Tool, Relocator essential
Rent vs buy - Funchal, Calheta, Ponta do Sol
Prices and rents per m² come from INE: what homes in each concelho sold for, and what new leases were signed at. This tool stacks the full 10-year cost of renting against owning, net of IMT, IMI, condominium charges and the opportunity cost on your deposit. Set the mortgage rate and loan-to-value to the offer your bank actually makes.
Your scenario
Property value
€298,980
Deposit needed
€104,643
Monthly mortgage (25y)
€1,004
Monthly rent at the INE median (Funchal, 90m²)
€1,036
Acquisition cost (IMT + stamp + lawyer + notary)
€29,403
| Year | Cumulative rent | Cumulative owning cost |
|---|---|---|
| 1 | €12,431 | €44,849 |
| 3 | €38,613 | €75,742 |
| 5 | €66,660 | €106,634 |
| 7 | €96,704 | €137,526 |
| 10 | €145,831 | €183,865 |
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 (broker fees) would shift the breakeven further out. A buy-to-rent calculation is different.
Sources and assumptions. Price per m²: INE median for homes sold in Funchal, 12 months to March 2026. Rent per m²: INE median for new leases, 12 months to December 2024 (Funchal). IMT: the flat 7.5% that a buyer who is not tax resident pays on a home since 25 May 2026 (CIMT art. 17.º n.º 10); if you become resident within two years you can claim back the difference to the normal rates. Stamp duty: 0.8% of the price. IMI: 0.3% a year, the 2025 rate in Funchal, Calheta and Ponta do Sol (Portal das Finanças), applied here to the price; the tax office applies it to the VPT on the caderneta predial. Deed and registration: €700 at a Casa Pronta desk for a purchase with a mortgage (IRN price list). Not included: stamp duty on the loan (0.6% for a loan of five years or more) and AIMI. Our assumptions, not sourced figures: a 25-year loan; rent rises 3.5% a year and the home gains 2.5% a year; condominium €85 a month, insurance €280 a year and maintenance 0.4% of the price a year; lawyer 1.3% of the price.
Next, if the buy path wins, work through our due-diligence checklist and the 17-step buying guide before making an offer.