The European Commission has announced that is has opened a State aid investigation into tax exemptions provided for companies in Portugal's Madeira Free Zone. The Madeira Free Zone (Zona Franca da Madeira, ZFM) was created by Portugal in 1987 to support economic development in Madeira, including certain incentives under a regional aid scheme for companies establishing in the ZFM, including: corporate income tax reductions on profits resulting from activities performed in Madeira; and other tax reductions, such as an exemption from municipal and local taxes, as well as exemption from transfer tax payable on real estate for setting up a...