Cost of Living in Madeira, Portugal: Your Complete 2025 Guide

What is the cost of Living in Madeira, Portugal?

Madeira is an archipelago off the coast of Western Africa, consisting of four islands – Madeira, Porto Santo, Desertas, and Selvagens – and boasts a sublime climate all year round. Out of the four islands, only Madeira and Porto Santo are inhabited.

More than 14,060 foreign nationals have come to call Madeira Island home, with many Americans having joined this number in recent years. And a strong pull factor is the affordability that residents enjoy.

The cosmopolitan capital, Funchal, is where most of the development is, and it is the business district of the islands. The cost of living in Funchal is around 14 percent cheaper than in Lisbon and 47 percent cheaper than in London (excluding rent), according to Numbeo. Funchal is also the most expensive place to live in Madeira, with other locations being even more price-friendly.

Is Madeira expensive?

The cost of living in Portugal is quite low compared with other Western European countries, and in Madeira, you’ll find prices to be quite reasonable. As mentioned, Funchal, the capital of Madeira, is around 14 percent cheaper. When compared to mainland Portugal in general, Madeira is also one of the more affordable locations.

Most things, from dining out to property prices, are quite reasonable, particularly given the excellent infrastructure and quality of life that you will experience on the islands.

For tourists

Madeira is a relatively affordable destination for tourists compared with other European destinations. From accommodation prices to eating out, you’ll find most things to be inexpensive – surprisingly so, in some cases – making the island an attractive choice for tourists. To save costs, tourists can consider staying longer – when comparing long-term rental vs Airbnb in Funchal, long-term rentals are considerably cheaper.

Weekly budget: €350 ($405) to €2,000+ ($2,316+), depending entirely on your travel style (budget, mid-range, or luxury). Bear in mind that visiting Madeira during tourist season (April to October) is more expensive than travelling off-season due to seasonal variation in accommodation, flights, and car rental.

For digital nomads

Madeira strikes the perfect balance for digital nomads looking for a high quality of life, which is also affordable. Madeira also has its very own Digital Nomad Village (the first of its kind), many excellent co-working spaces, co-living options, reliable Wi-Fi, and a wide range of activities to get involved in.

You’ll also find a well-established expat community here, making it easy to find like-minded people to explore the island.

Monthly budget: The monthly budget for expats in Madeira working remotely can be as low as €1,100 ($1,275) if planned well, but this will depend on your lifestyle. The estimated monthly costs for a single person to live in Funchal are around €611 ($708), excluding rent. When it comes to digital momad living costs, living in Funchal is more expensive compared to other parts of the island.

For families

Families will find Madeira to be an exceptional place to live, with highly rated international schools, excellent healthcare, and numerous activities. Many activities are also free, such as hiking and biking, so you’ll be able to spend quality time with your children without spending a fortune.

Monthly budget: The estimated monthly costs for a family of four are €2,210 ($2,560), excluding rent

For retirees

Retirees seeking a sublime climate all year, tranquility, and excellent healthcare have come to the right place. The cost of living for retirees is also much lower than in the US or other Western European countries, with lower healthcare costs in Madeira for foreigners, allowing you to stretch your budget further.

Monthly budget: Can range from €1,100 ($1,275) to €3,000 ($3,474, depending on lifestyle and location.

Cost of Living in Madeira: Housing and Real Estate

Looking to visit or move to Madeira? Well, the first port of call is accommodation. Whether you are looking to buy property or rent a place, housing costs and prices are attractive.

Working with a buyer’s agent or real estate agent in Madeira will also help you gain access to the broadest database of properties available once you’re ready to make the big move – just make sure that they are an IMPIC-licensed real estate professional.

Below are housing costs for rent and purchase.

Buying property in Madeira

The Madeira real estate market has caught the eye of international investors in recent years, but it still has quite an affordable property market. Property prices in Madeira stand at €3,693 ($4,281) per square meter.

You will find a diverse range of property options to suit various preferences, from stunning villas to modern apartments. Given that Madeira is an island, it goes without saying that you’ll also find incredible properties here that come with sweeping views of the Atlantic Ocean.

You will also need to factor in property taxes in Portugal at the time of purchase (IMT and Stamp Duty), and IMI on an annual basis, which is similar to Council Tax in the UK. Also, if relevant, you will need to consider condominium fees if you have shared amenities or building maintenance fees that can also impact the overall housing costs for property owners.

Renting a property in Madeira

Madeira apartments for rent can be expensive, depending on where you want to live. Funchal, for example, will be more expensive than other parts of the country. More remote areas will also be surprisingly affordable.

