THE MADEIRA › wp-content › uploads › 2018 › 03 › Magazine... · Portugal on the mainland, but none are dedicated to life in Madeira. The archipelago’s feel is quite different

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MADEIRABUYERS & PROPERTY

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AMI 13381 • ALVARA 40604

Introduction to Madeira

Located off the west coast of Africa, Madeira is European, the currency is the euro and Madeira is a beautiful volcanic island. The climate is sub-tropical with temperatures rarely dropping below 20 degrees in the winter, a decent level of rainfall in the mountainous interior ensures the island is very green all year. One of the biggest attractions of Madeira is the feeling of safety, Madeira has one of the world’s lowest crime rates and the whole island is spotlessly clean.The Portuguese archipelago of the Madeira Islands has two inhabited islands, Porto Santo and Madeira. If you want long sandy beaches you should choose Porto Santo, but if you want the most stunning landscapes and an easier transition abroad you may well favour Madeira Island, living here where English is widely spoken you will find the highest concentration of expats.Dominated by stunning mountains and dramatic sea cliffs, Madeira Island is popular with expats thinking about moving to live in Portugal while seeking an alternative location to the Algarve. Most inhabitants of Madeira live on or near to the coast, buyers can expect the most incredible Atlantic Ocean and mountain views. The climate, the landscape, the laid back and friendly people all make Madeira an increasingly popular choice for those seeking a real alternative location.

Many moving guides and books focus closely on living in Portugal on the mainland, but none are dedicated to life in Madeira. The archipelago’s feel is quite different to that of the mainland, to create this comprehensive Madeira buyers guide we have used our years of experience and the experience of other expats here to tell you more about what to expect.

Building your deam villasS I N C E 2 0 0 1

“Madeira the island that has it all, eternal spring, exotic fruits, abundant seafoods and enchanting coastal villages, if paradise is on earth, then I

found it in Madeira”

Adela Riding – The Madeira Orchestra

| 3MADEIRA BUYERS & PROPERTY G U I D ET H E

AMI 13381 • ALVARA 40604

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Where to buy and the right choice for you…

Contents guideIntroduction to Madeira. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Madeira today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Madeira property market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Brexit and Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Buying a new or old property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

The purchase procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Buying costs in Madeira. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Personal tax in Portugal and Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Getting a mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Property law in Portugal and Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Transferring money to Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Living in Madeira. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Culture and Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Transferring your pension to Madeira. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Shipping your goods to Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Working in Madeira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Renting your property for income purposes . . . . . . . . . . . . . . . . . . . . . . . . . 20

Nurseries, Primary schools, Secondary education and Universities . . . . . .21

Relocate your business or company to Madeira . . . . . . . . . . . . . . . . . . . . . . 22

And fi nally, are you ready.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23


Madeira today

Madeira was discovered by Portuguese explorers in 1419 and the islands were uninhabited. Madeira, due to its quite exceptional year-round subtropical temperatures, was ideal for growing sugar cane which was later to be replaced by the sophisticated Madeira wine industry. Today Madeira is a growing destination for those searching for a quiet and safe escape in the sun, to either call home or to have a year-round island getaway.

The island is served by direct European flights all year round from airports throughout the UK and EU. The cosmopolitan and beautiful capital of Funchal is graced with a vast number of diverse restaurants, coffee bars, and modern shopping centres and unlike many destinations, the vast array of restaurants are open all year round, ensuring an excellent lifestyle.

Truly unique both geographically and culturally Madeira contains some of the world’s most dramatic mountain walking and the last remaining ancient UNESCO laurel forest. Madeira has not got a winter season unlike southern Spain and the Algarve. The area around Ponta do Sol is a microclimate that offers a superior climate. Madeira is often referred to as a European alternative to the Caribbean. If you are thinking a safe winter sun destination and a quality rental prospect, then Madeira is the leader.

