Buy property in Madeira: real cases from practice with a Portuguese mortgage for non-residents
Anonymised examples of how buyers arranged a mortgage and financed their property in Madeira. Madeira appears in these reports not as a holiday destination but as a place to live.
Which flat IMT applies if you buy property in Madeira as a non-resident?
For non-residents Portugal has applied a flat IMT of 7.5% since May 2026, with no progressive bands. Stamp duty of 0.8 percent on the purchase price, notary and land registry fees come on top, and all acquisition costs are paid from your own funds. The earlier bands no longer exist, which makes smaller properties more expensive.
What are the key facts for Madeira?
The same rules as on the mainland with a more conservative valuation; banks lend up to a fixed share, and the rest plus costs is equity.
Same rules as the mainland, more conservative valuation
The same national rules apply. Only the valuation runs more conservative, as the island market is smaller and comparable sales thinner.
Banks lend up to a fixed share — the rest plus costs is equity
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.
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.
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.
How does property financing in Madeira work?
Portuguese banks provide loans of up to 80 % to non-residents; the bank’s avaliação is the decisive factor. The buyer must cover all acquisition costs from their own funds; planning therefore begins with the buyer’s own funds.
Madeira: fixed IMT rate of 7.5 % since May 2026: For non-residents, since May 2026, a fixed IMT rate of 7.5 % with no progressive brackets, plus stamp duty, notary fees, registration fees and legal fees. IMT for non-residents.
Free initial consultation — 1 % on completion: The initial consultation is free of charge and without obligation; on completion, you pay 1 % of the loan amount (excluding IVA) — no bank commission. Our fees.
In the 5 financing deals documented here, the purchase prices ranged from 520,000 € to 1,480,000 €. Each amount is stated in the relevant report and can be found there.
Madeira does not feature in these reports as a holiday destination, but as a place to live: permanent residence with Atlantic views, in Câmara de Lobos, Ponta do Sol, Caniço or in the rural west of the island. The planning horizons are correspondingly long. For non-residents in Portugal, a fixed IMT rate of 7.5 % has applied since May 2026 — unlike in the past, without progressive bands, which simplifies the planning of purchase costs and makes smaller properties more expensive.
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
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
Do both IMT and stamp duty apply to property purchases in Madeira?
Non-residents are subject to a fixed IMT rate of 7.5 % on property purchases in Madeira, plus stamp duty of 0.8 % on the purchase price, as well as notary, registration and legal fees.
The IMT rate has been in force since May 2026. The buyer bears all acquisition costs from their own funds.
How high is the stamp duty on the purchase price in Madeira?
Stamp duty amounts to 0.8 % of the purchase price and is added to the IMT rate. Other costs include the notary’s fees and the registration fee. The buyer bears all acquisition costs from their own funds.
These are the taxes in Madeira for private individuals: the fixed IMT rate of 7.5 % for non-residents, stamp duty of 0.8 %, notary fees, registration fees and lawyer’s fees.
Frequently asked questions about financing in Madeira
How much can non-residents borrow?
In Portugal, 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.
What does the consultation cost?
The initial consultation is free and without obligation; on completion you pay 1 % of the loan amount (no VAT) — no bank commission.
What is the tax rate for non-residents in Madeira (IMT)?
Since May 2026, a fixed IMT rate of 7.5 %, with no progressive brackets, has applied to non-residents in Portugal. In addition, there are stamp duty, notary fees, registration fees and legal fees.
Where can I find the current tax rates in Madeira for non-residents buying property?
This page sets out the current rates: since May 2026, a fixed IMT rate of 7.5 % for non-residents, plus 0.8 % stamp duty on the purchase price. Further information can be found under ‘Costs when buying property in Portugal’ and ‘IMT for non-residents’. This page is not a substitute for tax or legal advice.
How much are the purchase costs on Madeira?
For non-residents, Portugal has applied a flat IMT rate of 7.5 per cent since May 2026 — with no progressive bands. Stamp duty, notary, registration and a lawyer come on top. The reports on this page describe permanent living throughout, not holiday property, so the planning horizons are long.
Is Madeira treated differently from mainland Portugal?
Legally, no — the same national rules apply. What differs is the valuation: the island market is smaller and comparable sales are thinner, so a valuation there tends to be more conservative than in Lisbon.
A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a binding statement for other projects · Siegfried Perini under the licence of Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank
Related pages
Apartment in Funchal — Financing in retirement
Living permanently with a view of the Atlantic in Madeira
House in Caniço — retired couple who are tax advisers
Permanent living with sea views in Madeira
Townhouse in Câmara de Lobos — self-employed consultant
Authentic living just a short distance from Funchal
Villa in Ponta do Sol — Doctor couple about to step back from work
Living on the sunny side of Madeira with a long-term plan
Authentic finca in Calheta — outside the residential areas
Permanent residence in rural western Madeira
Market and regulations: Madeira in detail
Property in Madeira: Funchal, south coast, year-round climate. Autonomous region; for non-residents, 7.5 % IMT since May 2026, up to 80 % loan-to-value.
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.