Ukrainian buyers in Madeira face two questions most other buyers never meet: where they are tax-resident, and how the money can lawfully reach Portugal. The purchase itself is open to Ukrainians on the same terms as anyone else. But many Ukrainians have now lived in Portugal for several years, which can change the tax they pay to buy, and Ukraine’s martial-law currency rules shape how a purchase can be funded. This guide sets out the position for buyers looking at homes from EUR 2M, whether they live in Ukraine or already live in Portugal.
On Ukrainian buyers
Your IMT rate, not your passport
Portugal-Ukraine double tax treaty
AIMA, NBU and Portuguese law
Last updated: October 2026
By: Alexander Thornbury
Can Ukrainians buy property in Madeira?
Yes, on the same terms as anyone else. Portugal places no restrictions on foreign buyers, and Madeira, as an Autonomous Region of Portugal, follows national property law. A Ukrainian buyer needs a Portuguese tax number, the NIF, a Portuguese lawyer, and the same documents as any other purchaser. There is no separate procedure and no permission to seek.
Ukrainians are also well established in Portugal. Portugal has issued 59,532 temporary-protection permits to people displaced from Ukraine since 2022, on top of a Ukrainian community that was already one of the country’s larger foreign groups. For buyers living on the island or elsewhere in Portugal, that history matters for one specific reason, covered next: it can change the tax you pay to buy. For the wider market, see our international buyer’s guide to Madeira.
Which tax rate applies to you?
It depends on where you are tax-resident, not on your passport. Since 25 May 2026, a non-resident buying a home in Portugal pays IMT, the transfer tax, at a flat 7.5% from the first euro. A buyer who is already a Portuguese tax resident pays the ordinary rates instead, which in Madeira are lower below EUR 1,438,566 and the same 7.5% above it. Stamp duty of 0.8% applies to everyone.
Portuguese tax residence follows article 16 of the IRS Code: more than 183 days in Portugal in any 12-month period, or a home kept as your habitual residence. A Ukrainian who has been living in Portugal, including under temporary protection, may already meet that test, and would then be a resident buyer for IMT purposes. A buyer coming from Ukraine who moves to Portugal within two years of the purchase can claim back the difference between the 7.5% and the ordinary rate. Our Madeira property tax guide sets out both tables.
| Ukrainian buyer | Already tax-resident in Portugal | Living in Ukraine or elsewhere |
|---|---|---|
| IMT on a home | Ordinary Madeira rates | 7.5% flat; partly refundable if you become resident within two years |
| Stamp duty | 0.8% | 0.8% |
| Portuguese income tax | On worldwide income; Madeira residents at regional rates | On Portuguese income only |
| Funding the purchase | Funds held in Portugal or abroad | Subject to Ukraine’s martial-law currency rules |
How can a purchase be funded?
This is the question to settle first. Under martial law, the National Bank of Ukraine restricts transfers abroad by Ukrainian residents, under its Resolution No. 18 of 24 February 2022. Using funds held in Ukraine to invest abroad has been largely prohibited since then, although the bank has eased its rules step by step, most recently in January 2026. The rules change, and the detail matters.
In practice, that means a Madeira purchase is usually funded from money already held outside Ukraine. Whatever the source, a Portuguese bank, lawyer and agent will ask for a clear account of where the purchase money comes from and how it reached you, under anti-money-laundering rules that apply to every buyer of every nationality. Prepare that file early, and check the current National Bank of Ukraine rules with a Ukrainian lawyer before you commit to a deposit. Our step-by-step buying guide shows where the deposit falls in the process.
What is your right to stay?
It does not come from the property. Portugal removed real estate from its golden visa on 7 October 2023, so buying in Madeira gives no residence right at any price. Ukrainian citizens with biometric passports can visit the Schengen area, including Madeira, for 90 days in any 180 without a visa. People displaced by the war hold temporary protection, which the EU extended to 4 March 2027 and Portugal has extended for its own permits to the same date.
Temporary protection is a protection status with a fixed end date, not a long-term residence route. A Ukrainian buyer who wants a secure long-term base in Madeira should look at a national route, most often the D7 visa for people with regular passive income, and take immigration advice on how to move from temporary protection to it. Our Madeira residency guide sets out the routes.
How are income, gains and inheritance taxed?
Portugal’s rules apply as for any owner. A non-resident pays a flat 25% on residential rent and is taxed on half of any gain at progressive rates, with worldwide income declared to set the rate. A Portuguese tax resident is taxed on worldwide income, and a Madeira resident does so at regional rates 30% below the mainland in every band from 2026, a top rate of 33.6%. The Portugal-Ukraine double tax treaty, signed in 2000 and in force since 2002, prevents the same income being taxed twice. Which country taxes you as a resident is the question to settle with an adviser, particularly after time spent in Portugal.
On death, Portugal has no inheritance tax as such: a 10% stamp duty applies to Portuguese assets, but spouses, partners, children and parents are exempt. Portugal does have forced-heirship rules, which reserve part of an estate for close family. A Ukrainian national can choose Ukrainian law to govern their succession in a will under the EU Succession Regulation, which applies to nationals of countries outside the EU. Make that choice expressly, with a lawyer who knows both systems.
| Event | Portuguese position |
|---|---|
| Rent, non-resident | 25% flat on residential rent |
| Sale, non-resident | Half the gain at progressive rates |
| Income, Madeira resident | Worldwide income at regional rates; top 33.6% |
| Death | 10% stamp duty; close family exempt |
| Double taxation | Portugal-Ukraine treaty, in force since 2002 |
What should you check before you sign?
