Madeira · Porto Santo
Frequently asked questions
The questions buyers from abroad ask us most often — the tax number, the promissory contract, IMT and stamp duty, the notary appointment, and what it costs on the way out again. Short answers, no legal fog. Anything not covered here, ask us directly.
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01
Before you buy
Yes, foreigners can buy property in Madeira without restrictions. Non-residents have the same rights as locals, provided they obtain a Portuguese tax number (NIF) and follow the standard buying process.
Yes, all property buyers in Portugal, including Madeira, must obtain a Portuguese taxpayer identification number (NIF) to legally complete a real estate purchase. This tax number is essential for signing contracts, paying property taxes, and conducting other legal transactions.
Yes, foreign buyers can secure mortgages from Portuguese banks to purchase property in Madeira. Typically, non-residents can finance about 60–70% of the property's value, requiring a 30–40% down payment, subject to the bank's conditions and the buyer's financial standing.
Only with an alojamento local registration, and only where the use class and the condominium rules permit it. The national rules have changed several times, so we confirm the current position with the câmara municipal for each address rather than quoting a general answer.
02
The purchase process
Typically, once your offer is accepted, you sign a Promissory Contract with a deposit, usually ranging from 10% to 25% of the price. The final deed (escritura) is then signed before a notary about 1 to 3 months later, during which you pay the IMT transfer tax and stamp duty, completing the sale.
It's highly recommended to hire a local lawyer when purchasing property in Madeira. A lawyer will conduct due diligence, review contracts, and ensure all legal paperwork is in order, helping you navigate the process safely and smoothly. We always and only work together with lawyers and notaries to double check all the paperwork.
No. As of early 2024, for non-EU buyers, purchasing residential property in Madeira no longer qualifies for Portugal's Golden Visa residency programme. Buying property also doesn't automatically grant you residency; you would need to apply for a separate visa or residency permit, such as the D7 passive income visa or a retirement visa, if you plan to live in Portugal long-term.
Yes. You need a NIF and, if you cannot attend the escritura pública, a notarised power of attorney. We arrange the NIF, prepare the bank account documentation and co-ordinate translations with your lawyer.
We compare the certidão permanente and caderneta predial with the licence file at the câmara municipal, and your independent lawyer reviews the same documents. Differences between the registered and the built area are common on Madeira and are resolved before the promissory contract.
03
Taxes, fees and selling
You should expect to pay a Municipal Property Transfer Tax (IMT), which ranges from 1% to 8% of the property's price, with properties under approximately €92,000 being exempt. Additionally, a stamp duty of 0.8% of the purchase price is required. Closing costs, such as notary and land registration fees, typically range from €500 to €1,500. If you choose to hire a lawyer, legal fees generally range from €1,000 to €3,000.
IMT transfer tax, imposto do selo, notary and land registry fees, plus your lawyer's fee. The rates depend on price and use, so you receive a written calculation for the specific property before you commit, and the annual IMI figure with it.
Yes, property owners in Madeira are required to pay an annual Municipal Real Estate Tax (IMI). The IMI rates typically range from 0.3% to 0.45% for urban properties, depending on the municipality. This tax contributes to funding local infrastructure.
When selling property in Madeira, the seller is usually responsible for the real estate agent's commission, which is about 5% of the sale price plus VAT. Additionally, sellers should prepare for capital gains tax on any profit from the sale. Non-residents face a flat 28% tax on the entire gain from a property sale in Portugal, while residents may be taxed differently on only a portion of the gain.
Still an open question about your purchase?
A 15-minute call is enough to tell you what applies to your case, what it costs and how long it takes. Free and without obligation, in English, Portuguese or German. AMI 18584.