Le Corbeau

Guide · 12 min read

Buying Property in Madeira: The Complete Guide

Everything foreign buyers need to know — from getting your NIF to signing the final deed. No restrictions, no Golden Visa required, and you don't need to be there in person.

Key Takeaways

  • ✓ No restrictions — any nationality can buy freely
  • ✓ Transaction costs typically 6–10% of purchase price
  • ✓ Process takes 6–12 weeks from accepted offer to completion
  • ✓ Can be done fully remotely via Power of Attorney
  • ✓ NIF is the only prerequisite — get it first

Can Foreigners Buy Property in Madeira?

Yes — and without restrictions. Portugal imposes no limitations on foreign property ownership, and Madeira as an autonomous region follows the same rules. EU citizens, British nationals post-Brexit, Americans, Australians, and nationals of every other country can all buy freely. You do not need a visa, residency, or special permit to purchase.

The only prerequisite is a NIF (Número de Identificação Fiscal) — Portugal's tax identification number. You need this before signing any purchase contract. Everything else follows.

Step-by-Step: The Buying Process

Step 1 — Get a NIF (Tax Number)

Your NIF is required before making an offer. You can obtain one:

Full NIF guide →

Step 2 — Open a Portuguese Bank Account

Not legally required, but practically essential for managing the transaction and paying annual property taxes (IMI). Most sellers expect payment through Portuguese channels. Main options: Millennium BCP, Novo Banco, Caixa Geral de Depósitos. Can be opened remotely with some banks.

Step 3 — Find a Property

Primary portals: Idealista, Casa Sapo, OLX Imóveis. For buyer-side advisory — where someone is working for you, not the seller — that's what we do at Le Corbeau.

Step 4 — Make an Offer

Verbal or via agent. No legal commitment at this stage. Negotiation in Madeira is common — 5–10% below asking is typical for motivated sellers, less so in high-demand Funchal.

Step 5 — Sign the CPCV (Promissory Contract)

The Contrato de Promessa de Compra e Venda is the binding contract. At signing, the buyer pays a deposit of 10–20%. This is legally binding: if you withdraw, you lose the deposit; if the seller withdraws, they pay you double. Due diligence should be complete before signing.

Step 6 — Due Diligence

Your lawyer checks:

Step 7 — Final Deed (Escritura)

Signed at a Portuguese notary. The full purchase price is transferred, IMT and Stamp Duty are paid, and ownership is registered in your name. If you're not present, your lawyer signs under Power of Attorney.

Full Cost Breakdown

Cost Rate Example (€400K)
IMT (Transfer Tax)0–7.5%~€14,700
Stamp Duty0.8%€3,200
Notary fees~1–1.5%€4,000–€6,000
Land Registry~0.3%€1,200
SolicitorFixed fee€1,500–€3,000
Total~6–10%~€24,600–€28,000

Use our IMT calculator for an exact figure based on your purchase price.

IMT Tax Rates (2025)

Purchase Price Rate (Primary Residence) Rate (Investment / Non-resident)
Up to €97,0640%1%
€97,064–€132,7742%2%
€132,774–€181,0345%5%
€181,034–€301,6887%7%
€301,688–€578,5986%6%
€578,598–€1,050,4006%6%
Over €1,050,4007.5%7.5%

Annual Costs After Purchase

Do I Need to Be in Madeira?

No. The entire process — from NIF application to signing the Escritura — can be handled remotely via Power of Attorney (Procuração). You appoint a Portuguese lawyer or solicitor who acts on your behalf for all legal steps. Many buyers from the UK, Germany, and the US complete purchases without ever setting foot in Madeira until after they own the property.

Choosing an Area

Madeira has 11 municipalities ranging from cosmopolitan Funchal to remote Porto Moniz. Budget, lifestyle, and investment goals all point to different areas. Use our area guide to compare all 11 municipalities, or ask Le Corbeau for a personalised recommendation.

Frequently Asked Questions

Can foreigners buy property in Madeira?

Yes — with no restrictions whatsoever. Any nationality can buy freely. A NIF (Portuguese tax number) is the only prerequisite.

How much are transaction costs?

Typically 6–10% of purchase price: IMT (0–7.5%), Stamp Duty (0.8%), notary (~1–1.5%), registry (~0.3%), solicitor (€1,500–€3,000+).

How long does it take?

6–12 weeks from accepted offer to completed deed, assuming no legal complications.

Can I buy remotely?

Yes. Power of Attorney lets a Portuguese lawyer complete the entire process on your behalf.

Do I need a mortgage?

Not required. Cash purchases are common. If you want a mortgage, Portuguese banks lend to non-residents at 60–70% LTV.

Ready to find your property?

Tell Le Corbeau your budget, preferred area, and goals — and get matched to properties that fit.

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