The complete Madeira property buying guide - NIF to escritura in 17 steps

Get a Portuguese NIF (tax number)

Non-residents need a NIF to open a bank account, sign a CPCV or complete an escritura. Can be obtained remotely through a Portuguese fiscal representative. Fees and timing vary by provider, so get a written quote first. Some property lawyers include this as part of a bundled service.

Red flag: Never trust a "free NIF" offer from an agency - it usually ties you to their fiscal representation for years.

Open a Portuguese bank account

Needed to pay the IMT, the stamp duty and the escritura balance. Ask each bank how long it takes for a non-resident. Banks to consider: Millennium BCP, Novo Banco, Santander Totta, Banco Activobank.

Red flag: Opening an account from abroad is possible but slower. Start well before your target CPCV date.

Commission a buyer-side property lawyer

Hire before you start making offers, not after. A Portuguese property lawyer (advogado, registered with the Ordem dos Advogados) acts as your side in the transaction - separate from the notary who is neutral. Fees vary by firm and by the work involved, so get a written quote before you instruct.

Red flag: The listing agent will offer to recommend "their" lawyer. Politely decline and hire independently.

Define your parameters and shortlist municipalities

Eleven municipalities (concelhos) and 54 freguesias. Each has its own PDM, its own AL regime after DL 76/2024, its own microclimate and its own hazard profile. Our concelho atlas is the shortcut.

Red flag: Do not start with listings. Start with the municipality filter, then the neighbourhood, then the inventory.

Search the inventory (Idealista, Kyero, Green-Acres, Supercasa, local agencies)

International portals (Idealista, Kyero) have English-language versions. Local agencies (Pink, Prime, Real Estate Funchal, SN, Madeira Estate) hold some inventory exclusively. Expect to visit in person before serious offers.

Red flag: Listing photos are aggressively filtered. Always visit, and always visit at two times of day to check noise and light.

Visit the property twice, ideally in different weather

Once in the listing-agent slot, once unsupervised if possible. Check orientation, noise (airport, levada, neighbours), water pressure, damp in north-facing rooms, parking, internet speed.

Red flag: Winter damp is a risk in poorly insulated construction. Always check ground-floor rooms.

Price-check and offer

Median €/m² by concelho is a starting reference, not a gospel. Our concelho atlas lists what homes actually sold for in each concelho (INE, median price per m²). Whether an offer under asking is accepted depends on the property and the seller.

Red flag: If the agency demands a "reservation fee" before you have written offer acceptance, stop. See our reservation-fee safety guide.

(Optional) Reservation fee - only if structured correctly

A reservation fee is a non-statutory pre-CPCV deposit that takes the property off the market for an agreed period. The amount and the period are whatever the written agreement says. Can be legitimate; can also be a scam entry point.

Red flag: Never transfer a reservation fee without a written reservation agreement specifying the IBAN, the deadline, the refund conditions. Confirm the IBAN by phone with the main office of the agency before you pay.

Lawyer-side due diligence

Certidão Permanente, Caderneta Predial, licença de utilização (since 1 January 2024 the notary no longer checks it at the deed, DL 10/2024, so you and your lawyer must), AT debt check, condominium minutes, hazard overlay, PDM zoning, AL status if relevant. This is where lawyers earn their fee.

Red flag: If the seller resists providing documents, walk. Always walk.

Sign the CPCV (promissory contract)

The CPCV binds both sides. The amount of the sinal is whatever the CPCV says; the law sets none. Madeira red flags: inheritance splits, pre-1951 licensing, condominium AL veto, unpaid condominium dues (they pass to you only if you waive the debt statement from the condominium administrator at the deed, Civil Code art. 1424.º-A).

Red flag: The CPCV is where your deposit is at stake. Our clause-by-clause guide explains what protects it.

Secure financing (if mortgaging)

Banks set their own loan-to-value for non-residents, within the Banco de Portugal limits: 90% for an own permanent home, 80% for anything else. Ask more than one bank for its terms in writing, spread and timeline included. Start the process immediately after CPCV (or in parallel, before CPCV, if you want to gate on financing).

Red flag: Only CPCVs with a financing-contingency clause protect your sinal if the bank declines. Ensure your CPCV has one.

Commission independent survey

Not standard in Portugal, but do it anyway. Get a written quote for a technical report that flags structural, damp, roof and electrical issues. It protects you from expensive renovation surprises.

Calculate and pay the IMT + stamp duty

IMT is calculated on the declared value or the VPT, whichever is higher. In Madeira the tax bands are 25% wider than on the mainland, so the same price pays less IMT (2026 tables, AT Ofício Circulado 40129/2026). Since 25 May 2026 a buyer who is not tax resident in Portugal pays a flat 7.5% on a home, with no exemptions; if you become resident within two years, or let the home at a moderate rent on the terms of the law, you can ask the tax office for the difference back (CIMT art. 17.º, as amended by DL 97/2026). IMT Jovem: a first own permanent home bought by someone aged 35 or under is exempt up to €413,174 in Madeira in 2026.

Red flag: IMT must be paid BEFORE escritura. No receipt = escritura blocked. Agree an escritura date in the CPCV that leaves time for the checks by your lawyer and, if you borrow, for the bank.

Get insurance and transfer utility accounts

Fire insurance is compulsory for a flat in a building under horizontal property (Civil Code art. 1429.º). If you borrow, the bank sets its own insurance conditions. Condominium may also require a specific AL-liability rider if you plan short-term rental.

Escritura (deed signing at the notary)

Buyer, seller, both lawyers (if represented), the notary and a translator (if non-Portuguese-speaking). The final payment transfers, the notary reads the deed aloud, both sides sign.

Red flag: Lock the final utility meter readings at escritura. That way later bills can be split without argument.

Post-escritura - registry update, AL registration if relevant, residency paperwork

Registration at the Registo Predial must be requested within two months of the deed by whoever executed or authenticated it (the notary, or the lawyer or solicitor who authenticated the document); at a Casa Pronta desk it is done on the spot. If you intend short-term rental, your AL registration with the concelho. If you intend residency (D7, D8) the visa and AIMA application is a separate track that can run in parallel from step 1. IFICI is a tax regime, not a visa: you apply through the Portal das Finanças by 15 January of the year after you become resident.

Set up annual compliance - IMI, condominium, tax residency

IMI is billed in the year following purchase. AIMI (if applicable) kicks in above €600k VPT. If resident, annual IRS filing via Portal das Finanças. If non-resident, still need to declare Portuguese-source rental income if any.