Tool · Relocator essential
Rent vs buy - Funchal, Calheta, Ponta do Sol
Funchal's rental index climbed 16.6% year-on-year through Q1 2026. Non-resident mortgages typically cost Euribor + 2.8–3.5% on a 60–70% LTV cap. This tool stacks the full 10-year cost of renting against owning, net of IMI, AIMI, condominium charges and the opportunity cost on your deposit.
Your scenario
Property value
€387,000
Deposit needed
€135,450
Monthly mortgage (25y)
€1,300
Monthly rent today (Funchal, 90m²)
€1,485
Acquisition cost (IMT + stamp + lawyer + notary)
€43,857
| Year | Cumulative rent | Cumulative owning cost |
|---|---|---|
| 1 | €17,820 | €63,120 |
| 3 | €55,353 | €101,645 |
| 5 | €95,559 | €140,170 |
| 7 | €138,629 | €178,695 |
| 10 | €209,053 | €236,482 |
Over 10 years, buying looks cheaper - net of equity build-up and deposit opportunity cost.
Caveats: mortgage rates, rent inflation and opportunity-cost rate all move. Transaction costs on re-sale (typically 5–7% broker fees) would shift the breakeven further out. A buy-to-rent calculation is different - use the AL yield modeller for that.
Next, if the buy path wins, work through our due-diligence checklist and the 17-step buying guide before making an offer.