Published on and written by Cyril Jarnias
Settling in a subtropical climate, enjoying a cost of living gentler than on the mainland, while securing part of your real estate assets in Europe: on Madeira, this equation is attracting more and more expats. But between skyrocketing prices in Funchal, the archipelago’s specific tax regimes, and financing rules for non-residents, investing abroad isn’t something you improvise.
This guide provides a concrete roadmap to understanding the Madeiran real estate market, setting a realistic budget, avoiding legal and tax pitfalls, and structuring a profitable project tailored to retirees, teleworkers, or rental investors.
Why consider real estate in Madeira as an expat
Madeira ticks many boxes sought by European expats today. The island enjoys mild, sunny weather year-round, political stability (Portuguese and EU framework), an economy largely driven by tourism, and a cost of living generally lower than in France.
The cost of living in Portugal is estimated to be about 11% lower than in France.
In real estate, Madeira is considered a market still in a catching-up phase, cheaper than Lisbon or Porto but with strong growth. The archipelago has seen its prices per square meter rise by about 238% since 2015, with a recent annual increase around 17%. The market remains driven by structurally strong international demand, limited land supply due to the island’s topography, and solid tourism.
For the investor, this means two things to factor in from the start: the investment is potentially secure in the long term, but we are already in a “prime” market in certain areas, where hunting for quick returns comes with risks.
Understanding the real estate market in Madeira: price levels and disparities
The first reflex before projecting yourself as an expat investor is to look at the figures, municipality by municipality, and to distinguish between buying and renting. Madeira is not homogeneous: between Funchal, Calheta, or Santana, the price difference can be double or more.
Overview of purchase prices on the island
At the start of 2026, the average price across the archipelago is around €3,800/m², with a median close to €3,792/m². But behind this average lies a wide dispersion among different municipalities.
Here is an overview of the median prices per square meter by municipality, useful for quickly getting your bearings:
| Municipality | Median Price €/m² (early 2026) |
|---|---|
| Calheta | 4,059 |
| Funchal | 3,930 |
| Ribeira Brava | 3,917 |
| Ponta do Sol | 3,431 |
| Câmara de Lobos | 3,055 |
| Santa Cruz / Caniço | 3,003 |
| Machico | 2,522 |
| São Vicente | 2,097 |
| Santana | 1,765 |
It’s immediately clear that the most expensive areas are on the south and southwest coast, very sunny, with Calheta, Funchal, Ribeira Brava, or Ponta do Sol leading the way. Conversely, municipalities in the north and northeast like São Vicente or Santana remain significantly more affordable, with very attractive entry-level prices for an expat on a mid-range budget.
Across the island, the practical price ranges to keep in mind are:
– small apartments from about €200,000,
– houses from €250,000,
– high-end villas starting around €850,000 and potentially well exceeding one million euros in premium areas.
The median value of bank appraisals in Funchal at the start of 2025 was about €2,000/m², while asking prices were much higher.
Focus on Funchal: an expensive, in-demand market that is already tight
Funchal is the third most expensive city in Portugal after Lisbon and Porto. It offers the best infrastructure (hospitals, schools, shops, culture), an international airport nearby, and almost all the services an expat needs. Logically, it is also where foreign demand and the fastest price increases are concentrated.
In the sought-after neighborhoods of São Martinho (Lido, Casa Branca, Ajuda, Amparo), a two-bedroom in good condition often exceeds €380,000, houses start around €450,000, and front-line sea-view residences can climb over a million. In the historic center (Sé, São Pedro, Zona Velha), renovated apartments in character buildings often exceed €5,000/m².
Conversely, higher-altitude areas like Monte, Santo António, or São Roque remain more affordable, with houses or large apartments around €300,000, at the cost of an almost mandatory reliance on a car and a slightly cooler climate.
For an expat buyer, Funchal thus combines several characteristics:
This market is characterized by high prices typical of major metropolises and very good resale liquidity. It has strong rental potential, especially for short and medium-term rentals, attracting digital nomads and wintering retirees. However, a growing disconnect with local purchasing power makes it dependent on foreign and wealthy national buyers.
Other areas to watch: Calheta, Ponta do Sol, Caniço, Machico…
Outside Funchal, other municipalities offer good compromises between price, quality of life, and rental potential.
Calheta combines a marina, sandy beaches, very good sunshine, and a modern housing stock. Values range between €2,000 and €5,500/m² depending on the view, condition, and proximity to the sea. It’s a very sought-after area for villas with pools and ocean views, geared towards seasonal rentals and second homes.
