Property/ Real Estate Exemption of IMT Purchase Tax:
Urban or residential property valued up to €115.509 Euros is exempted from paying the IMT Tax for permanent residents.
A table of IMT PURCHASE TAX for 2012 may be viewed below of the Madeira Real Estate for Permanent Residents.
(People who reside in Madeira Island for 6 months and more during the year)
Value of Residential Property | % Tax | Deductible Amount |
Up to €115.509 | 0% | €0.00 |
From €115.509 up to €158.004 | 2% | € 2.310,18 |
From €158.004 up to €215.435 | 5% | € 7.050,29 |
From €215.435 up to €359.016 | 7% | € 11.358,99 |
From €359.016,25 up to €717.903,75 | 8% | € 14.949,15 |
Over and above €717.904 | 6% ONLY | €0.00 |
For Example: For a property price of €150,000 00:
€ 150.000,00 x 2 % = € 3,000.00
€ 3,000.00 - € 2,310.18 = € 689.82 IMT Tax payable
Table of IMT Purchase Tax for 2012 on Madeira Real Estate for Non-Permanent Residents
(People who reside in Madeira Island for less than 6 months in the year)
Value of Residential Property | % Tax | Deductible Amount from % Tax |
Up to €115.509 | 1% | €0.00 |
From €115.509 up to €158.004 | 2% | € 1.155,09 |
From €158.004 up to €215.435 | 5% | € 5.895,20 |
From €215.435 up to €359.016 | 7% | € 10.203,90 |
From €359.016 up to €688.544 | 8% | € 13.794,06 |
Over and above €688.545.00 | 6% ONLY | €0.00 |
For Example: For a property price of €150,000 00:
€ 150.000,00 x 2 % = € 3,000.00
€ 3,000.00 - € 1,155.09 = € 1,844.91 IMT Tax payable
Stamp Duty - 0.8% Calculated on the purchase price of your residential property/Real Estate when purchasing in Madeira.
Annual Municipal Tax On Property Real Estate Madeira- IMI Tax
Since January 2004, annual taxes on property are now called IMI (Imposto Municipal sobre Imóveis) and is calculated on a market related evaluation by the municipality where the property is located.
-Rustic and Agricultural land - 0.8%
-Urban (houses, construction, land) - 0.4% to 0.8% (Funchal = 0.8%)
-New property registered after 13/11/2003 - 0.2 to 0.5% (Funchal = 0.35%)
Example: New property with a value of €125.000 will be subject to an annual tax of €437.50.
Residential property valued up to €225.000 may be exempted for 3 - 6 years.
Property owners of older properties can contest the new valuation and demand a re-valuation and if necessary, impose legal action.