Investment Incentives
Macao provides a level playing field for investors from around the world. At the same time, the series of measures that have been implemented to encourage investment – including the provision of various tax and financial incentives – have gradually made Macao an ideal place for investors.
Subsidy Scheme for Encouraging Enterprise Upgrading and Development
To encourage enterprise upgrade and innovation, to enhance competitiveness, and to promote appropriate diversification and sustainable development of economy, the Macao SAR Government has introduced the Subsidy Scheme for Encouraging Enterprise Upgrading and Development or Administrative Regulation No. 7/2021, which came into effect on 16 March 2021, to replace the original Enterprise Financing Loan Interest Subsidy Scheme. Eligible local enterprises can apply for interest or rental subsidies when investing in projects that contribute to the development of Macao’s economy through bank loans or finance leases. The subsidy period is up to four years.
The maximum annual subsidy rate, the maximum limit of total loan/rental amount eligible for subsidy each year of this subsidy scheme are subject to determination by Chief Executive’s Decision published in the Official Gazette of the Macao SAR. According to Chief Executive’s Decision No. 39/2021, the current maximum annual subsidy rate/amount is shown as follows:
Loan Interest Subsidy: the maximum annual subsidy rate for loan interest subsidy is 4%, the maximum total loan amount eligible for subsidy each year is MOP 600 million, and the maximum amount of loan eligible for subsidy each year for each beneficiary is MOP 10 million.
Financial Lease Rental Subsidy: the maximum annual subsidy rate for financial lease rental subsidy is 4%, the maximum total financial lease rental amount eligible for subsidy each year is MOP 200 million, and the maximum financial lease rental amount eligible for subsidy each year for each beneficiary is MOP 10 million.
Tax Incentives
Under Law No. 1/86/M of 8 February on the Tax Incentives within the Scope of Industrial Policy, tax incentives including the following are offered for investments that are favourable to Macao’s industrial development:
- Urban property tax exemption, with exemption periods of up to ten years in the Macao Peninsula and up to twenty years in the islands. The above exemption is limited to income from immovable property leased exclusively for industrial purposes;
- Business tax exemption;
- 50% reduction in complementary tax;
- 50% reduction in property transfer tax, provided that such real estate is used exclusively for the operation of industrial activities, including the establishment of commercial, administrative and social services;
- 50% reduction in inheritance tax and gift tax for transfer of the real estate mentioned above.
SME Support Schemes
Supporting the development of small and medium enterprises (SMEs) has always been a focal point for the Government’s policy. In 2003, in response to the prevailing socio-economic situation, three enterprise-finance programmes were introduced.
SME Aid Scheme
In May 2003, Macao SAR introduced SME Aid Scheme to provide SMEs with interest-free loans to improve business, enhance operating capacity and mitigate the impact of SARS.
To cope with the rapid economic development in Macao, the scheme was modified in 2006, 2009, 2012, 2017, 2020 and 2024 to adjust the ceiling amount of aid to MOP 600,000, relax the use of aid funds and repayment period, and provide a second opportunity for aid to SMEs that have fully repaid the aid funds under the SME Aid Scheme and the Young Entrepreneurs Aid Scheme, are in appropriate operating conditions, have a good repayment record in the past and are not debtors of the Macao SAR. The current ceiling amount of aid remains at MOP 600,000, repayable over a maximum of 10 years.
Enterprises receiving the loans were primarily engaged in retail, construction and public works, restaurants and hotels, wholesale, corporate services, personal services including automobile and motorcycle repair and maintenance and hair and beauty salons, transportation, travel agencies and imports and exports.
SME Credit Guarantee Scheme
The SME Credit Guarantee Scheme was introduced in August 2003 with the aim to assist SMEs obtain bank loans for business development. The scheme is designed to assist enterprises obtain bank loans for business development. The Macao SAR Government provides eligible enterprises with credit guarantees of up to 50 per cent of a bank loan of up to MOP 1.5 million. The scheme was modified in 2009 and 2017, with the maximum credit guarantee rate raised to 70 per cent and the maximum credit guarantee amount raised to MOP 4.9 million. Most beneficiary enterprises were from the construction and public works sector, followed by retailing, wholesaling, corporate services, import and export, transportation, travel agencies, and restaurants and hotels.
