Buying or Renting Property in Portugal

MCS coordinates every stage of a property acquisition or lease, working alongside an independent network of experienced real estate agents, lawyers, architects, surveyors and banking professionals. The team assists with acquisition due diligence, document review and contract negotiation, support with financing, tax planning, company structuring where appropriate, and post-acquisition compliance.

Independent legal advice is essential when buying or leasing property in Madeira. Before signing a promissory agreement, a lease or the final deed, an independent lawyer should verify the property’s legal status, ownership, registrations, licences, planning compliance, existing charges and the terms of the transaction. This due diligence helps reduce the risk of disputes, undisclosed liabilities or regulatory issues after completion.

MCS works with lawyers who are independent from real estate agents, property developers and contractors. That separation helps ensure that expatriates, international investors and businesses receive objective legal support focused solely on their own interests when purchasing or renting residential or commercial property in Madeira or Porto Santo.

MCS covers both residential and commercial property in Madeira and Porto Santo, from apartments and luxury villas to commercial offices, retail units, warehouses and hospitality properties. The support applies whether you are relocating to Madeira, purchasing a permanent home, acquiring an investment property, leasing office space or establishing business premises.

Yes. Where a property is intended for short-term tourist accommodation, known in Portugal as alojamento local, MCS can coordinate the relevant administrative, tax and compliance procedures. Assistance may include registration formalities, tax enrolment, VAT and income-tax compliance, invoicing requirements, guest-reporting obligations and ongoing liaison with the competent authorities, subject to the property’s eligibility and the applicable local rules.

When buying property in Madeira, purchasers should generally budget for IMT (Municipal Property Transfer Tax) and stamp duty. IMT is calculated by reference to the higher of the purchase price and the property’s taxable value, with the applicable rate depending on the property’s classification and intended use. Stamp duty on the acquisition is generally charged at 0.8% of the relevant taxable value. Additional costs may include mortgage and bank charges, deed and land-registry costs, legal fees and real-estate agency fees. After completion, annual IMI (Municipal Property Tax) may also apply, at a rate set by the municipality where the property is located. Certain exemptions or reduced rates may be available, including for qualifying young buyers acquiring their first permanent home.