Government terminates property lease contract in Serra de Água for non-compliance

The Madeira Government Council decided to terminate the lease contract for a rural property in the parish of Serra de Água and proceed with legal actions to recover the property and the outstanding amounts.

The decision, taken in a plenary meeting on September 4, 2026, follows a delay of more than four months in rent payment by the tenant company. The contract, resulting from a Public Auction, covered two urban buildings located in Selada, Fajã dos Vinháticos, with a total area of 6,620 m².

According to Regional Government Council Resolution No. 873/2026, the details are as follows:

• Property: Urban buildings located in Selada, Fajã dos Vinháticos, parish of Serra de Água, with a total area of 6,620 m², registered in the property matrix under articles 712 and 713.
• Tenant: Funny Square - Agroturismo e Restauração Unipessoal, Lda.
• Context: The contract, awarded in a public auction (Public Auction No. 5/2021/DRPA) and ratified by Government Council Resolution No. 72/2022, had a duration of 20 years, with a monthly rent of 3,000.00 euros (plus VAT).
• Reason for Termination: Delay in rent payment exceeding three months, after a demand for voluntary payment that was not fulfilled.

The Regional Directorate of Heritage was mandated to formally communicate the termination of the contract to the tenant company and to initiate the respective judicial process, which will aim to vacate the land and collect the outstanding amounts.