Ponta do Sol positions itself as a hub for digital nomads, thanks to a dedicated program, with very sunny weather and villas with a view, at prices lower than Funchal for a comparable level of comfort.
Caniço and Santa Cruz, east of the capital and close to the airport, are more residential, with prices significantly more affordable than Funchal, while still being about a fifteen-minute drive from the center. For an expat looking for a balance between budget, quiet living environment, and accessibility, these are solid options.
In Madeira, the municipality of Santana represents an economical entry point with a median value of about €1,765/m². You can still find traditional houses and land at prices well below those on the south coast. This investment is typically oriented towards a long-term and capital appreciation logic, rather than seeking high immediate rental yield.
Buying vs. renting: high rents in sought-after areas
For expats who want to rent first before buying, or for those considering a long-term rental investment, it is crucial to measure the current level of rents.
In Funchal, the median for new family leases reached about €11.5/m² at the end of 2024, meaning around €1,600–1,700 per month for a well-located two-bedroom in the city center. Observed monthly rents for 2026, all types combined, are around €1,650. In the south, it becomes very difficult to find a two- or three-bedroom for less than €1,500 per month in central and tourist areas.
Across the island, the following average figures give an idea of current levels:
| Type of property & location | Average monthly rent (2026) |
|---|---|
| 1 bedroom, city center | ≈ €1,260 |
| 1 bedroom, outside center | ≈ €956 |
| 3 bedrooms, city center | ≈ €2,133 |
| 3 bedrooms, outside center | ≈ €1,517 |
Long-term rents therefore remain high compared to the local average salary (around €1,000 to €1,200 net). This gap explains why many Madeiran households have been priced out of the private rental market in central areas, and that solvent demand is largely fueled by foreign-source income (pensions, remote jobs, assets).
For an expat investor, this opens up yield prospects, but also requires thinking about the sustainability of these levels if the influx of newcomers were to slow down or if short-term rental regulations were to tighten.
Rental yield: what you can reasonably expect
Studies converge on gross yields around 4% to 6% for long-term rentals in good locations, and up to 6% to 10% for properties operated as well-managed short-term rentals in tourist municipalities (particularly Funchal, Calheta, Ponta do Sol).
In Funchal, recent data indicate:
– a gross yield around 5.2% to 5.3% on properties offered for rent according to some portals,
– up to 6.7% on average in the center based on estimates from data platforms like Numbeo.
Gross yields in Funchal, while respectable for a European regional capital, must be analyzed with caution. It is essential to deduct management costs (often 15% to 20% of rents for full seasonal management), taxes, maintenance expenses, and the cost of financing to obtain the net yield. Furthermore, Funchal is ranked among the least profitable Portuguese cities in terms of gross yield. Its profile thus resembles more of a “secure and expensive” market than an emerging high-yield market.
For an expat, the right approach rarely consists of aiming for maximum yield at all costs. Professionals recommend instead favoring:
For a real estate investment abroad, it is essential to assess: the quality of the asset (location, view, construction quality), its resale potential over a horizon of 10 years or more, its diversification relative to other investments held in the home country, and the solidity of rental demand under different scenarios (such as a tourism downturn, changes in tax regimes, or stricter rules for short-term rentals like Alojamento Local).
An example often cited as a “reasonable scheme” for an expat could be an 80–100 m² two-bedroom in a recent condominium with parking, a large terrace, and at least a partial sea view, located in São Martinho (Lido/Amparo area) or in a good building in the center (Sé, São Pedro), purchased around €450,000 to €550,000, with a holding horizon of at least a decade.
Cost of living and recurring expenses: don’t underestimate the housing line item
While the overall cost of living in Madeira is lower than in France, housing and certain tourist services can surprise with their prices.
For an apartment of about 85 m², basic utility bills (electricity, water, waste, possibly heating or air conditioning) are often between €70 and €110 per month, sometimes a bit more depending on consumption, which remains on average nearly 40% lower than in France. Electricity, largely produced by hydroelectric, solar, and wind power, is described as two to three times cheaper than in mainland France. Water, for a house without a pool and with a small garden, can cost €30 to €50 per month.
The increase in home insurance premiums in some coastal areas exposed to climate risks since 2022.
