Living in Madeira: Portugal’s Most Exciting Hidden Gem (2025 Update)

In late 2020, I escaped to Madeira as a temporary pandemic refuge. In 2025, I’m returning for good – and that says everything about this extraordinary Atlantic island that most of the world still hasn’t discovered.

Living in Madeira has changed my perspective on what makes a place truly worth calling home. My relationship with this paradise island has evolved in unexpected ways over the years. After my initial move here during the pandemic, I experienced a bit of island fever in 2023 and relocated to Lisbon, thinking the capital might offer more opportunities.

But after a year in Lisbon, I realised that Madeira was actually a better fit for me, thanks to its nature, healthful lifestyle, constant sunshine, and close-knit community. Since then, I’ve been dividing my time between Lisbon and Funchal, but in 2025 I’m in the process of relocating permanently back to Madeira.

Funchal, the Madeiran capital, was the perfect place to wait out the worst effects of the pandemic and the resulting lockdowns, and it continues to draw me back. Madeira has excellent long-term potential as a digital émigré destination. It’s one of the safest spots in Portugal (still with practically no crime!), which itself is one of the world’s safest countries. 

Before I arrived in Madeira, I had no idea what to expect. But after just a few months, I’d decided to make it my main base while working towards getting Portuguese citizenship. And now, after a brief stint in Lisbon, I’m heading back to make it my permanent home once again.

So you’re probably wondering, what makes living in Madeira so very compelling? I’m here to tell you exactly why Madeira is one of the best choices for getting your EU citizenship.

Benefits of Living in Madeira

Let’s take a look at some of the great things Madeira has to offer. 

1. Year-round sunshine

2020 became the year I opted out of winter. Amid the pandemic, with lockdowns in place all over Europe, I was grateful for the opportunity to escape to a more relaxed location.

Because Madeira is so far south (600 km off the Moroccan coast on the same latitude as Marrakesh), living in Madeira means you’ll have warm weather and a temperate climate all year round.

Some parts of the island are cooler than others (we saw snow a few times on the tallest mountain tops), but top destinations Funchal, Calheta and Ponta do Sol are usually warm.

For example, I was on one of Madeira’s beaches on New Year’s Day 2021, in water warm enough for swimming.

This hasn’t changed in 2025 – Madeira’s climate remains one of its strongest selling points, especially as other parts of Europe have experienced more extreme weather patterns in recent years.

2. High levels of safety and tolerance

Madeira continues to be extremely safe, with very low rates of all types of crime, including pickpocketing, burglary and violent crime. I still feel 100% safe walking on the streets of Funchal at all hours of the day and night.

Madeira is also very accepting of LGBTQ travelers. Restaurants and most service places are not discriminatory but nor are they hanging rainbow flags left and right. It’s just a relaxed acceptance. Several of my LGBTQ friends say they feel comfortable holding hands with their partners in public. 

Portugal in general is an exceptionally safe country, but Madeira is really on another level when it comes to safety. 

3. Cost of living (this has changed significantly)

In 2020/21, I was pleasantly surprised at the cost of living in Madeira, especially in terms of accommodation. But, in 2025, I must tell you that things have changed dramatically.

Funchal is still the most expensive part of Madeira, but prices have skyrocketed since the pandemic ended. Rent and property prices are now well beyond the vicinity of Lisbon, and with fewer properties available (it’s a tiny island, after all).

For example, back in 2020/21 Funchal, I found a two-bedroom rental apartment for €700 per month. But in 2025, you’re looking at paying around €1,500 for a high-quality, modern one-bedroom place in central Funchal. If you want something more affordable, you need to look in less desirable areas, such as further up the mountainside and away from the sea.

Districts of Funchal like Santo Antonio, Barreiros and Nazaré will be more affordable, but they’re also further from the sea and amenities, and with fewer international residents. They’re great places to feel more integrated on the island and the local community, while also saving money.

Looking beyond the capital, the north coast is still relatively affordable. Calheta, although it’s small and about a 30 minute drive from Funchal, is somehow one of the more desirable spots on the island where lots of wealthy foreigners are buying property.

