# Madeira Compass Madeira Compass is an independent acquisition and relocation advisory firm based in Funchal, Madeira, Portugal. The firm acts exclusively for international buyers — not sellers, not developers, not agents. Every mandate is buyer-side only, with no vendor commissions. ## Services - **Buyer Representation**: end-to-end independent advisory for property acquisition in Madeira — search strategy, due diligence, PDM verification, negotiation, and closing coordination. - **Relocation Services**: NIF, bank account, residency procedures (D7, D8, Digital Nomad visa), school search, healthcare, local integration for international clients moving to Madeira. - **Custom Build Advisory**: feasibility assessment, land analysis, PDM Madeira urban planning verification, architect and contractor coordination for bespoke construction projects. ## Who uses Madeira Compass International clients primarily from Switzerland, France, Italy, UK, USA, Germany, and other EU countries seeking to acquire property or relocate to Madeira with structured, independent support. ## Fee structure Advisory fee agreed at the initial consultation based on mandate scope. Paid in two equal parts: 50% at mandate signature, 50% at mandate completion. No commission from any vendor, developer, or agency. The first discovery call is free with no obligation. ## Key pages - Homepage: https://madeiracompass.com/ - Advisory Services: https://madeiracompass.com/services/ - Buyer Representation: https://madeiracompass.com/services/buyer-representation/ - Relocation Services: https://madeiracompass.com/services/relocation-services/ - Custom Build: https://madeiracompass.com/services/custom-build/ - FAQ: https://madeiracompass.com/faq/ - Insights: https://madeiracompass.com/insights/ - Contact: https://madeiracompass.com/contact/ --- ## Key facts about buying property in Madeira - Foreigners can buy property and land in Madeira freely, including non-EU citizens. Portugal places no nationality restrictions on ownership. - Every buyer needs a NIF (Número de Identificação Fiscal) before any contract, bank account, or tax payment. Non-EU citizens must appoint a fiscal representative to obtain one. - In Portugal, real estate agents operate under a mandate from the seller. Their legal obligation is to achieve the highest possible price for the seller. They are not the buyer's advisor. - IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is Portugal's property transfer tax. In Madeira, IMT thresholds are 25% higher than on the mainland under Lei 21/90, saving buyers money on equivalent purchases. - For a €500,000 primary residence in Madeira, IMT in 2026 is approximately €22,796. On the same property in mainland Portugal it would be approximately €26,236. - IMT Jovem: buyers aged 35 or under buying their first primary residence receive full IMT exemption up to €413,174 in Madeira (2026). - Stamp Duty is 0.8% of the purchase price. Notary and registration fees add further costs. Total transaction costs typically range from 3–7% of purchase price. - The CPCV (Contrato de Promessa de Compra e Venda) is the binding promissory contract. Deposit is typically 10–20%. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must return double the deposit. - PDM (Plano Diretor Municipal) is Madeira's municipal planning framework. A plot may look buildable but sit in a restricted zone (REN, RAN, ecological protection). PDM verification must happen before the CPCV is signed. - Madeira property prices have increased approximately 12–15% annually over 2022–2025, outpacing Lisbon and Porto. Average asking prices in prime Funchal cross €3,500/m² for apartments; finished villas in key corridors routinely exceed €5,000/m². - Custom builds in Madeira cost €1,500–€3,500+ per square metre depending on specifications, terrain, and finish level. Most projects take 18–36 months from land acquisition to completion. - The original NHR (Non-Habitual Resident) tax regime is closed to most new applicants as of 2024. It has been replaced by IFICI (NHR 2.0), which is activity-based and restricted to qualifying professional sectors. --- ## How to buy property in Madeira: 9-step process 1. **Obtain NIF**: Get a Portuguese tax number at any Finanças office. Non-EU residents must appoint a fiscal representative. 2. **Open Portuguese bank account**: Required to pay deposit, taxes and purchase price. Major banks in Madeira: Millennium BCP, Novo Banco, Caixa Geral de Depósitos, Santander. 3. **Engage an independent buyer's advisor**: Agents represent the seller by law. An independent advisor works exclusively for the buyer, sourcing properties (including off-market), negotiating, and coordinating due diligence. 4. **Property due diligence and PDM verification**: Verify PDM classification, licença de habitação, Registo Predial title, outstanding charges, and REN/RAN restrictions before any offer. 