Day-to-day expenses – restaurants, local markets, leisure – remain reasonable: a lunch at a restaurant is around €12, a movie ticket about €7.80. However, tourism-related services, such as hotels or car rentals, are significantly above the French average.
An expat who invests must therefore factor into their financing plan not only possible loan installments, but also:
– condominium fees, sometimes high in complexes with pools, gardens, and parking,
– IMI (annual property tax),
– provisions for repairs and maintenance, particularly important in a humid climate conducive to mold or structural issues in older buildings.
Legal framework: a market open to foreigners, but highly regulated
A key advantage for an expat is the legal simplicity of accessing property ownership in Madeira. Portugal does not restrict real estate purchases by non-residents, and the Constitution enshrines a principle of non-discrimination: a foreigner has the same rights as a Portuguese citizen to buy, own, or sell a property.
No specific barriers thus apply based on nationality, except for special cases of countries under international sanctions or subject to strong banking restrictions. In certain sensitive areas (protected natural areas, agricultural land, maritime public domain), administrative authorizations are required, but these rules apply to locals and foreigners alike.
In practice, a few elements structure any acquisition project:
– obtain a Portuguese tax identification number (NIF),
– open a bank account in Portugal to facilitate tax payments, expenses, and any loan,
– sign a preliminary purchase-sale promise contract (CPCV),
– execute the final deed of sale (escritura) before a notary or authorized entity,
– register the property at the land registry (Conservatória do Registo Predial),
– and make the appropriate tax declarations (IMT at purchase, IMI afterwards, possibly AIMI for assets above a threshold).
The NIF, an indispensable key
The NIF is required for any tax and financial operation: real estate purchase, opening accounts, subscribing to services, paying taxes. It is obtained from the tax authority (Finanças), either by going to a counter or through a local representative. For a non-resident outside the EU, appointing a local tax representative (lawyer, accountant) is mandatory.
The tax number, essential for all subsequent administrative procedures, can be obtained in one day if the file is complete. Support companies for expats offer to handle this formality, as well as opening a bank account, within one to two weeks.
The central role of the lawyer and the technical expert
For a foreign buyer, using an independent lawyer specialized in Madeiran real estate law is not an option but an essential precaution. Their mission includes:
Before finalizing a property acquisition in Portugal, it is crucial to: verify the title deeds and the absence of debts, mortgages, or ongoing disputes; check urban planning compliance (buildable land, permits, compliance with the Municipal Master Plan); ensure the validity and currency of key documents (land registry certificate, caderneta predial, use license, technical housing sheet, energy certificate, infrastructure certificates for subdivisions); analyze the CPCV terms and include suspensive clauses (loan approval, building permit issuance, license regularization, etc.); and arrange for representation by power of attorney if the buyer cannot be present at the signing.
In the case of an old or renovate property, having an architect or structural engineer assess the building’s solidity, potential humidity, stability, or compliance issues is equally crucial. Several reported disappointments on the island stem from purchases of ruins or houses for rehabilitation without prior analysis of building potential or realistic cost estimates for the work.
The CPCV: the purchase promise that strongly binds
Unlike some countries where the commitment is only firm at the signing of the final deed, Portuguese law gives the Contrato de Promessa de Compra e Venda a very strong binding force for both parties. This written contract, often signed within a month of the reservation, specifies:
– the full identity of the parties,
– the detailed description of the property and its cadastral and tax references,
– the agreed price and payment terms,
– the amount of the deposit (generally 10%, sometimes up to 30%),
– the deadline for signing the final deed,
– and all guarantees, penalties, and any suspensive conditions.
At the time of signing, the buyer pays a deposit. If they withdraw without a valid reason, they lose it. If the seller backs out, they must return double the deposit. It is therefore imperative not to sign lightly and to formalize all verbal promises (work, included furniture, deadlines, etc.) in writing.
The final deed and registration
The escritura de compra e venda takes place before a notary, a qualified lawyer, or another competent public officer. Before signing, the buyer must have paid:
– IMT (property transfer tax on onerous transactions),
– and the fixed stamp duty (Imposto do Selo) on the purchase price.
The notary verifies the identity of the parties, the conformity of documents, the absence of legal obstacles, and the payment of due taxes. Once the deed is signed and the full amount paid, the property transfer is legally completed. One essential formality remains: registering the buyer as the new owner at the land registry. Without this step, the property’s opposability to third parties is not guaranteed.
Notary and registration fees are relatively regulated and, in practice, often amount to around €500 to €1,500, i.e., roughly 1% of the price in many transactions.
