Our Story: How We Bought Our Home in Madeira
For about a year, we followed the real estate market in Madeira through various listing portals. To our frustration, prices steadily increased over time. Eventually, we decided to stop waiting. We booked our plane tickets and flew to Madeira for two weeks as a family — with one goal: to find a house where we could imagine building our new life.

During our stay in January 2022, we viewed about 15 houses.

We contacted around five real estate agents. Three responded and took us on viewings — and after just a few tours, we naturally connected with one of them: Pedro Silva, the owner of the small local agency RK QUALI. Today, I’m proud to work with him.

Pedro showed us about 10 properties and kindly said that if we didn’t find the right one this time, he’d help us again during our next visit. You can read the full story [HERE] if you're curious about the whole journey.

He helped us with everything — including obtaining our NIF (Portuguese tax number), which is essential for buying property. (Tip: You can get it for free in Funchal at La Vie shopping center, or for €10 in Calheta.)
He also assisted us in opening a bank account — a huge help, since it was our very first experience purchasing property abroad.

The House That Chose Us
The very last house we viewed before flying back to the Czech Republic stayed in our minds. We didn’t decide right away — we let everything settle, replayed videos, reviewed our photos, and talked through our options. We narrowed it down to three homes — all located in Calheta.

Calheta has a special place in our hearts. We spent our honeymoon there back in 2009. Plus, my husband was planning to buy a boat, so being close to the Marina made perfect sense.

About two weeks after returning home, we asked Pedro to send us a video tour of the house that had stuck with us. Two days later, it arrived. We had lots of questions — and Pedro answered every single one.

Then the negotiations began. We managed to agree on a 4% discount, which nearly covered the entire property transfer tax — a great bonus!

Roughly a month after our visit, we signed the reservation contract remotely (yes, this is possible if you already have a NIF).

The Buying Process – Step by Step
The reservation contract (usually bilingual — English and Portuguese) outlines all key information: the buyer and seller’s details, ID/passport numbers, total purchase price, deposit amount, and deadlines for payment and the final signing (the deed).

The contract can be slightly amended if needed, but it must meet legal requirements for acceptance by a notary.

The deposit typically ranges from 10–20% of the total purchase price — the cheaper the property, the higher the percentage.
In our case, we wired the deposit from our Czech bank directly to the seller’s account (after agreement) within five business days. If you miss this deadline, the contract becomes void and you'd have to start over.

Final Signing: The Deed
The final purchase contract (the deed) is signed at a notary office. It's always in Portuguese, but you can request a draft version a couple of days in advance via your real estate agent.

Nothing fundamental can be changed at this point, except for factual corrections.

Three days before the deed signing, we visited our future home one last time. It was clean and ready — everything perfect.
I had assumed the seller’s agent arranged the cleaning, but I later learned it was done by the seller’s wife, who works professionally as a cleaner. No wonder it sparkled!

The Big Day
On the day of signing (about three months after the reservation), we first went to the bank and paid:

Property tax (IMT)
Stamp duty
The remaining balance for the house
We received two physical checks: one for the tax authority, and one for the seller. In Madeira, the transaction is handled in person — keys in exchange for checks. It’s actually a very safe and secure method.

At the notary, Pedro read and translated the contract for us on the spot. That’s when we noticed something odd: the address was different than the one in the reservation contract!

They assured us this was normal. The notary even projected the contract on the wall, read it aloud, and when we pointed out the address discrepancy again, he simply showed us a photo of the house and asked, “Is this the one?”

Yes, it was.

Apparently, the street name had been updated recently due to new developments nearby. Everything checked out — we signed, handed over the checks, and received our keys.

And that was it. We were homeowners in Madeira.

A New Chapter
One man, one woman, one little girl, a dog, and a cat.
That first night in the house was emotional. Everything echoed, we couldn’t sleep, and it didn’t quite feel like “home” yet.

But within a few weeks, it grew on us.
Now we love our home — with all its quirks and imperfections.
We made our dream come true.

