Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Region focus · Portugal · Madeira · §34i

Madeira — mortgage for non-residents

An autonomous region of Portugal with its own tax rates. Funchal and the south coast, year-round climate 18–25 °C. Up to 80% loan-to-value for non-residents.

Market analysis

The Madeira market & tax specifics

Top locations

Funchal, Caniço, Calheta

Funchal — the capital, a Mediterranean old town, premium residential quarters São Martinho and Santa Luzia. Caniço — suburbs with sea views. Calheta and Ponta do Sol — the sunny western coast with the warmest climate.

Tax advantage

An autonomous region

Madeira has its own tax rates. IMT transfer tax slightly reduced versus mainland Portugal. The International Business Centre (Zona Franca da Madeira) offers further advantages for holdings — relevant for private buyers only with special structuring.

Loan-to-value

Up to 80% LTV

Portuguese banks in Madeira finance as on mainland Portugal: up to 80% loan-to-value for non-residents. Banco Santander Totta, Millennium BCP, BPI have good branch networks in Funchal.

Climate

Year-round 18–25 °C

Subtropical, very even. The “island of eternal spring”. Rarely below 16 °C, rarely above 28 °C. Year-round lettability better than at most mainland destinations.

Buyer groups

DE · UK · Scandinavia

German, British and Scandinavian buyers dominate. Little mass tourism, rather exclusive winter guests and year-round residents.

Access

Funchal airport (FNC)

A famously spectacular landing over the Atlantic. Year-round direct flights from Frankfurt, Munich, Düsseldorf. 4 hours' flight time. No connection needed.

Example financings

Two realistic scenarios

Concrete sample calculations for typical foreign buyers — as a guide for your own plan.

Madeira · Funchal city

São Martinho · €350,000

  • Equity€105,000 (30%)
  • Mortgage€245,000 (70%)
  • Purchase costs (~9%)~€31,500 (IMT+IS+notary)
  • Loan-to-value70% LTV
  • Example payment (25 yrs, 3.4%)~€1,215/month
  • Bank typeMillennium BCP / CGD · Funchal

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Madeira · Calheta west coast

Ponta do Sol · €220,000

  • Equity€66,000 (30%)
  • Mortgage€154,000 (70%)
  • Purchase costs (~9%)~€19,800
  • Loan-to-value70% LTV
  • Example payment (25 yrs, 3.4%)~€765/month
  • Bank typeSantander Totta · Madeira

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Mortgage calculator

Calculate your costs quickly

Pre-filled with typical values for this region — adjust and calculate.

FAQ

Frequently asked questions about Madeira

What tax advantages does Madeira offer?
Madeira is an autonomous region with its own rates — IMT transfer tax slightly cheaper than mainland Portugal. For private buyers typically no dramatic saving, but somewhat lower. The International Business Centre (ZFM) is irrelevant for private buyers.
Which bank finances in Madeira?
Banco Santander Totta, Millennium BCP, Caixa Geral de Depósitos and BPI have branches in Funchal and offer non-resident programmes. Terms as on mainland Portugal: 80% LTV, up to 25-year term.
How is year-round lettability?
Thanks to the stable climate (18–25 °C year-round) the effective letting rate is higher than at pure summer destinations. Winter guests (often 1–3 months) complement classic short-term letting.
How high are rental yields in Madeira?
Funchal city: 4–6% gross. South/west coast: 3–5%. Tourist letting with an AL licence as on mainland Portugal.
Is Madeira more expensive or cheaper than the mainland?
Funchal city: comparable to Lisbon. Caniço and the south/west coast: 20–40% cheaper. Overall somewhat more price-stable than overheated mainland hotspots.
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Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This page does not replace legal or tax advice.