Purchase taxation: IMT, stamp duty, and overall acquisition cost
Buying in Madeira necessarily involves dealing with taxes. The good news for the expat: below one million euros, the total acquisition costs (excluding any agency commission, generally paid by the seller) average between 6% and 8% of the property price. Above one million, the bill climbs more toward 10%, due to the higher IMT bracket.
The main items are:
– IMT, municipal tax on onerous real estate transfers,
– Imposto do Selo (0.8% of the purchase price),
– notary and registration fees,
– lawyer fees (between €500 and 1% of the price, depending on the case).
How IMT works in Madeira
IMT is calculated on the higher of the price declared in the deed and the tax value of the property (valor patrimonial). In Madeira, as in the rest of Portugal, a progressive scale applies, with rates generally ranging from 1% to 8%, adjusted according to:
In Spain, the calculation of property tax (IBI) depends on several criteria. For example, a city apartment (urban property) used as a primary residence will be taxed differently than a farm (rural property) purchased as an investment. Additionally, a second home in Andalusia (autonomous region) may qualify for reductions compared to a similar property located on the mainland, outside these special-status regions.
Some important rules for an expat:
– no IMT is due for a residential property whose price does not exceed €92,407,
– below €115,509 for a primary residence, full exemption is possible,
– for a purchase under one million euros, the cumulative IMT + stamp duty + fees usually results in 6–8% of the price,
– above one million, the specific IMT bracket (effective rate of 7.5% in some cases) brings the total cost to about 10%.
Stamp duty applicable on the amount of the real estate transaction.
Special “IMT Jovens” regime for under 35s
A particularly interesting tax novelty for young expats (or for adult children who would settle) is the “IMT Jovens” regime. It applies to buyers aged 18 to 35 purchasing their first primary residence. In Madeira and the Azores, this scheme is even more advantageous than on the mainland:
– full exemption from IMT and stamp duty for properties up to €413,174,
– and reduced rates above that, up to a higher ceiling.
Concretely, a young active expat who decides to settle permanently in Madeira and become a tax resident can, under certain conditions, save several tens of thousands of euros on the purchase of their first apartment.
Recurring taxation: IMI, AIMI, and special cases
Once a property owner, the expat must pay IMI annually, the municipal property tax. The rate varies by municipality, generally between 0.3% and 0.8% of the property’s tax value. In Madeira, it is often around 0.30–0.35%, with local subtleties (e.g., Funchal applies 0.35% for recent urban properties and 0.8% for some others).
For a property with a tax value of €250,000, you should therefore expect about €750 of IMI per year. Temporary exemptions are possible, including:
Discover the main schemes that allow you to reduce or eliminate your property tax depending on your situation.
Exemption for 3 years if the property value does not exceed €125,000 and the household’s taxable income remains under a defined ceiling.
Permanent exemption from property tax granted to households with very modest incomes.
Reduction schemes within the framework of incentives for renovation or affordable housing programs.
Beyond that, large real estate portfolios may be subject to AIMI, an annual surtax on the cumulative value of residential properties exceeding €600,000 per person (or €1.2 million for a couple).
Rates range between 0.7% and 1% for individuals, and from 0.4% to 1% for companies, with progressivity linked to the level of assets.
Taxation on income and capital gains: what the expat needs to know
Rental income from Portuguese sources is taxable in Portugal, whether you are a resident or non-resident. The exact modality depends on the property owner’s tax status.
For a non-resident, rental income from real estate is generally taxed at a flat rate, after certain deductions. For a resident benefiting from a special regime like the Non-Habitual Resident (NHR, then NHR 2.0 or IFICI) status, relief may be obtained on foreign-source income (pensions, dividends, interest, rents received outside Portugal), and even on certain categories of Portuguese income from high-value-added activities.
Several mechanisms allow for capital gains exemption. It is important to inquire about the specific conditions applicable to each situation.
– sale of a primary residence and reinvestment of the proceeds in a new primary residence within the EU or EEA within a defined timeframe,
– sale of a property acquired before 1989,
– transfer to the State or a local authority,
– new regime announced for reinvestments in properties intended for capped-rent rental.
For an expat, the existence of a double taxation treaty between their home country and Portugal plays a central role. France, for example, has signed such an agreement, allowing for coordination of the taxation of real estate income or capital gains and avoiding being taxed twice on the same base.
