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.

Can Portuguese residency be obtained through buying a house?

Yes, there is a residency by investment or Golden Visa programme in Portugal. Those buying newly or relatively recently built properties for at least € 500,000 and properties built over 30 years ago for at least € 350,000 become eligible for residency.

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

New furnished villa with a swimming pool and picturesque views, Funchal, Portugal for 1,750,000 €

New furnished villa with a swimming pool and picturesque views, Funchal, Portugal

1,750,000 €

£1,494,000

We offer a high-quality modern two-storey villa with a large garage, a garden, a swimming pool with a terrace, views of the sea and the mountains. The house includes...

487 m²

5

3

812 m²

Historic villa with a swimming pool, a garden and a view of the sea in a prestigious area, Funchal, Portugal for 1,600,000 €

Historic villa with a swimming pool, a garden and a view of the sea in a prestigious area, Funchal, Portugal

1,600,000 €

£1,365,000

We ofer a traditional villa featuring a garden with fruit trees and a large greenhouse, a spacious patio, a swimming pool, a garage for three cars and a barbecue...

600 m²

5

4

1,200 m²

Portugal residency

Residence permit in Portugal for purchase of interest in a pending hotel project in Evora, Portugal

280,000 €Interest buyout in seven years

The project approved by the authorities;
Residence permit for the investor’s entire family;
No maintenance costs.

Furnished villa with a swimming pool and a garden, Funchal, Portugal for 1,500,000 €

Furnished villa with a swimming pool and a garden, Funchal, Portugal

1,500,000 €

£1,280,000

We offer a traditional villa featuring gardens of 4,000 m², a garage, a view of the sea, a swimming pool, a small pond. The house includes four bedrooms, four bathrooms...

4

4,000 m²

Furnished traditional villa with a panoramic view of the ocean in a quiet prestigious area, Funchal, Portugal for 1,590,000 €

Furnished traditional villa with a panoramic view of the ocean in a quiet prestigious area, Funchal, Portugal

1,590,000 €

£1,357,000

We offer a spacious high-quality villa with a panoramic view of the Atlantic Ocean, a swimming pool, a parking, lounge areas, a large garden with exotic plants and palms...

300 m²

4

5

720 m²

Traditional villa with a garden and picturesque views, Funchal, Portugal for 950,000 €

Traditional villa with a garden and picturesque views, Funchal, Portugal

950,000 €

£811,000

We offer a villa with views of the sea, the city, and the mountains, a covered parking space, a garden with tropical plants, trees, flowers and a lawn. A swimming...

3

5

1,932 m²

Villa with a swimming pool, a garden and picturesque views, Funchal, Portugal for 1,950,000 €

Villa with a swimming pool, a garden and picturesque views, Funchal, Portugal

1,950,000 €

£1,664,000

We offer a villa with a panoramic view of the sea, the mountains and the city, beautiful gardens, a swimming pool, a lake with some fishes and a barbecue area. Ground...

8

5

Modern villa with a garage and picturesque views in a quiet area, Funchal, Portugal for 750,000 €

Modern villa with a garage and picturesque views in a quiet area, Funchal, Portugal

750,000 €

£640,000

We offer a villa featuring a large patio, a garden with exotic plants, a jacuzzi, a view of the city and the sea. It's possible to build a swimming pool. Ground...

300 m²

6

4

650 m²

Furnished villa with a swimming pool and a garden in a quiet area, close to the sea, Funchal, Portugal for 985,000 €

Furnished villa with a swimming pool and a garden in a quiet area, close to the sea, Funchal, Portugal

985,000 €

£841,000

We offer a two-storey high-quality villa with a patio and an outdoor dining area, a barbecue area, a large swimming pool, a beautiful garden, a garage. The house...

5

4

770 m²

Three-storey villa with a swimming pool and a view of the sea, Funchal, Portugal for 400,000 €

Three-storey villa with a swimming pool and a view of the sea, Funchal, Portugal

400,000 €

£341,000

We offer a villa with a garage, a sea view terrace, a barbecue area, a beautiful heated swimming pool. THe house includes four bedrooms, four bathrooms, a storage...

4

214 m²

New villa with a swimming pool, Funchal, Portugal for 1,760,000 €

New villa with a swimming pool, Funchal, Portugal

1,760,000 €

£1,502,000

We offer a modern high-quality villa with a beautiful large swimming pool and a view of the city and the sea. The house includes three large bedrooms and five bathrooms...

152 m²

5

3

559 m²

Spacious villa with a view of the sea and the mountains, Funchal, Portugal for 650,000 €

Spacious villa with a view of the sea and the mountains, Funchal, Portugal

650,000 €

£555,000

We offer a three-storey villa with a small garden, a view of the sea and the mountains, a garage for two or three cars, a parking, a barbecue area. Lower level...

