40-point Madeira property due-diligence checklist

Certidão Permanente do Registo Predial

Confirms the seller is the registered owner and exposes any mortgages, seizures, liens, or judicial restrictions.

Matrix registration (Caderneta Predial)

Must match what the Registo Predial says. Mismatches (mis-numbered parcels, wrong area) are common in older rural Madeira stock.

Inheritance chain

Portuguese inheritance law gives forced heirs statutory rights. A missing heir can later claim the property even post-escritura.

Marital regime of seller

Community of acquired property requires spousal signature. Missing signature → escritura can be annulled.

IMI arrears (Portal das Finanças)

Unpaid IMI follows the property under Portuguese subrogation, not the previous owner.

AIMI check

The national wealth surtax applies above €600k VPT per holder.

IMT debt check

Only relevant if the seller acquired within the exemption clawback window.

Condominium arrears

Pull the last three AGM minutes. Buyer inherits arrears - always.

Licença de utilização

DL 10/2024 shifted verification to the buyer. Missing or wrong-use licence can block the escritura or force a change-of-use process costing €5–15k.

Pre-1951 special rules

Pre-1951 properties are exempt from licença de utilização but need architect certification of habitability per the new DL 10/2024 framework.

AL (Alojamento Local) status

Verify current status against the concelho where the property sits. Funchal suspended new AL registrations in Aug 2025.

Construction permits for any extensions

Unpermitted extensions (common in rural Madeira) expose the buyer to demolition orders and IMT penalties.

AMI licence of any intermediating agent

Portuguese real-estate brokers must hold an AMI licence from IMPIC. Verify it before any deposit transfers.

PDM (Plano Diretor Municipal) zoning

Agricultural, green-zone, or urban-expansion classifications radically affect future buildability and valuation.

ARU (Urban Rehabilitation Area) inclusion

Triggers IMT + IMI + 6% VAT incentives. Madeira ARU map is not nationally aggregated - check municipal portal.

Coastal / cliff line setbacks

Ponta do Sol, Câmara de Lobos, Calheta coastline has specific protection setbacks.

POOC (coastal management)

Coastal parcels may be affected by the regional coastal plan; renovations or pool additions can be restricted.

Landslide overlay

Câmara de Lobos, Curral das Freiras, Madalena do Mar have documented landslide exposure. Verify geotechnical report before buying steep-slope parcels.

Flood / flash-flood zones

The 2010 Madeira floods re-baselined flood maps - Ribeira Brava and Funchal riverside most affected. Check hazard overlay.

Wildfire exposure

Rural-interface properties in São Vicente, Santana and higher Funchal risk wildfire during dry months.

Volcanic / seismic history

Madeira is long-dormant volcanically, but building foundations on old lava flows can require specific engineering.

Independent building survey

Not standard in Portugal - but always pay for one. €400–€1,200 for a technical report covers you against surprise structural issues.

Damp / mould audit

Poorly insulated Madeira housing (single glazing, no cavity walls) accumulates damp in winter. Check all north-facing rooms.

Energy Performance Certificate (EPC)

Portugal grades A–F. Below D on a Madeira property means winter heating/dehumidification costs will dominate running cost.

Roof, terrace waterproofing

Madeira rainfall testes traditional flat-roof construction. Look for repair history and any active leaks.

Water supply reliability (rural plots)

Some rural parcels depend on shared levada rights. These are tradable but need written evidence.

Sewage and septic

Rural and some peri-urban parcels use septic systems. Failing septic = €5–15k remediation.

AGM minutes, last 3 years

Reveals disputes, planned works (fachada, elevador), and AL attitude.

Reserve fund balance

A depleted reserve means incoming special levies.

Building insurance policy

Verify AL-liability rider if short-term rental is in plan.

AL-specific regulation in the building rules

Individual condominiums can ban short-term rental even where the municipality allows it.

CPCV review (Contrato de Promessa de Compra e Venda)

Sinal usually 10–20%. Clause drafting defines your exit rights - see our CPCV clause-by-clause guide.

Sinal IBAN cross-check

Verify the seller IBAN against their NIF. Most reservation-fee scams turn on a fake IBAN.

Deposit-return conditions

Financing contingency, survey contingency, licensing contingency - if not in CPCV, you lose the sinal.

Penal clauses

Seller walk = double sinal back. Buyer walk = sinal lost. Some CPCVs try to cap this asymmetrically.

Completion date (escritura)

Aim for 60–90 days after CPCV. Too short = insufficient due diligence. Too long = price change risk.

Possession date

Usually escritura date. Earlier possession needs a specific comodato clause.

Curated escritura attendees

Buyer, seller, both lawyers if represented, translator if non-Portuguese-speaking, notary.

Final utility meter readings

Lock these at escritura so post-escritura bills are cleanly transferred.

NIF and bank account confirmations

Non-resident buyers need both before the escritura - timelines vary (NIF 24–48h, bank account 5–10 days).

IMT + stamp-duty paid receipts

Must be presented at escritura. No receipt = no escritura.

Registo Predial update post-escritura

Your lawyer files the update. Follow up within 30 days.