Updated: October 10, 2024
Why move to Madeira in 2024? Well, there are a plethora of reasons why these stunning autonomous islands of Portugal are drawing more expats than ever before to their shores. Whether it is the unique natural landscapes, high quality of life, incredible gastronomy, or cultural richness, Madeira is an attractive place to call home, and the affordable cost of living is simply another string in the island’s bow.
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 property prices to everyday expenses.
An Overview of the Cost of Living in Madeira
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 11,793 foreign nationals have come to call Madeira home, where they account for around 4.7 percent of the total population. 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 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. Out of the four islands, only Madeira and Porto Santo are inhabited.
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 almost 13 percent cheaper.
Should you compare the cost of living in Funchal with the cost of living in London, UK, and Washington D.C, in the USA, the cost of living in Funchal is almost 48 percent and 47 percent lower, respectively.
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.
Property Prices in Madeira
Looking to move to Madeira? Well, the first port of call is accommodation. Whether you are looking to buy property or rent a place to begin with, housing costs and prices are attractive.
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 €3,127 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 on Madeira.
- A one-bedroom apartment in the city center will cost €1,200
- A one-bedroom apartment outside the city center will cost €950
- A three-bedroom apartment in the city center will cost €2,022
- A three-bedroom apartment outside the city center will cost €1,383
Looking for more insights on Madeira's real estate market? Check out our property guide.
Dining Out 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 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 €1.70, while a domestic beer will cost €2.50.
When you compare restaurant prices in Funchal with Lisbon, you’ll find Funchal comes out on top, with prices being almost 20 percent cheaper for 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. Below, we provide you with average prices for common food items in Funchal, the capital.
Food Item | Cost |
Milk (1 liter) | €0.97 |
Loaf of fresh white bread (500g) | €1.50 |
Eggs (12 regular) | €3.57 |
Local cheese (1 kg) | €9.33 |
Chicken fillets (1kg) | €6.56 |
Domestic beer (0.5-liter bottle) | €1.57 |
Bottle of Wine | €3.79 |
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’ range between €4,950 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.
Transportation Costs in Madeira
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 €1.64, 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 Activities Expenses
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 €7.50, as will renting a tennis court, which costs around €7.50 per hour on the weekend.
Cost of Utilities
Basic utilities will cost you, on average, around the €93 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 under €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.
On the hunt for a luxury property in Portugal? Check out our ultimate guide to the top areas.
Living Comfortably in Madeira
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 where 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?
Frequently Asked Questions about the Cost of Living in Madeira Portugal
Is Madeira an expensive place to live?
The cost of living in Madeira Portugal is quite affordable compared to other European destinations. Funchal, the capital, is also more affordable than many other cities in Western Europe. You’ll find that, despite being an island and relying on importing many goods, prices are quite reasonable, from property prices to everyday expenses such as groceries.
What is the cost of living in Madeira, Portugal, compared to mainland Portugal?
While imported goods may cost more, housing, utilities, leisure activities, and local transport tend to be cheaper, making Madeira a cost-effective choice compared to major Portuguese cities. For example, compared to Lisbon, Portugal’s capital city, the cost of living in Funchal is around 14.5 percent cheaper, including rent, and 12.8 percent cheaper, not including rent.
How much does housing cost in Madeira, including rent and property prices?
When it comes to housing costs, property prices in Madeira stand at €3,127 per square meter, while renting an apartment in the city center will cost you around €1,200 per month.
What is the average monthly expenditure for a single person living in Madeira?
A single person’s estimated monthly expenses in Funchal are €649 without rent, not including rent.
Are utility costs in Madeira higher or lower than in other parts of Portugal?
Utility costs in Madeira, including electricity, water, and internet, are generally comparable to the rest of Portugal, with a greater contrast when comparing Lisbon and Funchal. For example, basic utilities will cost you, on average, around the €93 mark for electricity, heating, cooling, water, and garbage for an 85-square-meter apartment in Funchal, while this will set you back around €125 in Lisbon.
How does the cost of groceries and food in Madeira compare to other regions in Portugal?
Madeira food prices may be slightly more expensive than on the mainland, particularly for imported goods, but this will completely depend on the product. However, local fresh produce is affordable, so if you shop locally or at local markets, your weekly food shop bull will not be too high.
What is the cost of public transportation in Madeira?
Public transportation in Madeira is affordable, with a single bus fare costing around €2.00. Monthly passes work out at a lower cost and are available for around €30, making it a cost-effective option for getting around the island.
How much does health insurance or medical care cost in Madeira?
Public healthcare is available at low or no cost for residents. Private health insurance in Madeira typically costs around €50–€100 per month, with it costing around €55 for a private consultation. Medical care is generally affordable compared to other European countries and the USA.
What is the cost of education for children in Madeira, including public and private schooling?
Public schooling in Madeira is free. If you are considering sending your child to a private school, annual fees cost between €4,950 and €10,945, with there being two options: the International School of Madeira and the International Sharing School of Madeira.
What is the average rent in Madeira Portugal?
You will find affordable apartments to rent in Madeira. To rent an apartment in the city center will cost you around €1,200 per month, while outside the city center this will cost you €950. If you are looking for a more spacious property, a three-bedroom apartment in the city center will set you back €2,022, while this falls to around €1,383 if renting outside the city center.
Is Madeira expensive to eat out?
No, generally, eating out in Madeira is quite affordable, particularly when compared to other Western European destinations. You also have a wide choice, whether you are looking for a traditional Portuguese restaurant, a fast food restaurant, or a fine dining experience. 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 will set you back around €50.
What is the cost of living in Madeira compared to the UK?
The cost of living in Madeira is affordable when compared to the UK. When you compare the capital of Madeira, Funchal, with London, Funchal is around 52 percent cheaper, including rent.