SME Credit Guarantee Scheme Designated for Special Projects
The SME Credit Guarantee Scheme Designated for Special Projects was introduced in August 2003 with the aim to support SMEs to develop projects to reform and alter their type of business; to promote and advertise their own brands; and to improve quality of their products. On the financing front, the Macao SAR Government will provide eligible enterprises with credit guarantees of up to 100% of a bank loan of up to MOP 1 million. The scheme was modified in 2017 to expand the coverage to include projects for developing new business. Among the approved cases, most were from retailing, followed by wholesaling, paper, printing and publishing, import and export, construction and public works, textiles, garments and leather manufacturing, restaurants and hotels, personal services including automobile and motorcycle repair and maintenance and hair and beauty salons, transportation, and travel agencies.
SME Bank Loan Interest Subsidy Scheme 2025
(Application period from 22 April 2025 to 22 April 2026)
The scheme provides support to SME owners in the form of loan interest subsidies. All eligible SMEs that obtained loans approved by licensed banks in Macao for business working capital between 22 April 2025 and 22 April 2026 can apply for loan interest subsidies through the bank. The maximum loan amount for each business owner is MOP 5 million, the subsidy period is up to 3 years, and the annual subsidy rate is capped at 4%.
Technology Enterprise Certification Programme
Introduced in May 2023, this programme aims to build a development ladder for local technology enterprises, aid their development and enhance the foundation of Macao’s technology and innovation landscape by identifying qualified local technology enterprises through an evaluation system, as well as facilitating their expansion of business through official certification in coordination with the various support measures offered by the SAR Government. The programme is open for applications in May and November every year, and qualified enterprises may be granted official certification as, in ascending order, Promising Technology Enterprises, Growth Technology Enterprises or Key Technology Enterprises according to their business and scale, research and development status, and degree of innovation. The certification is valid for three years.
The Technology Enterprise Certification Programme Prospectus was updated in 2025 to include start-ups that introduce high-end and outstanding talents in accordance with the Legal System for Talent Introduction. The Science and Technology Development Fund also introduced the Funding Scheme of Macao for Science and Technology R&D Talent in 2025. Enterprises certified by the Technology Enterprise Certification Scheme of the Economic and Technological Development Bureau can apply for the said funding to support Macao residents to enter enterprises and carry out R&D projects.
Investor’s “One-Stop” Service
Commerce and Investment Promotion Institute (IPIM) offers Investor’s “One-Stop” Service, which designates personnel to provide a full range of support and assistance for the implementation process of investor’s projects launched in Macao, including: information and advice about the investment environment in Macao, assistance with company registration procedures, follow up with assistance of administrative procedures for licence application, legal consultation for investment in Macao. This provides investors with a more convenient way to handle business and shorten the time for handling administrative procedures. At the same time, the “Investment Committee” composed of 13 departments (including Commerce and Investment Promotion Institute, Municipal Affairs Bureau, Economic and Technological Development Bureau, Financial Services Bureau, Macao Government Tourism Office, Labour Affairs Bureau, Land and Urban Construction Bureau, Monetary Authority of Macao, Fire Services Bureau, Health Bureau, Pharmaceutical Administration Bureau, Environmental Protection Bureau, and Macao Productivity and Technology Transfer Center) provides support and concrete advice with the administrative procedures required for the implementation of investment projects in Macao.
The “Mainland Factor” in Macao’s Economy
Under the principle of “one country, two systems” the SAR Government actively strengthens economic and trade exchanges and cooperation with the Mainland provinces and cities through appropriate organizations and mechanisms, leveraging Macao’s role as a window and bridge.
Mainland and Macao Closer Economic Partnership Arrangement
The Mainland and Macao Closer Economic Partnership Arrangement (CEPA) is an free-trade-agreement-like arrangement established between two separate customs territories of a single sovereign state. It complies with the World Trade Organization (WTO) rules and aims to promote joint economic prosperity and development of the Mainland and Macao.
