Single Family Detached Santa Cruz

Excellent investment and real estate development opportunity in the heart of the Historic Zone 2 of Santa Cruz city, Madeira Island. Unique urban property, currently a single unit licensed for Services, ideal for rehabilitation projects with tourist purposes (boutique hotel, aparthotel), commercial use, or conversion into high-yield multifamily housing.

The asset stands out for its established location and highly favorable urban planning framework according to the current PDM:

- Current Footprint Area: 160 m² per floor (2 floors built, totaling 320 m² of current gross area).
- Private Outdoor Space: Courtyard of about 100 m², a rare and highly valued feature in a historic urban center.
- Allowed Impermeabilization Index: 80% (allowing flexibility in footprint or exterior arrangements).
- Maximum PDM Capacity: Feasibility to build up to 4 floors above ground, with a maximum authorized height of 13 meters.
- Potential Gross Construction Area (GCA): Vertical expansion capacity from 640 m² to 832 m² total construction area, doubling the asset’s capacity.

Financial and Tax Incentives (ARU Status): Being located in an area designated as ARU, the investor/developer will benefit from a substantial package of urban rehabilitation incentives and tax savings:

- Reduced VAT at 5% (in the Autonomous Region of Madeira): Applicable to all integrated rehabilitation and expansion works, generating massive direct savings on construction costs compared to the normal 22% rate.
- IMT Exemption: Exemption on property acquisition for rehabilitation and also on the first onerous transfer (resale of rehabilitated units).
- IMI Exemption: Exemption from Municipal Property Tax for a minimum of 3 years after completion of rehabilitation works.
- Capital Gains Benefit (IRS): Application of a reduced autonomous rate of only 5% on capital gains obtained from the first sale post-intervention.
- Reduction of Municipal Fees: Significant relief on licensing and urbanization fees with the Santa Cruz municipality.

Structurally usable property, requiring complete rehabilitation and expansion works, allowing the design of a tailored project with high return on invested capital.