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Living in Madeira - One of Portugal’s Most Exciting Hidden Gems

Atualizado: 7 de dez. de 2023

So you’re probably wondering, what makes living in Madeira so compelling???

I’m here to tell you exactly why Madeira is one of the best choices for you to call home and an excellent choice for your EU citizenship mission. 

Benefits of living in Madeira

Let’s take a look at some of the great things Madeira has to offer. 

1. Year-round sunshine

Amidst a pandemic, with lockdowns in place all over Europe and the world, and I was grateful for the opportunity to visit during Carnival in 2020, staying for almost 2 months at a friends house (he has been living there almost 20 years and I have visitEd him regularly throughout the years), and so I had plenty of time to discover the island, and have accompanied its real estate growth over the years. 

Because Madeira is so far south (600 km off the Moroccan coast on the same latitude as Marrakesh), living in Madeira means warm weather and a temperate climate all year round.

Some parts of the island are cooler than others (I saw snow a few times on the tallest mountain tops), but top destinations Funchal and Ponta do Sol are usually warm.

For example, I was on one of Madeira’s beaches in February, in water warm enough for swimming.

2. Pandemic-secure

Living in Madeira has certain advantages for avoiding the worst effects of a pandemic.

As it’s an island far out in the Atlantic, Madeira can easily control its borders. The main island only has one airport and there’s no other way of getting in.

Plus, Madeira is an autonomous region of Portugal, so it can set different rules to those on the mainland.

This was evident during the Covid winter of 2020 and early 2021. The Madeiran government implemented an evening curfew, but during the daytime life continued mostly as normal. The government also set up free Covid testing at the airport for all arrivals.

In contrast, mainland Portugal went into full lockdown. All restaurants, bars, and gyms were closed.

Madeira experienced a few worrying weeks where Covid cases spiked. But in general the situation remained under control throughout.

With such pleasant weather, it was easy to socialize in the open air where the virus was less of an issue.

If you’re worried about the effects of future pandemics, living in Madeira could be one way to mitigate this.

3. Low cost of living (although this is changing)

In 2020, I was pleasantly surprised at the cost of living in Madeira, especially in terms of accommodation.

But now, I have to report that things have changed.

Funchal is still the most expensive part of Madeira, but prices have skyrocketed since the pandemic ended.

Rent and property prices are now heading into the vicinity of Lisbon’s – but with far fewer properties available (it’s a tiny island, after all).

For example, you’d now expect to pay around €1,500 per month for a good quality T1 (one-bedroom) apartment in the center of Lisbon. 

In 2020 Funchal, you could have found a short-term rental apartment for €700 per month.

Now, that price has almost doubled. You will surely find better deals for long-term rentals (i.e. more than 12 months), but the situation has definitely changed in the last 3 years.

2023 update… Rental costs in Madeira have gone up a lot. Now you’re looking at spending around €1,000 or more for a one-bedroom in central Funchal. Prices outside Funchal, such as Machico; Caniço; Garajau or Câmara de Lobos, will be lower.

Eating out in Madeira is still affordable, especially if you stick to non-touristic places.

Many of the more touristy or international restaurants are also quite well-priced. My favorites in Funchal are Prima Caju, Threehouse Hotel, the Ritz, Art Corner, and MadCuba.

If you’re a fan of specialty coffee, you’ll find beans from a local Madeiran roastery (Greenhouse Coffee) served at Land Food & Coffee.

But you’ll have to work hard for it, as the cafe is up a very steep hill. Or you can take the cable car up the mountain. Land Food & Coffee is situated just underneath the end point of the cable car. 

Other speciality coffee places (as of 2023) include Art Corner (Old Town), Art Corner (Forum Madeira), and Three House Hotel.

In Prazeres (the far west of the island), you can find Gato Legal Coffee, another speciality coffee shop and local roastery that also does home delivery to Funchal.

4. Amazing natural beauty

Nature is always close by when living in Madeira. The interior of the island is covered in greenery, including thousands of banana plants.

It even has some unique and unusual species, like the pineapple-banana fruit, and other strange-looking plants whose names I don’t even know.

Striking vistas are never far away, especially from the tops of cliffs and high-level hiking paths.

From the heart of Funchal, you can walk along the ocean front and spend time gazing out over the Atlantic and feeling the ocean breeze.

