LIVE & INVEST IN MADEIRA ISLANDS

IN MADEIRA

Abel Garrido is Area Manager for Lisbon of which are part of the most elegant and desired residential areas of the Portuguese Capital and its Region. From the Historic neighborhoods of Chiado, Lapa or Santos, from the Capital Of Lisbon, to the world known areas of Cascais, Estoril or Sintra, passing through so many other areas where living is something very special in Portugal.

Abel Garrido began his career in the Real Estate Market in 2006, standing out for his careful, warm and rigorous service. With it, it is possible to make the best sale deal or the best acquisition. He is always ready to satisfy your dream and need in Real Estate, being trust, efficiency and care in the details, the key words of his performance.

The Markting and Advertising he use are high profile, enabling you to get the perfect transaction for the right amount.

With Abel you can communicate in English, French, Portuguese, Spanish or Italian, making dialogue and all communication easier. With a whole career associated with the Luxury markets, he has a background as Interiors Architect and Interior Designer, having developed his activity in various places in Switzerland and In Paris where he lived. These capabilities allow a special look at any properties and their commercial or estectic potential.

Passionate about travel, different cultures and gastronomy, he is known for his culinary skills, and for the pleasure he has in welcoming friends. Sun, and beach are other passions of is life.

LOOKINK FOR OPPORTUNITIES

ME

GARRIDO + 351 96 848 90 21 AGarrido@nestseekers.com AMI 18708

Golden Visa MADEIRA 2022

Why Choose Madeira

The 2022 Golden Visa changes have created the biggest shake up since the scheme began.

Here is a summary of why we think Madeira is a top choice for Golden Visa property investment in 2022 and beyond.

•No change in Madeira property investment thresholds (normal: €500,000 and rehabilitation: €350,0 00)

•Good investment opportunities available, including an interesting rehabilitation zone covering some of central Funchal (best rental income ROI potential)

•Madeira shot to fame during 2021, thanks to widespread press coverage of the island as part of the digital nomad village initiative.

•People in Madeira speak good English, thanks to a combination of a strong tourism environment and compulsory English education from primary school level onwards.

•Madeira is generally less bureaucratic than the mainland, especially compared to major cities. This is important in general, but especially when it comes to making your citizenship application after five years of Golden Visa residency.

•In 2022, new Golden Visa property investors have a choice of central Portugal, Madeira, and the Azores. Central Portugal is a large area, but, in general, weather and travel connections can be varied. The Azores are far flung, have fewer facilities and worse weather conditions. Madeira is a clear winner on this list.

Best locations for property

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Madeira Golden Visa: Best locations for property

• Two factors play a key role in location decisions in Madeira: 1) hills, and 2) the banana line

• Thousands of years ago, Madeira was part of a volcano. As a result, the island has no shortage of (extremely steep) hills and many areas are accessible only by car.

• Driving on Madeira can be challenging, with many sheer drops and steep curves. This is one of the key pitfalls of buying property in Madeira.

• Luckily, it’s possible to avoid this by sticking to the highway network and the flat areas near the sea. If you live in central Funchal, you can skip car ownership altogether, as everything is on the doorstep.

• What’s more, the further up the mountainside you go, the cheaper properties tend to become. But the tradeoff is that they’re also less accessible and have less potential for holiday rentals.

• The widely-held wisdom among Madeiran locals is to only buy below the ‘banana line’ – not more than 200-300 meters above sea level.

• This is because the weather gets a lot cooler and damper above this point.

• If you want the full benefit of Madeira’s year round summer, then your safest bet is to stick to the south coast and buy below the banana line.

• Prices in Madeira are generally lower than Lisbon, Porto or popular areas of the Algarve. Funchal is the priciest area of the island, followed by Ponta do Sol.

• The north coast is more affordable, but weather is less stable and can be colder.

• However, if you like a quieter life then it could be worth exploring. If you have a car, everywhere in Madeira is accessible within around 90 minutes of driving.

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Funchal

• Funchal is still the top destination on the island for buying a property to rent out for tourism purposes.

• We recommend targeting the following locations, to find the best combination of value for money and convenience.

• If you’re buying to rent, keep in mind that most tourists don’t want to tackle steep hills. Instead they typically prefer to be as close as possible to the seafront.