The Mainland and Macao signed the first phase of CEPA on 17 October 2003, which has been implemented comprehensively since 1 January 2004. Between 2004 and 2018, the two sides signed ten supplements to CEPA, the CEPA Agreement between the Mainland and Macao on Achieving Basic Liberalization of Trade in Services in Guangdong, the CEPA Agreement on Trade in Services, the CEPA Investment Agreement, the CEPA Agreement on Economic and Technical Cooperation and the CEPA Agreement on Trade in Goods, expanding the coverage of the original CEPA and deepening the commitments of the parties. On 20 November 2019, the Mainland and Macao signed the Agreement Concerning Amendment to the CEPA Agreement on Trade in Services to further lower the market access thresholds in the Mainland, reduce restrictive measures, and at the same time take forward the pilot implementation of special liberalization measures in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
On 10 October 2024, the two sides signed the Second Agreement Concerning Amendment to the CEPA Agreement on Trade in Services to further increase the openness of services sectors of the Mainland to Macao, support Macao’s “1+4” appropriate diversification strategy, and introduce measures for pilot implementation in the GBA to promote harmonization of rules and mechanisms in the GBA
CEPA mainly covers four areas, namely trade in goods, trade in services, investment, and economic and technical cooperation.
Trade in Goods
The Mainland agrees to apply zero tariffs to all goods of Macao origin, starting 2006, except for goods prohibited from import into the Mainland. To enjoy zero-tariff treatment, goods produced in Macao exporting to the Mainland must fulfil the rules of origin stipulated under CEPA and to obtain the specific Certificate of Origin to qualify as ‘Made in Macao.’
The CEPA Agreement on Trade in Goods was signed on 12 December 2018 between the Mainland and Macao. It came into effect on the date of signature and has been officially implemented since 1 January 2019. The Agreement has systematically integrated the relevant provisions in the previous CEPA and its ten supplements, and enriched the content of cooperation, including the establishment of the criterion of origin and more flexible methods for determining the origin for all products classified under the Mainland tariff codes, further enhancing the level of customs clearance facilitation for trade in goods, so as to promote the movement of goods between the two places and to foster the continuous development of Macao’s manufacturing industry. The Agreement has also established a special chapter for the GBA to implement groundbreaking measures for customs clearance of goods within the GBA on a pilot basis with a view to assisting Macao’s business sector to integrate themselves into the national development strategies, so as to join force to promote the development of the GBA.
In response to the entry into force of the 2022 edition of the Nomenclature for the External Trade of Macao/Harmonized System on 1 January 2022, the product-specific rules of origin of the CEPA Agreement on Trade in Goods were converted to the new version of coding and implemented from 16 May 2022. This revision incorporated the revised rules of origin of 18 goods that have been successfully implemented through the consultation mechanism since the implementation of the CEPA Agreement on Trade in Goods in 2019.
Trade in Services
The CEPA Agreement on Trade in Services was signed in Macao on 28 November 2015 and entered into effect on 1 June 2016. This is the first free trade agreement that fully liberalizes the whole Mainland’s trade in services with pre-establishment national treatment and in the form of negative list.
It also restates the existing liberalization content under CEPA and its Supplements, signifying full liberalization of trade in services between the whole of the Mainland and Macao. The number of service sub-sectors from Macao to those national treatments applied under the Agreement is 62, including advertising, photography, conventions, hotels and restaurants, tourist guides, road transportation, and so on. Upon implementation of the Agreement, the Mainland opened up 153 service trade sub-sectors to the Macao services industry, accounting for 95.6 % of the 160 sub-sectors under the WTO Services Sectoral Classification System.
According to the standards of WTO services classification, a basic liberalization of trade in services has been achieved between the two jurisdictions, with the target of achieving the liberalization of trade in services in the Mainland for Macao by the end of the National 12th Five-Year Plan period essentially completed.
To further promote the closer cooperation between the Mainland and Macao, to enhance the level of liberalization on trade in services, and to foster Macao’s appropriate economic diversification, the two places signed on 20 November 2019 the Agreement Concerning Amendment to the CEPA Agreement on Trade in Services, which was officially implemented on 1 June 2020.