If you want a more rural, golden sand experience, the island of Porto Santo is 2.5 hours away by ferry.

Here, the population is around 6,000, including a small remote worker community. There’s a large golden sandy beach and plenty of good hiking. 

5. High levels of safety and tolerance

Madeira is extremely safe, with very low rates of all types of crime, including pickpocketing, burglary and violent crime.

I felt 100% safe walking on the streets of Funchal at all hours of the day and night (granted, I have a fairly high tolerance for this, having lived in Newark; New York City; San Francisco; Chicago; Houston and Orlando).

I noticed a few people living on the street, potentially drug addicts, but none of them seemed threatening whatsoever.

Madeira is also very accepting of LGBTQ travelers. Restaurants and most service places are not discriminatory but nor are they hanging rainbow flags left and right. It’s just a relaxed acceptance.

Several of my LGBTQ friends say they feel comfortable holding hands with their partner in public. 

Portugal in general is an exceptionally safe country, and ranked year after year as one of the safest Countries in the world by the “Global Peace Index”, but Madeira is a world apart.

6. Strong sense of community

Community is vital when you move to a new place. I was impressed with the sense of community I found while living in Madeira during those 2 months.

Because of the island’s tourist focus, many locals speak excellent English.

There’s also compulsory English education from primary school level upwards.

It’s an easy place to make friends and people are open to interacting with newcomers.

Because it’s a small island, you’ll often bump into people you know, even when just having coffee at a street cafe in Funchal.

It’s a nice contrast to big city life, which tends towards the fast and impersonal.

In fact, my social life in Madeira was far more active than it ever is on the mainland. It almost reached the point where all that socializing was distracting me from doing my actual work… lol

7. Remote worker friendly

Madeira’s strong sense of community is very much present in the remote worker | digital nomad population.

Initiatives such as Startup Madeira’s Digital Nomad Village have done a lot to promote cohesion between newcomers to the island and help people get acquainted.

There are WhatsApp and Slack Channel groups that are full of remote workers from all over the world, based in Madeira.

Many had originally planned short visits, but ended up living in Madeira for the long term… Madeira has that effect.

The Digital Nomad Village has helped put Madeira on the map. It generated a lot of PR and buzz around the island.

You can expect to see that trend continuing in 2024 and beyond, as people seek out new destinations to establish their lives.

In 2023, Madeira has seen its fair share of transitory digital nomads, as well as digital migrants who are there for the long haul.

Here’s the final icing on the remote worker cake – Madeira has the fastest Internet in Portugal. 

Learn more about the Digital Nomad Visa - D8 Visa:

8. Affordable property prices (not so much the case anymore!)

For the property investor, living in Madeira offers several compelling advantages, although prices have gone up significantly in the last 3 years. 

3 Bedroom Luxury Villa with Pool in Madeira Island:

You can still find (relatively) affordable property around the island, although you’ll have to look harder than in 2021/22. Funchal is by far the most expensive destination, but with the biggest rental and resale potential.

Lots of new apartment complexes are in the process of construction.

In outlying areas of Funchal, such as Praia Formosa, you can find beachside apartments with amazing ocean views.

2 and 3 Bedroom Luxury Apartments - Funchal - Madeira Island:

Camara de Lobos is an easy 15 min drive from Funchal, so it makes a good up and coming destination where you may still find the odd bargain!!!

Residential areas of Funchal such as Santa Luzia or Madalena can still be good value, while still keeping you within easy walking distance of central Funchal. Watch out for the hills though, they’re a killer!!!

But on Madeira, nothing is very far away (unless it’s up a steep hill). Surrounding towns like Santa Cruz, Caniço or Machico offer good value within around a 20 minute drive from Funchal.

Recently Renovated 3 Bedroom Home in Funchal - Madeira Island:

The village of Ponta do Sol (home of the famous Digital Nomad Village) is only a 30 minute drive from Funchal.

Ponta do Sol (rough translation - edge of the sun), is the sunniest and warmest place on the island. It also has excellent potential for buying and renovating properties. The north side of the island yet has even more affordable properties.

In some remote or rural locations the international community may be limited (although that makes a great environment for learning Portuguese).

If you’re interested in getting residency in Madeira, it’s also worth considering the Passive Income Visa route, otherwise known as the D7 Visa.

