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). In practice you will also want a Portuguese bank account to pay at the deed, 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 is it different in Madeira?
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the Portuguese property-transfer tax, paid by the buyer before the escritura. Madeira and the Azores have their own IMT tables, with every band 25% higher than on the mainland, so the same price pays less IMT - long-standing law (Lei 21/90), not a recent change. For an own permanent home there is no IMT up to €132,933 in 2026, and a first-time buyer aged 35 or under pays none up to €413,174 (IMT Jovem). Since 25 May 2026 a buyer who is not tax resident in Portugal pays a flat 7.5% on a home, with no exemptions, and can claim back the difference if they become resident within two years (Decree-Law 97/2026). Our IMT calculator applies all of this.
Does IFICI (NHR 2.0) cover foreign pensions?
No. IFICI - which replaced the classic NHR regime for people becoming tax resident from 1 January 2024 - does not cover foreign retirement pensions, which is a major change from the old NHR. IFICI is a 20% rate, for ten years, on employment and self-employment income from the activities the law lists (university teaching and research, R&D, certified startups and listed highly qualified jobs, among others). 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?
Not for apartments. Since 30 June 2026 Funchal's AL regulation (Regulamento n.º 787/2026) makes the whole concelho a containment area: in Sé parish no new AL of any type can be registered, and in the other nine parishes only detached houses (moradias) or rooms within them, with narrow exceptions. It replaced the suspension approved in September 2025. Since DL 76/2024 each of the 11 Madeira concelhos sets its own AL rules; Machico has suspended new AL in two parishes and Santa Cruz has decided to suspend new AL across the concelho. Our Alojamento Local guide has the status of each concelho with its primary source, checked 27 September 2026.
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 with a deposit (sinal) whose amount the law does not fix. 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 a notary or as a document authenticated by a lawyer, a solicitor or a Casa Pronta desk (Civil Code art. 875.º), when the full balance is paid and ownership transfers. The CPCV is where your deposit is at stake, which is why our CPCV clause-by-clause guide exists.
Can the seller's unpaid debts pass to me with the property?
Some can. A registered mortgage stays attached to the property even after a sale (Civil Code art. 686.º), so make sure the seller's bank releases it at the deed. Recent unpaid IMI, and unpaid IMT on the seller's own purchase, are secured on the property and can be enforced against you as the new owner (Civil Code arts. 744.º and 751.º; CIMI art. 122.º; CIMT art. 39.º). Condominium arrears are different: they stay with the seller unless you waive the administrator's debt statement at the deed (Civil Code art. 1424.º-A). Your lawyer must pull the Certidão Permanente do Registo Predial, get proof from the seller that IMI and IMT are paid, and get the administrator's statement before you sign the CPCV. Our due-diligence checklist has the full 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. Ask for the fee and the disbursements in writing before you engage. Our directory lists Funchal firms checked against the Ordem dos Advogados register.
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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, so check the date below.