Living in Madeira, Portugal: Costs, Lifestyle & Best Places

Discovering Madeira Island, Portugal

The first Portuguese ships reached Madeira in 1419, discovering a paradise in the middle of the ocean, off the coast of Northern Africa. The island was named Madeira, meaning “wood” in Portuguese, due to its lush, green vegetation that continues to be a massive draw for expats and tourists to this day.

Located in the Atlantic Ocean, about 650km (360 miles) from the Northern African Coast, Madeira boasts a mild and pleasant climate throughout the year. The Madeira archipelago consists of four islands, of which only two are inhabited: Madeira, where around 98 percent of the population lives, and Porto Santa. Desertas and Selvagens are uninhabited and remain points of key ecological significance.

Madeira is home to the Laurisilva Forest, a unique national treasure that was designated as a UNESCO World Heritage Site in 1999, where you can walk along the trails and levadas that cross it, and take in outrageous ocean views of the island.

Is Madeira a good place to live?

Madeira is often viewed as a desirable place to live due to its stunning scenery, mild climate, and friendly community. Although property prices have been on the rise, it is a very safe island with low crime rates and an affordable cost of living compared to many Western European countries and North America.

The overall expenses in Madeira are also lower than in mainland Portugal, especially if you consider taxes and local transport. If you want to experience a rich culture, modern infrastructure, and a variety of outdoor activities, Madeira can be an excellent choice.

Pros and Cons of Living in Madeira

Madeira is a beautiful island with incredible coastal and mountain views. With its unique microclimates, rich cultural heritage, great hiking destinations, the vivid blue oceans, and rugged mountains, the island is hard to miss.

Living in Madeira, Portugal, can have several advantages:

• Great climate: Madeira has a mild, subtropical climate year-round, with temperatures rarely dipping below 15 °C (59 °F) in winter or rising above 25 °C (77 °F) in summer, making it ideal for outdoor activities.
• Outdoor activities: For outdoor enthusiasts, be prepared to be swept away by the sheer choice of options. Leisure activities such as hiking, surfing, scuba diving, and paragliding are popular due to the island’s diverse terrain.
• Safety: Madeira is renowned for being incredibly safe, with Portugal in general ranking in 7th position in the 2025 Global Peace Index. The Madeira island provides a peaceful environment for families, retirees, adventurers, and solo travelers.
• Affordable lifestyle: The overall monthly expenses in Madeira are generally affordable when compared to major cities, such as Lisbon and Porto. Funchal is the most expensive city, while smaller towns along the coast are cheaper to live in. Madeira also has no tolls and lower VAT (Value Added Tax) than mainland Portugal.
• Excellent infrastructure: Despite its remote location, the island boasts a modern infrastructure, including the Madeira Airport with regular flights to mainland Europe. The island provides reliable internet services and co-working spaces, making it a great place for working remotely in Portugal.
• Expat community: Madeira is home to the first digital nomad village. There is a close-knit community with a growing number of expats in Madeira. English is widely spoken, so you shouldn’t face too many language barriers.
• Culture: Madeira has a rich cultural scene with various local festivals, traditional Portuguese cuisine, and world-famous Madeira wine.

However, life in Madeira can also come with some disadvantages:

• The island has a limited job market outside the tourism, healthcare, renewable energy, and technology sectors.
• This is a remote location, which can lead to higher costs for travel and imported goods.
• The rising prices can make it difficult to purchase property or pay for rent due to the high demand.

Living in Madeira as an Expat

Living in Portugal is becoming more popular for expats, and Madeira is a beautiful choice with many benefits. If you’re looking for an island paradise, Madeira delivers stunning scenery, delicious food, and a wonderful climate.

The modern facilities, excellent healthcare, and a strong property market in Madeira add to the appeal. Whether you’re a retiree, a family, a remote worker, or an investor looking for a holiday home or a permanent move, Madeira is definitely worth considering.

Where do most expats live in Madeira?

According to DREM (Direção Regional de Estatística da Madeira), about 52.6 percent of the total expat population lives in Funchal, the island’s capital. Other popular places include Santa Cruz (13 percent) and Calheta (9.4 percent).

Healthcare in Madeira

Madeira has some of the best healthcare in Portugal, with numerous health centers scattered around Madeira Island and one in Porto Santo. The island also houses the Dr. Nélio Mendonça Hospital, which includes emergency service facilities.

With the fourth-best doctor-to-patient ratio in Europe, Madeira offers one of the finest healthcare systems on the continent. You will also find private and public options, and most medical staff have a good command of English. For Portuguese residents, you will be able to access the public healthcare system at a minimal cost.

Education in Madeira

There are two prominent international schools in Madeira: The International School of Madeira and the International Sharing School of Madeira. Tuition fees vary depending on the school. You will also find several public schools alongside the private schools, which are generally very good, and which will enable your child to be bilingual.

Is Madeira cheap to live?

Madeira can be affordable by Western European standards, but it’s not cheap in the way rural mainland Portugal can be, especially if you want to live in Funchal or along the sunny coastal areas.