Three things, in this order. First, your tax residence: if you have been living in Portugal, confirm whether you are already a Portuguese tax resident, because it decides your IMT rate and your tax on worldwide income. Second, the funding route, against the current National Bank of Ukraine rules and with the source-of-funds file ready for the Portuguese side. Third, the property itself: the land-registry certificate, the tax record, the licences, and a survey that covers slope, drainage and fire exposure on Madeira’s steep terrain.
Where to look is a separate decision. Funchal offers schools, services and the deepest supply; the sunny south-west and Porto Santo suit buyers after space or a beach. Our guide to Madeira’s prime areas compares them, and our comparison with the Algarve and Mallorca helps if you are still choosing between markets.
Key takeaways
- Ukrainians buy in Madeira on the same terms as anyone, with a NIF, a lawyer and standard documents.
- Your tax residence, not your passport, sets the IMT: 7.5% flat for non-residents, ordinary rates for Portuguese residents.
- Martial-law currency rules restrict transfers from Ukraine, so purchases are usually funded from money already abroad.
- Every buyer faces source-of-funds checks in Portugal, so prepare the file before the deposit.
- Temporary protection runs to 4 March 2027 and is not a property route; the D7 is the usual long-term path.
- Close family inherit free of Portuguese stamp duty, and a will can choose Ukrainian law for the succession.
Frequently asked questions
Can Ukrainian citizens buy property in Madeira?
Yes. Portugal places no restrictions on foreign buyers, so Ukrainians buy on the same terms as anyone else, with a Portuguese tax number, a lawyer and the standard documents.
Do Ukrainians pay the 7.5% non-resident IMT?
Only if they are not Portuguese tax residents. The rate depends on tax residence, not nationality. A Ukrainian already resident in Portugal pays the ordinary rates; one buying from abroad pays 7.5% and can reclaim the difference by becoming resident within two years.
Am I a Portuguese tax resident if I live in Portugal under temporary protection?
You may be. Portugal treats you as tax-resident after more than 183 days in a 12-month period, or if you keep a home as your habitual residence. Confirm your position with an adviser, because it affects both your IMT and your income tax.
Can I transfer money from Ukraine to buy property in Portugal?
Ukraine’s martial-law rules, under National Bank of Ukraine Resolution No. 18 of February 2022, restrict transfers abroad and have largely prohibited investment abroad, with gradual easing since. Check the current rules with a Ukrainian lawyer before committing.
What documents will a Portuguese bank or lawyer ask for?
Proof of identity, your Portuguese tax number, and a clear account of where the purchase money comes from and how it reached you. These source-of-funds checks apply to every buyer under anti-money-laundering rules.
Does buying property in Madeira give a Ukrainian residency?
No. Property stopped qualifying for Portugal’s golden visa on 7 October 2023. Residence comes from temporary protection, for those displaced, or from a national route such as the D7.
How long does temporary protection last in Portugal?
Portugal has extended its temporary-protection permits to 4 March 2027, in line with the EU decision of July 2025. Because it has a fixed end date, plan a long-term route in good time.
Is there a double tax treaty between Portugal and Ukraine?
Yes. The treaty was signed in Lisbon on 9 February 2000 and has been in force since 2002. It prevents the same income being taxed in both countries.
How is rental income from a Madeira property taxed for a Ukrainian owner?
A non-resident pays a flat 25% on residential rental income in Portugal. A Portuguese tax resident includes it in worldwide income, taxed in Madeira at regional rates 30% below the mainland.
Will my family pay inheritance tax on a Madeira property?
Not in Portugal if they are close family. Spouses, partners, children and parents are exempt from Portugal’s 10% stamp duty on inherited assets. A will choosing Ukrainian law can also govern how the estate is divided.
Where should a Ukrainian buyer look in Madeira?
Funchal suits families and full-time residents, with schools and the deepest market. The sunny south-west and Porto Santo suit buyers after space or a beach.
Sources
- Portal das Finanças – IMT Code, article 17, including the 7.5% non-resident rate added in 2026
- Diário da República – Decree-Law 97/2026 (IMT for non-residents)
- Portal das Finanças – IMI Code, article 112 (IMI rates)
- Portal das Finanças – IMI Code, article 135-F (AIMI rates)
- Portal das Finanças – IRS Code, article 16 (tax residence)
- EUR-Lex – EU Succession Regulation 650/2012
- Diário da República – Law 56/2023 (end of the property golden visa)
- AIMA – temporary protection for people displaced from Ukraine, extension to 4 March 2027 and permits issued
- National Bank of Ukraine – currency restrictions under martial law
- Council of the EU – extension of temporary protection to March 2027
- Ministério Público – Portugal-Ukraine double tax convention (2000)
Figures current at October 2026. Ukrainian currency rules and the temporary-protection framework are changing; confirm your position with a Ukrainian lawyer, a Portuguese lawyer and a tax adviser before you act.
About the author
Alexander Thornbury is a published author who writes on international property, tax and residency for high-net-worth buyers across Europe. His work focuses on the practical mechanics of cross-border purchase: what a buyer actually pays, owes and signs. More at alexanderthornbury.com.