Personally, I prefer to live in the capital, but if you look for something among nature then Calheta, Ponta do Sol, or the north coast are good bets. In my experience, I like to balance the buzz and convenience of living in the capital with the accessibility of nature close by. After all, it’s a small island and nothing is far away.

Grocery prices have gradually risen since the pandemic. As a one-person household I probably spend almost €100 every week on food items. Of course, it’s possible to live more frugally – it depends what sort of groceries you buy. But in general, prices across the board have risen.

Eating out in Madeira is still affordable, especially if you stick to non-touristic places. Many of the more touristy/international restaurants are also quite well-priced. My favorites in Funchal are The Studio, Prima Caju, Threehouse Hotel, the Ritz, Art Corner, and MadCuba.

If you’re a fan of specialty coffee, you’ll find beans from a local Madeiran roastery (Greenhouse Coffee) served at Land Food & Coffee. But you’ll have to work hard for it, as the cafe is up a very steep hill. Or you can take the cable car up the mountain. Land Food & Coffee is situated just underneath the end point of the cable car.

Other specialty coffee places (as of 2025) include Studio Coffee, Arbor Cafe, Maia Coffee, Art Corner (Old Town), Art Corner (Forum Madeira), and Three House Hotel. In Prazeres (on the far west of the island), you can find Gato Legal Coffee, another specialty coffee shop and local roastery that also does home delivery to Funchal.

Eating out in Madeira is still affordable, especially if you stick to non-touristic places.

Many of the more touristy/international restaurants are also quite well-priced. My favorites in Funchal are Prima Caju, Threehouse Hotel, the Ritz, Art Corner, and MadCuba.

If you’re a fan of specialty coffee, you’ll find beans from a local Madeiran roastery (Greenhouse Coffee) served at Land Food & Coffee.

But you’ll have to work hard for it, as the cafe is up a very steep hill. Or you can take the cable car up the mountain. Land Food & Coffee is situated just underneath the end point of the cable car. 

Other specialty coffee places (as of 2024) include Studio Coffee, Arbor Cafe, Maia Coffee, Art Corner (Old Town), Art Corner (Forum Madeira), and Three House Hotel.

In Prazeres (the far west of the island), you can find Gato Legal Coffee, another specialty coffee shop and local roastery that also does home delivery to Funchal.

4. Amazing natural beauty

Nature is always close by when living in Madeira. The interior of the island is covered in greenery, including thousands of banana plants. It even has some unique and unusual species, like the pineapple-banana fruit, and other strange-looking plants whose names I don’t know.

Striking vistas are never far away, especially from the tops of cliffs and high-level hiking paths. From the heart of Funchal, you can walk along the oceanfront and spend time gazing out over the Atlantic and feeling the ocean breeze.

If you want a more rural, golden sand experience, the island of Porto Santo is just 2.5 hours away by ferry. Here, the population is around 6,000, including a small remote worker community. There’s a large golden sandy beach and plenty of good hiking.

5. Strong sense of community

Community is vital when you move to a new place. I was impressed with the community I found while living in Madeira back in 2021, and that aspect has only improved with time.

Because of the island’s tourist focus, many locals speak excellent English. There’s also compulsory English education from primary school level upwards.

It’s an easy place to make friends and people are open to interacting with newcomers. Because it’s a small island, you’ll often bump into people you know, even when just having coffee at a street cafe in Funchal. It’s a nice contrast to big city life, which tends towards the fast and impersonal.

My social life in Funchal has been far more active than it ever was in Lisbon. It soon reached the point where all the socialising was distracting me from doing my actual work!

6. Remote worker-friendly

Madeira’s strong sense of community is very much present in the remote worker/digital nomad population.

Initiatives such as Startup Madeira’s Digital Nomad Village have done a lot to promote cohesion between newcomers to the island and help people get acquainted.

In 2025, the Digital Nomad Village is still going strong, and there are many digital nomads living on the island. They have become a core part of the international community, and there are many events and initiatives stemming from this group.

In particular, two groups are worth checking out: first Madeira Friends, and secondly Madeira Digital Nomads (who organise Madeira Hiking, Madeira Foodies, and many other international meetups).

