Cost of living in Madeira in 2025? Madeira is a stunning archipelago known for its year-round spring-like weather, picturesque landscapes, and warm, friendly locals. As an Autonomous Region of Portugal, Madeira is gaining popularity among expats and digital nomads who wish to enjoy a high quality of life in a beautiful setting. One of the key aspects that attracts people to relocate to Madeira is the cost of living. In this comprehensive guide, we will delve into the details of the cost of living in Madeira, considering various aspects such as housing, transportation, utilities, and more.
Cost of living in Madeira in 2025
Housing in Madeira
Real Estate Market
As of early 2025, Madeira’s real estate market continues to experience growth, driven by both domestic and international demand. In Funchal, the capital city, the median value of bank appraisals for housing stood at €2,000 per square meter in January 2025. This represents an increase from previous years, reflecting the island’s growing popularity.
The average asking price for an apartment in Funchal is approximately €3,230 per square meter. Other areas, such as Calheta and Santa Cruz, offer more affordable options, with average prices ranging from €2,276 to €3,491 per square meter.
Rental Market
Rental prices have also seen an upward trend. In Funchal, the median rent for new leases of family accommodation reached €11.51 per square meter in the second semester of 2024. This translates to approximately €1,600–€1,700 per month for a two-bedroom apartment in the city centre.
Types of Properties
Madeira offers various properties, from modern apartments and villas to traditional Madeiran Quintas (manorial houses). While Funchal remains the most sought-after location, surrounding municipalities like Santa Cruz, Câmara de Lobos, and Machico provide more affordable alternatives. Bespoke villas and traditional Quintas are available for those interested in luxury properties, with prices starting from €350,000 and exceeding €1 million, respectively.
Renting vs. Buying
Deciding between renting and buying depends on individual circumstances. Renting offers flexibility and lower upfront costs, while purchasing property can be a sound long-term investment, especially given the island’s growing real estate market.
Utilities
Utility costs in Madeira are generally lower than in mainland Portugal. For an 85-square-meter apartment, basic utilities—including electricity, heating, cooling, water, and garbage—average around €93 per month. Internet and telecom packages typically cost between €40 and €50 per month, with bundled services (internet, TV, and phone) averaging around €80 per household.
Transportation
Infrastructure
Madeira has a well-developed road network, featuring modern highways and tunnels that connect various parts of the island. This infrastructure only facilitates efficient travel by car or bus.
Public Transport
Public transportation in Madeira is reliable and affordable. As of early 2025, the cost of an on-board bus ticket is €1.95, while pre-purchased tickets are available for €1.45 for municipal routes and €1.95 for intercity routes. Monthly passes offer additional savings, with municipal passes priced at €30 and intercity passes at €40.
Food and Groceries
Grocery prices in Madeira remain competitive. Local markets offer reasonably priced fresh produce, and staples such as bread, eggs, and cheese are affordable. For instance, a loaf of bread costs around €1.23, a dozen eggs approximately €2.36, and local cheese about €8.37 per kilogram. For more information on this, those looking into relocating should consult Numbeo.
Healthcare
Madeira has a comprehensive healthcare system comprising public and private providers. The Regional Health Service (SESARAM) offers free healthcare to all residents. While the public system is generally accessible and affordable, some expats opt for private healthcare to benefit from shorter wait times and access to English-speaking doctors. Private health insurance is advisable for those seeking additional coverage.
Healthcare
Madeira offers a dual healthcare system comprising public and private providers. Residents, including expats with legal residency, can access the public healthcare system (Serviço Nacional de Saúde – SNS) by registering at their local health centre with a residence permit and social security number.
While the public system is generally accessible and affordable, many Madeirans and expats opt for private healthcare to benefit from shorter wait times and access to English-speaking doctors. Private health insurance is advisable for those seeking additional coverage, including dental and vision care.
Education
Madeira’s education system includes public, private, and international schools. Public education is free and compulsory for residents up to the 12th year or 18 years of age, with children of foreign residents enjoying the same rights.
For expat families, international schools such as the International School of Madeira and the International Sharing School Madeira offer bilingual education in English and Portuguese. The International School of Madeira caters to children aged 3–10, with annual fees ranging from €5,004 to €5,496. The International Sharing School Madeira educates students aged 3–16, following the International Baccalaureate framework.
Tax Benefits for Expats
In 2025, Portugal introduced the NHR 2.0 (IFICI) tax regime, offering a 20% flat tax rate on income derived from eligible employment and self-employment activities for up to 10 years. Additionally, foreign-sourced income, excluding pensions, may be tax-exempt in Portugal under this regime, provided it is declared for tax progression purposes.
Conclusion
Cost of living in Madeira in 2025 remains affordable, with comprehensive healthcare and education systems, diverse entertainment options, and welcoming expat community, Madeira is an attractive destination for those seeking a high quality of life in a picturesque setting. By leveraging available tax benefits and considering individual needs and preferences, expats can enjoy a fulfilling life on this beautiful island.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
