MADEIRA

T H E C O M P L E T E

BUYERS GUIDE

AMI 13381 • ALVARA 40604

 Introduction
to Madeira
Located off the west coast of Africa, Madeira is European,
the currency is the Euro and Madeira is a beautiful volcanic
on the Portuguese mainland, but none are dedicated to
island. The climate is sub-tropical with temperatures rarely
life on Madeira, as the archipelago’s feel is quite different
dropping below 20 degrees in the winter, a decent level of
to that of the mainland, we created this comprehensive
rainfall in the mountainous interior ensures the island is very
Madeira Buyers Guide using our years of experience and
green all year. One of the biggest attractions of Madeira is
the experience of other expats here to tell you more about
the feeling of safety, Madeira has one of the world’s lowest
what to expect.
crime rates and the whole island is spotlessly clean.
The Portuguese archipelago of the Madeira Islands has
two inhabited islands, Porto Santo and Madeira. If you
want long sandy beaches, you should choose Porto Santo,
but if you want the most stunning landscapes and an
easier transition abroad you may well favour the far more
popular Madeira Island, living here where English is widely
spoken you will find the highest concentration of expats.
Dominated by stunning mountains and dramatic sea
cliffs, Madeira Island is popular with expats thinking about
moving to live in Portugal while seeking an alternative
location to the Algarve.
Most inhabitants of Madeira live on or near to the coast,
buyers can expect the most incredible Atlantic Ocean
and mountain views. The climate, the landscape, the laid
back and friendly people all make Madeira an increasingly
popular choice for those seeking an alternative location.
Many moving guides and books focus closely on living

“Madeira the island that has it all, eternal spring, exotic fruits, abundant
seafoods and enchanting coastal villages, if paradise is on earth, then I
found it in Madeira”
Adela Riding – The Madeira Orchestra
T H E MADEIRA BUYERS & PROPERTY G U I D E |3

Where to buy and the right choice for you…

Contents guide
Introduction to Madeira��������������������������������������������������������������������������������������� 2
5
Madeira today �������������������������������������������������������������������������������������������������������4

Madeira property market������������������������������������������������������������������������������������� 5

Residency and the visa situation�������������������������������������������������������������������������6

Buying a new or old property����������������������������������������������������������������������������� 7

9 The purchase procedure �������������������������������������������������������������������������������������8

Buying costs in Madeira���������������������������������������������������������������������������������������9

Personal tax in Portugal and Madeira �������������������������������������������������������������10

Mortgages�������������������������������������������������������������������������������������������������������������� 11

Property law in Portugal and Madeira��������������������������������������������������������������12

11 Transferring money to Madeira��������������������������������������������������������������������������13

Living in Madeira������������������������������������������������������������������������������������������������� 14

Culture and language������������������������������������������������������������������������������������������15

Healthcare������������������������������������������������������������������������������������������������������������� 16

Transferring your pension to Madeira��������������������������������������������������������������17

14 Shipping your goods to Madeira ��������������������������������������������������������������������� 18

Working in Madeira��������������������������������������������������������������������������������������������� 19

A rental property for income���������������������������������������������������������������������������� 20

Nurseries, primary schools, secondary education and universities ������������21

Relocate your business or company to Madeira ������������������������������������������� 22

17
Visit Madeira, stay in Funchal ���������������������������������������������������������������������������23

Contact us�������������������������������������������������������������������������������������������������������������24

Several other important guides������������������������������������������������������������������������� 25

20
 T H E MADEIRA BUYERS & PROPERTY G U I D E |4

Madeira
today

Madeira was discovered by Portuguese explorers in

1419 and the islands were uninhabited. Madeira, due to its
quite exceptional year-round subtropical temperatures,
was ideal for growing sugar cane which was later to be
replaced by the sophisticated Madeira wine industry.
Today Madeira is a growing destination for those searching
for a quiet and safe escape in the sun, to either call home
or to have a year-round island getaway.
The island is served by direct European flights all year
round from airports throughout the UK and EU. The
cosmopolitan and beautiful capital of Funchal is graced
with a vast number of diverse restaurants, coffee bars, and
modern shopping centres and unlike many destinations,
the vast array of restaurants are open all year round ensuring
an excellent lifestyle. Truly unique both geographically
and culturally Madeira contains some of the world’s most
beautiful lidos formed and constructed in the seacoast line
dramatic mountain walking and the last remaining ancient
around the island. The island offers some excellent and
UNESCO laurel forest. Madeira has not got a winter season
sophisticated wine bars, these are aimed at tourists and
unlike southern Spain and the Algarve. The popular
locals alike, there are also sophisticated nightclubs and a
area around Ponta do Sol is a microclimate that offers a
Funchal casino. The future for Madeira with its superfast
superior climate and a beautiful coastline. Madeira is often
internet and growing tech sector was recently outlined
referred to as a European alternative to the Caribbean. If
by the government expressing the aim in attracting IT
you are thinking a safe winter sun destination and a quality
company relocations, large crypto holders and growing
rental prospect, then Madeira is a great choice. Many
Madeira to become a Singapore of the Atlantic.
direct European flights are under 4 hours and low-cost
carriers offer regular flights, for instance from the UK there
are around 35 return flights a week. Madeira does not
attract the clubbers or binge drinkers and there are only
a few natural sandy beaches. There are many quality and
 T H E
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MADEIRA BUYERS & PROPERTY G U I D E |5

