Buy property in Madeira — real cases from practice
Anonymised examples of how buyers arranged a mortgage and financed their property in Madeira.
In short
How much are the purchase costs?
For non-residents Portugal has applied a flat IMT of 7.5% since May 2026 with no progressive bands; stamp duty, notary, registration and a lawyer come on top.
Is Madeira treated differently from the mainland?
Legally no — the same national rules apply. Only the valuation runs more conservative, as the island market is smaller and comparable sales thinner.
How much can non-residents borrow?
Banks finance non-residents up to a fixed share of the bank or purchase value depending on country and profile; the remainder plus acquisition costs is equity.
Across the 5 financings documented here, purchase prices ranged from €520,000 to €1,480,000. Every figure appears in the individual case report.
What do taxes and acquisition costs come to on Madeira?
Since May 2026 a flat IMT rate of 7.5 percent applies to non-residents in Portugal. The earlier progressive bands no longer exist. That simplifies planning and makes smaller properties more expensive, because the low entry bands have gone. Stamp duty of 0.8 percent on the purchase price is added, along with notary and land registry fees. Madeira appears in these reports not as a holiday destination but as a place to live. Buyers choose Câmara de Lobos, Ponta do Sol, Caniço or the rural west of the island. Planning horizons are correspondingly long, which makes the term of the loan important. Portuguese banks lend up to 80 percent to non-residents, based on the bank's own valuation rather than the agreed price. Documented purchase prices range from 520,000 to 1,480,000 euros. All acquisition costs are paid from the buyer's own funds.
Property financing in Madeira
Madeira appears in these reports not as a holiday destination but as a place to live: permanently, with an Atlantic view, in Câmara de Lobos, Ponta do Sol, Caniço or the rural west of the island. The planning horizons are correspondingly long. For non-residents, Portugal has applied a flat IMT rate of 7.5 per cent since May 2026 — unlike before, with no progressive bands, which simplifies the cost calculation and makes it more expensive on smaller properties.
From our practice
Apartment in Funchal — financing in retirement
Living permanently with an Atlantic view on Madeira
Townhouse in Câmara de Lobos — self-employed buyer
Authentic living a short distance from Funchal
Villa in Ponta do Sol — doctors phasing out work
Living on Madeira's sunny side with long-term planning
Genuine finca in Calheta — outside the urbanisations
Living permanently in the rural west of Madeira
Frequently asked about financing in Madeira
How much can non-residents borrow?
What does the consultation cost?
How much are the purchase costs on Madeira?
Is Madeira treated differently from mainland Portugal?
A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised individual case, not a binding statement for other projects · Siegfried Perini for the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank
What is different in this region
Madeira is Portuguese law — not Spanish. That sounds obvious and is still confused regularly. Three differences matter for the financing:
- A higher loan-to-value is possible. Portuguese banks regularly go further with non-residents than Spanish ones — which shifts the equity calculation noticeably.
- The CPCV is a sharp contract. The Portuguese preliminary contract binds early and expensively. Signing it before the financing has been assessed puts the deposit at risk — on Madeira as on the mainland.
- A tax frame of its own. The IFICI regime, successor to the NHR, catches only certain constellations. It is neither automatic nor a financing question — but it does affect where you end up for tax.
Valuations on the island are more conservative than in Lisbon: the market is smaller, and so is the set of comparable cases.
Market and rules: Madeira in detailWhy the valuation decides