Many digital nomads who first visited during the pandemic have become long-term residents. I count myself among this number. The international community has shifted and it has become more youthful than the typical Madeiran foreign population, which used to skew older.

Whereas previously most foreigners were retirees from the UK or Germany, there’s now a much more diverse range of international residents on the island, including many Americans, Nepalese, and people from all over Europe.

New coworking spaces have opened up to accommodate the growing remote work community, including Cowork Madeira and Sangha Cowork.

Here’s the final icing on the remote worker cake – Madeira still has the fastest Internet in Portugal in 2025, making it ideal for digital professionals.

7. Real estate market (major changes since 2021)

For the property investor, living in Madeira used to offer several compelling advantages, but things have changed dramatically by 2025.

I remember back in 2022 when I was trying to find an apartment to purchase on the island. I looked at many, and I found two and three bedroom places close to the centre for between €200,000 and €250,000 (I definitely regret not buying one).

Those days are long gone. You can still find affordable places around, but you have to look much harder. Madeira has become a premium destination in the last 1-2 years. Lots of new apartment buildings are being built, with one-bedroom apartments starting at €500,000 or more.

The most popular areas in 2025 are mostly along the south coast: Funchal, Lido, São Martinho, Camara da Lobos, Calheta, and Ponta do Sol. Major new developments include Dubai in Madeira, Savoy Residences in Lido and central Funchal, Carmo Palace, and Saraiva Hills, to name a few.

Camara de Lobos is an easy 15-minute drive from Funchal, so it makes a good up-and-coming destination where you may still find the odd bargain. Residential areas of Funchal such as Santa Luzia or Madalena can still be good value, while still keeping you within easy walking distance of central Funchal. Watch out for the hills though, they’re a killer!

But on Madeira, nothing is very far away (unless it’s up a steep hill). Surrounding towns like Santa Cruz, Caniço or Machico offer good value within around a 20-minute drive from Funchal.

8. Transportation updates

At present, the only way to travel between Madeira and mainland Europe is still by air.

For starters, that means it’s not the best destination if you’re afraid of flying. Funchal’s airport was once considered one of the world’s most dangerous. It’s much less scary these days, thanks to an extended runway, but strong winds can still cause hairy landings from time to time.

In terms of new flight connections, not much has changed since 2021. Ryanair opened a new route between Madeira and Shannon Airport in Ireland. I believe there are now more routes between Funchal and the United States as well.

The government of Madeira still subsidises return tickets between Madeira and the mainland for residents of the island. The objective is to ensure island residents aren’t cut off from the rest of Portugal due to high transport costs. The Azores also have a similar scheme.

In Madeira, a return ticket is capped at €86 (with a maximum spend of €400). The government will refund you the difference, as long as it’s not more than €400 for the ticket. Three airlines currently fly daily routes between Madeira and mainland Portugal: TAP Air Portugal, EasyJet and, most recently, Ryanair.

However, there has recently been some controversy about who is eligible. It was recently announced that only those who hold citizenship from a Schengen member country (not just EU but specifically Schengen) are eligible to receive the subsidy. This doesn’t make a lot of sense, and seems to be a misinterpretation of the rules. We’re waiting to see if anything will change.

For local transportation, Bolt and Uber have returned to the island in full swing, and there are more than double the amount of cars vs previously. This is an excellent development, as post-pandemic, most of these services left the island because of pressure from local taxi services. Now they’re back.

9. Visa and residency options in 2025

For those interested in relocating to Madeira, the visa and residency landscape has evolved somewhat since my original article.

The D7 passive income visa remains a popular option for those with sufficient passive income from investments, pensions, or rentals. The D8 visa is available for remote workers employed by companies outside Portugal.

Regarding the Golden Visa, you can no longer get this visa by purchasing real estate, but there are still options available with investment funds, job creation, scientific research, and cultural heritage projects.

A new option that’s emerged is the Highly Qualified Activity (HQA) visa. With this visa, you can invest €175,000, open a Portuguese company, and work on scientific research in conjunction with a local university. This is not tied to a specific location and you could use it as a way to move to Madeira.