Madeira property
market
Madeira is autonomous and has its own Variable property values
administration. The property laws are the same as the
Portuguese mainland. Madeira has a reliable property The property market in Madeira and real estate
market and buying a home in Madeira has historically agencies generally operate differently to say, the UK
been all about the lifestyle rather than the return on market. In the UK, a property owner who is interested
Preparation starts
investment, this has changed notably in 2017 with in selling their property will ask for a valuation from
an estate agent, the agent will visit the property and today:
quality holiday rentals making high returns. After the
2007 market peak, property prices fell everywhere, normally give a fair achievable market value and a Experience shows that
Madeira was affected less because over supply issues resale market price is agreed upon. In Madeira it is a well planned move
quite often the property owner who sets the price, to Madeira requires

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have never been a big issue as suffered by the Spanish
Costas or Algarve areas. The last decade has seen a this can sometimes be unrealistic or have optimistic a good lawyer, a
pricing. Often Madeira property owners are not financial consultant, an
general shortage of high-quality properties coming experienced moving
onto the Madeira market, this continues to underpin seeking a quick sale. In this case the property owner
is often targeting a foreign buyer and patiently waits company and most
market prices. Madeira has also been affected by a importantly, a currency
large amount of former emigrates returning home to with his property to sell, sometimes for many years.
exchange specialist that
live in Madeira once again, for instance in 2017 15,000 Sometimes a property is listed with many different is not your high street
emigrates returned to live and take residence, this agents with variations in the price. Some properties bank.
positively impacted the property prices during 2017. will have a realistic market price and these properties
During the pandemic Madeira was seen as an ideal will sell more quickly, there are also some bank
Location, Location,
and safer living location for purchasing a property properties available that have low prices, these can Location
with buyers coming from across the globe, during be attractive deals and feature financing. There are
this period the average Madeira property value have also some sellers in the market who do not wish to Buying property in
reportedly increased beyond 35%, however the see their property advertised on the local property Madeira, like many
popular southern area closer to the coastline have portals, neither do they wish for endless visitors, places in the world,
this type of seller is called a grey listing, not openly is about finding and
increased more. In 2022 Madeira property prices
for sale but for introduction by agents without any checking a potential
continued growing in the first quarter and are widely location that is going to
expected to sustain a high level of increase as more advertising. For instance, I have myself purchased
work well for you.
buyers enter the market. The British remain the biggest property as a grey listing from a seller who wished to
Be sure to check the
buyers with Scandinavians, Polish, Germans and other keep a low profile about their Madeira future. rush hour traffic into
north Europeans close behind, recently the number The three important questions you should ask Funchal, local buses
of wealthy American buyers has also been increasing yourself in preparing for a property search: routes and time into
with direct flights now available from the USA. The town. Also check your
main country area for those looking for the quiet life is 1) When will you really be able to view properties? altitude as property
over 400m above the
the southwest coast from Ribeira Brava to Calheta. The 2) When will you be in a financial position to make sea could see some
main area for those looking for a metropolitan location a purchase decision? considerable changes
is the coastal area around Funchal or the city itself. in winter weather
3) When would you like to have the keys and own
Funchal properties located in a good location close to conditions.
your new property?
the city carry a high premium, there is also many buyers
searching available properties around the city centre.
T H E MADEIRA BUYERS & PROPERTY G U I D E |6

Residency and
the visa situation

European Union and European Free Trade a further €6,000 per dependent is also
Association (EU and EFTA) member nationals required. This figure proves an immediate
have a right to come and permanently live reasonable income requirement is already
and work in Madeira and do not require any budgeted by the applicants. The reasonable
visa. All other non-EU and EFTA nationals will income requirement in Madeira is estimated
TOP TIP:
need to consider the available visa options. currently at €2,000 per month per couple to
live plus €500 monthly per dependent child,
Want to relocate to this figure is calculated to include rent. After 5
Madeira?
Schengen visa years of residence under the D7 visa, you can
apply for permanent residence. You will also
The short stay visa, sometimes known need a criminal record clean of certain crime
Residency involves quite as the Schengen visa, is for stays of up to a
serious questions about
types. You will have to be resident in Portugal
maximum of 90 days in any 180 day period. for at least 180 days per annum and declare
living in Madeira. Living It can be granted for purposes of tourism,
here full time means your global income to the Portuguese tax
family visits, business, temporary work or authorities. The other significant advantage
you will be paying
Portuguese taxes on
other stays in Portugal of a temporary nature. of a D7 visa is your ability and right to travel
your entire personal The Schengen visa allows you to travel around the Schengen Area as an EU citizen.
income. Do not believe around the Schengen Area countries for the
that because you’re duration of the visa. After the 90 days period Golden visa
paying tax elsewhere you must leave Madeira. This visa is suitable
that you will not need The much talked about Golden visa is a way
for those that want a holiday home in Madeira
to pay tax in Portugal. to come and go from Portugal and Madeira as
for occasional use.
Be sure to get an early a European Union citizen, it is also a later path
assessment of your to a Portuguese passport. The Golden visa
current income structure allows travel by the application to Madeira
and taxation in Madeira D7 visa as often as they wish, for a long as they want
before you actually If you are planning relocating permanently to stay, effectively if gives the right or option
move. of permanent residency. There is a minimal
to Madeira, you will need to be able to
We recommend a prove that you can support yourself and proven stay period per annum of 7 days in
paid consultation with your family in your new life here. This is Madeira. The property route to a Golden visa
Madeira Corporate achieved by use of the D7 visa. The D7 visa requires an investment in real estate or land
Services well ahead of is suitable for retirees, remote workers and from €500,000, the base figure of €500,000
any potential move to cannot be from a mortgage. There are
those who classify their activity as a digital
Madeira.
nomad. To obtain a D7 visa in Madeira you considerable advantages in flexibility from
must prove a reliable or passive income. This obtaining a Golden visa, a holder does is
income can be from a retirement pension, also not required to become tax resident
Contact Madeira a certified financial investment, real estate unlike the D7 visa. After 5 years the Golden
Corporate Services here investment or a salary. From our experience visa applicant can apply for a Portuguese
and to make a successful application for the passport, this requires some Portuguese
D7 visa, you will need at the outset of your language skills. Once a passport is issued, the
application €24,000 per couple in cash, new passport holder can choose to sell their
deposited into a Portuguese bank account, original property investment.
 T H E
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MADEIRA BUYERS & PROPERTY G U I D E |7

