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Funchal, Portugal: Cost of Living, Healthcare, Local Clubs and Activities, Healthcare and What to Know About Living in Funchal | Digital Nomad Exchange
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Funchal, Portugal

By Betsy Burlingame

Last updated on Apr 08, 2024

Summary: Expats, digital nomads and retirees talk about what it is really like living in Funchal, Portugal. They offer advice about meeting people, cost of living, finding a home and more.

Portugal Residency Advisors
Portugal Residency Advisors
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Portugal Residency Advisors

What do I need to know about living in Funchal?

When we asked people what advice they would give someone preparing to move to Funchal, they said:

"Funchal, the capital of Portugal's Autonomous Region of Madeira, is a popular retirement destination for expats due to its mild climate, beautiful landscapes, and relaxed lifestyle. Before retiring in Funchal, expats should consider several factors. Firstly, understanding the cost of living is crucial. While Portugal is generally more affordable than many other European countries, prices in Funchal can be higher due to its popularity as a tourist destination. This applies to housing, dining, and entertainment. Secondly, it's important to understand the healthcare system. Portugal has a high standard of healthcare, both public and private. However, expats should ensure they have adequate health insurance coverage, as non-residents are not entitled to free healthcare. Language can be a barrier for some expats. While English is widely spoken in tourist areas and among younger generations, many locals, particularly older people, only speak Portuguese. Learning some basic Portuguese can greatly enhance your experience. The process of obtaining residency in Portugal can be complex and time-consuming. It's advisable to seek legal advice to understand the requirements and ensure all paperwork is correctly completed. Portugal has a favorable tax regime for retirees, known as the Non-Habitual Resident (NHR) scheme. This can significantly reduce the amount of tax you pay on foreign income, including pensions, but it's important to get professional advice to understand the implications. The climate in Funchal is mild and pleasant year-round, but the island can be quite hilly, which may be a consideration for those with mobility issues. Finally, while Funchal is a safe city with a low crime rate, it's still important to take common-sense precautions, particularly in tourist areas where pickpocketing can occur. In terms of lifestyle, Funchal offers a relaxed pace of life with plenty of outdoor activities, cultural events, and opportunities to socialize with both locals and other expats. However, it's worth noting that the city can get busy during the peak tourist season. Overall, retiring in Funchal can offer a high quality of life, but it's important to do thorough research and possibly spend some time there before making the decision to move permanently," said one expat in Funchal.

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What do I need to know before moving to Funchal?

When we asked people what advice they would give someone preparing to move to Funchal, they said:

"Expats moving to Funchal, should be aware of several factors to ensure a smooth transition. Firstly, it is essential to learn some basic Portuguese, as English is not widely spoken outside of tourist areas. This will help with daily interactions and integrating into the local community. The cost of living in Funchal is generally lower than in other European cities, but it is essential to budget accordingly. Housing can be affordable, but utilities and imported goods can be more expensive. It is worth considering local markets for fresh produce and shopping at supermarkets for better deals. Funchal has a mild climate with warm summers and mild winters, making it an attractive destination for expats. However, it is essential to be prepared for occasional rain and humidity, especially during the winter months. Public transportation in Funchal is reliable and affordable, with buses being the primary mode of transport. Expats may also consider renting or purchasing a car for more flexibility, but it is essential to be prepared for narrow streets and sometimes challenging parking situations. Healthcare in Funchal is of a high standard, with both public and private options available. Expats should ensure they have adequate health insurance coverage and familiarize themselves with the local healthcare system. Funchal offers a range of leisure activities, including outdoor pursuits such as hiking, water sports, and golf. The city also has a vibrant cultural scene, with museums, galleries, and festivals throughout the year. Expats should take advantage of these opportunities to immerse themselves in the local culture and make new friends. It is essential for expats to familiarize themselves with local customs and etiquette, as well as the legal system and requirements for residency. This includes obtaining the appropriate visa, registering with local authorities, and ensuring all necessary documentation is in order. Finally, networking with other expats and joining local clubs or organizations can be an invaluable resource for settling into life in Funchal. These connections can provide support, advice, and friendship, making the transition to a new country much more manageable," said one expat who made the move to Funchal.

