Living in Madeira 2023
Thousands of ex-pats are living in Madeira. Could you become one of them? Know all about living on the Portuguese island.
Article by Viv Europe - Official Legal and Relocation Partner to KipperTree
January 2023
In the middle of the Atlantic Ocean, Madeira Island is a Portuguese jewel. With a pleasant climate, fascinating natural landscapes, and some of the lowest prices in Europe, living in Madeira is an object of desire for many foreigners.
Portugal has long been known for its excellent hospitality, but now, it’s also home to retired ex-pats, families, and investors. In this article, we’ll tell you all about living in Madeira, the cost of living, the best neighbourhoods, and much more. Follow the text to the end!
Living in Madeira: day by day
Have you ever thought about living on a tropical island with the security of Europe, affordable prices, and a relaxed pace of life? No, it’s not a dream; it’s Madeira Island!
This little Portuguese paradise is 1077 km (669 miles) off the mainland coast, in the middle of the Atlantic. Home to Cristiano Ronaldo, the island has received increasing worldwide recognition in recent years as a luxury destination.
Living in Madeira is quite like living a dream of peace, nature, and calmness – without losing the comforts of modern life. The Portuguese are friendly; the ex-pat community grows daily, especially the British. And the days go by in pleasant temperatures with delectable outdoor meals.
Who lives on Madeira Island?
As the largest island in the Madeira archipelago, the island of Madeira has around 250,769 inhabitants. Of these, 105,000 live in the capital, the city of Funchal.
In Madeira, 67.3% of the population is of working age, and foreigners form 3.7% with legal residence status. However, in reality, this number tends to be much higher than on paper.
Why are ex-pats moving to Madeira?
The attractions of the island of Madeira, as already mentioned, are quite obvious. It’s a fantastic place to live with quality of life to spare.
But beyond that, some things make Madeira an even more attractive destination for foreigners to relocate. For example:
Residency programs that make relocation easier
Tax Benefits for Non-Habitual Residents
Obtaining a Golden Visa with real estate investment
Lower cost of living than European cities
It’s halfway between the United States and the United Kingdom
So, as in most regions of Portugal, the question should be: Why not move to Madeira?
What is the cost of living in Madeira?
People living in Madeira, especially ex-pats like you, find that prices are much lower than in major European cities or islands.
Check out the table for some estimates provided by Numbeo (as of July 2022):
In case you’re wondering, the cost of living in Funchal is, on average, 12.29% lower than in Lisbon. Likewise, rent tends to be around 25.90% cheaper.
What are the best neighbourhoods to live in Madeira?
Although the entire island of Madeira is a great place to live, get to know the areas that most attract foreigners to relocate. Before we go any further, discover Madeira better by exploring the map below.
According to official data on Pordata, the following neighbourhoods in Madeira have the biggest percentage of foreign population.
Calheta
The parish of Estreito da Calheta, southwest of Madeira, is the expats’ #1 area of choice to live. In the last few years, it has attracted many investors in the tourism sector, thanks to its beautiful settings and one of the few sandy beaches on the island.
It’s located 35 km from the capital, Funchal, which is not too close and not too far from a bigger city.
Calheta has a calm lifestyle, surrounded by nature, surfing beaches, and non-invasive tourism. A great place to live after retirement; here’s why:
The resident population is 10,915 people
8.4% of the inhabitants are foreigners
A 50 m² 1-bedroom apartment rental costs on average €400 per month
Ponta do Sol
Living in the south of Madeira Island, in the village of Ponta do Sol, also has its advantages. Here, as the name indicates (point of the sun), it’s the warmest part of Madeira.
Ponta do Sol is another very charming coastal village, surrounded by agriculture and some tourism companies, which is worth considering when establishing a new home.
Ponta do Sol is really a fantastic place, 24 km from Funchal, that invites visitors to stay forever. Why wouldn’t they?
The resident population is 8,367 people
5.3% of the inhabitants are foreigners
A 50 m² 1-bedroom apartment rental costs on average €300 per month
Funchal
Capital and largest city on the island of Madeira, Funchal is also a fantastic place to live. It’s here, in the heart of Madeira, that you have the greatest purchasing power on the island and can find the main services. Schools, universities, hospitals, and airports are all here.
Funchal is the biggest city on the island
To reach the island, Funchal is the gateway. Flights to Madeira frequently depart from Lisbon, London, and Paris. It’s not a bad place to live at all. In fact, it makes perfect sense to be at the top of your list!
The resident population is 105,795 people
5.7% of the inhabitants are foreigners
A 50 m² 1-bedroom apartment rental costs on average €450 per month
Porto Moniz
The small village of Porto Moniz is home to one of the most emblematic settings of Madeira. Located in the northwestern part of the island, this remote area has natural lava pools that attract some tourists.
Even so, everyday life in Porto Moniz is marked by tranquillity, where everyone knows each other, but you still have privacy.
Porto Moniz is a beautiful place to live
Access to Porto Moniz from Funchal, 50 km away, is via cinematographic roads, with occasional waterfalls and sections of tunnels. A little paradise is hidden at the tip of the island.
The resident population is 2,521 people
4.5% of the inhabitants are foreigners
A 50 m² 1-bedroom apartment rental costs on average €260 per month
Câmara de Lobos
At only 9 km from central Funchal, Câmara de Lobos is the second-biggest city in Madeira. It was the first village built on the island by its Portuguese discoverer in 1420 and is very important for the locals.
The city is, therefore, mostly made up of Madeirans. To survive here, one must know how to speak Portuguese and understand the local accent. Some say that this is where the authentic Madeiran experience is.
The resident population is 32,175 people
1.2% of the inhabitants are foreigners
A 50 m² 1-bedroom apartment rental costs on average €310 per month
How much does it cost to buy a house on Madeira Island?
See the average prices to buy a house in different areas of Madeira Island in the table below:
With the new Golden Visa rules on real estate investment favouring the Madeira region in 2022, the estimate is that the value of properties here will increase greatly.
Interested in knowing how to get a European Passport? Check out our Complete Guide to Golden Visa in Portugal and discover how you can make your dream come true!
To find out about healthcare, the labour market, safety, salaries culture and much more read the full article here
Article by Viv Europe - Official Legal and Relocation Partner to KipperTree