How much should you budget for a property purchase in addition to the purchase price?

Yes. In addition to the price of the property itself, you should generally allow another 8–10% for taxes and transaction costs when buying in Madeira.

The main costs are IMT (property transfer tax) and Imposto do Selo (stamp duty). Together, they usually amount to around 7–8% of the property value, although the exact rate depends on the purchase price, the type of property and the buyer's status. Both taxes are paid before completion, prior to signing the documents before the notary.

The next step is the notarial formalities and registration of ownership, which cost approximately €1,000 regardless of the property price. If the transaction is complex and requires an extended legal due-diligence review, professional fees may reach €1,500.

Example.

For a property priced at €500,000, the additional costs above the purchase price may range from €39,000 to €47,000, depending on the complexity of the transaction.

I always calculate the client's full budget in advance, before the first viewings, so there are no unexpected costs at the closing stage.

Viktoria Pavlovskaya — private real estate and investment expert in Madeira. Consultation is free, with no obligation.