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.
Little for non-residents now: since 25 May 2026 the uniform 7.5% IMT applies here too. The regional discount remains relevant for residents.
As on the mainland: up to 80% loan-to-value, term up to 25 years — several major Portuguese banks with branches in Funchal.
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 short-term letting.
On Madeira Portugal's IMT applies, but with a regional peculiarity: in the autonomous regions of Madeira and the Azores the scale thresholds sit around 25 % higher than on the mainland, so for many purchase prices a lower effective rate used to result. Add stamp duty (Imposto do Selo) of 0.8 %. For non-residents, however, the same deadline applies as nationwide: since 25 May 2026 a flat IMT rate of 7.5 % replaces the progressive scale for buyers without Portuguese tax residence (Decreto-Lei 97/2026) — with a refund option upon later tax residence or moderate letting. The market centres on Funchal and the sunny south coast. Portugal remains fiscally interesting via the IFICI regime, the narrower NHR successor. Important for financing: the bank finances the purchase price, not IMT and incidental costs. As of 07/2026.
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.
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.
Portuguese banks in Madeira finance as on mainland Portugal: up to 80% loan-to-value for non-residents. Several major Portuguese banks have good branch networks in Funchal.
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.
German, British and Scandinavian buyers dominate. Little mass tourism, rather exclusive winter guests and year-round residents.
A famously spectacular landing over the Atlantic. Year-round direct flights from Frankfurt, Munich, Düsseldorf. 4 hours' flight time. No connection needed.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
| Item | Amount |
|---|---|
| Equity | €105,000 (30%) |
| Mortgage | €245,000 (70%) |
| Purchase costs (~10%) | ~€35,000 (IMT+IS+notary) |
| Loan-to-value | 70% LTV |
| Example payment (25 yrs, 3.4%) | ~€1,215/month |
| Bank type | Major Portuguese bank · Funchal |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| Item | Amount |
|---|---|
| Equity | €66,000 (30%) |
| Mortgage | €154,000 (70%) |
| Purchase costs (~10%) | ~€22,000 |
| Loan-to-value | 70% LTV |
| Example payment (25 yrs, 3.4%) | ~€765/month |
| Bank type | Portuguese bank · Madeira |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Pre-filled with typical values for this region — adjust and calculate.
Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
Planning a purchase on Madeira? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Portugal.
NIF, income proof, up to 80% LTV — what non-residents actually need.
Monthly instalment, total cost and equity requirement for your exact figures — up to 80% LTV.
The CPCV, Casa Pronta and the 7.5 % IMT rate for non-residents since 25 May 2026.
Anonymised examples of how buyers financed their property in Madeira.