Although it’s a much slower route to residency than the Digital Nomad Visa - D8, it does have a lower required proof of income and you can benefit from paying lower taxes with the NHR tax regime (Non Habitual Resident), where as as today in writing this post it is still available to take advantage of, although with the government’s budget proposal for 2024 it may be officially off the table.

Once you have your residency permit, you can then live freely anywhere in Portugal, with no restrictions.

Learn more about the Passive Income Visa - D7 Visa:

Please note, this is not legal advice.

You should always seek a Lawyer | Solicitor | Notary | Tax Attorney |  Accountant or other professional for legal advice and representation, as this information is not to be considered any form of legal advice, and additionally the tax or Visa | residency laws are subject to change. 

9. Residents’ discounts on air travel

At present, the best way to travel between Madeira and mainland Europe is by air.

For starters, that means it’s not the best destination if you’re afraid of flying. Funchal’s airport was once considered one of the world’s most dangerous.

It’s less scary these days, thanks to an extended runway, but strong winds can still cause hairy landings from time to time.

Anyway, let’s talk about those residents’ discounts. The government of Madeira subsidizes return tickets between Madeira and the mainland for residents of the island.

The objective is to ensure island residents aren’t cut off from the rest of Portugal due to high transport costs. The Azores also has a similar scheme.

In Madeira, a return ticket is capped at €86 (with a maximum spend of €400). The government will refund you the difference, as long as it’s not more than €400 for the ticket.

The refund process is a little cumbersome. You have to go in person to a CTT office (post office) in Madeira with your passport, and proof of travel.

Three airlines currently fly daily routes between Madeira and mainland Portugal: TAP Air Portugal, EasyJet and, most recently, Ryanair.

There’s no shortage of flights to choose from every day. With these affordable prices, you can go to the mainland as often as you want.

10. Special tax advantages

For those who wish to incorporate a company in Portugal, Madeira offers some interesting advantages over the mainland.

The Madeira International Business Centre is an initiative created in the late 80s, to rejuvenate the island’s economy by attracting foreign investment.

Companies incorporated in Madeira can benefit from a special 5% corporation tax rate, if they have overseas clients and make an investment in Madeira of €75,000 within the first two years.

Even without the investment, Madeira’s standard corporation tax is only 14.1%.

The company also needs to have a director living in Madeira (but they don’t need to be a Portuguese national). The €75,000 investment can include a property for the director to live in.

Please note, this is not tax advice.

You should always seek a Lawyer | Solicitor | Notary | Tax Attorney | Accountant or other professional for legal advice and representation, as this information is not to be considered any form of legal advice, and additionally the tax or Visa | residency laws are subject to change. 

11. Less bureaucracy than the mainland

New arrivals in Portugal often complain about difficulties with bureaucracy. I’ve had my share of struggles with this.

All bureaucracy can be unpredictable and I’m not saying that Madeira has a perfect system compared to the mainland.

But, in my experience, things tend to be easier in smaller places with fewer foreigners. This theory could also extend to citizenship applications. 

FAQs: Living in Madeira

Is Madeira a good place to live?

Yes. Madeira has won multiple awards, such as “Best Island” at the World Travel Awards 2021. If you like nature, outdoor activities, and a relaxed pace of life, then you’ll love living in Madeira.

Plus, the island is very safe and has warm weather all year round. It’s the perfect destination for families, retirees and remote workers – especially those seeking a route to eventual EU citizenship via Portugal.

Is it expensive to live on Madeira???

In general, living costs in Madeira tend to be lower than in major Western European cities, but there are certain costs to watch out for. For example, purchasing a car will typically cost you several thousand euros more in Madeira, compared to the Portuguese mainland.

Shopping in supermarkets is comparable to Lisbon or Porto. 

You can still find affordable properties to buy if you know where to look, but costs are rapidly rising as Madeira grows in popularity. For renting, costs are typically lower than major cities, especially if you live outside of Funchal.

Can I retire to Madeira???

Retiring to Madeira is very straightforward, thanks to Portugal’s easy visa and residency processes. If you’re an EU citizen, you can simply move to Madeira whenever you want. If you’re from outside the EU, then you’ll need to apply for a visa. Many retirees use the D7 passive income visa, or digital nomads | remote workers use the D8 Visa process.

Can US and UK citizens live in Madeira???

Yes. US and UK citizens have several options for living in Madeira.

