The real estate market in Madeira offers several opportunities for investors looking to obtain a residence permit.
The residence permit for pursuing investment activities, widely regarded as golden visa, was created by the Portuguese government as a means of attracting foreign investment, prompted by troika and the pressing need to collect extraordinary income for the country in order to fight the economic crisis and existing recession, from which Portugal seems to slowly but surely be recovering.
Initially faced with some skepticism, this measure has shown encouraging signs and stimulated the real estate market in Portugal within the residential tourism segment, seeing that real estate investments warrant the issuing of such visas.
A total of 6 visas were granted in Madeira, up until the beginning of May, four of which were due to real estate investments and two due to capital transfer.
Up until the month of May, a total of 894 residence permits were granted throughout the country, representing an overall investment of €543 million of which €495 million in the real estate sector. Since the establishment of the programme in 2012 and until March, figures indicated the concession of 781 residence permits, which means that in April 2014, a total of 113 golden visas were granted mainly due to real estate investments.
Gathered data seems to reveal the above as a preferred option, as an increased number of requests, mainly by Chinese nationals, are being submitted. A total of 732 Chinese investors were granted a visa up until May, followed by Russians with 31 permits, Brazilians with 24 and Angolans as well as South-Africans with 16.
Residence permits, settled by Law n.29/2012 of August 9th and A/2012 and 1661-A/2013, have opened up the possibility for foreign citizen investors to apply for a residence permit for pursuing investment activities by transferring capital, creating jobs or acquiring real estate.
Regarding the real estate sector, the law, in addition to other requirements, defines a quantitative ceiling concerning the investment, which requires property acquisition to be equal or superior to 500 thousand euros, which may also be purchased via co-ownership, as long as each investor advances the stipulated amount or more.
Potential investors have a number of decent and varied property options which qualify for the issuing of a residence permit for pursuing investment activities, in urban areas or quieter precincts, countryside or seaside, apartments or detached houses.
The Autonomous Region of Madeira, land of great tourist attractions and the art of hospitality, gathers all the requirements for a good investment. In addition to safety, warm climate, good connecting flights between the island and the rest of Europe, as well as other economic factors, which seem to be showing increasingly positive signs, and others such as hospitality, all are key factors for a safe investment, when compared to other markets. A Free Trade Zone and the International Business Centre of Madeira offer several options and tax benefits.
The real estate market in Madeira, regarded as an interesting one for the objectives of the programme, not only in the housing sector but also in the hotel industry, offers several options for those who wish to purchase real estate within the parameters of residence permit for pursuing investment activities, within Funchal or other more rural and calmer municipalities.
Looking through several real estate companies’ websites, we realize that in the particular case of Funchal, several options include apartments located in noble areas, on the top floors of tall recent buildings with typologies ranging from T3 onwards and prices starting at €545 thousand and reaching up to €1.1 million.
Regarding detached housing options, they are mainly located in areas with a view over Funchal or noble areas, with typologies ranging from T3 onwards and target public prices between €570 thousand and €2.5 million, though many reveal prices upon request.
Outside of Funchal, options are mainly, if not entirely, of detached housing located on the south coast of the Island of Madeira and in particular, the municipalities of Santa Cruz, Ponta do Sol and Calheta, in addition to a few others on the Island of Porto Santo. These houses range from T3’s onwards and are located in areas which make the most out of their surrounding environment such as the stunning views and sunlight. The above mentioned options usually include swimming pools complete with substantial gardens and outdoor leisure areas. Suggested prices are not far from the ones quoted in Funchal, ranging between €55 thousand and €1.7 million.
