Golden Visa in Funchal, Portugal

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Funchal, the capital of Madeira has been steadily gaining in popularity with investors since last year. Despite the impact of COVID-19, the Portuguese Golden Visa program still managed to achieve impressive results in the island. Moreover, since from January 2022 onwards the island of Madeira will be one of very few locations still eligible for the Golden Visa Program, it is obvious that the new Golden Visa regulations will boost Funchal’s appeal yet again, along with property prices.

CHECK REAL ESTATE IN MADEIRA

Where to buy property in Funchal?

The following locations stand out as favorite investment sites:

Sé – in downtown Funchal, this is the hub of the city. A perfect area for holiday rental as well as for everyday living. Some parts of Sé are included in the municipal rehabilitation zone, so If you’re thinking about a €350,000 Golden Visa investment, it’s a good place to start.

Santa Maria Maior – a tourist-friendly area, and a good bet for short-term rentals (Airbnb).

São Pedro – adjacent to Sé, it still incorporates some parts of the prime central area. A more residential feel.

São Martinho – A large district that incorporates a seaside zone. This includes hotels, restaurants, and beach clubs.

Lido – a popular spot for visitors. Great rental potential, with many new developments; some already available, some under construction.

Praia Formosa – an easy ten minutes’ drive from the town centre. Offers a quieter lifestyle with easy access to the Lido area as well as a major shopping center. You can find apartments with excellent ocean views.

Check Apartments in the city centre of Funchal

What are the Investment Opportunities in Funchal?

The Golden Visa Program provides two clear and well-defined paths for investment:

The €500,000 track – which offers the widest range of real estate assets choices, whether in Funchal or elsewhere.

The €350,000 track – where it’s possible to invest in a property for rehabilitation or renovation in one of the official rehabilitation zones, like in the Sé neighborhood in Funchal, and elsewhere.

Funchal, the capital, is not only the prime tourist attraction, but also the de facto center – politically, economically and academically – of the island. With a population of more than 110,000 people, it is home to 42% of the island’s population.

The city has been conducting, since 2017, a major urban rehabilitation program, offering significant tax benefits to the private sector as an incentive for investing the funds required for this purpose.

Besides, if you conduct this business through the MIBC (Madeira International Business Center), you will benefit from a 5% corporate tax rate (on the taxable income derived from abroad) instead of the normal 21% rate.

All these tax incentives may be integrated with your real estate investment on the island, as well as with the Portugal Golden Visa and Non-Habitual Tax Resident status.

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Why work with DRP Advisers?

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• DRP Advisers have had a presence in Funchal for many years;
• Our local teams possess an extensive market expertise;
• The company has been a stable factor in the real estate sector;
• We have an extremely successful track record with sellers and buyers alike;
• We observe a strict International Code of Conduct.

Contact us for a free consultation call.