Buying a new
or old property
Some people will be looking for a ruin or Buyers are encouraged to cherry pick to
a place with considerable work to be done. the location. If you are hoping to make a
You might well get something that has return on your investment, select the best
been built in a great position that would plot with the best view, it is always going
not be available now. Equally, if a vendor to appeal to renters and buyers when you
is desperate to sell their home, you might want to later resell. The biggest upside of
get one at a great price compared to a buying brand new in Madeira is less upkeep
new property. There are several definite hassle and costs, everything is new, you
advantages of buying new or off plan, if you will not need to budget for repairs. Buying
can afford to, you can choose your fittings when building work is ongoing or off plan
from a selection of options to make your means you will have the developers team
villa bespoke. Off-plan projects will get you onsite, any niggles, flaws or changes in the
exactly what you really want and in Madeira property will be fixed easily.
this is a popular route. High build quality
New-builds come with certainties and
and improved building controls mean
a guarantee, so problems can be quickly
that new homes need to meet certain EU
solved as these are contracted in to the
and ministry standards. New builds have
build.
to be well insulated, for sound as well as
heating, eco-friendly and comply with EU
regulations.

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T H E MADEIRA BUYERS & PROPERTY G U I D E |8

The purchase procedure

To start a purchase, you will need a bank account property or project details, confirmation of clear title,
in Madeira, ID documents or passports and a price agreed, deposit amount, date of deadline for
Portuguese tax number. If you are not a resident or signing the final deed and then for a resale property,
national of the EU block, you will also need to have a use of the property in the interim period. The deposit
fiscal representative appointed to represent you. is usually from 10 % and can also be higher. A clause
can be added stating that it is conditional on any
In Portugal it is important to check that estate
mortgage offer being accepted. Once the promissory
agents and builders are licensed, check the one that
contract has been signed and deposit paid by bank
you are dealing with is registered and possesses an
transfer from the buyer’s bank account directly to the
AMI number to operate as an estate agent, if you’re
seller’s bank account, the contract is then lawfully
buying from a builder you will need to check the
active and protected for both sides. Should the seller
Buying bullet points ALVARA number, in cases of the builder offering you
default and decide not to sell he/she is required by
——— the sale directly, you need to check they have both
law to repay twice the deposit amount to the buyer.
numbers.
Find your ideal property If the buyer defaults and stops the purchase, they
——— This means that they use forms of approved would also lose their paid deposit. Following this, the
documentation to implement their functions in the lawyer does searches and checks for encumbrances
Get your fiscal number
profession. When you’re buying from a builder, you or mortgages on the property or land. These checks
——— should check how long the ALVARA number has been should include any planning restrictions, outstanding
Engage a Notary issued, if the builder states to have been in business debts, charges or utility bills on the property or
——— for 10 years, it follows that they should also have had land, that any alterations comply with the habitation
the same ALVARA number for the last 10 years. Once license and that the vendor is the registered owner
Promissory
you have decided to buy in Madeira you should also of the property or land. Also verified will be the
contract signed find a lawyer to look after your interests in the purchase property land boundaries, rights of way, restrictions
——— process, in Madeira the lawyers speak English. You on use, any survey and whether fixture and fittings
Open a bank account can also give your lawyer a power of attorney if you are included. The second part of the transaction is
cannot later be present to sign documents. There the deed or escritora, this is the point at which the
———
are two stages to the buying process. The first is the property ownership is transferred to the buyer. As
Transfer of funds promissory contract between buyer and seller, this with the promissory contract, it is signed in front of the
——— lays out the on agreed conditions and timeframes of notary. The final contract is then sent to the Madeira
Deeds are signed over
the property sale. This is a legally binding contract, land registry. The notary will issue you with a stamped
prepared by a notary or lawyer and needs to be copy of the deed. There is a fee for the land registry.
& signed on licensed premises in Portugal. The contract You will also need to register with the tax office and
Payment of taxes should include the identity of both parties, the the utility companies

