Property as an investment
Whether you use or rent a holiday property yourself, investing in a carefully selected apartment or house in Madeira is definitely a solid investment. The average square meter price for an apartment is 1250 euros, well below Central European level.
The real estate boom of other European holiday resorts has not yet reached the island. However, in recent years, construction activity has increased significantly with the need for housing. Locations with sea views or further inland in a beautiful landscape are particularly popular. Near the capital Funchal or in Funchal itself, prices are much higher.
If you do not really want to build a new building you should look around the resale market. Especially now you can find plenty of bargains. In the medium and long term, construction and housing prices in Madeira are expected to rise, and so will resale values. Those who also rent out their holiday property can achieve returns of 6% or more.
Renting a holiday property
Apartments and houses are very easy to rent in Madeira. There is a double taxation agreement with the Federal Republic of Germany. Therefore, all rental income is taxed in Portugal. With the tax payment to the Portuguese tax office, no further tax claims arise in Germany.
The simplest way of taxing the rent is the so-called "regime simplificado". As a small owner, the landlord pays 28% tax on 35% of gross rental income (i.e. 9.8% of gross rental income). Therefore, expenses cannot be deducted. This applies an annual turnover up to 200 thousand euros. Professional accounting is not required. However, revenue must be properly recorded.
Buying a property
The purchase of a property in Portugal should always be accompanied expertly. We are happy to help you not only with the selection of your dream apartment or your dream house, but also to accompany you through the entire purchase process. We work with a well renowned law firm that specialises in real estate purchases. All necessary details such as ownership, building permit, usage permit or the presence of loads or basic collateral are being thoroughly checked. By the way: in Portugal, the seller pays the entire brokerage fee.
Taking care of your holiday property
The care of your property is also in the best hands with us. We work with professional facility management companies that keep your dream home and all its facilities in good shape. For both owner-occupancy and rental, our partners take care of maintenance, cleaning, laundry and all necessary repairs, so that you and your guests feel completely at home. Take a look at our rental homepage.
The standard of living
There are many things, that make is so wonderful to live in Madeira. The island has an excellent infrastructure. You can reach any place on the island by car via the expressways. The public transport network is also well developed. With the city buses you can get to any place at reasonable prices. There are also some cable cars, plenty of taxis and plenty of ways to rent a car.
The average household income of the residents, at just over EUR 20,000, is well below the European average. In this respect, the inhabitants depend on reasonable priced goods and affordable groceries.
A freshly caught trout at the local market will set you back about 2 euros. In one of the cafes you can enjoy an espresso with a small cake for Euro 1.50 and that even includes a service charge.
A visitor of a medium-priced restaurant can get al meal for 10 to 12 euros, including a drink. In the capital Funchal there are several large shopping centers with exquisite fashion shops, restaurants and cafes and well-stocked supermarkets.
Even night owls are being catered for money's worth, especially in the capital Funchal. If you want to immerse yourself in the nightlife, you can start the evening with a good meal: a visit in one of the excellent restaurants of the old town of Funchal.
Afterwards you might go to the Casino de Madeira or to one of the many bars, discos and nightclubs of the capital. Healthcare is in line with Central European standards. There are many health centres scattered all over the island, and another on Porto Santo. Some are equipped for emergency care. Almost all private hospitals have an emergency service. There are also numerous English-speaking doctors and dentists.
Madeira, and in particular the capital Funchal, is probably the cleanest place in Europe. Unlike most European capitals, there is virtually no crime in Madeira, so you are safe at any time. There is not a single area on the whole island for you not to feel save.
