investment, in tangible or intangible assets, of €75,000 must occur, within two years after incorporation, if

7980-479: The shares of SDM. The International Shipping Registry of Madeira (locally known as MAR or RIN-MAR ), created by the Portuguese government to develop its blue economy , is associated strongly with the MIBC. As one of Europe's largest ship and yacht registries, MAR accepts the registration of all types of commercial vehicles. In 2016, MAR had a total of 516 registered vessels. The registry offers benefits to shipping companies and ships, oil rigs and yachts, including

8075-441: The supplier's sale (output VAT) in its VAT return.  In this way, the two entries cancel each other from a cash payment perspective in the same return). A flexible mortgage system applies to vessels register under MAR, allowing the mortgagor and the mortgagee to choose, through written agreement, and the legal system of a particular country that shall govern the terms of the mortgage. Only in case of lack of an agreement shall

8170-593: The tax benefits granted. Following the Commission's decision the Portuguese Government filled a bill to be discussed and approved by the Assembly of the Republic where it clearly states that tax benefits are to be granted provided that job posts created by the companies benefiting from the low corporate income tax rate are fulfilled by the people who are resident, for tax purposes, in Madeira. The audit results from

8265-430: The tax benefits provided for in this regime: This means that the difference between the normal tax corporate rate in the Autonomous Region of Madeira and the 5% corporate tax rate on the taxable profit, granted to the companies, cannot exceed one of the amounts above mentioned. The Portuguese Tax Benefits Statutes contain a list of economic activities which can benefit from tax benefits applicable to licensed companies in

8360-585: The territory had been part of the Holy Roman Empire as well as the Habsburgian Netherlands in the past, both the Kingdom of Prussia and the United Kingdom of the Netherlands now claimed possession of the territory. At the Congress of Vienna the great powers decided that Luxembourg would become a member state of the newly formed German Confederation , but at the same time William I of the Netherlands ,

8455-640: The treaty is the creation of free-trade zones. The MIBC is regulated and supervised by Portuguese (the Regional Government of Madeira, the Portuguese Tax and Customs Authority, and the Portuguese Social Security System) and EU authorities (primarily the Directorate-General for Competition). Through the MIBC, Madeira became the only jurisdiction in Portugal to allow the incorporation of trusts (a common law fiduciary relationship which

8550-470: The unique rules applicable to trust within the MIBC, trusts are fully exempt from taxation on dividends received from shares, royalties or interest received on the deposits and all (non-financial) income distributed from the trustee to the trust's beneficiaries is fully exempt of taxation provided these beneficiaries are corporate entities licensed to operate within the MIBC or non-Portuguese resident entities/individuals. The above-mentioned tax benefits, namely

8645-504: Was allowed to maintain much of its independence and political mechanisms. Unaware of the fact that Germany secretly planned to annex the Grand-Duchy in case of a German victory (the Septemberprogramm ), the Luxembourgish government continued to pursue a policy of strict neutrality. However, the Luxembourgish population did not believe Germany had good intentions, fearing that it would annex Luxembourg. Around 1,000 Luxembourgers served in

8740-530: Was due to the substantial GDP generated by the International Business Centre of Madeira. According to reports issued by the OECD and the United Nations the International Shipping Register of Madeira (MAR) ranked, in 2019, top 15 in the world and the top 3 in Europe, just after Malta and Cyprus . As of 30 June 2018 it had 635 vessels registered. Economist Miguel Pinto-Correia's thesis argues that

8835-648: Was enforced between 2007 and 2014, with the tax benefits being applicable until 2020. Following the audit to the regime by the European Commission , the Portuguese Government , the Madeira Regional Government , the Sociedade de Desenvolvimento da Madeira and the Madeiran Chamber of Commerce initiated a campaigned to defend the taxation regime on the island. The said campaign involved requesting,

8930-614: Was equivalent to more a less 33,3% of the total expenditure incurred by the Regional Government on the regional healthcare system . In 2020 the Vice-Presidency of the Regional Government of Madeira, on the presentation of the Regional Budget for 2020, confirmed that Madeira's GDP grew 5,1% in 2019 (way above the national average). In its report to the Legislative Assembly of Madeira the Government informed that such economic growth

9025-488: Was finally willing to withdraw its troops from the Fortress of Luxembourg under the condition that the fortifications would be dismantled. That happened the same year. At the time of the Franco-Prussian war in 1870, Luxembourg's neutrality was respected, and neither France nor Germany invaded the country. As a result of the recurring disputes between the major European powers, the people of Luxembourg gradually developed

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