TOP TIP:
Your lawyer appointment is one of the most important first steps in your
property search, they will keep you safe when you need it most.
 T H E MADEIRA BUYERS & PROPERTY G U I D E |9

Buying costs in Madeira

The total cost of buying a property in In Madeira there are new constructions,
Madeira includes the purchase price and properties not yet on the market, land for
the closing costs, which vary from 6 – 9 sale and bespoke projects. If you find what
percent of this price, off plan projects can you have been looking for in Madeira and
be significantly less. you are not in a position to proceed, you
can ask about making a reservation, this will
The biggest cost is property transfer tax
involve paying a fee, you will need to have
or IMT and paid on a sliding scale from 2-8
a lawyer to draw up paperwork in this case.
percent. There is a stamp duty that is a fixed
rate of 0.8 percent. Notary, administration A reservation is a bond under contract that
Rates of property taxation (Paid and registration fees are around 2 percent, binds the potential buyer of the property
on purchase by the buyer) legal fees are around 1-2 percent of the or land to keep the property or land of the
purchase price. The seller pays the estate market for a length of time until funds are
Property Value Tax in % agency fees. available.
Until 92,407€ 0% You will also need to find the most Be aware that if a potential buyer does not
cost-effective, safe and easy way to move proceed with a purchase, then the reservation
From 92,407€ 2% your money to Portugal to complete your fee will be lost. When considering a land
Until 126,403€
purchase. Bank charges and fluctuating purchase and making a reservation always
From 126,403€ 5% exchange rates can both have an impact consider the cost of the architect plans and
Until 172,348€ on your overall cost. the costs in getting the plans approved.
From 172,348€ 7% If you don’t have Euros but you can
Until 287,213€ overpay up to 4% of the overall purchase
cost by not working with a specialist
From 287,213€ 8%
Until 574,323€ currency firm. They can help you achieve
outstanding exchange rates far better than
From 574,323€ your high street bank, which means that
Until 1,000,000€ 6% you reduce the risk of your international
From 1,000,000€ + 7,5% payments increasing.

TOP TIP: If you need euros for your property purchase, we recommend
using a currency specialist.

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T H E MADEIRA BUYERS & PROPERTY G U I D E | 10

Personal tax in
Portugal and Madeira
Portugal has long been favoured for those looking We suggest early investigation into your tax
to buy a holiday home or for those relocating in position to clarify your future tax position. Do not
their retirement. Portugal’s best kept secret is the make the mistake of investigating your tax position
preferential tax regime for new long-term residents, just in your own country, you will also need to clarify
this is called the Non-Habitual Regime or NHR. The what will be your tax position in Madeira. This means
Portuguese government introduced the NHR regime 2 investigations, one for the sale of assets in your
in 2009 to encourage individuals and families to home country and residential exit plan, plus another
move to Portugal. It provides beneficial tax treatment simultaneously as entry planning into the Portuguese
for the first 10 years of residence and is open to those tax system. There might well be a case where asset
in employment as well as retirees. Qualification is sales in your current home country that attract high
restricted to those who have not been tax resident in taxes can be or reduced or removed by taking simple
Portugal for any of the previous five tax years. There advice from a Portuguese tax planner. You should
TOP TIP:
are no other major requirements, it is very simple consider tax planning your residential status before
The NHR tax regime and often initially overlooked. Any income received you sell major assets.
operates partly under the from an International private pension is partly exempt
principle of ‘exemption’ from normal Portuguese tax provided it is taxed in Crypto assets and Portugal
making it unique in the
another country under the terms of the tax treaty. Madeira tax residents with crypto currencies should
European Union. An
independent analysis of
For instance, this means UK and EU private pension not believe that the Portuguese tax authorities will
your income structure income will be taxed only in Portugal (and not in not tax the gains when sold. In Portugal the current
by a local professional another country) at a low 10% rate. This is the case for tax law is undefined or not yet regulated with regards
is recommended, this is private pensions like SIPPs and company pensions. to crypto currency. This means the Portuguese
in order to achieve the Some but not all UK and EU government pensions tax law will apply on gains made from the sale of
full efficiency of the NHR remain taxable in the source country. This becomes crypto assets. There are several events that need to
regime. particularly attractive for instance, when you factor in happen to demonstrate the gains are in fact gains
pension freedom rules which allow could allow you and not wages. Earnings that are seen as wages are
to take lump sums from your pension funds. The NHR variably taxed in Portugal at up to 48%. There are
regime can be attractive for other sources of income recommended investment routes to holding crypto
like dividends, which will be tax free in Portugal. For currencies through tax planning, these will safely
company owners the NHR offers an outstanding full remove risks should the tax law with crypto become
tax exemption on company dividends, this means regulated. The President of Madeira has publicly
company directors can receive all dividend income, stated that Madeira is aiming to become a future
Contact Madeira tax free. international centre for trading crypto currencies.
Corporate Services here
T H E MADEIRA BUYERS & PROPERTY G U I D E | 11

