Alojamento Local Investment in Madeira. What are the benefits and is it for you?

Madeira is an autonomous region of Portugal located off the northwest coast of Africa. It is a beautiful and unique island destination, known for its stunning landscapes, mild climate, and rich culture. Just a few hour's flight from a host of major European cities, Madeira has become a popular destination, not just for tourism, but for ex-pats, remote workers, and Digital Nomads to relocate, or purchase a second home.

In this article, we’ll look at the advantages of investing in Madeira, and how renting your property as Alojamento Local, or holiday rental, through Airbnb or Booking.com, can offer substantial returns on your investment and supplement your income.

As an island economy, which relies heavily on tourism, Madeira is an excellent location to invest in property to rent out via Alojamento Local. Here are a few of the reasons why:

High Demand for Tourism:

Madeira is a popular, year-round, tourist destination attracting millions of visitors each year. The island is known for its stunning natural beauty, temperate climate and ocean, and unique culture, making it an attractive destination for both domestic and international tourists. Investing in property in Madeira can offer high rental yields throughout the year, as opposed to other continental destinations which see more seasonal levels of tourism.

Stable Property Market:

The property market in Madeira has remained stable in recent years, with moderate price increases and a low risk of a housing bubble. This stability makes investing in property in Madeira a relatively safe investment option. As an island economy, Madeira is insulated from wider economic instability and the effects of turbulence on the mainland are limited due to its autonomous status.

Tax Benefits:

Portugal offers a range of attractive tax benefits to those who invest in property in the country, and Madiera offers even more incentives. These benefits include reduced taxes on rental income, reduced capital gains taxes, and a non-habitual resident program that provides tax exemptions for retirees.

Growing Economy:

Madeira has a growing economy, with a focus on tourism, agriculture, and technology. This economic growth has led to an increase in demand for property in the area, making it a potentially lucrative investment.

Quality of Life:

Madeira is known for its high quality of life and low cost of living. With a low crime rate, excellent healthcare, and a strong sense of community, investing in property in Madeira can offer a peaceful and enjoyable lifestyle, as well as the potential for long-term capital growth.

High rental yields, a stable property market, tax benefits, a growing economy, and a high quality of life are just a few of the benefits of investing in Madeira. With its unique location and attractions, Madeira is an attractive investment option for those looking to diversify their portfolio and potentially earn long-term returns.

If you are looking for investment property and want an all-inclusive management partner to handle the day-to-day running of your Alojamento Local Business, or currently run a holiday apartment in Madeira, then contact the Off Limits Madeira team today for a free home consultation.