Many direct European flights are under 4 hours and low-cost carriers offer regular flights, for instance from the UK

there are around 25 return flights a week. Madeira does not attract the clubbers or binge drinkers and there are only a few natural sandy beaches. There are many high quality and beautiful lido’s formed in the sea coast line around the island. The island offers some excellent and sophisticated wine bars, these are aimed at tourists and locals alike, there are also sophisticated nightclubs and a casino.


Madeira property market

Madeira is autonomous and has its own administration. The property laws are the same as the Portuguese mainland.

Madeira has a reliable property market and buying a home in Madeira has historically been all about the lifestyle rather than the return on investment, this has changed recently with quality holiday rentals making high returns. After the 2007 market peak, property prices fell everywhere, Madeira was affected less because over supply issues have never been a big issue as suffered by the Spanish Costas. The shortage of high quality properties coming onto the market continues to underpin prices.

Madeira has also been affected by a large amount of former emigrates returning home to live in Madeira once again, in

2017 15,000 emigrates returned to live and take residence, this positively impacted the property prices in 2017. The British remain the biggest buyers with Scandinavians, Germans and other north Europeans close behind, recently the number of French buyers has also been increasing. The main area for those looking for the quiet life is the south west coast from Ribeira Brava to Ponta do Sol. The other main area for those looking for more metropolitan location is the coastal area around Funchal, here all coastal properties carry a premium.

The three important questions you should ask yourself in preparing for your next step of finding a suitable property.

1) When will you really be able to view properties?

2) When will you be in a financial position to make a purchase decision?

3) When would you like to have the keys and own your new property?

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Brexit and Madeira

The UK is currently still a full paying member of the EU. British citizens that are seriously considering permanent relocation to Portugal and Madeira, are strongly recommended to do so before the UK leaves the EU.

Under international law, you will have been deemed to have acquired rights by simply being resident in Portugal and it is highly likely you will retain these rights once the UK leaves. While the host country is under no obligation to provide services such as healthcare, it is again likely the UK will reach an agreement with other EU countries for a reciprocal arrangement as it would be in the interests of the EU to look after their citizens given the 3 million EU nationals in the UK.

If you’re buying a holiday home and not planning to live in Portugal permanently then very little changes. In the unlikely case of a no deal, future British expats will require health insurance to access the excellent Madeira health care system.

TOP TIP: Running a UK business that’s trades with the EU? A move to Madeira and the attractive TAX regime is a significant business benefit to your future trading opportunities.


Buying a new or old property

Some people will be looking for a ruin or a place with considerable work to be done. You might well get something that has been built in a great position that would not be available now. Equally, if a vendor is desperate to sell their home, you might get one at a great price compared to a new property. There are several definite advantages of buying new or off plan, if you can afford to, you can choose your fittings from a selection of options to make your villa bespoke. Off-plan projects will get you exactly what you really want and in Madeira this is a popular route. High build quality and improved building controls mean that new homes need to meet certain EU and ministry standards. New builds have to be well insulated, for sound as well as heating, eco-friendly and comply with EU regulations. Buyers are

encouraged to cherry pick to the location. If you are hoping to make a return on your investment, select the best plot with the best view, it is always going to appeal to renters and buyers when you want to later resell. The biggest upside of buying brand new in Madeira is less upkeep hassle and costs, everything is new, you will not need to budget for repairs. Buying when building work is ongoing or off plan means you will have the developers team onsite, any niggles, flaws or changes in the property will be fixed easily. New-builds come with certainties and a guarantee, so problems can be quickly solved as these are contracted in to the build.

AMI 13381 • ALVARA 40604

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International copyright © C-Architecture Ltd · Creative-Architecture International copyright © C-Architecture Ltd · Creative-Architecture


In Portugal it is important to check that estate agents and developers are licensed, check the one that you are dealing with is registered and possesses an AMI number for estate agencies or ALVARA number for a developer and in cases of the developer offering the sale directly, both.