Average rent in Funchal city center and outside the city center:

• A one bedroom apartment in the city center will cost €1,200 ($1,394)
• A one bedroom apartment outside the city center will cost €925 ($1,074)
• A three bedroom apartment in the city center will cost €2,037 ($2,365)
• A three bedroom apartment outside the city center will cost €1,517 ($1,761)

High rents can make buying property in Madeira a more attractive option, given that you can rent out your property to secure a nice return on your investment, and the fact that your property is highly likely to increase in value over time. Regardless, renting a property is a good starting point, so you can explore the island and determine where you would like to buy property further down the line.

Cost of Restaurants in Madeira

While in London, Paris, and New York, restaurant prices can really set you back, you won’t have to break the bank to go for an enjoyable dinner in Madeira.

The cost of a meal in an inexpensive local restaurant in Funchal, for example, can be as cheap as €10 ($12), while a three-course meal in a mid-range restaurant for two people will set you back around €50 ($58). You can also find a basic lunchtime menu, which will include a meal, drink, coffee, and dessert for under €10 ($12) in some local restaurants.

If you’re just stopping for a coffee or drink, local cafés are very cheap, as are bars.  A cappuccino will cost you around €1.50 ($1.74), while a domestic beer will cost €3 ($3.50).

Food and Groceries

Despite being an island and needing to rely on many products from quite far away, Madeira is affordable compared with many European destinations when it comes to food prices.

Understanding your estimated monthly costs for your food shop is a good basis for getting to know your living expenses.

Average Madeira prices

Below, we provide you with average prices for common food items in Funchal, the capital.

Education Costs

Education in Madeira is affordable, of high quality, and accessible, with both public and private schooling options. Families relocating to the island can choose which option is better for them.

Public schools

Public schools are free for residents and follow Portugal’s national curriculum. Classes are in Portuguese, which can make it difficult for expat children at first, although starting young can help them learn the language early. Public schools are generally very well regarded in Madeira.

International schools

For those seeking private or international options, you have two top international schools in Madeira: The International School of Madeira and the International Sharing School of Madeira. Annual tuition fees for international schools in Madeira range between €2,750 ($3,193) and €10,945 ($12,709). These schools offer a range of languages, with smaller class sizes and more extracurricular activities.

Higher education

The University of Madeira is situated in Funchal and offers a wide range of undergraduate and postgraduate programs. The university attracts both local and international students. Tuition fees are reasonable compared with those at universities in the USA or the UK, being around €2,000 ($2,323) per year, according to the University of Madeira’s website for 2025 to 2026.

Cost of Healthcare in Madeira

Healthcare in Madeira, as in all of Portugal, is available to all legal residents at only a minimal cost under the National Health Service (Serviço Nacional de Saúde), also known as the SNS.

Under this, essential medical services are free, and you are only required to pay extra for certain services and treatments, such as X-rays. For individuals over 65 and those under 18, healthcare is completely free.

Private healthcare is an affordable option compared with the USA, with many expats taking out private insurance plans. While more comprehensive insurance plans are more expensive, in general, private plans are far cheaper than in the USA. Plans begin from around €30 ($35) a person per month in Madeira, reaching around €200 ($232), while in the USA, plans can be as high as €345 ($400) to €862 ($1,000) per month.

The perks of going private are shorter waiting times and English being more widely spoken, although the Portuguese public health service is also very good, and, particularly on Madeira, you will find that most healthcare professionals speak English.

Madeira Portugal Cost of Living: Transportation Costs

When it comes to costs for transportation in Portugal, you will find getting around to be quite friendly on the wallet, and on Madeira, this is no different.

Madeira has quite an extensive public transport system, but to get around easily, it is best to have a car. Gasoline costs around €1.93 ($2.24), a one-way ticket on local transport will cost you around €2.00 ($2.32), while a monthly pass will cost around €30 ($35). Taxis will cost you around €3.50 ($4.06) (starting tariff) and €1.24 ($1.44) per kilometer.

Leisure and Lifestyle Costs

Given the stunning natural landscapes in Madeira, many leisure activities are free. For example, you can go on a hike at no cost. For other costs, a gym will require you to factor in around €37 ($43) of your monthly budget, while a cinema ticket for a new international release will cost around €8 ($9). Renting a tennis court costs about €8 ($9) per hour on the weekend.

Utilities and Services

The basic utilities cost (electricity, water, internet) in Madeira is around €93 ($108) for an 85-square-meter apartment. Monthly costs for your mobile phone plan will be around €17 ($20), and the internet will clock in at just above €40 ($45).

Luxury Living in Madeira

Madeira has a wide array of luxury hotels, fine-dining restaurants, and lavish bars. These places tend to have international price tags, and while costs will probably be cheaper than in Lisbon or Paris, for example, expect high prices. You will also find an assortment of beautiful luxury properties on the market in Madeira, perfect for an unrivalled living experience.

Cost of living in Madeira vs USA

Comparing Funchal and Washington D.C, in the USA, Funchal comes out almost half as expensive as Washington D.C.