The Agreement Concerning Amendment to the CEPA Agreement on Trade in Services systematically consolidates and sums up the previous liberalization measures relating to trade in services in the CEPA series of agreements, and integrates and expands the scope of liberalization in response to the changes in the international economic environment, the Mainland’s investment policy trend, and the progress of economic and trade cooperation between the two places. The services sectors covered mainly include finance, law, accounting, construction and engineering, telecommunications, cultural, tourism, distribution and education services, among others. At the same time, the original positive lists for telecommunication and cultural services are deleted, with their contents incorporated in the negative list for commercial presence and the positive list for liberalization measures under cross-border services. The agreement proposes a number of service liberalization measures that will be implemented on a pilot basis in the GBA to support and encourage different sectors of Macao to participate in the development of the GBA, assisting the Macao’s appropriate economic diversification.
In addition, the two sides signed the Second Agreement Concerning Amendment to the CEPA Agreement on Trade in Services on 10 October 2024 to further increase the openness of services sectors of the Mainland to Macao. The agreement, of which the implementation date is 1 March 2025, removes the period requirement of substantive business operations for three years for Macao service suppliers in most services sectors, thereby providing facilitation for Macao service suppliers to enter the Mainland market. Meanwhile, measures are introduced for pilot implementation in the GBA to support Macao-invested enterprises registered in the nine Pearl River Delta municipalities of the GBA to choose Hong Kong or Macao as the seat of arbitration and to support Macao-invested enterprises registered in the pilot municipalities of the GBA to adopt Hong Kong law or Macao law as the applicable law in their contracts, thereby promoting harmonization of rules and mechanisms in the GBA. The agreement introduces further liberalization measures in high-tech, finance, audiovisual culture and other services sectors to support Macao’s “1+4” appropriate diversification strategy. Furthermore, it allows professionals in construction and engineering, accounting, medicine, education and other sectors to tap into the Mainland market with more preferential conditions, enabling Macao professionals to leverage the advantages in professional services and explore business opportunities in the Mainland.
Investment
The CEPA Investment Agreement was signed and came into effect on 18 December 2017, and has been implemented since 1 January 2018. The agreement comprehensively covers investment access, protection and promotion. It is in line with international rules and has the characteristics of the two places. Offering a high level of liberalization and strong protection, it will provide more systematic institutionalized protection for economic and trade exchanges and cooperation between the two places.
On investment access, the CEPA Investment Agreement further enhances the level of investment liberalization between the two places. Following the CEPA Agreement on Trade in Services, the Mainland has once again
On investment protection, the CEPA Investment Agreement provides internationally high-level investment protection treatment for compensation on expropriation and transfer, etc. of investment. Meanwhile, the Mainland and Macao have jointly designed a dispute resolution mechanism in compliance with the principle of “One Country, Two Systems” and the demand for any dispute settlement between the investors and the side where the investments are located. This mechanism includes amicable consultation, complaint coordination, notification and coordination, mediation, judicial means, etc., providing comprehensive and effective institutional arrangements for the remedy and protection of rights and the protection of interests of the investors from the two places.
Economic and Technical Cooperation
The CEPA Agreement on Economic and Technical Cooperation, which was signed on 18 December 2017 and entered into effect immediately, involves comprehensive sorting, classification and summarization of the information related to economic and technical cooperation in the CEPA and its ten supplements, as well as consideration of the level and characteristics of the respective economic development of the Mainland and Macao. It highlights Macao’s characteristics and adds contents relevant to new areas of cooperation and collaborative activities.
In the agreement, the chapter titled “Deepening Cooperation in the Development of Macao as a Commercial and Trade Cooperation Service Platform Between China and Portuguese-Speaking Countries (PSCs)” highlights the facilitation of the building of Macao as the said platform with the support of the Forum Macao for the persistent enhancement of Macao’s international competitiveness in its deepening of the economic and trade cooperation between China and PSCs. On the other hand, the Chapter title “Deepening Cooperation in Economic and Trade Areas of the ‘Belt and Road’ Initiative” highlights supporting Macao’s participation in the development of the “Belt and Road” Initiative by adopting the measures of establishing an operational liaison mechanism, smoothening communication channels, providing an exchange platform, jointly participating in productivity cooperation and developing markets along the “Belt and Road”.
