Madeira neighborhood guide
Funchal property guide for foreign buyers (2026)
The capital and largest city of Madeira — port, cable car, levada trails, the Old Town and the central market. The densest foreign-buyer stock on the island.
Median price / m²
€3,380
Rental / m² / month
€13
Gross yield
4.6%
Foreign-buyer share
36%
Who buys in Funchal
Foreign IFICI-eligible remote workers, retirees, and digital nomads. Average ticket €350k-€780k for apartments.
Transport and access
Madeira airport (Cristiano Ronaldo) 18 km / 25 min by car. Bus network across the island. Ferry to Porto Santo island.
Lifestyle, services, and amenities
Mercado dos Lavradores, Funchal cable car to Monte, Jardim Botânico, downtown restaurants, Reid's Palace Hotel, Madeira embroidery shops.
Property types in Funchal
Mix of 1970s-2010s apartment blocks (70-150 m²), some restored old-town stock, premium developments in São Martinho parish.
Cost-to-buy: IMT + Stamp Duty + notary
Use the calculator below to model the exact IMT, Stamp Duty (0.8%), and notary estimate for your specific purchase price in Funchal. The calculator uses the 2026 mainland Portugal brackets and handles primary residence vs other and resident vs non-resident scales.
Portugal IMT calculator (2026 brackets)
Property transfer tax + Stamp Duty + notary estimate on a Portuguese urban residential purchase. AT 2026 mainland brackets.
Estimated total transaction tax
€13,081
4.84% on top of the purchase price
- IMT (property transfer tax)
- €9,718
- Effective IMT rate
- 3.59%
- Marginal IMT bracket
- €194,458 – €324,058 @ 7.0%
- Stamp Duty (0.8%)
- €2,163
- Notary + registry (estimate)
- €1,200
Estimates based on Autoridade Tributária (AT) 2026 mainland brackets. Real IMT charged at escritura may differ if the assessed tax value (VPT) exceeds the purchase price, in which case AT charges on the higher number. Confirm with your Portuguese lawyer before closing.
Next steps
For the full buying process from offer to keys, see our complete buyer guide for foreigners. For mortgage rates and LTV for non-residents, see our mortgage guide. For the Portuguese tax-residency framework see our NHR / IFICI guide.
Other Madeira neighborhoods
São Martinho
€3,980/m²
Premium residential parish of Funchal west of the city centre — Hotel Zone, Lido swimming complex, ocean-view apartment belt, and the densest 5-star hotel concentration in Madeira.
Estreito de Câmara de Lobos
€2,780/m²
Hill town above Câmara de Lobos — Madeira wine vineyards, sweeping Atlantic views, lower-density and meaningfully lower pricing than Funchal coastal stock.
Calheta
€2,940/m²
Sunniest municipality on Madeira's south-west coast — artificial yellow-sand beach, Casino da Calheta, growing foreign-buyer presence since 2020.
Caniço
€2,840/m²
Eastern Funchal-suburb-now-town — closer to the airport than Funchal centre, growing residential mid-rise belt, value-tier alternative to Funchal proper.