## Cost of Living in Funchal, Madeira (2026): What It *Really* Costs to Live Here

We’ve been tracking our cost of living in Madeira since **2022**, and if there’s one thing we can say with confidence, it’s this:

👉 **Prices have changed—and some of them may surprise you.**

In this post, we’re laying everything on the table and sharing what it truly costs to live in **Funchal, Madeira, Portugal in 2026**. We’re talking real numbers, real trends, and real lifestyle choices—based on nearly five years of detailed tracking.

If you’re thinking about retiring early, moving abroad, or designing your own *better second half of life*, affordability matters. A lot.

So let’s break it down.

## The Big Four: How We Track Our Cost of Living

Every year, we divide our spending into what we call **The Big Four**—the categories that make up the bulk of monthly life costs anywhere in the world:

1. **Housing (Rent)**
2. **Groceries**
3. **Utilities & Connectivity**
4. **Lifestyle Spending**

We’ll share what we spend (or would spend), how prices have changed, and where you still have flexibility to save.

Spoiler alert: prices haven’t gone down—but some have stayed surprisingly reasonable.

## 1. Housing: The Biggest Piece of the Puzzle

Housing is, without question, the **largest expense** for anyone moving to Portugal—especially if you’re renting.

### Our Actual Housing Costs (Owners)

Because we own our condo outright, our monthly housing costs are very low:

* HOA fees: **€51 / month**
* Property taxes: **€31 / month**
* Condo insurance (contents): **€33 / month**

**Total housing cost: ~€115 per month**

That said, most people arriving in Madeira will be renting—so let’s talk real rental numbers in 2026.

### Rental Costs in Funchal (2026)

Based on what we’re seeing in the market:

* **T1 (1 bedroom):** ~€1,500/month
Often includes parking and a sea view

* **T2 (2 bedroom):** ~€1,800/month
Walkable areas we’d choose ourselves

* **T3 (3 bedroom):** ~€3,200/month
Larger, more “lifestyle” apartments, often newer and fully furnished

Location matters. Popular areas like **São Martinho** or **Old Town** tend to cost more. Move slightly uphill or outside central Funchal, and prices can come down.

For our cost-of-living example, we chose a **walkable T2 at €1,800/month**—the same type of apartment we used in earlier years.

Back in 2024, that same T2 would have cost around **€1,450**, so rents have clearly increased by a few hundred euros.

💡 *Want to save on rent?*
Less walkability = lower rent. Living outside Funchal = even more savings.

## 2. Groceries: The Category That Changed the Most

Groceries are where we’ve seen the **biggest jump over time**.

### Typical Grocery Prices in Madeira

Here are a few everyday items we buy regularly:

* Bread (Pão da Serra): **€1.09**
* Greek yogurt (large tub): **€2.35**
* Cheese: **€1.69**
* Butter (large): **€2.09**
* Ground coffee: **€2.99**
* Milk (1 liter): **€1.00**
* Eggs (dozen, brown): **€3.26**
* Wine: **€1.99–€4.00** (and yes, it’s good)

Fresh food here is still high quality, minimally processed, and generally healthier than what we were used to in North America.

### Our Grocery Spending Over Time

Here’s where things get interesting:

* **January 2022:** €319
* **January 2023:** €401
* **January 2024:** €409
* **January 2025:** €623
* **January 2026:** **€724**

That jump between 2024 and 2025 was the biggest—and we felt it.

Some of this is inflation. Some of it is lifestyle creep. And some of it is simply being more relaxed and settled after years of careful budgeting.

Still, when we hear what friends are paying for groceries in the US and Canada—especially for eggs and produce—Portugal continues to feel like good value.

Example: **24 farm-fresh brown eggs for €6.50.**

## 3. Utilities & Connectivity: Surprisingly Stable

We’ve grouped utilities and connectivity together because, for us, they’ve stayed relatively consistent.

### Monthly Averages

* **Water & sanitation:** ~€20
* **Electricity:** ~€91
(Includes air conditioning and electric hot water)
* **Internet, mobile & TV (MEO):** ~€67

That €67 covers:

* Two unlimited mobile plans (EU-wide)
* High-speed fiber internet
* 5G data
* 200+ TV channels

Gas is largely disappearing here. Many homes—including ours—are switching fully to electric.

Overall takeaway? Utilities are **very affordable**, especially considering what you get.

## 4. Lifestyle Spending: Where Choices Matter Most

Lifestyle spending is where budgets can **vary wildly**.

Here’s what a typical month looks like for us:

* Hair & color: **€68**
* Nails (mani/pedi): **€38**
* Gym memberships (both of us): **€125** *(non-negotiable)*
* Entertainment & misc.: **€200**
* Dining out: **€150**
* Fuel: **€0–€70**
(Walkability makes a huge difference)
* Dog (food & care): **€100**
* Streaming services: **€40–€50**

Lifestyle creep happens—but this is also where you have the **most control**.

## The Bottom Line: What It Costs in 2026

If we were **renting a walkable T2**, living much like we do now, our estimated monthly budget would be:

👉 **~€3,500 per month**

A few years ago, that number was closer to **€2,700–€3,000**.

Rents and groceries have increased the most. Utilities have stayed steady. Lifestyle spending depends entirely on choices.

There are still ways to save:

* Live outside central Funchal
* Choose less walkable (but cheaper) areas
* Walk more, drive less

Good for your health. Good for your pocketbook.

## Final Thoughts

Portugal—and Madeira specifically—is still a place where you can design a **comfortable, healthy, and enjoyable second half of life**.

But like everywhere else in the world, costs are rising—and understanding them clearly matters more than ever.

So tell us:

* Would you be comfortable with a €3,500/month lifestyle?
* What does affordability look like for *your* second half of life?

Thanks for spending some of your time with us.

And as always… **Track Us Down.**