Advanced tax strategies in Madeira: NHR 2.0, IFICI, and the International Business Centre
For high-income expats or entrepreneurs considering structuring their activity from Madeira, the archipelago offers a particularly crafted tax environment, with three main pillars:
– the “new generation” Non-Habitual Resident regime (NHR 2.0), a renewed version of the scheme created in 2009,
– the IFICI regime (International Financial and Innovation Centre of Madeira), which makes Madeira a privileged hub for certain qualified profiles,
– and the Madeira International Business Centre (MIBC/CINM), a free trade zone benefiting from one of the lowest corporate tax rates in the EU.
NHR 2.0 / IFICI: for high-income individuals
The new scheme primarily targets people engaged in high-value-added activities in fields such as research, higher education, health, engineering, certain management professions, or involved in productive investment projects. In practice:
New residents in Portugal can benefit from a preferential tax regime. On one hand, their employment or self-employment income from eligible activities can be taxed at a flat rate of 20% for a period of 10 years. On the other hand, many types of foreign-source income (such as salaries, pensions, dividends, rents, and capital gains) may be exempt from Portuguese tax. This exemption is conditional on these incomes being taxable in their country of origin and that country not being considered a tax haven by Portuguese authorities.
Foreign pensions under the old NHR are taxed at 10% for 10 years, which remains far more favorable than the progressive Portuguese rates that can reach 48%.
To benefit from this status, you must:
– become a tax resident in Portugal (more than 183 days of presence or primary residence there),
– not have been a Portuguese tax resident in the previous five years,
– file a specific application with the tax authorities by March 31 of the year following your move.
Madeira reinforces its attractiveness by offering a favorable regional tax regime, with reduced rates on personal income tax and corporate income tax.
International Business Centre: corporate tax at 5%
On the corporate side, the MIBC/CINM allows certain companies established in the “free trade zone” to benefit from:
– a corporate tax rate of 5% on profits from eligible activities carried out with foreign entities,
– exemptions of up to 80% on IMI, IMT, and stamp duty for real estate necessary for their establishment,
– a very broad participation-exemption regime on dividends and capital gains from holdings,
– and a withholding tax rate on dividends distributed to resident individuals in Madeira reduced to 19.6%, compared to 28% on the mainland.
For an expat investor structuring a real estate portfolio or an international service activity, these regimes can make a significant difference, provided they meet the substance criteria (jobs created, investments, real activity in the region) and strictly comply with compliance requirements.
Financing for expats: what realities in Madeira and Portugal
For an expat, the question of financing is often the trickiest point. Several options exist:
– borrowing from a Portuguese bank,
– using a bank from your home country (e.g., a mortgage in France secured by property held in France),
– or mobilizing a Lombard loan against a securities portfolio.
Portuguese banks accept to finance non-residents, but with specific conditions:
For a non-resident, the loan-to-value (LTV) ratio is generally between 65% and 75% of the purchase price or appraisal value. The loan term is often limited to a maximum of 20 years. A down payment of 30% to 35% is common. The creditworthiness analysis is thorough and relies on stable income, a good credit history, and presentation of bank statements over several months.
An expat should also keep in mind that banks in their home country often apply even stricter criteria. In France, for example, institutions frequently require:
To obtain a mortgage for a property abroad, banks generally require: a minimum down payment of 20% to 30% (sometimes more), a total debt-to-income ratio below 35% of income, translated and certified income documents, proven professional stability (permanent contract, secondment, solid employer), as well as additional guarantees such as a mortgage on a property in France, pledging of savings, or enhanced borrower insurance.
A key point: a real estate project in Madeira financed through a French bank generally cannot be secured by a mortgage on the Madeiran property itself; the institution will require a guarantee on an asset held in France or a specific financial arrangement.
To navigate this complexity, using a specialized broker for non-resident cases is often a good investment. These intermediaries know which institutions still accept these profiles, the limits on amounts and terms, and how to optimize the presentation of the file.
Practical step-by-step purchase process for an expat
In summary, an acquisition project in Madeira for an expat typically follows five main phases.
1. Preparation and financial framing
Before even searching for a property, you need to: assess your needs and define your budget.
– define an overall budget including price, fees, renovations, and furnishings,
– check your potential borrowing capacity (in France, Portugal, or elsewhere),
– research tax regimes applicable to your profile (NHR, IFICI, etc.),
– and get a realistic idea of expected rents or the cost of living if you plan to live there.
