Buying a home in Madeira gives you no right to live there, and that has been true since October 2023. Whether you can stay, and for how long, depends on your passport, not your property. EU and Swiss citizens can move freely. British, American and other non-EU buyers have 90 days in any 180 and need a visa to stay longer. This guide, written for buyers of homes from EUR 2M, sets out the routes, the point at which you become a Portuguese taxpayer, and what Madeira’s lower regional income tax does and does not do for you.
Since 7 October 2023
Days for non-EU visitors
Top rate, Madeira residents
Portuguese law and AIMA
Last updated: October 2026
By: Alexander Thornbury
Does buying property give you residency?
No. Portugal removed real estate from its golden-visa programme on 7 October 2023, under Law 56/2023, the “Mais Habitação” housing package. The change covered property bought directly and investment funds that put money into real estate, and it has not been reversed. A Madeira villa at any price is a home, not a residence permit.
That matters because a lot of older advice still circulates. Guides written before 2023 describe property-linked residency as the standard route into Portugal. That advice is out of date. The useful question is now the one this guide answers: given your passport, what lets you live on the island, and what does living there do to your tax? For the wider buying picture, see our international buyer’s guide to Madeira.
Which route fits your passport?
EU and EEA citizens have free movement. You can live in Madeira without a visa and register your residence after three months. Swiss citizens have the same in practice under the free-movement agreement between Switzerland and the EU. For these buyers, residence is an administrative step, and the real decision is about tax.
Everyone else starts from the Schengen rule: 90 days in any 180 without a visa, which covers British, American and Ukrainian passport holders. To stay longer you need a national visa and then a residence permit from AIMA, the agency that replaced SEF in 2023. For an owner with investment income, pensions or rental income, the usual route is the D7. Ukrainians displaced by the war also hold temporary protection, which Portugal has extended to 4 March 2027; it is a protection status, not a property route. Our corridor guides cover each passport in detail, including the UK, the US, Ukraine and Switzerland.
| Passport | Right to stay in Madeira | Usual route to live there |
|---|---|---|
| Germany, Austria and other EU | Free movement | Register residence after three months |
| Switzerland | Free movement under the EU agreement | Register residence |
| United Kingdom | 90 days in any 180 | D7 visa, then a residence permit |
| United States | 90 days in any 180 | D7 visa, then a residence permit |
| Ukraine | 90 days in any 180; temporary protection to 4 March 2027 for those displaced | D7 or another national route for the long term |
How does the D7 visa work?
The D7 is Portugal’s visa for people with regular passive income: pensions, dividends, interest, rent. The income bar is pegged to the Portuguese minimum wage, EUR 920 a month on the mainland in 2026, which for this buyer is no bar at all. What the consulate looks at is whether the income is regular and provable, whether you have somewhere to live, and whether you mean to spend real time in Portugal. A home you own in Madeira can serve as the accommodation the application asks for.
The visa gets you in; AIMA then issues the residence permit. Plan the timing around your tax year rather than the other way round, because the move that makes you a resident for immigration purposes will usually make you a Portuguese tax resident too. That is the next section, and the one with the money in it.
What is left of the golden visa?
A golden visa still exists, but it no longer touches property. The main route is a EUR 500,000 investment in a qualifying Portuguese investment fund, and funds that invest in real estate do not qualify. Smaller routes cover research, culture, company creation and job creation. For a buyer who wants a Madeira home and a Portuguese residence permit without moving full-time, that means two separate transactions: the house, and the fund.
American buyers should take US tax advice before choosing the fund route. Portuguese golden-visa funds are generally treated as passive foreign investment companies for US tax, which brings annual reporting on Form 8621 and, without the right election, a punitive regime on gains. It is manageable, but only if it is planned from the start.
When do you become tax-resident?
Sooner than many people think. Portuguese law treats you as resident if you spend more than 183 days in Portugal in any 12-month period that starts or ends in the tax year, or if you spend fewer days but have a home in conditions that suggest you intend to keep and live in it as your habitual residence. Any day with an overnight stay counts. So a well-kept Madeira house, a car and a pattern of long stays can make you resident before you reach 183 days.
Once resident, Portugal taxes your worldwide income. In Madeira that comes with a real discount: from 2026 the region cuts every national income-tax band by 30%, so the top rate is 33.6% against 48% on the mainland. A non-resident owner gets none of that and pays the flat non-resident rates on Portuguese income instead. Our Madeira property tax guide sets out both positions.
| Tax position | Non-resident owner | Madeira tax resident |
|---|---|---|
| What Portugal taxes | Portuguese-source income and gains | Worldwide income |
| Income-tax rates | Non-resident rates (25% flat on residential rent) | Regional bands, 30% below the mainland; top 33.6% |
| IMT on a home | 7.5% flat | Ordinary Madeira table |
| Special regime | None | IFICI, only for qualifying professions |
Is there still a tax regime for newcomers?