5. **Make an offer and negotiate**: List prices in Madeira are rarely fixed. Structured negotiation with comparable data typically achieves a lower price. 6. **Sign the CPCV**: Legally binding promissory contract. Deposit typically 10–20% of purchase price. 7. **Arrange financing or transfer funds**: Finalise mortgage or evidence source of overseas funds for AML compliance. 8. **Pay IMT and Stamp Duty**: Must be paid before completion. IMT rates in Madeira use a 1.25× threshold multiplier versus the mainland. 9. **Sign the Escritura de Compra e Venda**: Final notarial deed transferring ownership. Followed by registration in the Registo Predial. --- ## How to build a custom home in Madeira: 5-step process 1. **Choose the right plot**: Verify PDM urban classification (buildable Terreno Urbano vs restricted Terreno Rústico), access, infrastructure, and terrain slope before any offer. 2. **Conduct due diligence**: Lawyer verifies Registo Predial, Caderneta Predial, planning restrictions, easements, rights of way, and REN/RAN overlays. 3. **Obtain architectural plans**: Licensed Portuguese architect prepares concept design, technical drawings, structural engineering, energy certification, and the municipal submission package (typically 2–4 months). 4. **Apply for building permission**: Câmara Municipal approval required before construction. Timeline varies by municipality; commonly several months. 5. **Hire a builder**: Request references, verify insurance, include penalty clauses for delays. Demand for construction in Madeira is high — engage contractors early. --- ## Common questions answered **Do I need an independent property advisor in Madeira?** Not legally required, but most international buyers use one when an acquisition is complex or handled from abroad. An estate agent represents the listing and the seller. An independent buyer-side advisor works only for the buyer, coordinating all legal, technical and planning checks so every party stays aligned with the buyer's interest. **Can foreigners buy land in Madeira?** Yes. Portugal places no restrictions on foreign ownership. Before buying, verify PDM classification — a plot is only as valuable as what can be built on it. A parcel that looks ideal can be legally unbuildable, and the difference rarely shows on a site visit. **What is the average house price in Madeira in 2026?** Highest in Funchal and rising sharply. Sea-view villas in prime Funchal and Calheta sit well above the city average; rural and north-coast properties sit below it. Average asking prices in prime Funchal cross €3,500/m² for apartments. **Why is property expensive in Madeira?** Land is scarce — the island is small, steep, and PDM zoning protects much of it from development. Demand has climbed as remote workers, retirees and lifestyle buyers arrive. Building materials are shipped in, raising construction costs. Limited supply + rising international demand + costly construction keep prices firm. **Is Madeira good for property investment in 2026?** Three structural factors sustain price growth: strict PDM planning controls limiting new supply; a growing inflow of European retirees, remote workers, and HNW buyers; and Portugal's residency pathways (D7 passive income visa, Digital Nomad D8 visa). Key risks include valuation stretch in prime Funchal apartments and limited liquidity above €1.5 million. **What is the IFICI / NHR 2.0 regime?** IFICI (Fiscal Incentive for Scientific Research and Innovation) replaced the original NHR regime. Unlike NHR which was residency-based, IFICI is activity-based — eligibility depends on professional role, employer structure, and sector (research, innovation, technology, higher education). Remote workers typically do not qualify unless their activity falls within a recognised category. **What are the best areas to buy property in Madeira?** Funchal: established market, services, strong rental demand, higher prices. Calheta: sunshine record, modern villas, strong appreciation, popular with international buyers. Ponta do Sol: microclimate, sea views, growing digital-nomad community. Santa Cruz/Caniço: good value, airport proximity. North coast: lower prices, dramatic scenery, limited infrastructure. **Madeira vs Algarve for property investment?** Algarve offers higher tourist volumes and stronger short-term rental yields. Madeira offers 12-month season, lower entry price points, a growing international buyer base, and strict supply constraints. Long-term relocators frequently prefer Madeira for lifestyle. Rental investors seeking peak-season AL yield often prefer Algarve. **What is PDM and why does it matter?