Your ultimate guide to moving to Madeira, Portugal

Madeira, a picturesque archipelago in the Atlantic often called the "Pearl of the Atlantic," offers more than just a beautiful place to visit—it could become your new home, especially if you're a digital nomad. With its mild climate year-round, stunning landscapes, and the chance to wake up to sweeping ocean views, Madeira is an inviting option for those looking for a new lifestyle.

Located in the North Atlantic Ocean, Madeira is just under 400 km north of the Canary Islands, 520 km west of Morocco, and 805 km southwest of mainland Portugal. While situated on the African Tectonic Plate, it is entirely considered European. Thinking of moving there? This guide aims to make your move as smooth as possible, covering essential topics from legal requirements to finding the right home on the island. 

Table of Contents

1. Fun Facts about Madeira
2. Understanding Madeira
3. Legal Requirements - Visas and Residency Permits
4. Finding a Job
5. Finding a Place to Stay
6. Cost of Living
7. Setting up a Bank Account
8. Getting Around Madeira
9. Accessing the Healthcare System
10. Learn the Language
11. Conclusion

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Fun Facts about Madeira

• Official name: Autonomous Region of Madeira (Região Autónoma da Madeira)
• Population: 256,622 (2.5% of the population in Portugal)
• Total number of islands: 4 main inhabited islands (Madeira, Porto Santo, Desertas, and Selvagens)
• Capital: Funchal, located on Madeira Island
• Currency: Euro (€)
• Official language: Portuguese
  

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Understanding Madeira

Location and Climate

Madeira is an autonomous region of Portugal, consisting of four islands located in the north Atlantic Ocean, about 1,000 km southwest of Lisbon and 520 km west of the African coast. Known for its eternal spring climate, Madeira boasts average temperatures ranging from 19°C (66°F) in winter to 26°C (78°F) in summer. It typically has dry summers and wet winters.

Culture

Madeiran culture is a vibrant mix of Portuguese and multicultural influences, reflecting its history as a strategic port. The people are known for their warmth and hospitality, embracing a relaxed lifestyle that values work-life balance.

Language

Portuguese is the official language of Madeira. While English is widely spoken in tourist areas and among younger generations, learning some Portuguese will greatly enhance your experience and integration into local life.

Tax Benefits

Madeira offers attractive tax benefits, especially for non-habitual residents (NHR) and digital nomads. The NHR program provides tax exemptions or reduced rates on foreign-source income for eligible individuals for ten years. Additionally, Madeira's International Business Centre offers tax advantages for companies establishing operations on the island.

Legal Requirements - Visas and Residency Permits

Madeira follows Portuguese immigration laws as it is an autonomous region of Portugal. Here’s a breakdown:

1. EU/EEA/Swiss Citizenssome text
   • As part of the EU, Madeira allows EU/EEA/Swiss citizens to enter freely for up to 3 months. For longer stays, registration with local authorities for a Registration Certificate is required.

2. Non-EU Citizenssome text
   • Schengen Visa (Short-stay): For visits up to 90 days in a 180-day period.
   • National Visa (Long-stay): For stays over 90 days, depending on the purpose (work, study, etc.). This includes:some text
     • Work Visas:some text
       • D1 Visa (Employee Visa): For individuals with a job offer from a Portuguese company.
       • D3 Visa (Highly Qualified Activity Visa): For skilled professionals, researchers, or teaching staff.
       • D2 Visa (Entrepreneur Visa): For those starting a business or investing in Portugal.
       • D7 Visa (Digital Nomad Visa): For remote workers and digital nomads.
     • Study Visas (D4 Visa): For students accepted by a recognized Portuguese educational institution.
     • Golden Visa: This residency program allows non-EU citizens to obtain residency by making significant investments, such as buying property or creating jobs in Portugal.
   • After arriving, non-EU citizens must schedule an appointment with SEF and apply for a residence permit within 4 months.

Additional notes:

• Language requirement: Some visas may require proof of Portuguese language proficiency (A2 level), which can often be met after arriving in Portugal.
• Visa validity: Most initial visas are valid for 4 months to 1 year and can be renewed if the applicant continues to meet the visa conditions.

Always check the official SEF website (www.sef.pt) for the most updated information as immigration laws and requirements can change.

Finding a Job

While Madeira's job market can be competitive, opportunities exist, particularly in the following sectors:

• Tourism and hospitality
• IT and tech (growing digital nomad scene)
• Education (especially language teaching)
• Healthcare
• Agriculture and wine production

To search for jobs, you can use online platforms like:

• Indeed Portugal
• LinkedIn

The Madeira Digital Nomads community is also a great resource for remote workers.