How do I find a place to live in Funchal?

We asked expats how they chose their neighborhood and found a place to live. They answered:

"To find a place to live in Funchal, you can start by researching online on popular real estate websites such as Idealista, OLX, and Imovirtual, where you can filter your search based on your preferences like location, budget, and property type. You can also join local Facebook groups dedicated to housing and rentals in Funchal, where people often post available properties and recommendations. Another option is to visit local real estate agencies in Funchal, where you can speak with a professional agent who can help you find a suitable place based on your requirements. They can also provide valuable information about the local housing market and assist with the rental or purchase process. Additionally, you can explore local newspapers and classified ads for property listings. This can be a good way to find private landlords who may not advertise on the larger websites. Lastly, consider asking friends, family, or colleagues who live in Funchal for recommendations or referrals. They may know of available properties or have connections with local landlords and real estate agents," remarked one expat living in Funchal, Portugal.

What is a typical expat home or apartment like in Funchal?

"A typical expat home or apartment in Funchal, is likely to be a modern and well-maintained property, often located in a residential area or near the city center. These homes usually offer stunning views of the ocean or the surrounding mountains. They are often spacious, with multiple bedrooms, a fully-equipped kitchen, and a comfortable living area. Many expat homes also come with outdoor spaces such as balconies or terraces, perfect for enjoying the pleasant climate of Funchal. Some apartments may be part of a larger complex, offering amenities like a shared swimming pool, gym, or garden area. Additionally, these homes are usually located close to local amenities such as shops, restaurants, and public transportation, making it convenient for expats to settle into their new life in Funchal," remarked one expat living in Funchal, Portugal.

What is the average cost of housing in Funchal?

If you are thinking about moving to Funchal, cost of living in probably a key consideration. Expats commented about the cost of housing:

"The average cost of housing in Funchal, can vary depending on the type and location of the property. Generally, the prices for apartments range from affordable to moderately expensive, while houses and villas can be more costly. In the city center, you can expect to pay a higher price for accommodation, while properties located further away from the center may be more affordable. It is essential to research and compare different neighborhoods and property types to find the best housing option that suits your budget and preferences," said one expat who made the move to Funchal.

How do I meet people in Funchal?

When we asked people living in Funchal about club and activities where newcomers can meet others, they responded:

"Funchal, offers a variety of clubs and activities that expats can join to meet new people and immerse themselves in the local culture. Many expats join language exchange clubs, where they can practice Portuguese with locals and help them with English or other languages. There are also various sports clubs, such as football, tennis, and golf clubs, which are popular among expats. For those interested in arts and culture, there are numerous art galleries, museums, and theater groups that offer workshops and events. Joining a local choir or music group is another great way for expats to meet locals and other expats alike. Expats in Funchal often participate in local festivals and events, such as the Madeira Wine Festival or the Atlantic Festival, which are excellent opportunities to meet people and learn about Portuguese traditions. Volunteering is another popular activity among expats. There are many local charities and organizations that welcome international volunteers, providing a rewarding way to give back to the community and make new friends. In addition to joining clubs and participating in local events, expats often meet people through their work or by attending expat meetups. These meetups, which can be found online, are specifically designed to help expats connect with each other and share their experiences. Finally, simply exploring the city, visiting local markets, and frequenting local cafes and restaurants is a great way to meet people. The people of Funchal are known for their friendliness and hospitality, and they often welcome the opportunity to chat with foreigners and share their culture," commented one expat who made the move to Funchal.

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What should I bring when moving to Funchal?

People living in Funchal were asked what three things they wish they had brought and three they wish they had left behind. They wrote:

"When moving to Funchal, you should pack essential documents such as your passport, visa, birth certificate, and any medical records. Bring enough clothing for the mild climate, including light layers, a few sweaters, and a light jacket for cooler evenings. Don't forget comfortable shoes for walking on cobblestone streets and a swimsuit for enjoying the beaches. Pack any necessary prescription medications, along with a basic first aid kit and any preferred over-the-counter medicines. Bring a power adapter for European outlets and any necessary chargers for your electronic devices. It's also a good idea to pack a small Portuguese phrasebook or language learning materials to help you communicate with locals. Consider bringing a few personal items that remind you of home, such as photographs or small mementos. If you have any favorite non-perishable snacks or food items that may be difficult to find in Portugal, pack a small supply to enjoy as you settle into your new home. Lastly, pack a reusable water bottle, sunscreen, and a hat for sun protection, as well as a travel umbrella or lightweight rain jacket for the occasional rainy day," wrote a member in Funchal.

