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Gross and net yield estimates for Madeira's 11 municipalities. Short-term AL or long-term rental — real numbers, not marketing fluff.
Based on €127/night ADR × 76.0% occupancy
Median price/m² for Funchal: €3,205/m²
Gross Revenue / yr
€35,230
Gross Yield
14.1%
Get the net yield breakdown
Management fees, maintenance, insurance, tax — and your real annual return.
Short-Term (AL)
5–8% gross. Higher gross revenue, higher management effort. License required. Funchal has quota caps.
Long-Term
3–5% gross. Lower gross, less hassle. No AL license. Steady passive income, no license required.
Long-term leases benefit from reduced rates: 25% (under 5yr), 15% (5-10yr), 10% (10-20yr), 5% (20yr+). AL operators typically use the simplified regime (Cat. B). Consult a local tax advisor.
No AL quota restrictions — unlike Funchal centro where new licenses are frozen. Best combination of yield and entry price on the island.
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