Once you have your residency permit, you can then live freely anywhere in Portugal, with no restrictions.

10. Healthcare developments

The new hospital mentioned in my original article is still under construction in 2025, with work well underway, but it is not open yet. In the meantime, Hospital da Luz Funchal is the best private hospital on the island. There have been no significant changes to healthcare access for residents since 2021. 

Although the public healthcare system is good quality, it’s quite overloaded  and waiting times can be long. So I’d recommend getting private health insurance, which is very affordable compared to the UK and US. Providers include MGEN, Medis, and Allianz.

Challenges of Life in Madeira

While I’ve highlighted many positives about Madeira, it’s important to address some of the challenges that come with island living. After all, no place is perfect, and being aware of the downsides helps you make a more informed decision.

Island fever is real

As someone who temporarily relocated to Lisbon after three years on the island, I can attest that island fever can affect even the most committed Madeira enthusiasts. The island is small (57km long and 22km wide), and you can drive around it in just four hours. For some, this limited geographical space can eventually feel constraining.

If you’re used to big city amenities or the ability to take spontaneous road trips to different regions, then you might occasionally feel the limitations of island life. Every journey off-island requires flight planning and expense.

Limited cultural offerings

While Madeira has a rich local culture and growing international community, it can’t compete with major European cities for cultural diversity. There are fewer museums, large-scale concerts, theatre productions, and international events.

During my time in Lisbon, I appreciated the broader cultural options available. If you’re a culture vulture who thrives on constant new exhibitions and performances, you may find the offerings somewhat limited.

Rising costs without matching infrastructure

As mentioned throughout this article, costs have risen dramatically since 2021, particularly for housing. But the infrastructure hasn’t always kept pace with this inflation. Mobile data can be patchy outside the main urban areas, and public transportation beyond Funchal is limited and sparse.

The housing quality can also be inconsistent, many older properties lack adequate heating for the occasionally chilly winter evenings, and finding a properly insulated apartment can be challenging, especially if you live in a cooler area of the island.

Tourism dominance

Madeira’s economy is heavily tourism-dependent, which means that many services and businesses cater primarily to short-term visitors rather than residents. This can impact everything from restaurant offerings to real estate priorities.

During high tourist seasons, popular areas can become crowded, and prices for activities and dining often increase. The cruise ship arrivals in Funchal can temporarily transform the downtown area, making simple errands more challenging on those days.

Career limitations

Unless you’re a remote worker or in the tourism industry, career opportunities can be limited. The local job market doesn’t offer many high-paying positions in diverse sectors, and Portuguese salaries tend to be lower than other Western European countries.

This is why Madeira works best for digital nomads, remote workers, entrepreneurs, or retirees who aren’t dependent on the local economy for income.

Administrative challenges

Portugal is notorious for bureaucracy, and Madeira is no exception. I mentioned that bureaucracy can sometimes be more manageable here than on the mainland, but you’ll still encounter administrative processes that seem needlessly complex by international standards.

From setting up utilities to dealing with banking or government offices, patience is essential. Not all services have English-speaking staff, which can complicate matters if your Portuguese isn’t fluent.

Limited direct connections

While Madeira’s airport has improved its connections in recent years, you still have fewer direct flight options compared to major continental airports. Many international connections require a stopover in Lisbon, Porto, or other European hubs, adding time and expense to international travel.

Healthcare specialisations

Basic healthcare is good, but for certain specialised treatments or medical conditions, you’ll need to travel to mainland Portugal. The island’s hospitals and clinics provide quality care, but the range of specialists and advanced treatments is naturally more limited than in major metropolitan areas.

The Verdict: Is Living in Madeira For You?

Despite the challenges, I’ve chosen to return to Madeira after trying life in Lisbon. For me, the positives, stunning natural beauty, the pleasant climate, the relaxed pace of life, and the friendly community, outweigh the negatives.

Every location has its trade-offs, and being aware of Madeira’s limitations helps you approach island life with realistic expectations. Many of these challenges can be mitigated with proper planning, occasional trips to the mainland, and embracing the unique rhythm of island living.