This means that they use forms of approved documentation to implement their functions in the profession. Once you have decided to buy in Madeira you should also find a lawyer, solicitor or notary to look after your interests in the purchase process and in Madeira there are many that speak English. You can also give them power of attorney if you cannot be present yourself to sign documents. You will also need a fiscal number which is available from the local tax office. A fiscal number is required to open a bank account in Portugal.

There are two stages to the buying process. The first is the promissory contract between buyer and seller, on the condition of the property. This is a legally binding contract, prepared by a notary or lawyer and needs to be signed on licensed premises in Portugal. It should include the identity of both parties, the property or project details, confirmation of clear title, price agreed, deposit amount, date of deadline for signing the final deed and then for a resale property, use of the property in the interim period. The deposit is usually from 10 % and will be higher for a new bespoke project. A clause can be added stating that it is conditional on any mortgage offer being accepted.

Once the promissory contract has been signed and deposit paid, should the seller default he/she is required by law to repay twice the deposit amount to the buyer. If the buyer defaults they would also lose their deposit. Following this, the lawyer does searches and checks for encumbrances or mortgages on the property or land. These checks should include any planning restrictions, outstanding debts, charges or utility bills on the property or land, that any alterations comply with the habitation license and that the vendor is the registered owner of the property or land. Also verified will be the property land boundaries, rights of way, restrictions on use, any survey and whether fixture and fittings are included.

The second part of the transaction is the deed and this is the point at which the property ownership is transferred to the buyer. As with the promissory contract, it is signed in front of the notary. The final contract is then sent to the Madeira land registry, the notary will issue you with a stamped copy of the deed. There is a fee for the land registry. You will also need to register with the tax office and all the utility companies.

The purchase procedure

Buying bullet points

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Find your ideal property

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Get your fiscal number

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Engage a Notary

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Promissory

contract signed

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Open a bank account

———

Transfer of funds

———

Deeds are signed over

&

Payment of taxes

AMI 13381 • ALVARA 40604


The total cost of buying a property in Madeira includes the purchase price and the closing costs, which vary from 6 – 9 percent of this price, off plan projects can be significantly less. The biggest cost is property transfer tax or IMT and paid on a sliding scale from 2-8 percent.

There is a stamp duty that is a fixed rate of 0.8 percent. Notary, admin and registration fees are around 2 percent, legal fees are around 1 per cent of the purchase price. The seller pays the estate agency fees. You will also need to find the most cost-effective, safe and easy way to move your money to Portugal to complete your purchase. Bank charges and fluctuating exchange rates can both have an impact on your overall cost, but you can save up to 5% of the cost by working with a specialist currency firm.

They can help you achieve outstanding exchange rates far better than the banks which means that you reduce the risk of your international payments increasing. On a £100,000 exchange, a currency specialist can save you up to £5,000 by providing better rates compared to your high street bank.

In Madeira there are new constructions, properties not yet on the market, land for sale and bespoke projects.

If you find what you have been looking for in Madeira and you are not in a position to proceed, you can ask about making a reservation, this will involve paying a fee.

This is a bond under contract that binds the potential buyer of the property or land to keep the property or land of the market for a length of time until funds are available. Be aware that if a potential buyer does not proceed with a project then the reservation fee will be lost.

When considering a land purchase and making a reservation always consider the cost of the architect plans and the costs in getting the plans approved.

Buying costs in MadeiraReservation fees

Rates of property taxation (Paid on purchase by the buyer)

Property Value Tax in %

Until 92,407€ 0%

From 92,407€ 2%Until 126,403€

From 126,403€ 5%Until 172,348€

From 172,348€ 7%Until 287,213€

From 287,213€ 8%Until 574,323€

From 574,323€+ 6%

TOP TIP: If you need euros for your property purchase, we recommend using a currency specialist.

