Digital Nomads

Digital nomads in Madeira: Work and lifestyle guide

This is the guide that will show you the best options for being a digital nomad in Madeira, including accommodation, leisure, and more.

If as a digital nomad you are looking for a complete guide to plan your stay in Madeira, this is your cue. Keep reading our guide to help you choose accommodation, visa, co-working spaces, medical insurance, and leisure activities in the Portuguese archipelago, often called the Hawaii of Europe.

In this article

Why choose Madeira to live as a digital nomad?

Choosing Madeira as a destination to live and work remotely has multiple advantages that make this island an ideal place for digital nomads:

Madeira community of digital nomads:

One of the main reasons to choose Madeira is its growing community of digital nomads. The Digital Nomads Madeira Islands programme, launched in 2021, has attracted hundreds of remote professionals from all over the world. This programme is designed to facilitate integration, provide co-working spaces and encourage networking among temporary residents.

Quality of life in Madeira

Madeira is renowned for its excellent quality of life. The island combines a mild year-round climate with breathtaking scenery including mountains, beaches and UNESCO World Heritage-listed laurel forests. Also, security on the island is a key factor that attracts many digital nomads.

Connectivity in Madeira

Despite being an island, Madeira has excellent air connections to Europe and other continents, thanks to the Cristiano Ronaldo International Airport. This allows digital nomads to travel easily while enjoying the tranquillity and relaxed pace of the island.

Infrastructure for digital nomads in Madeira

Madeira has invested significantly in creating a remote worker friendly infrastructure. You’ll find co-working spaces with high-speed internet, lounge areas and a community ready to collaborate. Many hostels also offer specific services for nomads, such as desks, ergonomic chairs and monthly rates.

Cost of life in Madeira

The cost of living in Madeira is more affordable than in many other European cities. From accommodation to food and transport, prices are reasonable, especially if you opt for an extended stay. This makes it an attractive destination for those looking to maximise their budget.

Culture and activities in Madeira

Madeira is also a place rich in tradition and culture. From local festivals to activities such as hiking and water sports, there is always something to do. Gastronomy is also a strong point, with typical dishes such as espetada and bolo do caco that you can’t miss.

Visas allowing legal residence in Madeira

To live and work legally as a digital nomad in Madeira, it’s important to be aware of the visa options available. As part of Portugal, the rules for residing in Madeira are the same as those applicable in mainland Portugal.

Portugal Digital Nomad Visa

Portugal offers a digital nomad visa which allows remote workers to reside legally while developing their professional activities independently. This visa is ideal for those who have a stable income and wish to live in Madeira for several months or years. The main requirements include proving a minimum monthly income (approximately €2,800 ($3,000) and having an employment contract or evidence of self-employment.

Duration: the initial visa is usually valid for one year and can be renewed annually.
Advantages: This visa allows you to move freely within the Schengen area during your stay in Madeira.

Residence visa for professional activities in Madeira

Another option is the residence visa for professional activities, designed for those who wish to settle in Portugal for work purposes. This visa is also applicable for remote workers and can be a stepping stone to obtain permanent residence or even Portuguese nationality.

Renewals: this visa can be renewed and, after five years, gives the possibility to apply for permanent residence.
Compatibility: it’s possible to switch to other types of visa while residing in the country, such as investor visa or study visa.

Schengen visa in Madeira

If you plan a shorter stay, the Schengen visa may be a good option. This visa allows you to stay in Madeira and in any other Schengen country for a maximum of 90 days within a period of 180 days. Although not specifically for work, many digital nomads use it while deciding if they want to move long-term.

Visa waiver for EU and non-EU citizens in Madeira

Citizens of the European Union, Spain and countries with special agreements, such as the United States, can temporarily reside in Madeira without a visa, as long as they don’t exceed 90 days. If you plan to stay longer, you’ll need to register as a resident.

Required documentation for visas in Madeira

For any type of visa, you’ll need:

Valid passport.
Proof of stable income.
Health insurance to cover your stay.
Proof of accommodation in Madeira.

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Where to live and work as a digital nomad in Madeira?

Madeira offers a wide range of options for living and working, catering to the needs of digital nomads. From major cities and towns to spaces designed for collaboration and remote work, this destination blends comfort, connectivity, and an ideal environment for remote workers.

