How much does it really cost to buy a home in Madeira in 2026?

BUYING · 5 MIN READ · BY LUÍS RODRIGUES

Found the right home? Does the price fit your budget? What many people forget to factor in, and are then caught out by, are the costs that come on top of the asking price.

In Madeira, the taxes and notary costs of buying a property vary considerably depending on the buyer's profile. For a €300,000 home, the difference can range from zero euros, if you are under 35 and buying your first home, to almost €25,000, if you are a non-resident buying a second home or an investment, save for some exceptions*.

This guide explains, clearly and with real figures, what each type of buyer should expect when purchasing in the Autonomous Region of Madeira, so there are no surprises at the wrong moment.

1. IMT: the heaviest tax (and it depends on your profile)

IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis, the property transfer tax) is the main tax on a property purchase. It is paid by the buyer before the deed is signed.

In the Autonomous Region of Madeira, IMT is calculated using the region's own tables. The amount depends directly on your buyer profile.

Non-residents: since 25 May 2026, anyone who is not tax resident in Portugal pays a flat 7.5% IMT when buying a home, with no exemptions or reductions (Decree-Law 97/2026). There are three exceptions: buyers who were previously tax resident in Portugal; buyers who become resident within two years of the purchase; and buyers who, within six months of the purchase, let the property at a moderate rent (up to 2.5 times the minimum wage) and keep it let for at least 36 months in the first five years. In the last two cases the tax authority refunds the difference, on request, filed within six months. Outside these exceptions, a non-resident buying as an investment or a second home pays the 7.5%.

Young buyers aged 35 or under: full exemption

If you are 35 or under, tax resident in Portugal and buying your first main permanent residence for up to €413,174, you pay no IMT.

2. Stamp duty: the same for almost everyone, zero for young buyers

Stamp duty (Imposto do Selo) is charged at 0.8% of the purchase price, whether you are a resident, a non-resident or buying a second home, and it is the same throughout Portugal, including Madeira.

For a €300,000 property: €2,400.00.

The only exception is a young buyer aged 35 or under who meets all the conditions above: in that case, stamp duty is also fully exempt.

If you take out a mortgage, stamp duty is also charged on the loan, calculated on the amount borrowed at rates that vary with the loan term. This comes on top of the purchase costs and should be included in your overall financial planning.

3. Deed and registration: the notary costs

The deed (escritura) is the formal act that transfers ownership into your name. The associated costs include:

• Notary fees: paid to the notary or the registry office.
• Land registration: recording the property in your name at the Land Registry (Conservatória do Registo Predial).
• Certificates and preparatory documents: an up-to-date property tax record (caderneta predial), land registry certificate and others.

In total, these costs usually range between €500 and €1,500, depending on the value of the property and the complexity of the process.

For young buyers who meet the exemption conditions, registration fees are also exempt, making the purchase considerably more affordable.

4. Mortgage: additional costs to consider

If you finance the purchase with a mortgage, there are additional costs linked to the bank process:

• Bank valuation of the property: usually between €150 and €300.
• Mandatory insurance: life insurance and multi-risk home insurance, required by the lending bank for the full term of the loan.
• Arrangement fee: varies from bank to bank.
• Stamp duty on the loan: calculated on the amount borrowed, at rates that vary with the loan term.

These amounts vary considerably between lenders. Comparing offers from different banks can mean significant savings over time.

5. IMI: the annual tax that stays with you

IMI (Imposto Municipal sobre Imóveis, the municipal property tax) is not a purchase cost, but it becomes a yearly expense as soon as you become the owner. It is calculated on the property's taxable value (VPT), which may differ from its market price.

Rates are set every year by each Madeira municipality, within the legal limits established by the State.

Rule of thumb by profile

Buying with clarity, not surprises

Knowing the real costs before you commit is not a luxury, it is the least every buyer deserves. At Predimed Madeira One, this is exactly what we do from the very first conversation: explain everything that is at stake, so every decision is made with information and confidence.

If you are planning to buy a home in Madeira and want to know, down to the cent, what it will cost in your particular case, get in touch. We will run the numbers with you, with no obligation.

Luís Rodrigues
Predimed Madeira One · Your home, our commitment.

* This article is for information purposes only and does not constitute legal, tax or financial advice. The rules described are subject to legislative change and apply specifically to properties located in the Autonomous Region of Madeira. For specific decisions, always consult a qualified professional.