Mortgages
The mortgage market in Madeira is days. For residents in Portugal and
about having a competent contact in a Madeira, life insurance is required
bank handling your application. Non- for mortgages, while it is sometimes
resident mortgage applications can optional for non-residents.
borrow 70% - 75% of a property value
A property valuation from a
while Madeiran resident taxpayers can
recognised institution is a bank
borrow up to 80% of a property value.
requirement in any mortgage product,
TOP TIP: Portugal and Madeira being part of unfortunately some valuations can fall
If you need to fund a the EU, offers low interest rates with a short of agreed sale prices, getting
property purchase, bonus of an early repayment fee of just mortgage approval is therefore a
consider releasing the
0.5%. Mortgages are both flexible and condition that can be attached to a
equity in your current
property for an easy long term with an upper application age property purchase.
funding solution. limit of 75 years. A good bank contact
can provide several options within a few

Construction loans
For those wishing to build their own villa it is good to know Portuguese
banks offer joined construction loans and repayment mortgages,
we advise you speak to a few of the banks in Madeira in know the
different conditions. In Portugal it is reasonably easy to arrange a joint
construction loan and mortgage product, however the land on where
you intend to build needs to be legally owned by the applicant first, you
will also require the regional architectural approval before the bank will
release funds. This takes time and patience. Any approved construction
loan is then released in stages against construction milestones, at each
stage a bank representative will visit to assess the construction phase
has been completed, shortly after this the stage of funds are released.
Once the construction is completed and the property has been issued
a habitation licence, the loan automatically becomes a repayment
mortgage. Construction loans will require a life insurance policy.
 T H E MADEIRA BUYERS & PROPERTY G U I D E | 12

Property law in
Portugal and Madeira
The property law in Madeira being part of Portugal, is represent government law, rather than either party in a
the same as Portugal. Although you don’t need to have a property transaction, this makes the notary impartial. A
lawyer to oversee your purchase in Madeira, however we lawyer in Portugal is independent and can be engaged by
recommend you seek out a reliable independent lawyer you to exclusively represent your interests and ensure your
with considerable property purchase experience. property purchase is legal.
They will be able to assess whether a contract is legal, Under law you will require a notary in any property
if you should pay the lawful deposit and advise you on purchase, however a lawyer is a personal decision.
who should own the property plus important checks on
Highly recommended:
the legal property status. An essential person to help
with your property purchase is the notary, who will get If you are seeking an experienced and reliable lawyer to
involved in the transaction. Their role will be to carry out represent you in a property purchase, then we recommend
some confirmation checks on the property, attend to the Dr. Ambrósio Jardim or Ms Lilia Caldeira from Madeira
signing of the title deed and in cases of off-plan builds Corporate Services.
to later register the property. The role of the notary is to

TOP TIP:
Once you have decided to buy a property, you
will require a fiscal number, we recommend
you consult a Notary or lawyer first, this
is important for your NHR application and
potential later residential status.
 T H E MADEIRA BUYERS & PROPERTY G U I D E | 13

RED FLAG!

Do not ask your high

street bank to exchange
your funds into Euros,

this will be a very

expensive and avoidable
mistake.

Transferring
money to Madeira
The most expensive and common error made by A 3% saving when talking about a €500,000
foreign buyers with foreign currency is asking their transfer, is a saving of €15,000. When buying
regular bank to exchange their funds to Euros for a property in Madeira the funds that are being
them, this will attract a very poor exchange rate. used are nearly always your lifesavings.
Using a specialist currency firm instead will save
For your safety and protection of your funds,
you money, it’s also instant. When you begin your
here are some questions you should ask a
property hunt, all your funds could be in GBP, USD
currency specialist:
or another currency, so at some point you will need
to exchange them into Euros and transfer them 1) Make sure you choose a specialist who are
to your bank account in Madeira. A fair currency authorised by the Financial Conduct Authority or
exchange is important, the exchange is something FCA for short.
that buyers often leave as one of the last things to
2) Go with a specialist that uses segregated
organise when they purchase an overseas property.
client accouGo with a specialist that uses
Use a specialist currency exchange service, currency
segregated client accounts, this will ensure that
specialists hold expertise in currency and how
your money goes into a client bank account
to handle international payments effectively and
opposed to the company account. This will
minimise your risk. Register with an experienced
ensure your money would be safe, no matter
currency specialist, you will be assigned a personal
what happened.
contact who will be on hand to provide support and
advice throughout the currency buying process. 3) Find out how long the company has been in
Better exchange rates will save you up to 4% business. This will indicate the years of experience
on a transaction, a specialist firm will be able to they have in helping clients.
offer better rates of exchange than a bank, this is
because, as well as operating with lower margins,
they have access to the currency markets instantly.

Our recommendation:
We recommend London based Lumon for
international currency transfers.
They are a swift, low cost currency provider
who move funds fast using segregated client
accounts.
We recommend dealing with Rob Harold who
can be reached by clicking on the link below.

