Funchal Real Estate: Buying a Flat or Villa in Madeira

Funchal rises in terraces from the harbour to the hills, with the old town (Zona Velha), the Lido promenade, Monte above and neighbourhoods such as São Martinho and São Gonçalo. Madeira has year-round mild weather, an international airport and a growing remote-worker community, plus a tourism economy that supports short-term lets in licensed areas.

Buyers include Portuguese from the mainland, Northern Europeans looking for a winter base and digital nomads. A sea-view flat in the centre costs far more than a house in the hills, so budget with the region's steep topography in mind. The district Santa Maria Maior is the historic heart.

Foreigners can buy property in Portugal, and you need a tax number (NIF), a bank account and a lawyer. Property transfer tax (IMT) and stamp duty apply; in 2026 a flat 7.5% IMT for non-residents was introduced, so confirm the current rate with your lawyer. The golden-visa property route closed in October 2023. Annual IMI property tax is set by the municipality.

If you plan holiday rentals, check Alojamento Local licensing before buying. Our Portugal guide, financing page and the main Portugal page have details.

For mainland comparisons, see Lisbon or the Algarve town of Lagos; these are not near Madeira, but they show the range of prices in Portugal.