Where should I setup a bank account in Funchal?

We asked expats in Funchal what banks they use and there advice about banking. They advised:

"Expats considering retiring in Funchal, should be aware of several factors before making the move. Firstly, it is essential to research the cost of living, which is generally lower than in other European countries, but can vary depending on lifestyle choices and housing options. It is also crucial to understand the residency and visa requirements for Portugal. Non-EU citizens will need to apply for a residence permit, while EU citizens can reside in the country for up to three months without a visa. After that, they must register with the local authorities. Healthcare in Portugal is of a high standard, with both public and private options available. Expats should research the healthcare system and consider purchasing private health insurance to ensure access to the best facilities and specialists. Funchal has a mild climate, with warm summers and mild winters, making it an attractive destination for retirees. However, it is essential to visit the city and experience the weather firsthand before making a decision. Portuguese is the official language in Funchal, and while many locals speak English, it is highly recommended that expats learn some basic Portuguese to help with daily life and integration into the community. Funchal has a well-developed public transportation system, but owning a car can be beneficial for exploring the island of Madeira. Expats should research the process of obtaining a driver's license and the costs associated with owning a vehicle. Taxes are an important consideration for retirees, and Portugal offers a Non-Habitual Resident (NHR) tax regime, which can provide significant tax benefits for qualifying individuals. It is essential to consult with a tax professional to understand the implications of this program and any other tax obligations. Finally, it is crucial to research the local culture, customs, and traditions to ensure a smooth transition into life in Funchal. This includes understanding the local cuisine, festivals, and social norms, as well as making an effort to connect with the local community and other expats," remarked one expat living in Funchal, Portugal.

Will I be able to find a job in Funchal?

When we asked people about industries and career opportunities in Funchal, they reponded:

"Foreigners in Funchal often find employment in the tourism industry, working in hotels, restaurants, and bars. They may also work as tour guides, providing insights into the city's rich history and culture. Some foreigners work in real estate, helping other expats find their perfect home or vacation property. There are also opportunities in the healthcare sector, particularly for those with language skills, as well as in teaching, particularly English language instruction. Additionally, with the growth of the digital economy, many foreigners are finding opportunities for remote work or starting their own businesses in Funchal," said one expat in Funchal.

What is life like in Funchal?

When we asked people living in Funchal what life is like and how people spend their time, they said:

"Life for expats and digital nomads in Funchal is generally relaxed and enjoyable. The city offers a warm climate year-round, making it an attractive destination for those who enjoy outdoor activities. The cost of living is relatively low compared to other European cities, which is a big plus for digital nomads. Funchal is known for its friendly locals who are welcoming to foreigners, making it easy for expats to integrate into the local community. The city is also safe, with low crime rates, which adds to the peace of mind for those living there. The city offers a good balance between city life and nature, with beautiful beaches, mountains, and gardens within easy reach. This makes it an ideal location for those who enjoy hiking, swimming, or simply relaxing in beautiful surroundings. For digital nomads, Funchal offers reliable internet connectivity and a number of coworking spaces. The city also has a good public transportation system, making it easy to get around. The food in Funchal is another highlight, with a variety of fresh seafood, local fruits, and traditional Portuguese dishes to enjoy. The city also has a vibrant nightlife, with a range of bars and clubs to choose from. One potential challenge for expats and digital nomads in Funchal could be the language barrier, as Portuguese is the main language spoken. However, English is widely spoken in tourist areas and among younger generations. Overall, Funchal offers a high quality of life for expats and digital nomads, with its warm climate, friendly locals, low cost of living, and beautiful surroundings," wrote a member in Funchal.

Portugal Residency Advisors

Portugal Residency Advisors is a full-service consulting firm dedicated to providing personalized services to individuals and families seeking to relocate to Portugal. With a team of experienced professionals and strategic partnerships, we are well-positioned to assist clients with all aspects of the relocation process.