Finding a Place to Stay

Madeira offers a range of housing options, from modern apartments in Funchal to traditional quintas (country estates) in rural areas. Popular areas for expats include:

• Funchal
  • The capital city and largest urban centre of Madeira, Funchal is the most popular choice for expats. It offers a wide range of amenities, including restaurants, shops, healthcare facilities, and schools. Funchal has a blend of modern living and traditional charm, with its scenic harbour, historic sites, and vibrant cultural life.
• Ponta do Sol
  • Known for being one of the sunniest spots on the island, Ponta do Sol has become increasingly popular with digital nomads and remote workers. It's a smaller, quieter coastal town but has a growing expat community, particularly those looking for a relaxed lifestyle away from the busy city.
• Calheta
  • Located on the southwest coast, Calheta is favoured by expats seeking a quieter, more rural lifestyle while still being within easy reach of Funchal. It offers beautiful beaches, nature, and hiking opportunities, as well as modern amenities.
• Santa Cruz
  • Close to the Madeira International Airport, Santa Cruz is another attractive area for expats, offering proximity to the ocean, a quieter vibe than Funchal, and easy access to amenities and transportation.
• Caniço
  • Situated just east of Funchal, Caniço is another popular choice for expats. It offers a more suburban feel, with residential areas, shops, and restaurants, along with a lower cost of living compared to Funchal. Caniço de Baixo, the coastal area, is especially favoured by retirees and expats.
• Machico
  • Located on the eastern part of the island, Machico is Madeira’s second-largest town and offers a more traditional Portuguese lifestyle. It has a beautiful bay, a sandy beach, and a lower cost of living, making it appealing to expats who want a quieter environment while still enjoying coastal life.

When deciding on a place to live, consider:

• Proximity to amenities and transport links
• Microclimate (some areas are sunnier or more sheltered from winds)
• Access to high-speed internet (crucial for remote workers)

Websites to help with your property search:

• Idealista
• Casa Sapo
• Imovirtual

In Funchal, the average cost of renting a one-bedroom apartment in the city centre is approximately €1,220. For those looking to live outside the city centre, the rent for a one-bedroom apartment is typically lower, around €930. For larger accommodation options, a three-bedroom apartment in the city centre averages €2,130, while the same type of apartment outside the centre costs about €1,550.

Cost of Living

While generally more affordable than mainland Portugal, costs in Madeira can vary. Here's a general idea of monthly costs (excluding rent):

• Single person: €650
• Family of four: €2,300

Looking at some more specific costs:

• Basic utilities (electricity, heating, water, garbage) for 915 sq ft apartment: €92
• Internet (60 Mbps or more): €37
• Mobile phone monthly plan with calls and 10GB+ data: €17
• Gym membership: €38

The cost of living in Funchal is approximately 13.5% lower than in Lisbon, and 56% lower than that of New York City.

Setting up a Bank Account

To open a bank account in Madeira as a foreigner, you'll typically need:

• Valid passport or EU ID card
• Portuguese tax number (NIF) - get this from your local tax office or fiscal rep
• Proof of address in Portugal
• Proof of income or employment
• Tax number of previous location

Major banks in Madeira include:

• Banco Santander Totta
• Millennium BCP
• Caixa Geral de Depósitos
• Novo Banco

Note that while some steps can be completed online, banks in Madeira typically require the account opener to be there in person. Alternatively, take your Tap card with you and use it for all your financial needs. From the app you can conveniently and securely manage all your currencies (crypto and fiat), pay bills locally and back home, and top up your card that can be used to swipe or tap around the island, as well as at ATMs. 

Getting Around Madeira

Transportation in Madeira is primarily by road:

• Public buses (Horários do Funchal) and bicycles are available and relatively inexpensive.
• TukTuks, double-decker buses and Segway tours are also highly rated, if you’re looking to sightsee.
• Car rentals are popular for exploring the island, but be prepared for steep, winding roads and plenty of tunnels.
• Cable cars in Funchal also offer scenic transportation and tourist experiences.

For inter-island travel to Porto Santo:

• Ferry services are available (2.5-hour journey)
• Short flights operate regularly

Accessing the Healthcare System

​​Foreigners moving to Madeira, Portugal, should know that the island offers a public healthcare system (Serviço Nacional de Saúde) accessible to residents, including expats with proper registration. 

EU/EEA citizens can use their European Health Insurance Card (EHIC) for short-term stays. For non-EU citizens or those seeking private care, private health insurance is recommended. 

Madeira has both public and private hospitals, with the main public hospital located in Funchal. Madeira has a good standard of healthcare, but for very specialised treatments, patients might be referred to mainland Portugal.

Learn the Language

While you can get by with English in tourist areas, learning Portuguese will make your experience that much smoother. Some useful phrases:

• "Olá" means "Hello."
• "Obrigado" (male) / "Obrigada" (female) means "Thank you."
• "Bom dia" means "Good morning."
• "Poncha" is a traditional Madeiran alcoholic drink, typically made with sugar cane rum, honey, sugar, and lemon juice.

To learn more, consider taking language classes at the University of Madeira or using apps like Duolingo or Babbel to get started.

Conclusion

Moving to Madeira offers a unique lifestyle with its mild climate, breathtaking landscapes, and welcoming local culture. With helpful resources available for navigating visa requirements, finding accommodation, and accessing healthcare, the transition to island life can be as smooth as the rum you’ll find there. 

Whether you're a digital nomad, retiree, or simply seeking a new adventure, Madeira provides an attractive mix of modern amenities and natural beauty, making it an ideal destination for expats.

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