Madeira Island
A Dream with Potential for Reality
There are many beautiful islands in this world! Living in paradise, permanently escaping from everyday life in your home country, living where others go on holiday! – Too often, however, the realisation fails. Too far away, too hot in summer, too cold in winter, storms and rain seasons over months. Too much climate fluctuation, and above all, not enough real estate options. But don’t worry, the dream island exists and is called Madeira! These hurdles do not exist on the island of Madeira. Here you have the healthiest climate in the world, it is moderately warm all year long and still green. No rain or dry season, exclusively paradisiacal climate and all this with an affordable and relaxed flight from almost any European airport. The dream is alive!! And the best part? The choice of real estate is as spectacular and varied as the beauty of nature.
Let’s make your dream of a property in paradise come true together.
The current real estate situation in Madeira is very dynamic. Due to the last pandemic years, more and more people are drawn to the beautiful island of Madeira. The market continues to pick up speed and new dream homes are constantly being built and beautiful building plots are being developed. Madeira always manages to maintain a good balance between new properties and traditional buildings. The renovation of existing properties is even subsidised by the state in some parts of the island in order to achieve a sustainable modernisation of the landscape. Madeira is and remains a great symbiosis of the development of building plots and extensive preservation of paradisiacal nature. Besides the increased quality of life, the market offers real sustainable investment potential. Whether for renting out with tourism purposes or simply as a capital investment. The market is growing and buying a property in Madeira is a good idea in many respects.
Always buy through a licensed agency where you are protected throughout the purchasing process by Portuguese law. As an agency, we have to pay a fee to renew our license every year with a criminal record check of the owners and management before renewal is issued. For each property, be it a house, apartment, old building or land, we have to have on file all the registered documents and energy certificate, ID and tax numbers of the owners before we can advertise it for sale.
Once a decision to purchase has been made, a “Promissory Contract” is drawn up at the agency, where the details of the owner, purchaser and property are included, all under Portuguese Law. This means that the vendor (the owner) promises to sell the property to the purchaser and the purchaser promises to buy the property from the owner and the purchaser then pays a deposit (usually 10% of the purchase price) directly to the owner. In this contract a date between the two parties is agreed for the signing of the “Escritura” (the deed) at the Notary. At the date for the signing of the “Escritura” at the Notary, the proof of payment of the IMT and Imposto do Selo at the Tax office (which is normally paid by the purchaser the day before) and all the up to date legal documents of the property, the ID and tax numbers for both the Vendor and purchaser are checked by the Notary and are included in the “Escritura” (the deed). At this time the balance of the purchase price has to be paid either by a Portuguese Bank Cheque or approved bank transfer to the seller. The Notary’s fee and registration of the property fee is paid at the office of the Notary.
At this point you are now the legal owner of the property!!
A simulation of the purchasing costs is printed by the agency for the purchaser. This shows the amount due of the IMT (Municipal transfer tax) and the Imposto do Selo (Stamp duty) to be paid at the Notary on the signing of the “Escritura” (the deed). This simulation can be calculated on a budget that the client has to purchase a property so that they know the overall costs. The real estate agency’s commission is paid by the seller of the property. So don’t hesitate to contact us so that we can assist you in your buying process.