Click here: Contact Rob Harold

T H E MADEIRA BUYERS & PROPERTY G U I D E | 14

Living in Madeira
One of the most appealing aspects to spending own swimming pool, this will attract the lowest water
time in Madeira is value for money, buying a coffee, costs in Europe. The cost of household help tends to
a beer, having lunch or using public transport you be low and of a good quality. Climate in Madeira is
will find that day to day living is very good value. exceptional all year, with year-round warm weather
and no real winter. During the summer months
Your food budget will be noticeably less with island
Madeira is a refreshing August high of 27 degrees
produce from local markets also offering a broad and
with cooling sea breezes, therefore homes in
traditional shopping experience. Portuguese wine
Madeira do not usually have radiators as they are
and local fish will become staples in your shopping
not required. At my own Funchal apartment, located
basket and the more you explore outside Funchal
150 meters altitude above the sea, we do not have or
the more you will notice the increased affordability.
require any home heating. Properties that are above
Buying a car is more expensive in contrast to many
400m of altitude could require some winter heating,
other parts of Madeiran life, they are also cost more
this would be very relevant on the north side of
than northern Europe. There are no toll roads in
Madeira that has considerably different weather
Madeira and public transport options are plentiful,
conditions to the warmer southside.
efficient and run-on time. If you intend to have your

Calendar events
JAN The walking festival. JUL Madeira wine rally
FEB The Madeira carnival. The Funchal jazz festival
MAR Festival of the custard apple. AUG The gastronomic festival.
APRIL Madeira film festival SEP The Madeira wine festival
MAY Madeira flower festival OCT The nature festival
Reids Palace classic car show NOV The chestnut festival
JUN Classic car rally / Atlantic festival DEC Christmas lights / New Year celebrations
(the fireworks competition) (Europe’s largest firework display)
T H E MADEIRA BUYERS & PROPERTY G U I D E | 15

Culture and Language

A large portion of Madeiran culture is great company. If you desire to learn the
centred on their appreciation of food, art, language whilst living in Madeira, you will
music, drama, dance and literature which be glad to know that the language is not
is everywhere. Visits to the restaurants, as difficult to learn as many think, there are
theatre, concerts, galleries and plenty of local establishments filled with
locals who will help you to enhance your
exhibitions are common amongst the
communication skills. It may be an idea to
population, many of their venues attract
learn some Portuguese and private tuition
tourists. The small museums appear
would be a kind and polite start. English
endless and the amount of quality art
is widely spoken and you can enjoy all
produced growing.
the local events just speaking English. We
Local festivities are very popular all year recommend learning words, phrases and
and not just restricted to the summer like some verbs of Portuguese plus attending
in mainland Portugal. In terms of local language lessons to help you better enjoy
delicacies, Madeira has its own traditional being integrated in the local social life, it
dishes, including various kinds of seafood, will really help.
fresh fish, fantastic beef, delicious local
breads and numerous desserts, the local
Madeiran love really good food, wine and
T H E MADEIRA BUYERS & PROPERTY G U I D E | 16

Healthcare
In Portugal there is a national health service that
is generally excellent, English is widely used as the
second language of communication. The WHO ranks
Portugal as world number 12, while Madeira punches
far above this in terms of doctor to patient ratios. The
UK is WHO number 18 and Germany WHO number
25. As a resident you will be treated in the same
way a Portuguese citizen, although state healthcare being charged extra costs in the hospital and on
in Madeira is free of charge there is sometimes a prescriptions, it will also make medical emergencies
small contribution required. The hospital network less stressful. Non-residents and temporary visitors
currently consists of 4 units and to make overseas to Portugal will need to purchase private health
patients feel more comfortable they have been insurance to cover their stay in Portugal. Those on
implementing patient monitoring and personalised short visits from the European Union and European
care programmes. Madeira is also building a state-of- Economic Area and Switzerland can access public
the-art replacement main hospital, the enormous new healthcare in Madeira through their European Health
hospital is in Funchal at a cost of €330 million. The new Insurance Card or EHIC. Private healthcare in Madeira
hospital will be the centre for patient care in Madeira is also popular and readily available with over 20
and the government intends the full operation of the private clinics, there is also a quality new private
hospital in 2026. hospital brisling with the latest modern medical
equipment. Reassuringly, the Madeiran region offers
Eligibility for the Portuguese healthcare system
the 4th highest doctor to patient ratio in Europe.
is based on being registered as a resident and
means regular healthcare services are available.
Being resident can include temporally non-working
residents, the retired with a fully paid home country
social security contribution, it also includes the
employed in Portugal who are paying social security
contributions. Enrolment in the Portuguese healthcare
system is not automatic with residency but a separate
process. To use the healthcare system successfully
residents will need to obtain an utente number
from the healthcare services, this will then save you
T H E MADEIRA BUYERS & PROPERTY G U I D E | 17

Transferring your
pension to Madeira
Retirees living in Portugal who are in too aware in recent months that currencies
TOP TIP:
receipt of a EU or UK state pension can fluctuate, a currency broker is required
Passporting your pension opt to receive it into their national bank and offers much better rates than banks.
and investments to or a Portuguese bank account. There are In Portugal the taxation of pensions
Madeira requires a different ways to receive it, either in your depends on what type of classification,
smooth financial planning
own country or directly in Portugal. For they differentiate between state retirement
and we recommend
having a professional
non-EU countries it will depend upon if and occupational private pensions,
local review of these there is an agreement in place between the government service pensions and
matters. country where your pension is located and personal pensions. If you have complex or
Portugal. multiple pension funds it is advisable that
you seek advice from a financial advisor
If you are for instance, British and opt to
before you relocate to find the most tax
have your UK pension paid into your UK
efficient way of structuring your assets.
bank account in sterling, the rate received
It is very important that they look at your
when you transfer it into euros will vary
investments as a whole as this is where
depending on the exchange rate. However,
the correct passporting of your retirement
if you use a currency trader to send euros
funds becomes important as you might be
into your Portuguese account, they can set
liable for taxations that could be otherwise
up a regular payment plan for transfers that
avoided with early tax planning.
will help you budget every month.
If you receive your pension in a currency
that is not the Euro, you might well only be Recommendation:
Once again we recommend talking with
Rob Harold at Lumon for arranging regular
international payments, he will be able to
help you structure the best value way to
move regular funds from overseas.
T H E MADEIRA BUYERS & PROPERTY G U I D E | 18

