Guide to the Cost of Living in Madeira, Portugal

Is Madeira expensive to live in? How much does it really cost to live in Madeira in 2025? Why should I move to Madeira this year?

Portugal manages to strike the perfect balance between high quality and affordability, and in Madeira, this is no different, whereby you will find most things to be more affordable than in other Western European countries.

In this article, we delve into the cost of living in Madeira, Portugal, providing you with key information on what you can expect to pay, from housing prices to everyday expenses.

An Overview of 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. More than 14,060 foreign nationals have come to call Madeira home, with many Americans having joined this number in recent years. And a strong pull factor is the affordability that residents enjoy. Digital nomads, families, and retirees have all set their sights on Madeira, and with good reason.

The cosmopolitan capital, Funchal, is where most of the development is, and it is the business district of the islands, but you’ll find stunning locations across the archipelago that could be the perfect place to call home or visit. Out of the four islands, only Madeira and Porto Santo are inhabited.

Funchal Municipality organises activities and events throughout the year, embracing the vibrant local culture unique to the island.

Is Madeira expensive to visit?

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. When compared with the Portuguese capital city, Lisbon, the cost of living in Funchal, the capital of Madeira, is around 15 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 to eating out, you’ll find most things to be inexpensive – surprisingly so, in some cases – making the island an attractive choice for tourists.

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. A monthly budget for an expat in Madeira can be as low as €1,100 if planned well, but this will depend on your lifestyle. The estimated monthly costs for a single person to live in Funchal is around €643 excluding rent. Living in Funchal is likely to be more expensive compared to other parts of the island.

Cost of Living in Madeira: Housing

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 an IMPIC-licensed real estate professional.

Buying property in Madeira

The Madeira real estate market has caught the eye of international investors in recent years but still has quite an affordable property market. Property prices in Madeira stand at €3,355 per square meter. Note that this is the average asking price, and often, the sales price is significantly lower than this. Bear in mind that, in certain situations, it can be more than this, although it is not as common.

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.

Renting a property in Madeira

Renting an apartment in Madeira 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.

High rents can make buying property 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.

Below, we’ve provided you with some accommodation prices for what you can expect to pay for monthly rent in Funchal, Madeira. This data is taken from Numbeo. Note that other locations on the island will be more affordable than this.

• A one-bedroom apartment in the city center will cost €1,200
• A one-bedroom apartment outside the city center will cost €925
• A three-bedroom apartment in the city center will cost €2,037
• A three-bedroom apartment outside the city center will cost €1,517

Food and Drink Prices at 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 Maderia.

The cost of a meal in an inexpensive local restaurant in Funchal, for example, can be as cheap as €7, while a three-course meal in a mid-range restaurant for two people will set you back around €50. You can also find a basic lunchtime menu, which will include a meal, drink, coffee, and dessert for under €10 in some local restaurants.

If you’re just stopping for a coffee or drink, a cappuccino will cost you around €1.50, while a domestic beer will cost €2.75.

When you compare restaurant prices in Funchal with Lisbon, you’ll find Funchal comes out on top, with prices being more than 20 percent cheaper in the capital of Madeira.

Living Expenses in Madeira: 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 how much you can expect to pay for your monthly food shop is a good basis for getting to know living expenses.

Average Madeira prices

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

Cost of Schools in Madeira

While public schools in Madeira are free for residents, the island is also home to two top international schools, the International School of Madeira and the International Sharing School of Madeira. Annual tuition fees for international schools’ in Madeira range between €2,750 and €10,945.

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.

Private healthcare is an affordable option compared with the USA, with many expats taking out private insurance plans. 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

When it comes to transportation costs, you will find getting around to be quite friendly on the wallet. Madeira has quite an extensive public transport system, but to get around easily, it is best to have a car. Gasoline costs around €1.65, a one-way ticket on local transport will cost you around €2.00, while monthly passes will cost around €30. Taxis will cost you around €3.25 (starting tariff) and €1.24 per kilometer.

Leisure and Entertainment

Given the stunning natural landscapes in Madeira, many leisure activities are free. For example, you can go on a hike at no cost. To give you some idea of other costs, a gym will require you to factor in around €38 of your monthly budget, a cinema ticket for a new international release will cost €7.75, as will renting a tennis court, which costs around €7.50 per hour on the weekend.

Utilities and Services

Basic utilities will cost you, on average, around the €94 mark for electricity, heating, cooling, water, and garbage for an 85-square-meter apartment. A monthly mobile phone plan will cost around €17, and internet will clock in at just above €40.

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 UK

Should you compare the cost of living in Funchal 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 47.5 percent lower in Funchal.
• Overall costs (including rent) are 50.7 percent lower.
• Rent is 55 percent cheaper than in London.
• Dining out costs 50 percent less.
• Groceries are 36 percent cheaper.
• Purchasing power is around 48 percent lower.

Cost of living in Madeira vs USA

Comparing Funchal and Washington D.C, in the USA, Funchal is around 51 percent lower.

• Living costs (excluding rent) are 47.6 percent lower in Funchal.
• Total costs (including rent) are 51.3 percent lower.
• Rent is 57 percent cheaper than in Washington, DC.
• Dining out costs 53 percent less.
• Groceries are 51 percent cheaper.
• Purchasing power is 64 percent lower.

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 breaking the bank. 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 luxury rooftops of fine dining, this will obviously cost you more.

So, is Madeira for you? Well, if you enjoy stunning ocean views (from most parts of the island, you’ll be able to see the sea), 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?

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-sale services.