42-point Madeira property due-diligence checklist

Certidão Permanente do Registo Predial

Confirms the seller is the registered owner and shows registered charges: mortgages, seizures, attachments and pending court actions (Código do Registo Predial, arts. 2.º, 3.º and 7.º). Unpaid IMI and IMT do not show there; see the items below.

Matrix registration (Caderneta Predial)

Must match what the Registo Predial says on location, area and matrix article, within small tolerances for area (Código do Registo Predial, arts. 28.º and 28.º-A). Reconcile any difference before signing.

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

Unless the seller is married under separation of property, the sale needs the consent of both spouses, and for the family home it always does. Without it the other spouse can have the sale annulled (Civil Code arts. 1682.º-A and 1687.º).

IMI arrears (Portal das Finanças)

IMI is owed by whoever owned the property on 31 December (CIMI art. 8.º), so arrears are a debt of the seller. But the property itself secures recent unpaid IMI, even after you buy it (CIMI art. 122.º; Civil Code arts. 744.º and 751.º). Ask the seller for proof from the Portal das Finanças that IMI is paid.

AIMI check

AIMI, an addition to IMI, is charged when the VPT of the homes and building land an individual owns in Portugal adds up to more than €600,000 (CIMI arts. 135.º-B and 135.º-C). Companies get no such allowance.

IMT debt check

IMT due when the seller bought can still be assessed years later, for example if an exemption lapsed or the tax office corrects the assessment (CIMT arts. 11.º, 31.º and 35.º), and the property secures that IMT even after you buy it (CIMT art. 39.º; Civil Code arts. 744.º and 751.º). Ask for proof that it was paid or validly exempted.

Condominium arrears

Pull the last three AGM minutes and get the statement from the condominium administrator of what the seller owes. Arrears stay with the seller unless you waive that statement at the deed (Civil Code art. 1424.º-A), so do not waive it.

Licença de utilização

Since 1 January 2024 the notary no longer checks it at the deed (DL 10/2024), but the CPCV signatures must still be recognised in person with a certificate that the licence exists (Civil Code art. 410.º n.º 3). A missing or wrong-use licence can mean a change-of-use filing with the câmara (RJUE art. 4.º n.º 5) or an order to stop that use (RJUE art. 102.º). Ask your lawyer what putting it right involves and get a written quote before you commit.

Pre-1951 special rules

Buildings from before the RGEU (7 August 1951) had no licença de utilização to obtain. Since 1 January 2024 the deed needs neither the licence nor proof that none was required (DL 10/2024), and no architect certification replaced it. Check with the câmara that any later extension was permitted.

AL (Alojamento Local) status

Verify current status with the câmara of the concelho where the property sits. Funchal has been a containment area since 30 Jun 2026 (no new AL in Sé parish; in the other parishes only detached houses or rooms in them), and other concelhos have suspended or decided to suspend new registrations. See the AL guide for each concelho and its source.

Construction permits for any extensions

Works done without the required permit can be ordered legalised or demolished (RJUE arts. 102.º and 106.º), and after the sale that problem is yours. Check every extension against the licence and the caderneta.

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

Rehabilitation that meets the legal conditions can bring IMI and IMT exemptions (EBF art. 45.º), and rehabilitation works in an ARU pay the reduced VAT rate (Código do IVA, List I, item 2.23), which in Madeira is set by the regional assembly, not the mainland 6% (art. 18.º). Each câmara publishes its ARU boundaries in the Diário da República and on its website (DL 307/2009, art. 13.º).

Coastal / cliff line setbacks

The margin of the sea is public maritime domain unless a court has recognised private ownership: 50 m from the top of the cliff where the shore is a cliff, or up to an existing regional or municipal road in Madeira (Lei 54/2005, arts. 3.º, 11.º and 15.º). Along the whole island coast, the coastal programme (POCMAD) also maps cliff-instability bands where new building and extensions are banned, with narrow exceptions.

POCMAD (Madeira coastal programme)

In force since 5 February 2024 (Resolução 48/2024), it covers a land strip up to 500 m inland from the margin of the sea, and the câmaras must bring their PDMs into line with it. Renovations, extensions or pool additions on coastal plots can be restricted: ask the câmara before you commit.

Landslide overlay

The regional risk assessment (Proteção Civil, ARRAM 2023) finds high landslide susceptibility across the island, most of all in the central parishes of Curral das Freiras, Serra de Água and Ponta do Sol, and on coastal cliffs. Get a geotechnical report before buying a steep-slope plot.

Flood / flash-flood zones

The flash floods of 20 February 2010 hit Funchal, Ribeira Brava, Câmara de Lobos and Santa Cruz in particular (ARRAM 2023). The regional flood-risk plan (PGRI-RAM 2022-2027) maps 63 areas at significant risk of river or coastal flooding: check the property at pgri-ram.madeira.gov.pt.

Wildfire exposure

The regional risk assessment (ARRAM 2023) puts the highest wildfire exposure on the south-facing slopes of the island, historically most in Santa Cruz, Funchal, Câmara de Lobos, Ribeira Brava, Ponta do Sol and Calheta. Properties next to forest or scrub are exposed in dry, windy weather.

Volcanic / seismic history

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

Independent building survey

Pay for one before you sign. Get a written quote for a technical report that flags structural, damp, roof and electrical issues.

Damp / mould audit

Winter damp is a risk in poorly insulated construction (single glazing, no wall insulation). Check every room, north-facing ones first.

Energy Performance Certificate (EPC)

Classes run from A+ (most efficient) to F; C to F mean the home needs more energy than the minimum standard for a new home (Manual SCE). The seller needs a valid certificate to sell, must show the class in adverts and must give you a copy before the CPCV (DL 101-D/2020, arts. 18.º, 22.º and 29.º).

Roof, terrace waterproofing

Madeira rainfall tests 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. Have the system inspected and get a written quote for any repair before you sign.

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)

The amount of the sinal is whatever the CPCV says; the law sets none. Clause drafting defines your exit rights - see our CPCV clause-by-clause guide.

Sinal IBAN cross-check

Confirm the IBAN by phone, on a number you already know, and check that the account is in the name of the seller before you transfer. A fake or intercepted IBAN is a known attack.

Deposit-return conditions

Financing, survey and licensing contingencies: if they are not in the CPCV and you cannot complete for one of those reasons, you can lose the sinal (Civil Code art. 442.º).

Penal clauses

Seller walk = double sinal back. Buyer walk = sinal lost (Civil Code art. 442.º). A CPCV can agree something different, and a court can cut a manifestly excessive penalty (art. 812.º). Have your lawyer check any change.

Completion date (escritura)

Agree a date in the CPCV that leaves time for the checks by your lawyer and, if you borrow, for the bank. Too short = insufficient due diligence. Too long = price change risk.

Possession date

Usually escritura date. If you take possession earlier under the CPCV, IMT becomes due at that point unless the home will be your own permanent residence (CIMT art. 2.º n.º 2 a)), so agree it with your lawyer first.

Curated escritura attendees

Buyer, seller, both lawyers if represented, an interpreter of your choice if you do not understand Portuguese (Código do Notariado, art. 65.º), and whoever executes the deed: a notary, a lawyer or solicitor who authenticates it, or a Casa Pronta desk (Civil Code art. 875.º).

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 by provider and bank, so ask each and start early.

IMT + stamp-duty paid receipts

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

Registo Predial update post-escritura

Registration 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. Ask for proof that it was requested.