Funchal, Portugal
The capital of Madeira Island, known for its lush gardens, Madeira wine, dramatic cliffs, and year-round mild climate.
Below Average vs Portugal avg (100)
Affordable
Household income
Job market health
Funchal vs Portugal Average
Taxes
- Income Tax: 28.5%
- VAT: 23.0%
Economy & Jobs
- Median Income: €17,000
- Unemployment: 5.8%
- Population: 111,892
Climate
- Sunny Days: 220/year
- Summer High: 77°F
- Winter Low: 55°F
Housing
- Median Home: €250,000
- 1BR Rent: €750/mo
Cost of Living
Funchal's cost of living index is 88 (Portugal average = 100).
| Category | Funchal | National Average | Difference |
|---|---|---|---|
| Overall | 88 | 100 | -12.0% |
| Housing | 90 | 100 | -10.0% |
Data source: INE / Numbeo, 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | €250,000 |
| Median Rent (1BR) | €750/mo |
| Median Rent (2BR) | €938/mo |
| Price per Sq Ft | €166 |
Data source: Idealista / OLX Imóveis, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Funchal:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | €65 | Based on ~3,500 kWh/year typical Portuguese household usage |
| Heating & Cooling | N/A | Estimated based on local climate. electric or gas heating |
| Cooling (AC) | N/A | Estimated based on local climate and electricity rates |
| Water | €28 | Includes sewer |
| Internet (100+ Mbps) | €40 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | €133 | Monthly estimate (including heating & cooling) |
Data sources: ERSE, EDP, Galp 2025
Best Neighborhoods
Downtown Funchal
The heart of the city with restaurants, shops, and entertainment. Average rent: €900/mo.
Funchal Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: €825/mo.
East Funchal
Up-and-coming neighborhood with new developments and young professionals. Average rent: €675/mo.
West Funchal
Family-friendly area with parks and good schools. Average rent: €713/mo.
Remote Work Score
Funchal scores —/100 for remote work readiness:
Climate
Funchal has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 75°F | 55°F | 2.5" |
| April | 62°F | 70°F | 2.8" |
| July | 77°F | 52°F | 1.5" |
| October | 57°F | 73°F | 2.2" |
Taxes
- Income Tax: 28.5%
- VAT: 23%
- Property Tax: ~0.4% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 5.8%.
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Funchal, Portugal?
The cost of living index in Funchal is 88, which is Lower the Portugal national average of 100.
How much does it cost to buy a home in Funchal?
The median home price in Funchal is €250,000. The housing index is 90.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Funchal is approximately €750/mo.
Does Funchal, MDR have income tax?
Funchal is in MDR, which has an income tax rate of 28.5%.
What is the climate like in Funchal?
Funchal enjoys approximately 220 sunny days per year. Summer highs reach around 77°F, while winter lows can drop to around 55°F.
Data Sources
- Cost of Living: INE / Numbeo, 2026
- Housing Data: Idealista / OLX Imóveis, 2026
- Income & Employment: INE Labour Force Survey, 2024
- Utilities ERSE, EDP, Galp 2025
Data last updated: July 12, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.