Robert WebbBespoke Villas

International copyright © C-Architecture Ltd · Creative-Architecture


Personal tax in Portugal and Madeira

Portugal has long been a favourite for those looking to buy a holiday home or for those moving in their retirement, the best-kept secret is the preferential tax regime for new, long-term residents.

The non-habitual regime or NHR is for new tax residents, the Portuguese government introduced the NHR regime in 2009 to encourage individuals and families to move to Portugal. It provides beneficial tax treatment for the first 10 years of residence and is open to those in employment as well as retirees. Qualification is restricted to those who have not been tax resident in Portugal for any of the previous five tax years. There are no other major requirements, it is very simple and often overlooked.

Any income received from a UK or EU pension is exempt from Portuguese tax provided it is taxed in another country

under the terms of the tax treaty or is not regarded as Portuguese source income under Portugal’s domestic legislation.

This means UK and EU pension income can be excluded from taxation in both Portugal the UK or EU. This is the case for private pensions like SIPPs, company pensions and state pensions (some but not all UK and EU government pensions remain taxable in the UK or EU).

This becomes particularly attractive for instance, when you factor in the UK’s new pension freedom rules which allow you to take lump sums from your pension fund. NHR can be attractive for other sources of income like dividends, which will be tax free in Portugal.

NON HABITUALTAX RESIDENTPORTUGAL

TOP TIP:

The NHR tax regime operates under the principle of ‘exemption’ making it unique in the European Union.

An independent analysis of your income structure by a local professional is recommended, this is in order to achieve the full efficiency of the NHR regime

Miguel CorreiaMCS corporate services


Construction mortgagesFor those wishing to build their own villa it is good to know Portuguese

banks offer construction mortgages. These we advise you speak to a broker, but you can potentially

borrow up to 70% of the land and construction costs combined. In Madeira it is easier to arrange a joint construction loan and mortgage product, the land needs to be purchased with an approved project to qualify, any potential mortgage will then be subject to a valuation and approval.

Any approved mortgage loan is then released in stages pending further agreed bank valuations at each stage. Construction loans require life insurance.

Getting a mortgage

The mortgage market in Portugal is traditional in the sense that having the right contacts is financially important if you want to get the best deals.

Non-resident mortgages can be a borrow ratio 60-70% for who pay their taxes outside Portugal, however the maximum mortgage amount is 70% of the purchase price or valuation.

Portugal and Madeira, being part of the EU, offers very low interest rates. With a good Madeira mortgage broker, a mortgage interest rate can readily offer under 2% interest. Mortgages are both flexible and

long term, depending on your age and your requirements a mortgage broker can provide several options within a few days.

For fiscal residents who pay Portuguese taxes, the maximum mortgage is 80%.

For mortgages in Portugal, life insurance is required.

Add after valuation

TOP TIP:

If you need to fund a property purchase, consider releasing the equity in your current property for an easy funding solution.

Nélio MendesBespoke Villas

“We took up the Portuguese ‘non-habitual resident’ (NHR) scheme in 2017, since then our British

company pensions have become tax free in Madeira. We were helped many times along the way by the

professional contacts of Bespoke Villas”

George Liddell – Arco do Calheta, Madeira.


Property law in Portugal and Madeira

The property law in Madeira being part of Portugal, is the same as Portugal. Although you don’t need a lawyer to oversee your purchase, you can seek out a reliable independent lawyer who understands Portuguese law.

They will be able to assess whether the contract is legal, if you should pay the deposit and advice on who should own the property. An essential person to help with your property purchase is the Notary, who will get involved in the transaction.

Their role will be to carry out some checks on the property, attend to the signing of the title deed and in cases of off-plan builds to later register the property.

The role of the Notary is to represent government law, rather than either party in a property transaction. A lawyer in Portugal is independent and can be engaged by you to exclusively represent your interests and ensure your property purchase is legal.