Final Advice for Buyers
Contact multiple agents — explain what you’re looking for, your goals (living vs. investing), and your ideal timeline.
Follow up with those who respond and are proactive. If they don’t get back to you, move on.
Once you find the right fit, stick with them. Even if the property is listed by another agency, most agents on the island are happy to collaborate and split commission.
That way, you work with someone who truly understands your needs and will act as your personal agent.

Property Viewings on Madeira
There are several ways to go about buying real estate here on the island. Here's how you can approach it:

1. Find Your Dream Property While on Holiday
Many people use their vacation time to view properties in person. You can schedule as many viewings as possible over 1–2 weeks — either on your own or with the help of a real estate agent (like me!).

If you already know which area you're interested in, this can make your search more focused — but also more limited in terms of price-to-value options. If you're flexible about location and have a clear budget, your possibilities will expand — but you may need to act quickly.

2. Extra Trips to View Properties
If you don’t find the right property during your holiday, you can keep an eye on current listings and book a trip when something interesting comes up. But keep in mind — many listings online aren’t up to date. As mentioned earlier, some agencies don’t regularly update their listings on property portals, so what looks available might already be sold or under offer.

Before you buy a plane ticket to see a property, make sure to check with your agent about its availability, or try to contact the advertiser directly.

Another potential issue: by the time you arrive, the property may already be under offer, off the market, or no longer accepting new offers. Some properties may also lack the proper residential license, meaning you’d need to go through a legalization process — which takes time and costs money. A reputable real estate agent will check all of this for you. Personally, I wouldn’t recommend buying directly from the owner unless you really know what you’re doing.

3. Buying Remotely (With a Trusted Representative)
If you can't be in Madeira for the process, it's possible to buy remotely — provided you have someone you trust to represent you. You’ll need to issue a certified power of attorney, translated into Portuguese with a certified court translation.

One of my clients from the Czech Republic purchased a house in Arco da Calheta this way — his documents were translated and certified at the Portuguese embassy in Prague, and everything went smoothly.

Real Estate Prices in Madeira
When we first started looking for property in September 2020, a 4-bedroom house with an ocean view could be found for around €300,000 in good condition. Homes needing renovation were often under €200,000. New builds in Calheta were around €500,000.

By early 2022, prices had risen by roughly 15%. Many expected prices to drop after COVID, but due to global factors like inflation, energy prices, migration, and wars, demand has remained high — especially from international buyers. I don’t think interest will drop anytime soon, especially with global climate shifts — Madeira’s mild subtropical climate makes it increasingly appealing.

By 2023, prices had gone up even more — in some areas by tens of percent. That rapid rise seems to have slowed, but it’s hard to say whether prices will fall. Some owners test the market to see how much buyers are willing to pay — and if they're not in a hurry, it can be hard to negotiate. On the other hand, if the seller is motivated (e.g., divorce), you're more likely to strike a deal.

I always try to negotiate a discount for my clients. Worst case? The seller says no — no harm done!

For luxury new builds with sea views or oceanfront locations, you can expect prices from €400,000+ for an apartment and from €700,000+ for a house (as of 2023). If a property is in good condition, has a great view, and is priced fairly, you’ll need to act fast — often within days. Some never even make it to the listing sites and sell within two weeks.

Getting a Mortgage in Portugal/Madeira
Yes, it’s possible to get a mortgage here. The amount you can borrow depends on your age, and the mortgage must be fully repaid by age 70. Interest rates are low compared to many other countries — around 4% at most. You’ll need at least 30% of the purchase price in cash or have another property on the island etc., and a fair amount of paperwork is required. I can guide you through the process or connect you with a reliable agent.

Found the Right Property — What’s Next?
Now it’s time to negotiate. When we were buying, we followed prices for about a year and noticed that while some properties dropped, others increased again. Based on advice from Pedro at QUALI, we made an offer 10% below asking price. The seller didn’t accept that — but we still managed to agree on a 4% discount.