The 14 key areas of the CEPA Agreement on Economic and Technical Cooperation include tourism, convention and exhibition, traditional Chinese medicine and Chinese medicinal products, finance, electronic commerce, environmental protection, legal and dispute resolution, accounting, culture, innovation and technology, education, SMEs, intellectual property, trademark and branding in response to the Five-Year Development Plan. It highlights the country’s needs and Macao’s strengths, promotes the development of Macao’s emerging industries such as featured finance, convention and exhibition with a priority on convention, and traditional Chinese medicine, and support Macao to nurture new areas of economic growth with a view to facilitating the appropriate economic diversification of Macao.
The CEPA Agreement on Economic and Technical Cooperation dedicates a chapter to sub-regional economic and trade cooperation. In addition to the joint promotion of the economic and trade cooperation between the Pan-Pearl River Delta Region, GBA and the Pilot Free Trade Zones, it, taking account of Macao’s needs, focuses on the support to the development of the Guangdong-Macao Comprehensive Cooperation Demonstration Zone and Jiangsu-Macao Cooperation Park, on the exploration of a new mode of cooperation between the two places under the “one country, two systems” framework to comprehensively foster mutually beneficial cooperation between the Mainland and Macao, providing a broader prospect for the integration of micro and SMEs and youths of Macao into the national development strategies.
Outline Development Plan for the GBA
The National Thirteenth Five-Year Plan proposes to “encourage Hong Kong and Macao to play an important role in promoting cooperation in the Pan-Pearl River Delta region, and advance the development of the GBA and major trans-provincial cooperation platforms”. The Report on the Work of the Government adopted at the Fifth Session of the Twelfth National People’s Congress of the People’s Republic of China in 2017 proposes to “promote the deepening of cooperation between the Mainland and Hong Kong and Macao, explore and formulate the development plan for a city cluster in the GBA, capitalize on the unique advantages of Hong Kong and Macao in order to enhance their roles and functions in the national economic development and the opening up to the outside world”, symbolizing that the development of the GBA city cluster has become a national development strategy.
In July 2017, under the witness of President Xi Jinping, the National Development and Reform Commission and the governments of Guangdong, Hong Kong and Macao signed the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Bay Area in Hong Kong.
The Outline Development Plan for the GBA was promulgated on 18 February 2019. The Macao Special Administrative Region is one of the four major cities, and its development priorities are to build itself into the world centre of tourism and leisure, the commercial and trade cooperation service platform between China and Portuguese-speaking countries, promote moderate and diversified economic development, and build a communication and cooperation base where Chinese culture is the mainstream and multiple cultures co-exist.
Information on Recruitment and Employment
The Labour Affairs Bureau is responsible for promoting employment and ensuring the balance between the demand and supply of manpower resources in the labour market, and for providing free services of job referral and recruitment to residents and companies in Macao. If needed, employers can register at the Bureau and apply for recruitment services. For details, please refer to the Bureau’s website.
Information on All Types of Industrial and Commercial Operation Permits/Licenses
In Macao, apart from the general merchandise retail business, most business activities require the application to business licenses/permits from the relevant government department. For general business licenses/permits, please refer to the relevant information in the Macao SAR Government Portal.
Electronic Declaration of Dutiable Commodities and Tax Rates
Businesses that wish to use the electronic tax reporting service need only apply to the Financial Services Bureau for relevant service accounts, and they can use the electronic method to declare various taxes. Please refer to the Macao SAR Government Portal for the detailed procedures.
At present, the only two types of taxes that must be paid for operating general commercial activities (non-franchises) in Macao are the “Business Tax” and the “Profits Tax”. For the calculation of tax rates and tax amounts, please see here. For some of the common tax declaration issues, please refer to the Financial Services Bureau’s website.(only available in Chinese and Portuguese)