Under law you will require a Notary in any property purchase, however a lawyer is a personal decision, we recommended to find and use a lawyer that speaks your language to represent you here in Madeira.

TOP TIP:

Once you have decided to buy a property, you will require a fiscal number, we recommend you consult a Notary or lawyer first, this is important for your NHR application and potential later residential status.



One of the most expensive and avoidable oversights especially made by British buyers with pounds, is asking a bank to send money to Madeira for them. Using a specialist currency firm instead will save you money and time. Buying and owning a property in Madeira means you will need euros available in a Madeiran bank account, not only for paying for your property but also to cover ongoing running costs, including mortgage payments, build applications and bills.

When you begin your property hunt, all your funds could be in pounds or another currency, so at some point you will need to exchange them into euros and have them transferred to an account in Madeira. Currency exchange is very important, the exchange is something that buyers often leave as one of the last things they organise when they purchase an overseas property.

Buying abroad for nationals outside the EU or without euros will involve a transfer of money between currencies, if you do not research and arrange the transfer through your bank, you will end up paying more in fees and poor exchange rates. Use a specialist currency exchange service, currency specialists hold expertise in currency and how to handle international payments effectively and minimise risk.

Register with a specialist, you will be assigned a personal contact who will be on hand to provide support and advice throughout the buying process. Better exchange rates will save you up to 5% on a transaction, a specialist firm will be able to offer better rates of exchange than a bank, this is because, as well as operating with lower margins, they have access to the currency markets instantly.

A 5% saving when talking about a £400,000 transfer, is a saving of £20,000. A currency specialist usually only charges a fee on smaller transactions. Typically expect to pay around £10 for small transactions and free once you’re transferring larger amounts. A currency specialist can also ensure you do not encounter any bank charges when your money is received in Madeira. Using the wrong type of transfer through your bank could result in bank receiving charges, in Madeira this is around 0.5%.

When buying a property in Madeira the funds that are being used are nearly always your money, pension or your life-savings. For your safety and protection of your funds, here are some research points to do.

1) Make sure you choose a specialist who are authorised by the Financial Conduct Authority or FCA for short.

2) Go with a specialist that uses segregated client accounts, this will ensure that your money goes into a client bank account opposed to the company account. This will ensure your money would be safe, no matter what happened.

3) Find out how long the company has been around, this will indicate how many years of experience they have in helping their clients.

Transferring money to Madeira


One of the most appealing aspects to spending time in Madeira is value for money, buying a coffee, a beer, having lunch or using public transport you will find that day to day living is very good value. Your food budget will be noticeably less with fresh produce from local markets, wine and delicious local fish, you will particularly notice the affordability outside Funchal.

Buying a car and petrol costs are more expensive in contrast to many other parts of Madeiran life. There are no toll roads in Madeira and public transport options are plentiful, efficient and on time. If you have

your own swimming pool this will attract the lowest water costs in Europe. The cost of household help tends to be very low and good quality.

Climate in Madeira is exceptional all year, with year-round warm weather and no real winter, during the summer months Madeira is a refreshing August high of 27 degrees with cooling sea breezes. Homes in Madeira do not have radiators as they are not required.

Living in Madeira

JAN The walking festival.FEB The Madeira carnival.MAR Festival of the custard apple.APRIL Madeira film festivalMAY Madeira flower festival Reids Palace classic car showJUN Classic car rally / Atlantic festival (the fireworks competition)

JUL Madeira wine rally The Funchal jazz festivalAUG The gastronomic festival.SEP The Madeira wine festivalOCT The nature festivalNOV The chestnut festivalDEC Christmas lights / New Year celebrations (Europe’s largest firework display)

Calendar events


A large portion of Madeiran culture is centred on their appreciation of food, art, music, drama, dance and literature, which is everywhere. Visits to the restaurants, theatre, concerts and galleries of modern exhibitions are common amongst the population, many of their venues attract tourists. The museums appear endless and the amount of high quality art produced growing.