1) For short stays in Madeira of up to 90 days in every 180, US and UK citizens don’t need a visa;

2) To live full-time in Madeira, US and UK citizens with sufficient passive income can apply for the D7 visa; 

3) For living in Madeira for period of one year, US and UK citizens who will be working remotely, can get the D8 Visa.

Is there an expat community in Madeira???

There’s a significant expat community in Madeira, which falls into two main categories.

1) The traditional expat community of retirees, mainly from the US; UK and Northern Europe;

2) The new expat community of remote workers and digital nomads, from all over the world.

Most expats live in Funchal (the capital), Ponta do Sol, Calheta, or Caniço. It’s easy to meet other expats in Madeira, such as at digital nomad events, the English church, or expat-oriented restaurants and cafés such as The Ritz, Art House Coffee, Threehouse Hotel or the Savoy. What’s more, every Saturday night, there’s a large digital nomad | international networking event at the Next Hotel in Funchal.

Can you live in Madeira without a car???

Yes, but it depends where you live. It’s easy to get around the main areas of Funchal on foot. However, if you live anywhere outside of Funchal, you’ll probably need a car, as public transport on wider Madeira can be sparse and unpredictable. Also, having a car opens up the island and enables you to reach interesting places inaccessible by public transport.

Do they speak English in Madeira???

Most people in Madeira tend to speak good English, especially in the larger towns and tourist areas. Although Portuguese is the official language, English is prevalent due to Madeira’s long history with the UK, strong English language education, and tourist-focused economy.

How cold does it get in Madeira???

The temperature in Madeira depends very much on whereabouts on the island you live. Madeira is full of microclimates, so weather conditions can vary greatly from place to place. Generally speaking, the closer to the coast, the warmer the weather.

For example, in a Funchal winter, temperatures get to around 20°C (68°F) during the day, and usually never drop below 14ºC (57°F) at night. In summertime, daytime temperatures in Funchal can go up to 30°C (86°F), but it usually doesn’t get much hotter than that.

Can I buy a house in Madeira???

Yes, any nationality can buy property in Madeira. The Madeira property market is extremely hot at the moment. I recommend working with a reputable REALTOR®, and visiting the island in person before making any buying decisions. Feel free to reach out and I will be more than happy to recommend a trusted REALTOR® referral partner to work with!!!

Additionally I highly recommend renting a property in Madeira at first, or anywhere else in Portugal for that matter, before buying your property. Unless you have visited more than a handful of times and defined where you want to have your place in the sun that you will be calling home, and so before buying, I ALWAYS recommend getting to know and discovering any specific City or Region first, and afterwards we will be here to serve as your buyer representative of your home. Renting a property will also qualify for any Visa process and obtaining residency status and ultimately Portuguese Citizenship. 

What’s the population in Madeira???

According to the most recent 2021 census, the population of Madeira is 250,769.

How far is Madeira from Lisbon???

Madeira is 967km from Lisbon. The journey takes around 1 hour 30 minutes by air.

How big is Madeira Island???

Madeira Island has an area of 741 km², and is the biggest island in the archipelago.

How long does it take to drive around Madeira???

It usually takes around four hours to drive entirely around Madeira, depending on weather, traffic and road conditions.

Is living in Madeira a good idea???

In short… Yes!!!… Living in Madeira is an excellent idea.

Objectively speaking, Portugal is the best country in the EU for getting dual citizenship.

And living in Madeira is simply the icing on the cake.

Who wouldn’t want to work towards EU citizenship on a paradise island with incredible beaches and natural beauty???…

Madeira offers all the great benefits of Portugal for those who want to eventually become citizens, plus all the things I’ve talked about in this post.

And if this post has got you interested in the idea of living in Madeira, I recommend that you plan a visit as soon as possible!!!

Infinite Solutions has an exclusive BLOG offering all you need to know about Portugal's rich culture, tantalizing gastronomy, exquisite wine culture, real estate opportunities, and the latest updates in the ever-evolving real estate landscape. Join us on this exciting journey to discover your future home sweet home!!!

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Feel free to call; text or e-mail. But the best way to connect with us is via a Zoom call. I’ll be more than happy to share my experience with you living in Portugal the last 22 years… I’ll also walk you through Comporta and Portugal using Google Maps, show you the best Cities or communities and neighborhoods that match your ideal lifestyle and budget, and go over the moving and buying process as well as Visa process to establish residency.

I look forward to speaking with you on a zoom call.

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