This step prevents later disappointments, especially when a dream property far exceeds what the bank is willing to finance for a non-resident.
2. Building the local team
Finding a good real estate agent or experienced property finder in Madeira, an independent lawyer, and, if needed, an accountant, is a priority. Serious agencies have an AMI number certifying their authorization to operate, speak several languages, and have well-honed networks (banks, notaries, craftsmen, property management companies, concierge services).
For French speakers settling in Portugal, there are specialized professionals who offer comprehensive support. These services, available through traditional agencies or structures dedicated to expats, include assistance with essential administrative procedures such as obtaining a NIF, opening a bank account, subscribing to water, electricity, and internet contracts, as well as finding housing.
3. Search, viewings, and checks
Once the specifications are refined (location, view, property type, main use: residence, long-term rental, seasonal), the agent offers a selection. Viewings allow you to concretely assess:
– the quality of construction and the condominium,
– sun and wind exposure (important on a mountainous island),
– accessibility (slopes, parking, transport),
– the neighborhood and potential nuisances.
In parallel, the lawyer begins basic checks (titles, urban planning, licenses), to identify early on the cases to discard (non-compliant properties, illegal extensions, ruins impossible to rebuild under current rules).
4. Offer, CPCV, and financial setup
When the property is chosen, a written offer specifies the price, deadlines, conditions (financing, furnishings, possible work to be done by the seller). If accepted, the CPCV is prepared by the buyer’s lawyer.
If you are seeking financing in Portugal, it is prudent to obtain a pre-approval from the bank in advance, as obtaining the firm offer can take several weeks. You should also anticipate a typical timeframe of 60 to 90 days between signing the purchase promise (CPCV) and the final deed of sale when credit is involved.
The 10% (or more) deposit is paid upon signing the CPCV. It is at this point that the commitment becomes legally very strong.
5. Signing the deed, registration, and activation
Once IMT and stamp duty are paid, the escritura is signed. The lawyer can represent the buyer by power of attorney, allowing the entire operation to be managed remotely if necessary. Then:
– the property is registered at the land registry,
– utility contracts (water, electricity, internet) are updated in the new owner’s name,
– insurance is taken out,
– and, if applicable, rental setup is organized (professional photos, listings, possible registration for Alojamento Local for short-term rental, selection of a manager or concierge service).
Risks, frequent mistakes, and best practices
Like any investment abroad, a real estate project in Madeira involves risks that need to be managed lucidly.
The main points of vigilance identified by local practitioners and buyer feedback are:
For a successful investment, it is crucial not to sign a CPCV without checks and suspensive clauses, to properly assess the extent of work in old properties, and not to rely solely on the view or price without considering accessibility and the neighborhood. You must also account for climate risks (wind, fires, floods), include all costs (IMI, AIMI, condominium fees) in the profitability calculation, avoid unrealistic yield projections for seasonal rentals, and absolutely be accompanied by a lawyer independent of the seller.
Conversely, best practices are quite clear:
– think in terms of a 10-year horizon or more, accepting the possibility of stagnation or a moderate correction in the medium term,
– choose areas whose appeal goes beyond the current fad (quality of infrastructure, natural environment, accessibility),
– prioritize construction quality and building management, rather than the lowest price per square meter,
– rely on experienced professionals who have been living and working on the island for several years,
– and stay informed about legislative developments (short-term rental regulations, non-resident taxation, changes to NHR/IFICI regimes).
Living or investing in Madeira as an expat: a project to structure, not a gamble
Madeira regularly ranks among the most attractive European destinations for a long-term move: high safety, privileged climate, spectacular nature, decent infrastructure, and a legal framework clearly within the European Union. The real estate market, booming, still offers growth potential, but on a price base that is now high in flagship areas.
For an expat, investing in Madeira is neither a good nor a bad idea in itself. Success depends on how the project is built. Used as long-term asset diversification, with solid professional support and a fine understanding of tax and legal rules, a purchase on the island can offer both a quality pied-à-terre and a relatively resilient real estate asset.
Conversely, a purely speculative approach, focused on chasing the highest gross rental yield while neglecting risks, can run into the reality of an already tight market, monitored by European institutions, and exposed to tourism fluctuations.
The key, for an expat, is therefore to take Madeira for what it has become: not a still “secret” low-cost island, but a full-fledged European real estate market, with its strengths, its fiscal singularities, and its constraints, which deserves preparation as serious as an investment in a major city.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