Local festivities are very popular all year and not just restricted to the summer much unlike mainland Portugal. In terms of local delicacies, Madeira has its own traditional dishes, including various kinds of seafood, fresh fish, fantastic beef, delicious local breads and numerous desserts, the local Madeiran love really good food, wine and

Culture and Languagegreat company.

If you desire to learn the language whilst living in Madeira, you will be glad to know that the language is not as difficult to learn as many think, and there are plenty of local establishments to enhance your skills.

It may be an idea to learn some Portuguese while living there and private tuition would be a kind and excellent first step. English is widely spoken and you can easily live just speaking English. We recommend learning 300 – 1000 words of Portuguese and attending a school to better enjoy the local social life.


HealthcareIn Portugal there is a national health

service that is generally excellent, English is widely used as the language of communication. The WHO ranks it world number 12, while Madeira punches far above this in terms of doctor to patient ratios, the UK is number 18 and Germany number 25.

As a resident you will be treated in the same way a Portuguese citizen, although state healthcare in Madeira is free of charge there is sometimes a contribution required. The hospital network consists of 3 units and to make overseas patients feel more comfortable they have been implementing patient monitoring and personalised care programmes.

If you are a national of one of the 27 European Union countries or Iceland, Liechtenstein, Norway or Switzerland, you must show your European Health Insurance Card or EHIC and your passport or identification document in order to gain access to free or the low-cost healthcare.

Overseas citizens holding Portuguese residency permits must be registered at a

health centre and must hold a heath card. Non-EU expats will also need to provide a social security card.

Private healthcare in Madeira is also popular and readily available with over 20 private clinics. Madeira offers the 4th highest doctor to patient ratio in Europe.


Transferring your pension to Madeira

Retirees living in Portugal who are in receipt of a UK or EU State Pension can opt to receive it into their national bank or a Portuguese account.

You may claim your UK state pension by contacting the International Pension Centre in the UK or the equivalent in other EU member states. There are different ways to receive it, either in your own country or directly in Portugal. For non-EU countries it will depend if there is an agreement in place between your country and Portugal.

If you decide to have your UK pension paid into your UK bank account in sterling, the rate received when you transfer it into euros will vary depending on the exchange rate. However, if you use a currency transfer to send euros into your Portuguese account they can set up a regular payment plan for transfers that will help you budget every month.

As you are only too aware in recent months, currencies fluctuate and currency brokers offer better rates than banks. In Portugal the taxation of pensions depends on what type is being used, they differentiate between state retirement and occupational pensions, government service pensions and personal pensions.

If you have complex or multiple pension funds it is advisable that you seek advice from a financial advisor before you relocate to find the most tax efficient way of structuring your assets. It is very important that they look at your investments as a whole, this is where the correct passporting of your retirement funds becomes important.

TOP TIP:

Passporting your pension and investments to Madeira requires a smooth financial planning and we recommend having a professional local review of these matters.



Shipping your goods to Madeira

When consigning freight containers to Madeira, available options include shipping from northern Europe and directly from the UK. Shipping containers is normally a slow process taking several weeks and will add costs to your overall budget. It is also possible to share container shipping costs with another party also relocating to Madeira.

It is important to be aware that containers are shipped to dockside, this means it is

your responsibility to take arrangements to have your goods delivered to the new home from the docks. There are some companies who ship to Portugal, however you will require a Madeira specialist for container shipping to Madeira. Should you decide to purchase furniture here, Madeira has an extensive and quality range of furniture retailers.

TOP TIP:

When planning your move to Madeira you will need an experienced team available to assist you in the big move. Moving to Madeira requires a sea freight container and specialist local experience.

Please contact us, our partners are the specialists.



Working in MadeiraWorking in Madeira is not the same as the

rest of Europe, work will be harder to find than home and it is often a requirement to speak Portuguese. Many Madeirans that have a good job will keep that job for life.

