There are many reasons why Madeira is considered one of the best places in the world to live or retire in. The extremely affordable cost of living is just one of them…
Madeira Island is a stunning archipelago located off the coast of Portugal in the Atlantic Ocean. Known for its mild climate, natural beauty, and unique culture, it is a popular destination for expats looking for a relaxed and welcoming lifestyle. If you’re considering buying a house and living in Madeira Island, one of the most important things you’ll need to know is how much it costs. In this article, we’ll take a detailed look at the cost of buying a house and living on Madeira Island, including housing, food, transportation, and other expenses.
Housing Costs – Buying a House
The cost of buying a house on Madeira Island can vary widely depending on the location and type of property you are looking for. As with most places, it is generally more expensive to live in the main cities and tourist areas, and cheaper in more rural areas. You can expect to pay around €3,463 – €4,327 per meter square for a flat in the city centre, while outside the city centre, prices can be significantly lower, with two-bedroom flats starting at around €2,300 – €3,000 per meter square.
When it comes to buying a house, it’s important to keep in mind that there are additional costs involved beyond the purchase price. These can include:
–Notary fees: These fees are charged for the preparation and authentication of legal documents related to the purchase of the property. They can range from €500-€1,000.
–Property transfer tax: This tax is levied on the transfer of property and is calculated based on the purchase price. It can range from 2% to 6% of the purchase price, depending on the property value.
–Real estate agent fees: If you use a real estate agent to help you find and purchase your property, you can expect to pay a fee of around 3% to 5% of the purchase price.
Renting a House
Housing costs on Madeira Island can vary widely depending on the location and type of property you are looking for. As with most places, it is generally more expensive to live in the main cities and tourist areas, and cheaper in more rural areas. You can expect to pay around €1,200 – €1,700 per month for a one-bedroom flat in the city centre, while a three-bedroom flat will cost between €2260 – €3,000 per month. Outside the city centre, prices can be significantly lower, with one-bedroom flats starting at around €890 per month.
Food Costs
The cost of food on Madeira Island is generally quite reasonable, with prices comparable to those in mainland Portugal. A basic grocery shop for a couple can cost around €50-€80 per week, with prices depending on where you shop and what you buy. Dining out is also affordable, with a meal at a mid-range restaurant costing around €60 per couple.
Transportation Costs
Getting around Madeira Island is relatively easy, with a well-developed public transportation system that includes buses, taxis, and rental cars. Bus fares are very affordable, with a one-way ticket costing around €1.95. Taxis are also quite reasonable, with a typical fare from the airport to the city centre costing around €30. If you intend to rent a car, you can expect to pay around €20-€80 per day, depending on the type of car you choose. We recommend you to rent a car in Madeira here if you are coming for holidays.
Other Expenses
In addition to housing, food, and transportation, there are a number of other expenses to consider when living on Madeira Island. These can include:
–Utilities: You can expect to pay around €90-€150 per month for basic utilities such as electricity, gas, and water.
–Internet and phone: A basic internet and phone package can cost around €30-€45 per month.
–Health insurance: Health insurance is mandatory in Portugal, and you can expect to pay around €70-€100 per month for basic coverage.
–Leisure and entertainment: Madeira Island is a great place to enjoy leisure activities such as hiking, swimming, and sightseeing. The cost of these activities can vary widely, but you can expect to pay around €20-€40 for admission to most attractions.
Comparison to other Cities
For example…
Comparison with London: Consumer prices in Funchal are 38.20% lower than in London (without rent). Rent Prices in Funchal are 51.50% lower than in London. Restaurant Prices in Funchal are 47.10% lower than in London.
Comparison with Berlin: Consumer prices in Funchal are 25.30% lower than in Berlin (without rent). Rent Prices in Funchal are 7.80% lower than in Berlin. Restaurant Prices in Funchal are 25.50% lower than in Berlin.
Comparison with Toronto: Consumer prices in Funchal are 30.50% lower than in Toronto (without rent). Rent Prices in Funchal are 32.90% lower than in Toronto. Restaurant Prices in Funchal are 39.00% lower than in Toronto.
Comparison with New York: Consumer prices in Funchal are 49.20% lower than in New York (without rent). Rent Prices in Funchal are 56.90% lower than in New York. Restaurant Prices in Funchal are 55.30% lower than in New York.
Overall, the cost of living on Madeira Island is quite reasonable compared to other popular expat destinations in Europe and the World. While prices can be higher in the main tourist areas, you can find affordable housing, food, and transportation if you are willing to live outside these areas. Additionally, the quality of life on Madeira Island is generally considered to be very high, with a relaxed and welcoming culture that makes it a great place to call home.
You should update this prices as this article is from Feb 2021… Prices in 2022 are much different at this post Russia – Ucraine War time. Total rip off
Hello Lucas, thank you for contacting us about the update.
Update is already done 👍
All in all not that Cheap, BUT VERY UNIQUE AND BEAUTIFUL!!
Die wichtigste Voraussetzung für die Wahl eines neuen Lebensortes ist, dass man sich auf die Einhaltung der Grund- und Menschenrechte sicher verlassen kann! Dass man nicht direkt oder indirekt gezwungen werden kann sich z. B. impfen lassen zu müssen.