• Praia Formosa.

• A little farther out of Funchal, Praia Formosa is still an easy ten min drive from the town center.

• There are frequent buses and a flat seaside walking route into town, although it takes around an hour on foot.

• You can get a quieter lifestyle here with easy access to the Lido area and a major shopping center.

• Praia Formosa also has a black sand beach, great for seaside walks, and you can find apartments with excellent ocean views.

Best locations

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Camara de Lobos

• This up-and-coming area just outside Funchal has plenty of bargains, but you’ll want to stick near the seafront area for the best rental potential, and to avoid any large hills.

• That’s why for everyday living in this area, it makes sense to have a car.

• Ponta do Sol (PDS)

• This small village got itself on the map in 2021 by playing host to the Digital Nomad Village initiative.

• It’s also one of the warmest spots on the island and has some amazing sea and mountain views.

• Located around 20 minutes’ drive from Funchal, PDS is a good bet for those wanting a quieter lifestyle.

• However, the village itself is rather limited, with two restaurants, one coffee shop, and a bar. It also lacks a proper supermarket, so you’ll probably find yourself driving into Funchal on a regular basis.

• Nevertheless, you’ll find some stunning properties in the area.

• Garajau

• Heading back towards the east of the island, we find Garajau, a close neighbor to Funchal. Still within easy reach of the center (by car), Garajau has seafront views and some good property bargains can be had there.

• It’s also on the right side of Funchal for the airport, useful if you need to travel regularly.

• Machico

• This town on the east side of the island has affordable property prices, a lively international community and is conveniently located for the airport.

• You’ll need to drive for easy reach of Funchal and other towns, but Machico has plenty of its own facilities, even a small golden sand beach.

Lifestyle benefits of Madeira

of Madeira

Property Taxes

Here’s the full lowdown on the taxes payable when buying property in Portugal.

When purchasing property anywhere in Portugal, including Madeira, you’ll need to pay several taxes. There are three taxes for property: the municipal property tax (IMI), the municipal real estate transfer tax (IMT), and stamp duty (IS). In the section we’ll examine these taxes one by one.

Also, we’ll provide a simulation of how much you can expect to pay in taxes at the time of purchase, for both levels of Madeira Golden Visa investment.

All information submitted cannot be considered definitive and must always be confirmed on a case-by-case basis, depending on the situation in question

Municipal Property Transfer Tax (IMT)

This tax is imposed on the real estate transaction itself, every time a property is purchased in Portugal. IMT (Imposto Municipal sober as Transmissões Onerosas de Imóveis) is calculated either on the tax value of the property or the value declared in the deed of sale, whichever is higher.

IMT is payable before buying a property. Three key factors are involved in calculating it:

•Type of property, either rural or urban

•Location of the property, either mainland Portugal or the autonomous regions (like Madeira)

•Purpose of the property, either main residence or secondary Certain IMT exemptions are available, but they won’t apply to Madeira Golden Visa applicants, as the Golden Visa investment value is too high.

Stamp Duty on Purchase

This tax is imposed on the purchase and sale of property. The buyer of the house pays this tax when they sign the deed. Stamp duty for purchase and sale is 0.8% of the total property value. There’s also stamp duty on mortgages, but that won’t apply to you as a Golden Visa investor.

Several reductions may be available, depending on your specific situation. We recommend consulting a Portuguese accountant to discuss this in more detail.

Municipal Real Estate Tax (IMI)

There’s one more property related tax to be aware of, but unlike the other two, it’s not payable at the moment of purchase. It’s called IMI (Imposto Municipal sobre Imóveis). IMI is calculated on the value of the property, and must be paid every year starting from the moment you acquire the property. It’s the equivalent of council tax in the UK. IMI levels vary according to whether the property is classed as urban or rural. For urban properties, IMI ranges from 0.3 to 0.5, and for rural properties it’s 0.8 %. In the next section, we’ll give you an example of how stamp duty and IMT would look for the two Golden Visa property investment levels available in Madeira.

Nest Seekers International

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The firm’s hybrid tech & brand enabled model has inspired a new wave of thinking in the industry, and its approach to daring and unconventional marketing has elevated and revolutionized the way people think of real estate.

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Creativity, ingenuity, quality and passion in service are the fundamentals to our success and growth.

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