Not the one most people have heard of. The non-habitual resident regime, the NHR, closed to newcomers in 2024. Its successor is IFICI, set out in article 58-A of the Tax Benefits Statute, and it is far narrower. It offers a 20% rate on qualifying employment and self-employment income for 10 years, to people working in listed research, innovation and specialist activities who were not Portuguese-resident in the previous five years. It is not designed for retirees or for people living on investment income.
For most buyers who move, the honest summary is this: Madeira’s regional rates are the benefit, and they are substantial at the top. A Madeira resident paying 33.6% at the margin is in a very different place from one paying 48% in Lisbon. Whether moving makes sense depends on what your home country taxes when you leave, which our corridor guides cover, and on the purchase itself, which our step-by-step buying guide walks through.
Key takeaways
- Property buys no residency in Portugal, and has not since 7 October 2023, including real-estate funds.
- EU and Swiss citizens move freely; British, American and Ukrainian visitors have 90 days in any 180.
- The D7 is the usual route for owners with passive income, and a home in Madeira can serve as the required accommodation.
- The golden visa survives as a EUR 500,000 fund route, separate from any property, with US tax traps for Americans.
- Tax residence can start before 183 days if your Madeira home looks like your habitual residence.
- Madeira residents pay income tax 30% below the mainland, a top rate of 33.6%; the NHR is closed and IFICI is narrow.
Frequently asked questions
Does buying property in Madeira give me residency?
No. Portugal removed real estate from its golden visa on 7 October 2023, including funds that invest in property. Owning a home in Madeira gives no right to live there; your passport and a visa or registration do.
Can I still get a Portuguese golden visa through property?
No. Neither direct property purchases nor real-estate funds qualify any more. The remaining main route is a EUR 500,000 investment in a qualifying Portuguese fund that does not invest in real estate.
What is the minimum investment for Portugal’s golden visa now?
The main route is EUR 500,000 in a qualifying Portuguese investment fund. Other routes cover research, culture, company creation and job creation. None involves buying a home.
Do EU citizens need a visa to live in Madeira?
No. EU and EEA citizens have free movement and can live in Madeira without a visa, registering their residence after three months.
Can Swiss citizens live in Madeira?
Yes. Under the free-movement agreement between Switzerland and the EU, Swiss citizens can live in Portugal and register their residence much as EU citizens do.
How long can British and American owners stay without a visa?
Up to 90 days in any 180-day period across the Schengen area, which includes Madeira. Owning property does not extend that. Longer stays need a national visa, usually the D7, and then a residence permit.
What income do I need for a D7 visa?
Regular passive income at least equal to the Portuguese minimum wage, EUR 920 a month on the mainland in 2026. The consulate also looks at whether the income is provable and regular, your accommodation, and your intention to spend real time in Portugal.
Can Ukrainians live in Madeira?
Ukrainian biometric passport holders can visit for 90 days in any 180. Those displaced by the war hold temporary protection, which Portugal has extended to 4 March 2027. For the longer term, a national route such as the D7 is the usual path.
When do I become a Portuguese tax resident?
When you spend more than 183 days in Portugal in any 12-month period, or earlier if you hold a home in conditions that suggest you intend to keep it as your habitual residence. Any day with an overnight stay counts.
Is the NHR regime still available?
Not to newcomers. The NHR closed in 2024. Its successor, IFICI, gives a 20% rate for 10 years on qualifying employment and self-employment income, but only for listed research, innovation and specialist roles. It does not cover retirees or investment income.
Do Madeira residents pay less income tax?
Yes. From 2026 Madeira cuts every national income-tax band by 30%, giving a top rate of 33.6% against 48% on the mainland. It applies only to Madeira tax residents, who are then taxed on worldwide income.
Sources
- Portal das Finanças – IRS Code, article 72 (25% on non-residents’ residential rent)
- Portal das Finanças – IRS Code, article 16 (tax residence)
- Diário da República – Law 56/2023 (end of the property golden visa)
- Diário da República – Regional Legislative Decree 8/2025/M (Madeira Regional Budget 2026)
- Jornal Oficial da Região Autónoma da Madeira – Despacho 19/2026, income-tax tables for 2026 with the 30% regional reduction
- Diário da República – Resolution of the Council of Ministers 53-A/2026 (temporary protection)
- AIMA – residence permits and temporary protection for people displaced from Ukraine
- DGERT – minimum monthly wage for 2026
- Council of the EU – extension of temporary protection to March 2027
- Portuguese consular services – national visas, including the D7
- IRS – passive foreign investment company reporting (Form 8621)
Figures current at October 2026. Portuguese immigration and tax rules have changed repeatedly since 2023; confirm your position with a Portuguese immigration lawyer and tax adviser before acting.
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.