🏡 Buying a house in Madeira as a foreigner
Thinking of buying a house in Madeira and not sure what it really costs? Here is the honest version for a foreign buyer. The process, the taxes you pay once, and the bills you keep paying every year. Madeira is genuinely cheaper than the mainland on property tax, and 2026 added big exemptions, so it pays to know the numbers before you fall in love with a view.
Last updated: June 2026Foreigners can buy in Madeira with no restrictions, on the same terms as locals. You need a NIF and usually a Portuguese bank account. Budget roughly 7 to 8 percent on top of the price for taxes and fees, though Madeira charges less than the mainland and a primary home up to 330,539 euros can be fully exempt from IMT and stamp duty in 2026. After you buy, the main yearly cost is the IMI property tax, which Madeira reduces by 30 percent.
Get your NIF
Your Portuguese tax number is the first thing you need. You can get it remotely through a tax representative for about 100 to 250 euros, usually in a few days. See our NIF guide for the details.
Open a Portuguese bank account
Not strictly required, but it makes deposits, taxes, utility bills and condominium fees far simpler. Some banks open accounts remotely for non residents with a NIF and ID.
Get a lawyer for due diligence
This is the step that saves you. A local lawyer checks the property has no debts, the licences are in order, and the registry matches reality. Expect about 0.5 to 1 percent of the price.
Find the home and make an offer
Browse, visit, and agree a price. In Madeira a buyer often works with a local agent who speaks English. Once you agree, the property is usually reserved with a small holding deposit.
Sign the promissory contract (CPCV)
The Contrato Promessa de Compra e Venda locks in the deal. You normally pay a deposit of around 10 to 30 percent here. If the seller pulls out they owe you double, so it protects you too.
Sign the deed before a notary (Escritura)
The Escritura Pública is the final transfer of ownership, signed at a notary. You pay the balance and the taxes here, and the home is yours. The whole process usually takes 2 to 4 months.
0 to about 7.5 percent, on a progressive scale. Madeira brackets sit about 25 percent higher than the mainland, so you usually pay less, and the top rate only starts above 1.41 million euros.
A flat 0.8 percent of the price.
Around 500 to 1,200 euros.
Around 0.5 to 1 percent of the price.
A primary home up to 330,539 euros can be fully exempt from IMT, stamp duty and notary fees. Buyers aged 35 or under buying a first home get extra exemptions.
0.3 to 0.45 percent of the taxable value, and Madeira applies an automatic 30 percent reduction.
Around 20 to 300 euros a month, depending on the building and its pool or lift.
Around 70 to 150 euros a year.
Around 100 to 180 euros a month for a typical home.
Budget roughly 1 to 4 percent of the value each year.
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Browse homes in Madeira → Get a vetted lawyerFrequently asked questions
Can a foreigner buy a house in Madeira?
Yes. There are no restrictions on foreign buyers in Madeira, and you buy on the same terms as a resident. You need a NIF tax number and, in practice, a Portuguese bank account. Both can be arranged before you even view a home.
How much tax do I pay when buying in Madeira?
You pay IMT, a progressive transfer tax, plus a flat 0.8 percent stamp duty. Madeira brackets are about 25 percent higher than the mainland, so you usually pay less here. With fees, a good rule of thumb is 7 to 8 percent on top of the price, but a primary home up to 330,539 euros can be exempt in 2026.
What are the yearly costs after I buy?
The main one is IMI, the annual property tax, which Madeira reduces by 30 percent. Then condominium fees if it is an apartment, home insurance, utilities and maintenance. A modest apartment often runs a few thousand euros a year all in.
Do I need to live in Portugal to buy?
No. You can buy without living here, and buying a property does not give you residency. To stay longer than 90 days you apply for a visa first. See our visas guide.
Can I get a mortgage as a non resident?
Often yes. Non residents typically borrow 60 to 70 percent of the value, so you need a larger deposit than a resident would.
Do I really need a lawyer?
Strongly recommended. A lawyer checks for hidden debts, missing licences and registry mismatches before you sign. It is the cheapest insurance you will buy in the whole process.