Cost of Living in Portugal 2025: Mainland vs. Madeira Island

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Cost of Living in Portugal 2025: Mainland vs. Madeira Island

by | Tuesday, 18 March 2025 | Immigration

Cost of Living in Portugal 2025: Mainland vs. Madeira Island

What’s the cost of living in Portuga 2025? Portugal remains one of the most affordable Western European countries to live in, attracting expats, retirees, and digital nomads worldwide. However, the cost of living can vary significantly between mainland Portugal and its stunning island region of Madeira.

In this article, we’ll compare the cost of living in mainland Portugal and Madeira in 2025, covering housing, transportation, food, healthcare, and lifestyle expenses. Whether you’re considering a move or simply curious about the financial differences, this guide will provide all the details you need.


1. Cost of Housing: Mainland Portugal vs. Madeira

Mainland Portugal

  • Lisbon remains the most expensive city, with rental prices averaging around €2,000 for a one-bedroom apartment in the city centre
  • Porto and the Algarve offer more affordable options, where a one-bedroom apartment costs between €900 – €1,500.
  • Outside major cities, rental prices drop significantly, with smaller towns offering homes for as little as €500 per month

Madeira

  • Funchal, the capital of Madeira, is more affordable than Lisbon but still relatively expensive, with one-bedroom apartments averaging €1,000 per month
  • Other areas, such as Porto Moniz and Camara de Lobos, offer rentals as low as €260 – €450 per month
  • Overall, Madeira’s housing is around 12-14% cheaper than in Lisbon

Verdict: Madeira is cheaper than major mainland cities but may be more expensive than rural areas.


2. Cost of Transportation

Mainland Portugal

  • Public transportation in Lisbon and Porto is efficient and affordable, with a monthly metro pass costing around €40 – €50
  • Fuel prices average €1.64 per liter, and owning a car in cities is often unnecessary

Madeira

  • Public transport is limited to Funchal and a few nearby areas, making car ownership almost essential.
  • A one-way bus ticket costs €2, while monthly passes are around €50
  • Gasoline is slightly more expensive than on the mainland, averaging €1.70 per liter

Verdict: Mainland Portugal is better for public transport, while Madeira requires a car for full mobility.


3. Food and Grocery Prices

Mainland Portugal

  • A meal at an inexpensive restaurant costs €12, while a three-course meal for two is around €40
  • Grocery prices are affordable, with milk (€1.30/liter), eggs (€2.50/dozen), and chicken (€6/kg)

Madeira

  • Grocery prices are slightly higher due to import costs, with items like milk (€1.50/liter) and chicken (€7/kg)
  • Local fruits and vegetables are cheap, and a three-course meal for two costs around €32

Verdict: The mainland offers more variety at lower prices, while Madeira has higher grocery costs but cheaper dining out.


4. Healthcare Costs

Mainland Portugal

  • Public healthcare is free or low-cost for residents under the SNS (Serviço Nacional de Saúde)
  • Private healthcare is affordable, with consultations starting at €40 – €60

Madeira

  • Public healthcare is available but may require traveling to the mainland for complex procedures
  • Private healthcare options are limited but cheaper than in many European countries

Verdict: Mainland Portugal offers better accessibility, but both locations provide affordable healthcare.


5. Entertainment & Lifestyle

Mainland Portugal

  • Museums and cultural sites cost between €5 – €15
  • Gym memberships are around €40 per month, while cinema tickets cost €7
  • Outdoor activities, including surfing and hiking, are widely available and affordable

Madeira

  • The island’s natural attractions offer free or low-cost leisure activities like hiking and diving
  • Gym memberships cost around €38 per month, and cinema tickets are €7.50
  • Madeira has a strong expat community with frequent meetups and social events

Verdict: Madeira has cheaper entertainment options, but mainland Portugal offers more variety.


6. Internet & Utilities

Mainland Portugal

  • Internet costs €30 – €40 per month
  • Utilities for an 85m² apartment cost €80 – €100 per month

Madeira

  • Internet speeds are among the fastest in Portugal, with costs around €40 per month
  • Utilities cost around €93 per month, slightly higher due to the island’s location

Verdict: Costs are similar, but Madeira has better internet speed.


7. Travel Between Mainland Portugal and Madeira

  • Madeira residents receive government rebates for flights exceeding €87, making travel between the island and the mainland affordable
  • A round-trip flight between Lisbon and Funchal typically costs €50 – €150.

Verdict: Travel between Madeira and mainland Portugal is cost-effective for residents.


8. Salaries and Job Opportunities

  • Portugal’s minimum wage is around €870 per month
  • Salaries in Lisbon are higher than in Madeira, especially in IT, finance, and tourism
  • Madeira attracts remote workers and digital nomads due to its lower living costs and strong internet infrastructure

Verdict: Lisbon has higher salaries, but Madeira offers a more relaxed work-life balance.


Conclusion: Cost of Living in Portuga 2025 – Mainland Portugal vs. Madeira

CategoryMainland PortugalMadeira
HousingMore expensive in cities, and cheaper in rural areasMore affordable overall
TransportationBetter public transportCar required
Food & DiningCheaper groceriesSlightly higher grocery costs
HealthcareMore hospitals and clinicsPublic healthcare, but limited options for complex care
EntertainmentMore VarietyCheaper outdoor activities
Internet & UtilitiesSlightly cheaperFaster internet speeds
TravelNo flights neededDiscounts for residents
Job OpportunitiesHigher salariesBetter for remote workers

Final Verdict on the cost of living in Portugal 2025:

  • If you prefer city life, better healthcare, and public transport, mainland Portugal is the better choice.
  • If you love nature, a slower pace, and a lower cost of living, Madeira is ideal.

Both locations offer an excellent quality of life, and your choice will depend on personal lifestyle preferences.


Frequently Asked Questions (FAQs) about the Cost of Living in Portugal 2025

  1. Is it cheaper to live in Madeira or mainland Portugal?
    • Madeira is generally cheaper than Lisbon but more expensive than rural Portugal.
  2. Can you live in Madeira without a car?
    • Yes, but it’s difficult outside Funchal.
  3. Is healthcare in Madeira good?
    • Basic care is good, but serious medical cases may require travel to the mainland.
  4. Is the internet good in Madeira?
    • Yes, it has the fastest speeds in Portugal.
  5. How much money do you need to live comfortably in Madeira?
    • Around €2,700 per month for a couple
  6. Which is better for expats, Lisbon or Madeira?
    • Lisbon has better job opportunities, while Madeira offers a quieter lifestyle.

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