Expat Living in Madeira Island Guide

What are the pros and cons of living in Madeira as an expat?

Advantages:

• Mild Climate: Madeira’s climate is as appealing as its landscape. With temperatures averaging 17°C in winter and 25°C in summer, residents enjoy a subtropical climate that encourages a relaxed, outdoor lifestyle. The region experiences relatively low rainfall and lacks extreme seasonal changes, which many find ideal for year-round outdoor activities like hiking and water sports. The stable, mild climate is one of the top reasons people choose Madeira.
• Stunning Natural Beauty: From the golden sands of Porto Santo to the mountainous peaks of Pico Ruivo, Madeira’s landscapes offer something for everyone. Locals and visitors alike highly recommend the iconic 'levada' trails, which wind through breathtaking mountainous areas. Whether you’re a fan of beaches, lush forests, or cliffside views, Madeira’s natural beauty is a gift that keeps giving and one that deeply resonates with the island’s residents and visitors.
• Low Crime Rate: Madeira is one of the safest regions in Portugal, with crime rates considerably lower than those in the country’s urban centers. The island’s peace and tranquility contribute significantly to the high quality of life, with expats often noting that they feel secure day and night. Low crime is frequently cited by expats as one of the top advantages of living in Madeira.
• Friendly Expat Community: Expats mention how welcoming the local and expatriate communities are, which smooths the transition to island life. Madeira’s expat groups, such as those on Facebook, are robust, with large groups exceeding 30,000 members actively offering tips, sharing resources, and organizing events. This strong sense of community is a comforting bonus for newcomers and makes settling into island life feel much more seamless.

Disadvantages:

• Island Isolation: While Madeira’s international airport connects regularly to mainland Europe and other global destinations, some expats feel the island’s solitude can be challenging. Flights are available, but regular trips to mainland Portugal or other parts of Europe can add up in cost, and certain goods are pricier due to shipping expenses. Expat forums and publications often discuss this island effect, which influences both accessibility and cost.
• Limited Job Market: Tourism, hospitality, and real estate dominate Madeira's job market. Expats who aren’t remote workers may struggle to find employment, especially if they don’t speak Portuguese. The language barrier, along with limited professional opportunities outside core industries, makes remote work or self-employment a more viable option for most newcomers.
• Higher Prices for Imported Goods: Because Madeira is an island, imported goods, especially electronics and international brands, tend to be more expensive. Shipments of items to the island lead to an increase in retail costs. Expats coming from mainland Portugal or other European countries often report adjusting their shopping habits to prioritize local products to help save on everyday expenses.

What are the best places to live in Madeira?

The island has a variety of neighborhoods that appeal to different lifestyles. Here’s a closer look at some popular areas:

• Funchal: The vibrant capital of Madeira, serves as the island's economic and cultural hub. The city's blend of modern amenities and historic charm draws in expats. ****Funchal offers international schools, hospitals, shopping centers, restaurants, and cafes, making it ideal for those who want quick access to urban conveniences. Monthly rent for a one-bedroom apartment here ranges from €900 in the center to around €700 on the outskirts. Forums and expat groups frequently praise Funchal's balance between urban life and proximity to nature.
• Porto Santo: A small island located northeast of Madeira, renowned for its vast sandy beaches and pristine waters. Porto Santo is quieter and less developed than Madeira, making it ideal for those looking to live a beach-oriented lifestyle. It’s particularly popular with retirees and remote workers who appreciate its seclusion and natural beauty.
• Porto da Cruz: A picturesque village on the island’s northeastern coast, Porto da Cruz is famous for its wine and surf spots. It’s a close-knit community with a slower pace of life, and residents are known for their warm hospitality. Expats who settle here often highlight its friendly community feel and beautiful natural surroundings.
• Câmara de Lobos: Just west of Funchal, this charming fishing village offers a quieter life while still being close to the capital. With a slower pace, lower rental costs (around €600-€700 for a one-bedroom), and beautiful coastal views, Câmara de Lobos is a wonderful choice for those seeking tranquility without straying too far from urban amenities.
• Machico: Located on the east coast, Machico is Madeira’s second-largest city and a wonderful fit for those who want a traditional Madeiran lifestyle. Known for its beaches and proximity to the airport, Machico has a slower pace and lower living costs, with one-bedroom apartments renting for about €700.
• Caniço: Just east of Funchal, Caniço is a popular residential area with a suburban feel. Its stunning coastal views, reasonable rent prices (€600 to €800), and proximity to the capital make it a top choice for expats who want a quieter lifestyle while still staying connected to Funchal’s amenities.

Where Do Most Expats Live in Madeira?

Funchal is the primary choice for most expats due to its social scene, employment opportunities, and convenient amenities. However, for those who prefer a quieter life, Câmara de Lobos and Caniço are excellent options with quick access to Funchal.

Smaller towns like Santa Cruz and Ponta do Sol also attract expats looking for a more rural lifestyle, though these areas may lack some of the services and amenities available in the capital.

What is the cost of living in Madeira?