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Portugal Residency Advisors

Portugal Residency Advisors is a full-service consulting firm dedicated to providing personalized services to individuals and families seeking to relocate to Portugal. With a team of experienced professionals and strategic partnerships, we are well-positioned to assist clients with all aspects of the relocation process.

Learn MoreConnect

Click connect to have our partner contact you via e-mail and/or phone.

What do expats in Funchal appreciate most about the local culture?

"Expats in Funchal, often appreciate the warm and welcoming nature of the local people, who are known for their friendliness and hospitality. They also enjoy the relaxed pace of life, which allows them to slow down and appreciate the beauty of their surroundings. The rich history and architecture of Funchal, with its charming cobblestone streets and historic buildings, is another aspect of the local culture that expats find appealing. Moreover, expats appreciate the vibrant and diverse culinary scene in Funchal, which offers a wide range of delicious local dishes, fresh seafood, and world-class wines. The local markets, such as the Mercado dos Lavradores, provide an authentic and colorful experience where expats can immerse themselves in the local culture and sample fresh produce. Festivals and celebrations are an integral part of Madeiran culture, and expats in Funchal enjoy participating in these events, such as the annual Flower Festival, Wine Festival, and Carnival. These festivities showcase the island's traditions, music, and dance, allowing expats to gain a deeper understanding of the local culture. Finally, expats in Funchal appreciate the natural beauty of the island, with its stunning landscapes, lush gardens, and picturesque beaches. The local culture places a strong emphasis on outdoor activities and enjoying nature, which expats find both refreshing and invigorating," said one expat in Funchal.

What do expats find most challenging?

"Expats in Funchal, may find the language barrier to be the most challenging aspect of the local culture, as Portuguese is the primary language spoken and not everyone speaks English fluently. Additionally, they might struggle with the slower pace of life, as locals tend to be more laid-back and relaxed, which can be frustrating for those used to a faster-paced lifestyle. The bureaucracy in Portugal can also be challenging, as dealing with paperwork and administrative tasks can be time-consuming and complicated. Furthermore, expats may find it difficult to adapt to the local customs and traditions, such as the importance of family and close-knit communities, as well as the strong influence of the Catholic Church. Finally, adjusting to the local cuisine, which is heavily based on seafood and local produce, might be a challenge for some expats, especially those with dietary restrictions or preferences," said one expat in Funchal.

Is there a lot of crime in Funchal?

We asked people if there is a lot of crime. They answered:

"Funchal, the capital city of Madeira, Portugal, is generally considered to be a safe destination for tourists and locals alike. While there is some crime, it is typically low in comparison to other major cities. Petty crimes such as pickpocketing and theft can occur, particularly in crowded tourist areas, but violent crime is relatively rare. Visitors are advised to take standard precautions, such as keeping personal belongings secure and being aware of their surroundings, to minimize the risk of becoming a victim of crime. Overall, Funchal is a relatively safe city with a low crime rate," commented one expat who made the move to Funchal.

Is there a lot of diversity? Are people in Funchal accepting of differences?

"Madeira and Funchal in particular are getting more diverse with this current influx of immigrants. While local people are friendly, you may experience some negativity over the perception that foreigners are causing a rising cost of living; especially housing costs. Some Madeirans resent immigrants for using precious medical resources and other government resources. One sore spot is immigrants who don’t learn Portuguese. So if you are new, make an effort to learn Portuguese as soon as possible. (Yes it is a difficult language and I am struggling with it)," commented one expat who made the move to Funchal.

"Funchal, the capital city of Portugal's Madeira archipelago, is a cosmopolitan city with a diverse population. It is home to people from various ethnic backgrounds, cultures, and religions, contributing to its rich cultural tapestry. The city is known for its welcoming and accepting nature, with locals generally being open-minded and respectful of differences. This acceptance is reflected in the city's vibrant cultural scene, which includes a variety of festivals and events celebrating its diverse population. However, like any city, individual experiences may vary," remarked one expat living in Funchal, Portugal.

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What are the schools in Funchal like?