Shipping your
goods to Madeira
Moving your household effects and personal inventory checked, ready for the container to be
TOP TIP:
possessions to Madeira will require a removal crew locked, sealed and driven to the port.
When planning your who are professionally trained export packers to
move to Madeira you Your household effects will have their own 20ft or
ensure your goods are safely and appropriately packed
will need an experienced 40ft container, which is ideal if you wish to transport
for shipping. Special items, such as pianos, clocks and
team available to assist a full household of contents. There is also the option
glass cabinets etc will need tailor made, professional
you in the big move. of groupage containers; where you only pay for the
shipping crates to ensure they arrive safely in Madeira.
Moving to Madeira space your possessions take up within a container.
requires a sea freight If you are moving to Madeira from a country outside This method can take longer as there is a period of
container and specialist of European Union (including the UK) there is also consolidation before the shipment is in transit.
local experience.
important paperwork and documentation that needs
Once your goods arrive in Madeira they will be
Please contact us, to be completed to enable the goods to be custom
our partners are the
subject to customs clearance. Once the goods have
cleared, for the move into Madeira to take place. It is
specialists. been cleared, your removal company should be
important to find a removal company competent and
working in partnership with a reputable local moving
experienced in handling these extra processes and
company in Madeira who is familiar with local roads and
procedures.
access to properties, to ensure that your possessions
To start the process, an experienced moves are carefully delivered and unpacked upon arrival.
estimator come to your home and assess the personal
It’s important to choose a removal company who are
items and furniture you have, as well as discuss with
members of the British Association of Removers (BAR)
you your packing requirements. They will also look at
and work to recognised quality standards, ensuring
other things such as access around your property for
that your move to Madeira will be handled carefully and
the removals vehicles. It’s also likely that your move to
professionally from beginning to end. Membership of
Madeira will involve your effects going into storage for
BAR and the FIDI organisation (the global alliance of
a period of time. Your moving company should be able
quality-certified international moving and relocation
to arrange storage for you.
companies) guarantees that your money and your
Removal operatives will arrive at your home to move are protected. Financial security, operational
Click here to register pack and wrap your items ready for shipment with competence, worldwide support and redress facilities
with Burke Bros the container being loaded on the last day and the guarantee you complete peace of mind.
T H E MADEIRA BUYERS & PROPERTY G U I D E | 19

Working in Madeira
Working in Madeira is not the same as hotel industry. The main hotels who seek
the rest of Europe, work will be harder to English speakers are the family owned
find, also it is often a requirement to speak Pestana Group, the other being the
some Portuguese. Many local Madeirans upmarket Savoy Group who are expanding
that have a good job will keep their job for aggressively. Also, within these companies
their entire working life. The opportunities exist opportunities for employment within
for expats looking for work are mainly in the vacation club Industry where earnings
the tourist market where fluent English is can be lucrative and speaking Portuguese
required and good contacts are important. isn’t required.
Many expats choose to either make money
Madeira is a growing IT business
from holiday rentals or by starting a business
destination and those with a flair for
working in tourist activities where some
business and marketing will find superfast
great opportunities exist. There are also
fibre internet and some government and
some good opportunities in the Real Estate
European Union schemes to help support
sector on Madeira´s south side, however
business activities.
some Portuguese language skills are
usually necessary. The biggest employer
of the expat community in Madeira is the
 T H E
International copyright © C-Architecture Ltd · Creative-Architecture MADEIRA BUYERS & PROPERTY G U I D E | 20

A rental property
for income
In Madeira the market for short term holiday rentals high levels of occupation in all months. Important
is booming. considerations when considering purchasing a rental
property are the future management costs, these
As Madeira has attractive year-round temperatures
will include the cost of the booking commission, the
it follows suit that Madeira has year-round quality
cleaning or household service company, local IVA or
tourism. It is not uncommon for expats to use their own
VAT to be paid on the booking and the administrative
property or purchase properties for holiday rental
cost of the accounting records. There will also be
income. Unlike many other countries or islands, there
personal taxation attached to the income generated
are no restrictions doing this in Madeira, it is however
from a rental property. There is the general wear and
important to obtain the correct licences and make the
tear to consider, especially if the location is isolated as
correct registrations and complete annual tax returns.
future guests will be more inclined to use the kitchen.
To take full advantage of this lucrative opportunity
Overall, a Madeira property for income purposes is
Madeira offers, you should first understand the tourist
an attractive proposition, with the right management
market in Madeira is based on quality tourism and
and tourist marketing it can provide an ongoing and
hence quality accommodation in a good location will
reliable income.
get more bookings. Madeira, having good weather
year-round and with no low or close season, provides
 T H E MADEIRA BUYERS & PROPERTY G U I D E | 21

