FAQ
Frequently Asked Questions
The questions foreign and domestic buyers ask most often before buying property in Madeira. Every answer is dated and cites the rule it comes from.
Frequently Asked Questions
Can foreigners buy property in Madeira?
Yes. There is no nationality restriction on buying property in Portugal, and that applies to Madeira as an Autonomous Region. You need a Portuguese NIF (tax number), a Portuguese bank account for the escritura transfer, and a property lawyer to run title, licence, and debt checks before the CPCV is signed. Non-EU buyers face no extra purchase restriction, though residency and tax status (D7, D8, IFICI) are separate questions with their own rules.
Is the Golden Visa still available through Madeira real estate?
No. Law 56/2023 (Mais Habitação), in force since 7 October 2023, terminated the real-estate route for the Golden Visa. Residency via property investment is no longer possible anywhere in Portugal, including Madeira. The current residency pathways are the €500k fund route, the D7 (passive-income) visa, the D8 (digital nomad) visa, and IFICI for qualifying professionals. See our Golden Visa alternatives guide.
What is IMT and how does Madeira's regional +20% uplift work?
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the Portuguese property-transfer tax, paid by the buyer at escritura. Madeira applies a +20% uplift to the mainland IMT brackets - this is long-standing regional tax law, not a recent change. The Construir Portugal 2026 budget introduced a flat 7.5% non-resident rate, and the interaction between the 7.5% flat rate and the regional +20% uplift is currently being clarified by the tax authority. Our IMT calculator models both scenarios and flags the unresolved points.
Does IFICI (NHR 2.0) cover foreign pensions?
No. IFICI - the 2025 replacement for the classic NHR regime - does not cover foreign retirement pensions, which is a major change from the old NHR. IFICI is a 20% flat-rate regime for qualifying professional income in specified CAE codes (mostly tech, research, and high-value services), and requires EQF-6+ qualifications. Retirees moving to Madeira pay standard Portuguese income tax on foreign pensions unless covered by a specific bilateral treaty. Full breakdown in our IFICI eligibility explainer.
Can I run an Alojamento Local (short-term rental) in Funchal?
As of August 2025, Funchal has suspended new AL licences for six months. The suspension is pending review. Existing licences are not retroactively revoked but may face transferability constraints. DL 76/2024 devolved the AL framework to each of the 11 Madeira concelhos, so the rules are now set municipality by municipality. Machico is drafting its own brake. Our parish-level AL licensability map tracks current status by concelho and freguesia.
What's a CPCV and how is it different from the escritura?
The CPCV (Contrato de Promessa de Compra e Venda) is the promissory contract signed early in the buying process, typically with a 10–20% deposit (sinal). It binds both sides: if the buyer walks, they lose the sinal; if the seller walks, they pay double back. The escritura is the final deed signed at the notary, when the full balance is paid and ownership transfers. Most deposit losses happen at CPCV stage, which is why our CPCV clause-by-clause guide exists.
How much is the Portuguese subrogation risk?
Under Portuguese property law, unpaid debts secured against a property (mortgage arrears, condominium dues, IMT liabilities) can follow the property rather than the previous owner. This is called subrogation. Your lawyer must pull the Certidão Permanente do Registo Predial, check Portal das Finanças for any AT debt, and review condominium minutes for unpaid dues before you sign the CPCV. Our due-diligence checklist has the full 40-point list.
Which Madeira municipality is sunniest?
The south-west coast - Calheta, Ponta do Sol, Ribeira Brava - is the sunniest. Ponta do Sol in particular is the digital-nomad hub since 2021 for that reason. The north coast (São Vicente, Porto Moniz, Santana) is wetter and cloudier, especially in winter. Microclimate is tunnel-scale in Madeira: it can be sunny on one side of a tunnel and pouring rain on the other. Altitude compounds it - above 600m you'll see more cloud and fog. Our municipality pages break this down parish by parish.
Do I need a Portuguese property lawyer?
Strongly recommended. Portuguese notaries check the documents presented, but they don't run independent title searches, they don't cross-check Portal das Finanças for hidden debt, they don't review condominium minutes, and they don't audit the licença de utilização against the actual building. A buyer-side property lawyer does all of that before the CPCV is signed. Expect €1,500–€4,500 in legal fees on a €300–€600k purchase, plus disbursements. Our directory lists vetted lawyers with English and German capacity.
How do you make money?
Lead-gen referral fees from vetted Madeira property lawyers, mortgage brokers, fiscal advisors, AL managers, and architects. When you engage one through our directory, they may pay us a referral fee - never paid by you, and never influencing who we vet. We also offer paid featured placements in the directory, clearly labelled. We don't accept payment for editorial coverage and don't run display ads. Full disclosure in our editorial policy.
Informational, not legal or fiscal advice. This FAQ summarises rules in force as of the date below. Before signing or committing capital, verify with a Portuguese property lawyer and your own fiscal advisor. Rules change - and our regulatory update log tracks what moves.