Living in Madeira is generally affordable, though costs vary based on lifestyle and preferences. Here’s a breakdown of some common expenses:

• Rent: One-bedroom apartments in Funchal go for about €700-€900, while outside Funchal, you’ll find options between €600 and €700.
• Utilities: Basic utilities (electricity, water, garbage) cost around €100-€120 monthly, with internet ranging from €30-€40.
• Groceries: The average grocery bill for a couple is around €300—€400, thanks to affordable local produce. Imported items tend to be pricier, as noted by residents.
• Dining Out: Inexpensive restaurant meals cost around €10-€12, while a three-course meal for two at a mid-range restaurant is roughly €40-€50.
• Transportation: Madeira’s bus network is well-developed, with a monthly pass costing around €40. Many expats recommend owning a car, especially for those living outside Funchal.

How is healthcare in Madeira?

Madeira boasts a highly regarded healthcare system, offering both public and private options. Expats can access Portugal’s national healthcare system, SNS, offering affordable services.

Private insurance is a common choice among expats for faster access to services, with costs ranging from €40 to €60 per month. Funchal’s main public hospital, Dr. Nélio Mendonça, is well-equipped, and private clinics like Hospital Particular da Madeira receive positive feedback for their short wait times and English-speaking staff.

How do I get around in Madeira?

Getting around Madeira is relatively straightforward, with options ranging from public buses to car rentals, though each has its pros and cons based on your location and travel needs.

Public Transport

• Bus Services: Madeira has a well-developed public bus system, primarily operated by the companies Horários do Funchal, SAM, and Rodoeste. These buses connect Funchal with the rest of the island, making it relatively simple to travel to major towns and tourist spots. A monthly bus pass in Funchal costs around €40, and the network is extensive within the capital. However, buses can be less frequent in rural areas, making it essential to check schedules if you’re planning to live or travel outside Funchal. Expats often recommend buses for routine travel in the city but suggest other options for exploring more remote parts of Madeira.

Taxis and ride-sharing

• Taxis: Taxis are widely available across the island, especially in Funchal, and can be a convenient option for short trips or for reaching areas not covered by public transport. Taxi fares are regulated, but it’s always a good idea to confirm the fare with the driver before starting the journey. Taxis are generally considered safe and reliable, and many drivers speak basic English, which can be helpful for expats and tourists.
• Ride-sharing Services: Unlike mainland Portugal, ride-sharing services like Uber and Bolt are not yet available in Madeira. However, local taxi companies sometimes offer phone apps and booking services, making it easier to call for a ride in advance.

Purchasing a car

For expats planning to stay in Madeira long-term, purchasing a car can offer significant advantages in terms of flexibility and freedom, especially for exploring the island’s more remote areas.

Madeira’s mountainous landscape and less frequent public transportation options outside Funchal mean that having your own vehicle can make getting around much easier.

• Benefits of Car Ownership: Owning a car gives you the freedom to explore Madeira's hidden gems at your own speed, including scenic spots and lesser-known villages that are difficult to reach by public transportation.Given Madeira’s challenging terrain—narrow, winding roads and steep hills—many expats appreciate the comfort and convenience of driving their own vehicle rather than relying solely on bus schedules or taxis.
• Purchasing Process and Costs: Buying a car in Madeira is relatively straightforward, with both new and used vehicles available. Due to import taxes, the prices of new cars are typically higher in Madeira than in mainland Portugal, leading many expats to choose used cars as a cost-effective option. For a compact used car, prices usually start around €5,000-€8,000, depending on the car’s age, mileage, and condition. Insurance, inspection (known as IPO), and registration fees are additional costs to consider. Fuel prices in Madeira are comparable to the mainland, though it’s wise to budget for slightly higher consumption if you’ll frequently be driving in mountainous areas.
• Maintenance and Repairs: Madeira has a number of auto repair shops and service centers, especially in and around Funchal. While parts for international brands are available, they may sometimes be pricier or require ordering due to the island’s location. Many expats recommend choosing a reliable vehicle with strong fuel efficiency, especially given Madeira’s varied terrain.
• Parking and Driving Conditions: While driving in Madeira is generally safe, it can take time to adjust to the island’s steep roads and narrow streets, especially in rural villages. Most areas typically offer parking, but be ready to navigate steep inclines and narrow spaces. Funchal offers some paid parking lots, and street parking is common in smaller towns. Expats frequently suggest getting a smaller, maneuverable car to navigate Madeira’s terrain more easily.

Is car ownership worth it in Madeira?

Most expats who purchase a car in Madeira find it a worthwhile investment, as it provides a greater sense of freedom and convenience.

While car ownership does come with added costs, the ability to explore the island without relying on bus schedules or taxis often outweighs these expenses for long-term residents.

Having your own car can transform your experience of Madeira, allowing you to access its many stunning natural sites and picturesque villages whenever you wish.

Biking and walking

While Madeira is a popular destination for outdoor enthusiasts, biking is less common due to the island’s steep terrain. However, electric bikes are becoming more popular, and several companies now offer rentals.

Walking is an option for exploring towns and villages, particularly in Funchal and coastal areas where paths are more accessible.

• Hiking Trails: Madeira’s famous Levada Trails make it a hiker’s paradise, and many residents take advantage of these trails for leisure and exercise. While the levadas are excellent for getting around the island on foot, they are better suited for exploring specific natural areas rather than a regular means of transportation.