Also remember: your total cost will include additional fees — such as property transfer tax, stamp duty, and notary fees. 

For my clients, I make sure everything is in place before we reserve the property and sign the promissory contract.

Who Can Buy Property in Madeira?
Anyone with the financial means or approved for a mortgage can buy property in Madeira.

A common question: Can spouses buy property separately?
Yes, they can. There’s no obligation to purchase jointly as marital property. However, if one partner wants to sell later, the other must give consent — even if they’re not listed on the title.

This can be addressed in advance through a legal division of assets (especially relevant in countries with community property laws). I’ve helped clients with this before. You’ll need a court-certified translation of the relevant document into Portuguese, along with an apostille (a legal authentication for international use). A professional translator and notary can take care of this for you.

If you're single or divorced, the process is much simpler.

To buy property in Madeira, you’ll need:
NIF (Número de Identificação Fiscal) – Portuguese tax number
Portuguese bank account
Passport or national ID
Funds for deposit or purchase

STEP 1: Getting a NIF
Everyone who wants to buy property, live, or do business in Portugal needs a NIF. You’ll need it for:
Signing contracts
Managing utilities
Doing business or filing taxes
Basically, for anything official

You can get a NIF at the local Finanças (Tax Office). You’ll need:
Passport
A second ID or a proof of permanent address (e.g. utility bill or ID card with your address)
Real estate agents (like myself) can help you with the process. In Funchal (La Vie), the NIF is usually issued within 15 minutes and free of charge (as of 2023).

STEP 2: Opening a Portuguese Bank Account
You can choose the bank that suits you best — compare fees, services, or mortgage conditions if you plan to borrow. I’ve had good experience with NOVO BANCO, which is known to be foreigner-friendly.

What you’ll need for opening the bank account:
NIF
Passport (preferred for signature verification) or national ID
Proof of income in English (such as employment confirmation or latest tax return)
When I didn’t have my employment confirmation in English, I tried to use Czech bank statements from the last six months — which wasn’t enough. The bank set up the account and activated it once I emailed the required confirmation after returning home. Easy fix.

Minimum opening deposit at NOVO BANCO: €250
Monthly fee (2023): around €7.90
Online banking is secure and user-friendly.

Total time at the bank: about 1–1.5 hours. You’ll sign multiple Portuguese documents, get your PIN, debit card, and online banking credentials on the spot.

Step 3: Property Taxes and Fees
Property transfer tax (IMT) ranges from 0% to 8% depending on:

The purchase price
Whether it’s your primary residence or an investment
Example:
Budget investment property:
Starts at 2% but properties up €359,000 to €688,000: nearly 8%
Stamp duty is around 1.5–2% of the purchase price.

Summary: The Property Buying Process in Madeira
Based on my own experience and helping clients throughout 2022 - 2025:

Choose your property — based on budget, location, and purpose (living vs. investment)
Get your NIF — at the tax office with your passport and address proof
Open a bank account — bring NIF, passport, proof of income, and deposit €250
Promissory contract (CPCV) — pay 10–20% of the property price (to the seller’s account, via the agency, or into notary escrow); usually due within 5 working days
Handle additional legal steps if needed — e.g., power of attorney, translation of marital asset division if one spouse can’t attend the signing
Final payment & taxes — on the day of signing: pay IMT tax, stamp duty, and remaining balance (after deposit) via certified bank checks
Sign the deed at the notary
Receive the keys and submit checks to the seller
Pay the notary’s fee
Land registry transfer — usually takes 3–7 weeks. You'll receive a digital confirmation (and eventually the original copy)

Typical Costs
Item
Approximate Cost
Realtor commission
€0 (paid by the seller)
NIF
Free to €10
IMT (Transfer Tax) 1–8% of purchase price
Stamp Duty
~1.5–2%
Notary Fee
€300–€1,000 (depending on property value)
Your real estate agent should calculate all the expected fees for your chosen property before you sign anything.

Useful Links
Idealista
Green-Acres
JamesEdition
QUALI Real Estate
NOVO BANCO