Buying property in Madeira

The Autonomous Region of Madeira is an Atlantic archipelago far to the south-west of the mainland, centred on the island of Madeira and its capital, Funchal, with the smaller Porto Santo alongside. Its mild subtropical climate, direct flight links and English-friendly relocation scene have made it one of Portugal’s most internationally driven housing markets, and transacted prices here now sit above the national median shown below.

Demand concentrates heavily on Funchal and the sunnier south coast, so the regional median masks a wide internal spread between the capital and the quieter north and interior. This page shows the official median for the region as a whole with full provenance; concelho-level detail is planned so the intra-island gap can be shown with the same discipline once the geography is wired.

Short-term letting (Alojamento Local, AL) is central to the investment case for many Madeira buyers, given the island’s year-round tourism. AL is governed by the national regime (Decreto-Lei 128/2014, as amended) together with regional rules specific to the Autonomous Region, and registration and operating requirements can differ from the mainland. Local status and any contention-style limits vary by concelho and change over time.

This is general information, not legal advice — confirm the current AL status and regional requirements for a specific address with the relevant câmara municipal and the regional authorities before assuming a property can be operated as a short-term rental.

Municipal Property Tax (IMI) is levied annually by each concelho within a band set nationally, so the exact rate depends on the municipality and the property’s taxable value (VPT); rates in Funchal can differ from those of the island’s smaller concelhos. Any specific rate we publish is sourced from the official register with its reference year; where the warehouse cannot yet source a rate for this region it is shown as pending rather than estimated.