The best areas for digital nomads in Madeira

Funchal

Madeira’s capital is the hub for digital nomads. It offers a wide range of accommodation, from modern flats to co-livings designed specifically for remote workers. In Funchal you’ll find an ideal combination of urban life and natural landscapes.

Advantages: excellent internet connectivity, variety of co-working spaces, and access to essential services.
Nearby attractions: dos Lavradores market, cable car to Monte, and seaside promenades.

Ponta do Sol

Known as the “nomad village”, Ponta do Sol is a small town that has positioned itself as a reference point for digital nomads. The Digital Nomads Madeira Islands programme is based here, facilitating networking and cultural exchange.

Advantages: quiet environment, vibrant nomad community and proximity to nature.
Nearby attractions: hiking trails, beaches and panoramic views of the Atlantic Ocean.

Accommodation options in Madeira

Madeira has a wide range of accommodation designed to meet the needs of digital nomads:

Co-livings: Spaces such as The Nomad Escape and Outsite Madeira offer comfortable accommodation with co-working areas included. Prices vary between €500 ($540) and €1,200 ($1,300) per day, depending on on location and amenities.
Private flats: Platforms such as Airbnb and Booking have multiple options in Funchal and Ponta do Sol, ideal for long stays.
Exchange houses: For those looking to save money, exchange houses are an excellent alternative. Platforms such as HomeExchange facilitate this type of arrangement.

Outstanding coworking spaces

Working from Madeira is an enriching experience thanks to its excellent co-working spaces, designed to facilitate productivity and networking.

Cowork Funchal: Located in the heart of Funchal, this space offers high-speed internet, meeting rooms and breakout areas. Prices from €15 ($16) per day or €150 ($160) per month.
Ponta do Sol Coworking Village: This free space for digital nomads is managed by the official Digital Nomads Madeira Islands programme. It offers all the necessary facilities to work in a peaceful environment.
Startup Madeira: More than a co-working space, this place offers resources for entrepreneurs, including mentoring and technical support.

For those who prefer working outdoors, there are many public spaces with good internet connection, like cafés and plazas in Funchal and Ponta do Sol.

Learn about the taxes digital nomads must pay in Portugal @unsplash

Taxes to be aware of in Madeira

Understand the tax implications of being a digital nomad in Madeira based on your nationality and stay duration.

Taxes for digital nomads in Madeira

Portugal has a tax system that applies to income generated inside and outside the country. Digital nomads can benefit from the Non-Habitual Resident (NHR) tax regime, offering reduced tax rates for 10 years.

Requirements: Residence in Portugal for more than 183 days per year.
Pros: Reduced rates of 20% on earned income and exemptions on some foreign income.

Double taxation treaties in Madeira

Portugal has double taxation agreements with many countries, helping you avoid paying taxes on the same income twice. This is especially beneficial for digital nomads from countries such as Spain, Germany and the USA.

Benefits for digital nomads in Madeira

If you’re a digital nomad and your home country has a tax treaty with Portugal, you can benefit from the following:

Elimination of double taxation: You’ll only pay taxes on your income in one country, depending on your fiscal residency status.
Reduced rates: Some types of income, such as dividends or interest, may be subject to reduced rates instead of the general rates applicable.
Tax clarity: Treaties provide a clear framework that facilitates tax reporting and reduces the possibility of legal problems.

Practical example of double taxation in Madeira

Suppose you’re a tax resident in Portugal due to your long stay in Madeira, but earn income from a client in Germany. According to the Portugal-Germany treaty, you can avoid paying taxes in both countries and only pay taxes in Portugal.

Health insurance and health service quality in Madeira

Health is a key aspect when establishing yourself as a digital nomad in Madeira. Fortunately, Portugal’s healthcare system is accessible and high-quality, both publicly and privately.

Access to the public health system in Madeira

The public health system in Madeira is available to legal residents. If you plan to stay for over 183 days, you can register in the public system and get a health card for low-cost medical services.

Language: Most doctors and health staff speak English, facilitating communication.
Services: Well equipped clinics and hospitals in Funchal and other main areas.