What might be a dealbreaker for some could be a minor inconvenience for others. Consider your priorities, lifestyle needs, and personal preferences when weighing these factors against Madeira’s many advantages.

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Frequently Asked Questions

Is Madeira a good place to live?

Yes. Madeira has won multiple awards, such as ‘Best Island’ at the World Travel Awards for several years running. If you like nature, outdoor activities, and a relaxed pace of life, then you’ll love living in Madeira.

Plus, the island is very safe and has warm weather all year round. It’s the perfect destination for families, retirees and remote workers – especially those seeking a route to eventual EU citizenship via Portugal.

Is it expensive to live on Madeira in 2025?

In 2025, living costs in Madeira are no longer as affordable as they once were. Rental prices have increased significantly, especially in Funchal. You can expect to pay around €1,500 for a one-bedroom apartment in central Funchal. Areas outside the capital remain more affordable.

Food prices have also risen, with a single person spending approximately €100 per week on groceries (individual needs will vary). Cars are still more expensive in Madeira compared to mainland Portugal due to import costs. However, eating out can still be relatively affordable, especially in non-tourist areas.

Can I retire to Madeira?

Retiring to Madeira is straightforward, thanks to Portugal’s easy visa and residency process. If you’re an EU citizen, you can simply move to Madeira whenever you want. If you’re from outside the EU, then you’ll need to apply for a visa. Many retirees use the D7 passive income visa, or invest in one of the remaining Golden Visa options.

Can UK citizens live in Madeira post-Brexit?

Yes. UK citizens have several options for living in Madeira.

1. For short stays in Madeira of up to 90 days in every 180, UK citizens don’t need a visa
2. To live full-time in Madeira, UK citizens with sufficient passive income can apply for the D7 visa
3. For living in Madeira with maximum flexibility, UK citizens can get one of the investment visa options like the HQA visa or remaining Golden Visa pathways.

Is there an international community in Madeira?

There’s a significant international community in Madeira in 2025, which falls into two main categories.

1. The traditional community of foreign retirees, mainly from the UK and Germany
2. The newer community of remote workers and digital nomads, from all over the world

The international community has shifted and become more youthful than the typical Madeiran foreign population, which used to skew older. There is now a more diverse range of international residents on the island, including many Americans, Nepalese, and people from all over Europe.

Several active community groups exist, including Madeira Friends (social club, giving back to the community, fitness events, yoga, etc), Madeira Hiking & Foodies groups (regular weekend hikes), Madeira Digital Nomads (many events), and Purple Fridays Ponta do Sol (regular music night).

Can you live in Madeira without a car?

Yes, but it depends where you live. It’s easy to get around the main areas of Funchal on foot. However, if you live anywhere outside of Funchal, you’ll probably need a car, as public transport on wider Madeira can be sparse and unpredictable.

The good news is that ride-sharing services like Bolt and Uber have returned to the island in full swing in 2025, with more than double the number of cars compared to previous years. This development makes it easier to live without owning a car.

Do they speak English in Madeira?

Most people in Madeira tend to speak good English, especially in the larger towns and tourist areas. Although Portuguese is the official language, English is prevalent due to Madeira’s long history with the UK, strong English language education, and tourist-focused economy.

How cold does it get in Madeira?

The temperature in Madeira depends very much on where you live. Madeira is full of microclimates, so weather conditions can vary greatly from place to place. Generally speaking, the closer to the coast, the warmer the weather.

For example, in a Funchal winter, temperatures get to around 20°C (68°F) during the day, and usually never drop below 14ºC (57°F) at night. In summertime, daytime temperatures in Funchal can go up to 30°C (86°F), but it usually doesn’t get much hotter than that.

Can I buy a house in Madeira in 2025?

Yes, any nationality can buy property in Madeira. The Madeira property market is extremely hot in 2025. I recommend working with a reputable agent, and visiting the island in person before making any buying decisions.

Be prepared for high prices – what used to cost €200,000-€250,000 for a two or three-bedroom apartment near the center in 2022 now starts at €500,000 or more for a one-bedroom in 2025.