Can foreign nationals take out mortgage loans in Funchal?

Yes, non-residents can be issued a mortgage loan to buy property in Funchal. Special terms of mortgage lending for non-residents — the loan term up to 75 years of age for the eldest borrower and a down payment of 40–50%. The mortgage rate is a floating one, of 3% for residential properties and 5% for the commercial ones.

How does the purchasing process take place when buying a house in Funchal?

Before the purchase, it is necessary to hire a lawyer who would help you get the paperwork done. Having chosen the property, you need to open a local bank account and receive a tax identification number. First, a preliminary sales agreement is signed, a deposit equalling to 10–30% of the property value is placed, and the municipal taxes are paid. The deposit is non-refundable if the buyer decides not to purchase. All agreements ought to be notarised. Between signing the preliminary and main sales agreements, the lawyer completes the property Due Diligence and checks the availability of all the documents for the property. When signing the main agreement, the remaining transaction amount is paid, after which the property can be registered with the land registry office and a title deed can be obtained.

What property taxes are there in Portugal?

Property buyers pay a stamp duty (Imposto do Selo, IS) — 0,8% and a title deed transfer tax (Imposto Municipal sobre Transmissões, IMT) — 6,0 – 6,5%. After the purchase, an annual real estate tax (Imposto Municipal sobre os Imóveis, IMI) ranging from 0.3 to 0.8% across property types and municipalities, has to be paid. These three taxes — are everything that is paid by property owners. When selling real estate, non-resident owners pay the capital gain tax, chargeable from the difference between the purchase price and the sales price at a rate of 28%. The inheritance and gift taxes are not levied from spouses, children, parents and grandchildren, the other categories pay them at a rate of 10% (which is considered low).

How expensive are the utilities in Funchal?

The utility costs vary across locations. For example, an average bill for an 50–60 m² house totals about € 100-130 per month.

How can a house buyer obtain Portuguese citizenship?

It is possible to apply for permanent residency after five years of residence in the country. After six years of residence it is possible to apply for citizenship. But these procedures are not interrelated. Holding a temporary residence or permanent residence permit does not lead to obtaining citizenship. Only following the rules of stay in the country (over 183 days per year for six years) can give hope for obtaining Portuguese citizenship.

Can foreign nationals lease houses in Portugal?

Yes, of course. The owner's right to administer their property is not limited in any way.

What types of Portuguese property are better to invest in for rental purposes?

The most suitable for rental purposes are the houses located in the resort areas, such as the Algarve, Faro, Lagos, on the entire southern coast and the capital of the country, Lisbon.

Why do I need to own a house in Portugal?

The Portuguese property market is one of the European real estate markets that have been growing most actively over the past few years. Therefore, real estate investments are very profitable in the country.

Houses for sale in Funchal, Madeira, Portugal

Order by:

price low to highlow to highprice high to lowhigh to lownewest firstnew

3 bedrooms; 4 bathrooms; Garage; Garden; Sea view for 750,000 €

3 bedrooms; 4 bathrooms; Garage; Garden; Sea view

750,000 €

£642,000

Total area 533 m²Land area: 533 m²4 bathrooms

Several houses for reconstruction or demolition in the center of Funchal, Madeira, Portugal for 330,000 €

Several houses for reconstruction or demolition in the center of Funchal, Madeira, Portugal

330,000 €

£283,000

Land area: 900 m²

3% discount on apartments

Investment apartments in The Community at 9% per annum in the heart of the Motor City area, Dubai

From 121,000 €

Completion in: 2025 Yield: 9.0% Apartments in total: 450

Residential complex

Similar facilities nearby

New villas on Madeira, Portugal

550,000 €

Total area 107 m²3 bedrooms

Three-storey villa with a panoramic view and stables, Amarante, Portugal

750,000 €

Total area 318 m²Land area: 5,000 m²7 bedrooms6 bathrooms

Two-storey villa with a swimming pool, a garden and a gym, Sever do Vouga, Portugal

750,000 €

Total area 665 m²Land area: 2,100 m²4 bedrooms4 bathrooms

Building for reconstruction in Porto, Portugal

375,000 €

Elite villa with a pool and ocean views, 500 meters from the beach, Praia da Luz, Faro, Portugal

