As Austria faces economic headwinds and political shifts, many citizens explore life beyond its borders. For Austrians asking “moving from Austria to Madeira”, the Portuguese island offers a uniquely appealing option. Madeira offers European stability, tax and business incentives, an excellent climate, and a high standard of living that suits a wide range of expatriates. This article explains why Madeira is an excellent option in 2026 — for retirees, remote workers, entrepreneurs, and families alike.
Austria Today: Why Many Consider Leaving
Austria’s economy has struggled in recent years. In 2023 and 2024, the country slipped into recession. Production fell, domestic consumption weakened, and business sentiment remained muted.
Fiscal pressures are mounting. Austria ran a budget deficit above 4 % of GDP in recent years, triggering scrutiny from EU institutions. Inflation, rising housing costs, and structural labour-market challenges add extra strain. Politically, 2024 saw a surge in support for the far-right Freedom Party (FPÖ), which captured the highest share of votes ever. For many Austrians, this signals an era of greater polarisation and unpredictability.
Taken together, economic stagnation and political uncertainty motivate many Austrians to explore alternative homes, especially within the European Union, where rights, mobility, and protections remain strong.
Why Madeira Makes So Much Sense for Austrian Expats
EU Integration and Ease of Move
As Austrian (EU) citizens, moving to Portugal and Madeira is relatively straightforward. No visa is needed; instead, one must obtain a Certificate of EU Residency (CRUE) in Madeira after arrival. This ease removes the major hurdle non-EU expats often face. Madeira is part of Portugal, so all EU rights apply, including freedom of movement, access to public services, and EU legal protections.
Attractive Tax and Business Regimes
Madeira boasts incentives designed to attract investment and new residents. Its International Business Centre offers low corporate tax rates for qualifying firms.
Some expats can also benefit from Portugal’s NHR 2.0 regime, which in many cases allows favourable taxation on foreign income (e.g. dividends).
These perks make Madeira especially appealing to remote professionals, small business owners, investors, and retirees seeking to preserve wealth legally.
Cost of Living, Safety & Quality of Life
Madeira offers a lower cost of living compared to Austria’s major urban centres. Housing, utilities, food, and local services tend to be more affordable, especially outside the busiest resort zones. The island is consistently among the safest in Europe, with low crime rates and strong community cohesion. The climate is mild year-round. Lush landscapes, coastline views, and trails make outdoor life easy. The pace is relaxed, but services remain modern. English is widely spoken in expat circles and in the service sectors, which eases the adjustment for newcomers.
Public Services & Healthcare
Portugal’s healthcare system is solid, and Madeira has access to both public and private options. Expats from Austria can combine public services with private plans for extra comfort.MADEIRA’s smaller population allows more personalised care in many areas. Travel to mainland Portugal for speciality treatment is also straightforward.
Community & Social Integration
Madeira has a growing international community. Many expats organise social clubs, language exchanges, cultural events, and volunteer groups. New residents will likely find it easier to connect with others and engage in activities that reflect their interests in larger, more impersonal European capitals. Because Madeira is smaller and more tight-knit, new arrivals can integrate more quickly.
Tailoring Madeira to Different Austrian Expat Profiles
Retirees
For Austrian retirees, Madeira offers a comfortable lifestyle, featuring good healthcare, pleasant weather, calm surroundings, and opportunities to stretch their pension income. The tax benefits help preserve savings.
Remote Workers & Digital Nomads
Professionals who can work from anywhere will appreciate Madeira’s connectivity, incentives for business activity, and lower overhead. The business centre and tax regime can make it practical for a small company to be based there.
Entrepreneurs & Investors
Those seeking to establish ventures in Portugal or within the EU may find Madeira’s favourable corporate structures and access to EU markets advantageous. The low tax regime within the International Business Centre can be a competitive advantage.
Families & Long-Term Expats
Families will enjoy good schools, an outdoor lifestyle, safety, and European standards of infrastructure. For long-term residents, obtaining permanent status and potential Portuguese citizenship opens full EU benefits.
Comparing Austria vs Madeira: Risks, Rewards, and Realities
Economic Stability vs Growth Potential
Austria’s recent recessions and fiscal burden weigh heavily on the country. In contrast, Portugal and Madeira are more economically modest, but many sectors (tourism, exports, services) show resilience.
That said, Madeira is not immune to broader EU pressures, but its smaller scale and incentives offer greater control and predictability for individuals.
Political Ambiguity vs Local Governance
Austria’s shifting political landscape adds uncertainty. Madeira, as a Portuguese autonomous region, benefits from stable democratic institutions within the European framework.
Local governance and autonomy help Madeira tailor policies to resident needs, creating responsiveness to the large centralisations of its residents m
Cultural Adjustment & Language, Ucentralised is German-speaking and more homogeneous. In Madeira, Portuguese is the official language. While many locals in Madeira speak English and other languages, expats will need to engage with Portuguese to integrate fully.
However, Madeira’s international milieu and smaller scale ease this learning curve compared to large continental cities.
Practical Steps for Austrians Moving to Madeira
- Register for EU residency (CRUE) within three months of arrival in Madeira.
- Open a Portuguese bank account to manage local expenses and income.
- Enrol in or supplement your health coverage through public/private options.
- Clarify your tax status and whether specific regimes apply to your income.
- Explore local housing; many regions far from tourist centres offer better value.
- Engage with community groups early, join expat meetups, clubs, or local associations.
With these steps, integration becomes smoother, and Madeira starts to feel like home.
Why 2026 Is an Ideal Year to Make the Move
The window to benefit from favourable business regimes and tax benefits remains open. As global competition for talented expats increases, early movers to Madeira lock in advantages before rules tighten.
With Austria’s growth outlook improving only modestly in 2026 (projected at around 1.2% recovery), many will find Madeira’s consistency more appealing.
By acting now, Austrians can secure housing, establish businesses, and build community links before rising interest rates and real estate pressures escalate elsewhere in Europe.
Madeira as Austria’s Best Expat Destination
For Austrians considering a move from Austria to Madeira, the island offers a unique blend: EU membership benefits, strong tax and business incentives, lower costs, a safe environment, a favourable climate, and a supportive expat community.
While Austria faces economic slowdown and political flux, Madeira presents a projectable and peaceful alternative. For retirees, families, digital nomads, and entrepreneurs alike, Madeira is not just a fallback; it can be a fresh beginning.
If this resonates, Austrians considering Madeira should take the next step: explore local real estate options, review tax strategy, and begin connecting with Madeira’s expat network. A calmer and more stable life might await you in the Atlantic.
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