The opportunities for expats looking for work are mainly in the tourist market where fluent English is required and good contacts are important. Many expats choose to either make money from holiday rentals or by starting a business working in tourist activities where good opportunities exist.

Madeira is growing well and those with a flair for business and marketing will find ample rewards.

The biggest employer of the expat community in Madeira is the hotel resort industry, the leading 2 hotels groups of Madeira are ‘Pestana Resorts’ and the Savoy chain who are expanding aggressively in Madeira. Within both of these quality companies exist opportunities for employment within the Vacation Industry where earning can be lucrative.


Renting your property for income purposes

It is common for expats to use their property for business purposes in Madeira. Unlike many other countries there are no restrictions doing this, it is however important to obtain the correct licences and make the correct registrations and tax returns. In order to take full advantage of this lucrative opportunity that Madeira offers, you have to understand the tourist market in Madeira.

The typical Madeira tourist profile is a couple from northern Europe, the typical age group is over 50 years of age. The minimal considerations are quality

accommodation, a good location with sea views offering a sunny south facing veranda. Car Parking is also an important consideration.

Madeira having good weather all year, has no low season, with good marketing and focus, outstanding levels of occupation can be achieved.

A big thank you to Nelio for helping us obtain our ‘holiday renting licence’ Nélio

made it hassle free and very easy”

Dean Flint – Villa Bela Vista

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Nurseries, Primary schools, Secondary education and Universities

Childcare in Madeira is of a very high standard and good quality. The best nurseries attract a waiting list of several months before actual enrolment. A typical cost for a nursery will be from €280 per month with extra activities costing a little more. Madeira has an excellent education system which is made up of 3 cycles starting for children from 6 years old, the primary education is for 4 years, the second education is for 2 years and the final period is 3 years making a total of 9 years of education.

Education is required under law until 16 years of age. From 16 years of age further free state education is optional. With regards to Madeiran and Portuguese

universities, these are of a good standard however parental costs are involved.

The Portuguese take education very seriously and school hours are longer, lessons can be intensive wide ranging and good fun. Bullying is not tolerated in Madeira under any circunstances. There are a large and diverse amount of after school clubs. A private English school exists in Funchal that offers high quality education and teaches English and Portuguese.


Relocate your business or company to Madeira

If you are looking for a preferential tax regime that is fully integrated into the European market and offers the lowest tax rates in the EU, Madeira has what you need. Madeira benefits from special conditions under the EU state aid programme, it is also a ultra-peripheral island economy (This means that generous financial assistance is available).

Madeira is a member of the EU and as such is not on any international blacklist, a

• Incorporation of companies• Transfer of registered seat of companies to and from foreign jurisdictions• Provision of registered office• Boards of Directors/Management and transaction closings• Legal representation (both for corporate and tax purposes)• Full financial services and access into the Madeira Free Trade Zone

company based here can trade here with the EU and the world. The Madeira islands offer an abundant well educated, intelligent and highly competent workforce, the quality of English language is excellent and rates of pay lower than northern Europe.

In Madeira we offerTOP TIP:

Through the Portuguese NHR regime high net worth individuals can relocate to Madeira and enjoy many financial benefits, there is also a great health advantage to living in one of nature’s most beautiful locations.


TOP TIP:

Madeira and its FREE TRADE ZONE offers a corporation tax of just 5%.

Miguel CorreiaMCS Corporate Services


And fi nally, are you ready...

Madeira has so much to offer, is relatively undiscovered and is a great place to live and start a wonderful new life.

If you are considering a property in Madeira, contact us now. We are a team of professionals with the experience to make your dreams come true.

Talk to us today

[email protected] directly on

+351 9666 77630

Author – Robert Webb

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THE MADEIRA › wp-content › uploads › 2018 › 03 › Magazine... · Portugal on the mainland, but none are dedicated to life in Madeira. The archipelago’s feel is quite different