Recommended health insurance in Madeira

For those who don’t qualify for the public system or prefer private options, there are many international health insurance plans for digital nomads. Some popular options include:

SafetyWing: Specialised in digital nomads, with prices starting at €40 ($43) per month.
World Nomads: Ideal for remote workers who travel frequently.

Health care quality in Madeira

Madeira has an excellent medical care quality. The Dr. Nélio Mendonça Hospital in Funchal is one of the main health centres on the island, while private clinics offer fast and specialised care. In addition, the availability of services in English ensures a more convenient experience for digital nomads.

Daily life in Madeira

Daily life in Madeira as a digital nomad blends island tranquillity with all the comforts needed for work and leisure. This section deals with the essential aspects of how to find your way around this destination.

Transport and mobility in Madeira

Madeira has a transport system which, although not as extensive as in larger European cities, is functional for getting around the island.

Driving in Madeira: It’s possible to use a foreign licence during the first 185 days of stay. If you plan to stay longer, you can exchange your international license for a Portuguese one by submitting required documents to the IMT (Instituto de Mobilidade e Transportes).
Public transport: Buses are the main means of transport, connecting Funchal with other localities. Companies such as Horários do Funchal and Rodoeste offer regular routes. However, frequencies may be limited, especially outside the high season.
Other options: Taxis and ride-sharing services such as Bolt are available in Funchal and other main areas. Car hire is also available, an ideal option for exploring more remote areas of the island.

Financial management in Madeira

Managing finances is easy in Madeira, thanks to the presence of local and international banks.

Recommended banks: Caixa Geral de Depósitos and Millennium BCP are popular choices for foreigners. Digital banks such as Revolut and N26 allow you to open accounts quickly and make payments without foreign exchange fees.
ATMs: Multibank ATMs are common throughout the island and allow withdrawals with international cards. Be aware that some banks may charge fees for international withdrawals.
Tips: It’s recommended to have a Euro account to minimise additional costs.

Food in Madeira

The food offer in Madeira includes well-stocked supermarkets, local markets and a wide variety of restaurants.

Supermarkets: Pingo Doce and Continente are the main chains, where you can find fresh produce and affordable prices.
Average costs: A meal at a local restaurant can cost between €8 and €15 ($9 to $16), while dining at a more exclusive place could exceed €25 ($27).
Recommendations: Restaurants such as Armazém do Sal in Funchal offer varied menus with local and international flavours. Markets such as the Mercado dos Lavradores are also ideal for buying fresh fruit and vegetables.

Leisure and free time in Madeira

Madeira is a paradise for those seeking to combine work and leisure activities.

Outdoor activities: Hiking in the Levadas, catamaran trips for dolphin watching and water sports such as surfing are popular options.
Fitness life: Gyms in Funchal, such as Fitness Club Madeira, offer monthly subscriptions from €35 ($37€).
Culture and events: Madeira hosts festivals such as the Flower Festival and the Atlantic Festival, which are both colourful and traditional.

Best seasons to stay in Madeira

Madeira’s climate is mild year-round, but certain seasons stand out for making the most of the island.

Spring (March to May): Ideal for hiking and flora observation, thanks to its mild temperatures.
Summer (June to September): Perfect for water activities and enjoying the beaches.
Autumn and winter: Though there’s more rain, the weather remains pleasant for exploring and enjoying local festivals.

Choose the best seasons to live as a digital nomad in Madeira @unsplash

Cost of living as a digital nomad in Madeira

Living in Madeira as a digital nomad is affordable compared to other European regions, but it’s important to consider various factors for monthly expenses.

Accommodation Cost in Madeira

Co-livings: Prices vary between €500 ($540) and €1,200 ($1,300) per day, depending on on location and amenities.
Private flats: A private room in Funchal can cost between €400 and €800 ($432 and $864) per month.

Transport as a digital nomad in Madeira

Monthly bus pass: Approximately €30 ($32).
Car rental: From €20 ($22) per day, plus additional costs such as fuel.

Food as a digital nomad in Madeira

Monthly supermarket: An average budget is €150-200 ($162-216) per person.
Meals out: As mentioned, a meal in a restaurant costs between €8 and €15 ($8.65 and $16).

Co-working spaces as a digital nomad in Madeira

Prices: From €150 ($162) per month in spaces such as Cowork Funchal.
Free options: Ponta do Sol Coworking Village offers free access for registered nomads.