Compared to Lisbon, the overall monthly expenses are 11.8 percent lower in Funchal without including rent, while rent prices are 4.6 percent lower.

When compared to Porto, Funchal has similar prices with some differences. For example, the cost of living in Funchal is 2.8 percent lower than in Porto, without including rent. Yet rental prices can be 19.9 percent higher compared to Porto.

Overall, in Madeira, the price of groceries and restaurants is fairly typical for Portugal.

Should I buy or rent a property?

Madeira’s real estate market is appealing to foreign buyers, given the continued interest from tourists and expats looking to visit or move to the island. While buying property in Madeira can be a lucrative investment due to the thriving market, where you should be able to get a nice return on your investment, renting offers flexibility and less commitment.

You can also rent out a property while you decide which part of the island is best suited to you. Working with a buyer’s agent or real estate agent in Madeira will also help you find your ideal property.

Cost of Living in Madeira

The overall expenses in Madeira are relatively affordable compared to many Western European countries. A single person living in Funchal spends about €636 on monthly expenses, while a family of four budgets around €2,298.

In the section below, we will outline the cost of living in Madeira, Portugal, including property and rental prices.

Housing prices in Madeira

The average housing costs in Madeira are €3,715 per square meter. Funchal commands higher prices due to high demand, at an average of €3,861 per square meter. Many expats choose Santa Cruz for its affordability, as the average asking price is €3,024 per square meter. Others focus on golden sandy beaches in Porto Santo, where the average housing costs are €3,729 per square meter.

When it comes to Madeira apartments to rent, renting a one-bedroom apartment in Funchal’s city center costs approximately €1,343, while outside the center, the average is around €1,056. For those seeking more space, a three-bedroom apartment in the city center typically rents for €2,198, whereas outside the center, the average is approximately €1,661.

Dining out

An inexpensive meal at a restaurant in Funchal typically costs around €12, while a three-course meal for two people at a mid-range restaurant averages €45. When it comes to fine dining establishments, expect to pay international prices. You’ll find a wide array of incredible restaurants in Funchal, including two Michelin-starred restaurants, Il Gallo d’Oro and William.

Utility costs

For basic utilities, including electricity, heating, cooling, water, and garbage, expect to pay around just over €104 per month for an 85m2 apartment.

Exploring the Natural Beauty and Attractions of Madeira

Madeira is a perfect haven for nature lovers and outdoor enthusiasts, offering a diverse range of natural landscapes and attractions.

Below, we share some of the top natural attractions that you won’t want to miss.

• Laurisilva forest: This UNESCO World Heritage site is one of the largest surviving areas of laurel forest, offering lush greenery, endemic plant species, and a wide variety of birdlife, such as the Madeiran pigeon.
• Levada walks: Madeira is famous for its extensive network of levadas (irrigation channels) that wind through the island’s landscapes. These scenic walking paths provide easy-to-navigate routes, allowing you to meander through valleys, forests, and mountains.
• Ponta de São Lourenço: This dramatic peninsula on the eastern tip of the island is known for its rugged cliffs, unique rock formations, and panoramic ocean views. It’s a fantastic spot for hiking and exploring diverse geological features.
• Cabo Girão Skywalk: One of the highest cliffs in Europe, Cabo Girão offers breathtaking views from its glass-floored skywalk. Standing 580 meters above sea level, visitors can enjoy sweeping vistas of the coastline and the Atlantic Ocean.
• Pico Ruivo: The highest peak in Madeira, Pico Ruivo, offers an adventurous hike with rewarding views from the summit. At 1,861 meters, it offers stunning sunrises and sunsets, as well as a bird’s-eye view of the island’s mountainous terrain.

How Can I Move to Madeira, Portugal

Expats have many opportunities to move to Portugal depending on their nationality and income source. If you’re an EU/EEA or Swiss citizen, you don’t need a visa to live in Portugal—you can move to Madeira, start working or studying, and then complete your local registration after arrival.

If you’re a non-EU citizen, such as a US, UK, Canadian, or Australian national, you’ll typically need a residence visa before relocating. Popular routes include the D7 Visa for people with passive income (such as pensions or rentals), the Digital Nomad Visa (D8) for remote workers with income from abroad, or a work or student visa if you have a job offer or a university placement in Portugal.

What can Goldcrest do for you?

Goldcrest is a buyer’s agent based in Lisbon, helping people purchase property in Portugal. We provide expert, unbiased advice and guide you through the entire process — from finding the right property to completing the purchase.

If you’re thinking about living in Madeira and buying property there, contact us today, and we will answer your questions, assist with property searches, and offer strategic advice for your Portugal investment properties.

Why choose Goldcrest?

• Local knowledge: With offices across Portugal, we can help you personally wherever you want to buy.
• Independent service: We don’t represent developers or projects. We work only for you, providing tailored advice and helping you get the best property at the right price.
• Easy process: Our agents speak English and Portuguese and focus on making your property purchase hassle-free, saving you time.
• Experienced team: Our experts know the Portuguese property market inside out. Using advanced tools, we cover the full market to find the best options and prices.
• Trusted partners: We work with a network of lawyers, property managers, builders, architects, designers, and landscapers.