Nurseries, Primary schools,

Secondary education and
Universities
Childcare in Madeira is of a high standard The Portuguese take education seriously
and good quality. The best nurseries attract and school hours are longer and lessons are
a waiting list of several months before actual intensive, wide ranging and feature a fun
enrolment can be confirmed. A typical cost learning ethic that differ to standard northern
for a nursery will be around €350 per month. European schools. Also bullying is not
Madeira has an excellent education system tolerated in Madeira. There are a large and
which is made up of 4 cycles starting for children diverse amount of after school clubs offering
from 6 years old. The primary education is for 4 everything from learning to sail, music and
years, the second education is for 2 years and dance options, scouting and many varied
the third period is 3 years and the final period sports activities. Several adult language
is another 3 years, making a total of 12 years schools exist in Funchal that offers quality
of education. In Portugal education is required education in Portuguese, typically term
by law until 18 years of age. With regards to lessons are twice a week and cost around €85
Madeiran and Portuguese universities, these per month.
are of a good European standard however
parental costs are involved.

Recommendation:
The English School of Madeira is ideal to all those
who have children and wish for an English language
education. The education ethos is well rounded and
the school is small and intimate, there is also a wide
nationality range of children, the majority being of
Portuguese parents.
T H E MADEIRA BUYERS & PROPERTY G U I D E | 22

Relocate your business

or company to Madeira
If you are looking for a preferential tax regime Valley and reportedly met with some of the
that is fully integrated into the European foremost tech companies while offering
market and offers the lowest tax rates in the EU, special incentives to invest in opening
Madeira has what you need. Madeira benefits business activities within Madeira.
from special conditions under the EU state aid
We mention these facts as Madeira has the
programme, it is also an ultra-peripheral island
key requirements to attract many companies
economy (This
to open trading activities here. The Madeira
means that generous financial assistance is islands offer an abundant well educated,
available). Madeira is a member of the EU and intelligent and competent workforce, the
as such is not on any international blacklist, a quality of English language is excellent and
company based here can trade here with the rates of pay lower than northern Europe.
EU and the world. Madeira also has a superfast
TOP TIP:
fibre internet available over much of the island,
Relocating your company for this reason in the last years many companies
to Madeira or opening in the IT sector have relocated here. In February
a new company can be 2022, senior Madeira government minister
daunting.
Pedro Ramos announced that Madeira aims
With many advantages and intends to become a Singapore of the
and potential pitfalls to Atlantic, stating that the islands relatively low
avoid, we recommend population and excellent living condition will
a paid consultation with enable Madeira to move towards this goal in
Miguel Correia from
the next years. Also in April 2022, Madeira’s
Madeira Corporate
Services. president Miguel Albuquerque visited Silicon

This will pave the way

for a successful tax and
business strategy.

Contact Miguel
Correia
T H E MADEIRA BUYERS & PROPERTY G U I D E | 23

Visit Madeira Stay in Funchal

When you come and visit Madeira, hotel. From here you will be able to visit
especially for the first time, we recommend lawyers, explore Madeira and investigate
you stay in the busy central Funchal area. Funchal.
The reason for our recommendation is that If you’re looking for a really quiet city
Funchal is a safe and cultured city, hence to location with an abundance of character
get to know Madeira we believe you should and plants, then the Pestana Village hotel
get to know Funchal first. We know how is well hidden being centrally located
important it is to be centrally located with opposite the Reid’s Palace hotel, it also
all the services close at hand on a first visit. has plenty of easy parking.
The popular south coast areas for property
purchase will all be quite close by, you will
also learn that one side of Funchal attracts
more traffic than the other.
We can also recommend that you visit
Madeira as a holiday destination. On a first
visit we suggest using a quality hotel for a
base as these offer the best locations. We
recommend the exquisite Savoy Palace
Hotel located between the lido area and the
centre of Funchal, the city centre is a short
walk and there are more than 30 restaurants
within a short walk of the hotel.
It’s a good location, convenient and
offers 5-star quality, it is also an impressive
T H E MADEIRA BUYERS & PROPERTY G U I D E | 24

Contact us…
Madeira has so much to offer, is still relatively
undiscovered and is a great place to live and start a
wonderful new life. If you are considering a property in
Madeira, contact us today. We are an experienced team
with the experience to make your dreams come true.
You will shortly have the 36-page Bespoke Villas
brochure delivered in your post box.

Talk to us today
[email protected]
or directly on
+351 9666 77630

Author – Robert Webb

T H E MADEIRA BUYERS & PROPERTY G U I D E | 25

We also produce several other

important guides including:

The Golden Residence in The None-Habitual

Madeira PDF Guide Residence PDF Guide
Learn how the Golden The zero-rated tax programme
Residence programme can for those with private pensions,
benefit you in a safe new life royalties and savings.
in Madeira.

The Madeira International The Madeira Explorers PDF

Business Centre PDF Guide Guide
Open a business or relocate a The finest photo guide to the
business to Madeira and pay Madeira lifestyle, experience the
just 5% corporation tax. lifestyle here before you arrive.

Please just contact us to receive any of our PDF’s

AMI 13381 • ALVARA 40604