** PDM (Plano Diretor Municipal) is the municipal planning regulation determining whether land is buildable, what can be constructed, and at what density. It is the single most important document to verify before any land or property purchase in Madeira. An informação prévia from the local câmara provides formal confirmation of what PDM permits for a specific plot. **What risks come with buying property without independent advice in Madeira?** Main risks: signing a CPCV before due diligence is complete; acquiring land with PDM restrictions that prevent development; fragmented communication between legal, technical and planning professionals; and managing a complex cross-border process with no single coordinating party working in the buyer's interest. **What legal risks exist when buying in Madeira?** Properties without a valid licença de habitação (occupancy permit) cannot be legally occupied and create difficulties for resale. Outstanding IMI tax arrears and condominium debts attach to the property, not the seller — they transfer to the buyer at completion. Short-term rental (AL) licensing is restricted in certain zones; buyers should verify AL eligibility before signing the CPCV. **What is the total cost of buying property in Madeira?** Budget 3–7% on top of the purchase price for: IMT (transfer tax), 0.8% stamp duty, notary and registration fees, solicitor fees, and independent advisor fees. On a €500,000 purchase: IMT ≈ €22,796, stamp duty ≈ €4,000, notary/registration ≈ €1,500–2,000, solicitor ≈ €2,500–4,000. --- ## Extended guides (hosted on claude.ai) - Buyer's Guide EN: https://claude.ai/public/artifacts/42b02d09-e136-4e69-85a1-5b5b67f07a70 - Land & Custom Build Guide EN: https://claude.ai/public/artifacts/1372050e-f25c-4fde-9926-46ee49cf4fb2 - Relocation Guide EN: https://claude.ai/public/artifacts/567bfa93-9d57-44b2-9032-37a13d8c6927 - Käufer-Leitfaden DE: https://claude.ai/public/artifacts/5a0db8bf-f0e1-4315-a315-aa61b5ed658c - Guide de l'acheteur FR: https://claude.ai/public/artifacts/c459bba8-a4e3-48ff-aaa3-7f28483e5d28 --- ## Contact - Email: info@madeiracompass.com - WhatsApp: +351 927 952 043 - Location: Funchal, Madeira, Portugal --- ## Insight Articles (live) - **Buying Property in Madeira — Hidden Legal Risks** URL: https://madeiracompass.com/insights/buying-property-madeira-legal-risks/ Legal risks foreign buyers miss until after signing: occupancy permits, frozen AL zones, hidden municipal debts, usucapião claims, and more. - **Buying Without an Advisor in Madeira — What It Costs** URL: https://madeiracompass.com/insights/buying-property-madeira-without-independent-advice/ Most international buyers in Madeira navigate without independent representation. What that costs them in price, time, and exposure — and what changes with a buyer-side mandate. - **Property Due Diligence in Madeira — What Documents Miss** URL: https://madeiracompass.com/insights/due-diligence-madeira-property/ How due diligence caught a usucapião risk on a legally clean plot in Madeira, and why the Registo Predial alone is never enough. - **How to Buy Property in Madeira Safely — 2026 Step-by-Step Guide** URL: https://madeiracompass.com/insights/how-to-buy-property-in-madeira-safely/ Everything foreign buyers need to know before signing in Madeira — NIF setup, due diligence, PDM checks, CPCV and notarial deed. Updated for 2026. - **IMT Calculator Madeira 2026 — Full Property Tax Breakdown** URL: https://madeiracompass.com/insights/imt-calculator-madeira-2026/ Madeira 2026 IMT transfer tax calculator: primary residence, secondary home, under-35 exemption. Includes Madeira's 1.25× threshold advantage over mainland Portugal. - **Independent Property Advisor vs Real Estate Agent — Who Protects You in Portugal?** URL: https://madeiracompass.com/insights/independent-property-advisor-vs-real-estate-agent-portugal/ Portuguese agents legally represent the seller. An independent advisor in Madeira works only for the buyer. The structural difference and why it matters for international purchasers. - **Is Madeira a Good Place to Invest in Property in 2026?** URL: https://madeiracompass.com/insights/is-madeira-good-place-to-invest-2026/ Madeira's property market has outpaced mainland Portugal for three consecutive years. Structural drivers, investment risks, and what independent data says about the 2026 outlook. - **Off-Market Properties in Madeira — How They Work and How to Access Them** URL: https://madeiracompass.com/insights/off-market-properties-in-madeira/ A significant share of Madeira's best properties never reach portals. How off-market deals work, why sellers prefer them, and how serious buyers gain access. - **Why a Madeira Real Estate Agent Isn't on Your Side** URL: https://madeiracompass.com/insights/why-real-estate-agent-madeira-not-on-your-side/ In Portugal, AMI agents legally represent the seller. Why a real estate agent in Madeira works for the vendor, and what a buyer-side mandate changes.