2,350,000 €

Total area 350 m²Land area: 1,013 m²

Villa with a swimming pool and a playground, Castro Marin, Portugal

375,000 €

Total area 100 m²2 bedrooms2 bathrooms

Elite villa with a pool with a 5% yield, Algarve, Portugal

4,500,000 €

Total area 486 m²4 bedrooms4 bathrooms

3 Bed Villa for Sale, views of Algarve countryside

575,000 €

Total area 128 m²Land area: 2,400 m²2 bathrooms

Contemporary 3 Bed. Villa Turnkey

1,275,000 €

Total area 380 m²Land area: 1,114 m²4 bathrooms

Stunning 4-Bedroom Villa with Sea Views in Boliqueime, Algarve

1,295,000 €

Total area 335 m²Land area: 1,550 m²4 bathrooms

Charming One-Story Farmhouse & Pool

595,000 €

Total area 179 m²Land area: 11,281 m²2 bathrooms

Renovated Two Bed. Villa + Pool

495,000 €

Total area 127 m²Land area: 1,520 m²2 bathrooms

5-Bedroom Villa with Development Potential in Almancil Centre

1,400,000 €

Total area 298 m²Land area: 2,777 m²5 bathrooms

Lock-Up-And-Go 2 + 1 Bed. Villa

525,000 €

Total area 116 m²Land area: 730 m²3 bathrooms

4 Bed. Renovated Farmhouse

670,000 €

Total area 161 m²Land area: 1,351 m²4 bathrooms

Beautiful Two Bed Cottage + Land

329,000 €

Total area 124 m²Land area: 630 m²2 bathrooms

Building: 3+1 Bed Villa, 2 Commercial Spaces — Loulé/ EN125

1,260,000 €

Total area 310 m²Land area: 2,200 m²6 bathrooms

Renovated 4 Bedroom Villa with pool

995,000 €

Total area 300 m²Land area: 3,120 m²4 bathrooms

5 Bed. Renovated Villa

730,000 €

Total area 220 m²Land area: 242 m²3 bathrooms

Versatile 3 Bedroom Villa with sea views near Boliqueime

495,000 €

Total area 274 m²Land area: 256 m²3 bathrooms

Charming 3-Bedroom Villa in tranquil area-Great Potential

449,000 €

Total area 173 m²Land area: 1,122 m²2 bathrooms

Charming Village Retreat-Renovated 2-Bedroom House with Modern Touches

125,000 €

Total area 72 m²2 bathrooms

Two bedroom townhouse with roof terrace

230,000 €

Total area 73 m²2 bathrooms

4-bedrooms villa 260 m² in Setubal (city), Portugal

1,320,000 €

Total area 260 m²Land area: 1,053 m²4 bedrooms4 bathrooms

2-bedrooms villa 128 m² in Vila do Bispo, Portugal

600,000 €

Total area 128 m²Land area: 194 m²2 bedrooms2 bathrooms

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What they say about Tranio

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First and foremost Tranio is a very motivated team of professionals who surely know their job! We are very pleased with their well-coordinated work, timeliness of responses to the questions posed, and willingness to act in case of unusual situations.
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Coldwell Banker
It is with much enthusiasm that I personally recommend Tranio for a professional business collaboration in the ﬁeld of real estate, marketing, acquisition, and ﬁnance. The fundamentals of our business relationship with Tranio were set in 2016. Mundial AG has received the company’s great reputation throughout a number of international business pai’tners and stockholders. Tranio has helped our company to expand its horizons to the global market and has established benchmarks that would extend Mundial AG’s networks. The company has exceptional connections to potential investors and has a proﬁcient team that is capable of forming compound ﬁnancial models that attract ﬁnanciers. The cooperation with Tranio is based on professionalism, effectiveness, and Hypovﬂemsbank scrupulousness. Our experiences with Tranio are encouraging and progressive, which makes them one of our preeminent business paitners.
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Z. Farkas, Mundial AG
We are glad to have a partnership with Tranio! It offers a vast online property base and the best services.

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