4

630 m²

Three-storey villa with a swimming pool, a gym and panoramic views near the center of Funchal, Portugal for 1,150,000 €

Three-storey villa with a swimming pool, a gym and panoramic views near the center of Funchal, Portugal

1,150,000 €

£981,000

We offer a traditional villa with a panoramic view of the city, the harbor and the sea, a gym, a large patio with a swimming pool and a barbecue area. Ground floor...

357 m²

6

10

578 m²

Two-storey villa with a garden and an independent guest apartment, Funchal, Portugal for 375,000 €

Two-storey villa with a garden and an independent guest apartment, Funchal, Portugal

375,000 €

£320,000

We offer a beautiful villa with a view of the city, the harbour and the sea, a one-bedroom guest apartment, a large garden, a spacious barbecue area. The property...

470 m²

4

470 m²

Beautiful villa with a garden and a garage, Funchal, Portugal for 410,000 €

Beautiful villa with a garden and a garage, Funchal, Portugal

410,000 €

£350,000

We offer a villa with a view of the city, a garden, a patio, a barbecue area, a garage. The house includes a modern kitchen, a large lounge with a dining area and an access...

460 m²

4

5

Two-storey villa with a swimming pool, a parking and picturesque views in a quiet area, Funchal, Portugal for 950,000 €

Two-storey villa with a swimming pool, a parking and picturesque views in a quiet area, Funchal, Portugal

950,000 €

£811,000

We offer a modern beautiful villa with a large swimming pool, a barbecue area, a parking, picturesque views of the mountains and the sea. The house includes an equipped...

750 m²

6

4

High-quality villa with a guest apartment and a garage, Funchal, Portugal for 890,000 €

High-quality villa with a guest apartment and a garage, Funchal, Portugal

890,000 €

£760,000

We offer a unique luminous three-storey villa with a garage for two cars, a barbecue area, a beautiful guest apartment. Second floor: a kitchen, a bedroom with a private...

290 m²

5

290 m²

T3+2 Villa in Funchal

1,750,000 €

£1,494,000

Fabulous Villa which has excellent quality throughout. Situated in one of the most beautiful and best known parts of Funchal, with superb views over the city and the Ocean...

700 m²

4

3,000 m²

2 months ago

House T5 in Santa Luzia, Funchal for 625,000 €

House T5 in Santa Luzia, Funchal

625,000 €

£533,000

A 5-minute walk from the heart of Funchal. House completely rebuilt and modernized, divided into two apartments of typology T2, independent and enjoying great privacy....

230 m²

4

375 m²

Modern house T4 in São Martinho for 845,000 €

Modern house T4 in São Martinho

845,000 €

£721,000

Fantastic minimalistic and modern Villa located in São Martinho, only 5 minutes from the shooping center Madeira Shooping which is one of the best malls in Madeira. It...

383 m²

4

750 m²

Today

House T3+1 in São Martinho, Funchal for 650,000 €

House T3+1 in São Martinho, Funchal

650,000 €

£555,000

Charming traditional style house located in São Martinho, close to all communities such as supermarket, restaurants and coffee shops of excellence, pharmacy, etc. The house...

380 m²

4

550 m²

Three-storey villa with ocean views in Funchal, Madeira, Portugal for 595,000 €

Three-storey villa with ocean views in Funchal, Madeira, Portugal

595,000 €

£508,000

Stylish villa with an annex includes a large garden, a barbecue area, a separate laundry room, a parking. You can build a pool. Ground floor — 2 lounges, an open...

300 m²

3

4

1,060 m²

New furnished villa with a swimming pool and a garage, Funchal, Portugal for 3,500,000 €

New furnished villa with a swimming pool and a garage, Funchal, Portugal

3,500,000 €

£2,987,000

We offer a modern high-quality three-storey villa featuring a spacious garage, a large gym, a garden, a patio, an infinity pool, a barbecue area, views of the sea...

656 m²

6

4

1,600 m²

Two-storey villa with panoramic ocean views in Funchal, Madeira, Portugal for 730,000 €

Two-storey villa with panoramic ocean views in Funchal, Madeira, Portugal

730,000 €

£623,000

The villa is in an excellent state of conservation, oriented to the south. It has a large gardens with the possibility to build a swimming pool, a barbecue, a garage...

280 m²

4

5

750 m²

Villa T4 in São Martinho, Funchal for 1,800,000 €

Villa T4 in São Martinho, Funchal

1,800,000 €

£1,536,000

This stunning modern House located near to the centre of Funchal, the Islands Capital and close to all amenities has to be seen to be believed, currently in development...

485 m²

8

809 m²

1 week ago

Two-level villa with ocean views in Funchal, Madeira, Portugal for 410,000 €

Two-level villa with ocean views in Funchal, Madeira, Portugal

410,000 €

£350,000

The house is in excellent condition and includes a garden and a barbecue area. Layout — a living room with a dining room, a kitchen, a toilet, three bedrooms, three...

319 m²

4

3

871 m²

Houses for sale in Funchal

Discounted homes upon request

FAQ about Funchal

Recommended by the Editorial Team

The Buyer's Guide

Our best articles about Funchal and Portugal

Global market real estate news