• Living costs (excluding rent) are 46.6 percent lower in Funchal.
• Rent is 50 percent cheaper than in Washington, DC.
• Dining out costs 57 percent less.
• Grocery prices in Madeira supermarkets are 49 percent cheaper.
• Local purchasing power is 64 percent lower.

Cost of living in Madeira vs UK

Should you compare the cost of living in Funchal, Madeira, with the cost of living in London, UK, the cost of living in Funchal is around 50 percent lower overall.

• Living costs (excluding rent) are 47 percent lower in Funchal.
• Overall costs (including rent) are 48 percent lower.
• Rent is 50 percent cheaper than in London.
• Dining out costs 53 percent less.
• Groceries are 33 percent cheaper.
• Local purchasing power is around 55 percent lower.

Four Money-Saving Tips to Make Madeira Even More Affordable

How to live affordably in Madeira, Portugal? While the cost of living in Madeira is generally low, there are ways you can stretch your money even further.

1. Book your flight early: You’ll get great deals if you book your flight from the USA or UK to Madeira early, but if you wait, then prices can skyrocket.
2. Markets over supermarkets: Swap the supermarket (such as Continente or Pingo Doce) for farmers’ markets, where you’ll often find much cheaper produce, especially if you go just before the closing time. Each week, saving some money here and there can make a massive difference.
3. Shop local: Don’t buy imports, buy local produce. This will help you bring costs down.
4. Live outside Funchal city center: Funchal has its own price ranges, and just a little way from the city, property and rental prices will drop considerably.
5. Eat at local restaurants: Eating at local restaurants, where you can get the prato do dia (meal of the day) for less than €10 ($12), can be a way to eat exceptional food at a low cost.
6. Get a Portuguese bank account: To save on international transfer fees, open a bank account. It is very easy to open a bank account in Portugal, although you will need to get a Portugal NIF (Portuguese tax ID number).

Living Comfortably in Madeira

Is Madeira expensive to live comfortably? In short, Madeira is an affordable island, and you should be able to enjoy a very high-quality life here without spending too much.

The cost of living in Madeira, Portugal, is pretty affordable. Everything from property prices to your weekly food shop is reasonable, particularly when compared to Western European standards. As with anywhere, you will find affordable and expensive areas, and should you often frequent the luxury rooftops of fine dining, this will obviously cost you more.

So, is Madeira for you? What is living in Madeira like? Well, if you enjoy stunning sea views (from most parts of the island, you’ll be able to see the Atlantic Ocean), unique natural landscapes, and you can enjoy some of the best food out there, then Madeira may be just the ticket.

This is against the backdrop of a sublime climate, where you’ll be able to enjoy heading outside even in the winter months, top international schools, and excellent healthcare and infrastructure. So, why not pay Madeira a visit and see if this captivating island is the place for you to call home?

How to Move to Madeira, Portugal

There are several Portugal residency visas to cater to different people seeking to relocate to Madeira, whether you are retiring, moving with family, investing, or working remotely. Here’s a brief overview of the most popular options.

Portugal D7 Visa

The Portugal D7 Visa, also known as the retirement visa or passive income visa, is for anyone who has a stable passive income of around €870 around $1,010. It is perfect for those seeking to relocate to Madeira and live on their passive income, which can be from investments, pensions, dividends, intellectual property, etc. Retirement costs in Madeira, Portugal, are much lower than in the US or Western Europe.

Portugal D8 Visa (Digital Nomad Visa)

Created for remote workers seeking to relocate to Portugal, the Digital Nomad Visa – known officially as the D8 Visa – allows you to relocate to Madeira, provided you earn at least €3,480 ($4,041) per month and work for a non-Portuguese employer or are self-employed. Perfect to continue full steam ahead on your career, but allowing you to enjoy a better life quality.

Portugal D2 Visa (Entrepreneur Visa)

If you want to expand your business in Portugal, the D2 Visa is an excellent option, providing you with an entryway to do business in Europe. Madeira and Portugal are top locations to kickstart a business, with the country creating homegrown talent with companies such as Farfetch.

Portugal Golden Visa

The Portugal Golden Visa is one of the most popular residency by investment programs of its kind, providing residency to individuals who make  a significant investment in the country. While the real estate investment option was discontinued in 2023, there remain excellent options on the table, such as investment funds and cultural production investments.

Goldcrest: Who We Are and How We Can Help You

Goldcrest is the first buyer’s agent in Portugal, based in Lisbon, Porto, and the Algarve. Should you be seeking your ideal property in Portugal, we are here to turn your vision into a reality.

From sourcing through to property acquisition, and beyond, we will be by your side throughout the process to ensure you discover your dream home at the best price possible, with full market access and comprehensive after-sales services.