"1. The International School of Madeira: This school is located in Funchal and offers an international curriculum for students from pre-school to high school. The school is known for its multicultural environment, with students from various nationalities. The curriculum is taught in English, with Portuguese language classes also offered. The school also emphasizes extracurricular activities, including sports, arts, and community service. More information can be found on their website: http://www.madeira-international-school.com/ 2. The British School of Funchal: This is a private international school that offers a British curriculum from nursery to secondary education. The school is known for its high academic standards and its commitment to developing well-rounded students. The curriculum is taught in English, but Portuguese language and culture are also emphasized. The school offers a wide range of extracurricular activities, including sports, music, drama, and art. More information can be found on their website: http://www.britishschoolmadeira.com/ 3. Escola da APEL: This is a private bilingual school in Funchal that offers a Portuguese curriculum with English language instruction. The school serves students from pre-school to high school and is known for its rigorous academic standards and its commitment to character education. The school offers a wide range of extracurricular activities, including sports, music, and art. More information can be found on their website: http://www.apel.pt/ 4. Colégio dos Jesuítas: This is a private bilingual school in Funchal that offers a Portuguese curriculum with English language instruction. The school serves students from pre-school to high school and is known for its Jesuit values, which emphasize academic excellence, service to others, and spiritual growth. The school offers a wide range of extracurricular activities, including sports, music, and art. More information can be found on their website: http://www.colegiojesuitas.pt/," wrote an expat with kids at in Funchal.

"Funchal has a vibrant social scene that caters to a variety of interests. The city is known for its lively nightlife, with numerous bars, clubs, and restaurants that stay open late into the night. There are also many cultural events, such as music festivals, art exhibitions, and theater performances, that provide opportunities for socializing. The city's beautiful natural surroundings also play a big part in its social scene. Many locals and tourists alike enjoy outdoor activities like hiking, sailing, and beach-going, which often involve social gatherings. Funchal is also known for its friendly and welcoming locals. It's common to see people socializing in the city's many cafes and public squares. The city also hosts several festivals throughout the year, which are major social events that bring together locals and tourists. The food scene in Funchal is also a big part of its social life. The city is known for its seafood and Madeira wine, and dining out is a popular social activity. There are many restaurants offering local and international cuisine, and it's common to see groups of friends and family enjoying a meal together. Overall, the social scene in Funchal is diverse and vibrant, offering something for everyone. Whether you're interested in nightlife, outdoor activities, cultural events, or food and wine, you'll find plenty of opportunities to socialize in this beautiful Portuguese city," mentioned an expat living in Funchal.

What advice to expats in Funchal have about housing?

"Expats in Funchal, advise that it's important to consider the location of your housing. Some areas are more touristy, while others offer a more authentic local experience. They also suggest renting before buying, to get a feel for the area and understand the local property market. Expats recommend using a reputable real estate agent to help navigate the housing market, as they can provide valuable insights and help negotiate prices. They also suggest being patient and taking your time to find the right property, as rushing into a purchase can lead to regret later on. It's also important to consider the cost of living in Funchal. While it's generally lower than in many other European cities, it's still important to budget carefully and consider all potential costs, including utilities, maintenance, and property taxes. Expats also advise checking the condition of the property carefully before buying or renting. This includes checking for any signs of damp, as this can be a common problem in older properties in Funchal. Finally, expats recommend learning some Portuguese or hiring a translator when dealing with property matters, as not all estate agents or landlords may speak English. This can help avoid any misunderstandings and ensure that you fully understand any contracts or agreements," said one expat living in Funchal.

About the Author

Betsy Burlingame Betsy Burlingame is one of the founders of Digital Nomad Exchange and the Founder and President of Expat Exchange. She launched Expat Exchange in 1997 as her Master's thesis project at NYU. Prior to Expat Exchange and Digital Nomad Exchange, Betsy worked at AT&T in International and Mass Market Marketing. She graduated from Ohio Wesleyan University with a BA in International Business and German.

Some of Betsy's articles include 12 Best Places to Live in Portugal, 7 Best Places to Live in Panama and 12 Things to Know Before Moving to the Dominican Republic. Betsy loves to travel and spend time with her family. Connect with Betsy on LinkedIn.

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