Where to stay in Madeira
Madeira is small, but its roads are steep. Funchal puts the city on foot within reach; the west, about 39 to 48 km from the airport by road, trades the city for smaller towns.
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How the areas differ
Funchal is the regional capital. Its centre and the Zona Velha, the old quarter of cobbled lanes and painted doors, are for walking to the cathedral, the market streets and the restaurants. The Lido and São Martinho, west of the centre, are the hotel district, built along a promenade with seawater pools. Both are about 17 to 23 km from the airport by road.
East of the city, Caniço and Caniço de Baixo sit between Funchal and the airport, about 10 km from the terminal. West of the city, Câmara de Lobos is a fishing town with terraced slopes above its harbour, about 9 km from Funchal cathedral. Further west, Ponta do Sol and Calheta are on the south-west coast: Ponta do Sol a small town around its church, Calheta a marina and a beach with houses on the slopes above, about 48 km from the airport.
Staying with a rental car
In Funchal, street parking is metered and short. The municipal company Frente MarFunchal runs 1,602 metered spaces in four zones, from EUR 1.89 an hour with a 61-minute maximum in the central yellow zone to EUR 0.56 an hour with a 364-minute maximum in the outer brown zone. Meters run on weekdays from 08:00 to 20:00 and on Saturdays from 08:00 to 14:00, and parking is free on Sundays and holidays. White bays marked M belong to residents, and Visit Madeira reminds drivers that a space cannot be reserved.
For a car kept several days, the Lido has two municipal car parks, 105 spaces each: a full day costs at most EUR 6 in the surface car park and EUR 7 in the covered one, and a monthly card costs EUR 45 or EUR 55 plus EUR 10 for the card. In the centre, a place with its own garage saves the daily search.
Outside Funchal, the drive matters more than the meter. The VR1 expressway runs about 44 km along the south coast from Ribeira Brava to Caniçal and passes the airport. Away from it, Madeira's local roads can be steep and narrow: where only one car fits, the car going downhill has priority, and Visit Madeira advises low gears on descents and caution with a sat nav, which can choose impractical roads. Ask the host of a villa above Calheta or Ponta do Sol about the access road. GetCar's guide Driving in Madeira: Steep Roads, the VR1, Closures and Parking in Funchal covers road closures and the traffic rules.
What the tourist tax and registration rules mean for a guest
Madeira's tourist tax is municipal, and every council checked charges the same EUR 2 per guest per night for up to 7 nights. Funchal has charged it since 1 October 2024, with guests aged 12 or under and Madeira residents exempt; in January 2026 the council opened a review that may raise the rate, and no new rate had been announced in its news as of September 2026. Ponta do Sol started on 1 September 2024, Calheta on 1 October 2024, Câmara de Lobos in January 2025 and São Vicente on 13 May 2026. Santa Cruz, which includes Caniço, has its own ecotax, set at EUR 2 a night for up to 7 nights in its 2022 amendment.
Holiday lets in Madeira fall under the national Alojamento Local law, which requires the AL registration number in every advert. At check-in, the host or hotel records a passport or ID card, because Portuguese law requires a registration form for every foreign guest, EU nationals included.
Hikers pay one more charge. Since 1 January 2026, visitors over 12 who are not residents book and pay for Madeira's classified trails in advance on the regional SIMplifica platform, EUR 4.50 for most trails.
When to book what
Settle the parking before the room. In central Funchal, a listing that includes a garage or a private space removes the meter from the trip; at the Lido, the municipal car parks are the fallback. For a villa in the west, ask the host how steep the access road is and where the car stays.
Book trail tickets once the dates are fixed, since SIMplifica sells them in advance, and remember that the base decides the morning drive to the trailheads.
Which area for which trip
A first visit on foot: Funchal centre and the Zona Velha.
Pools, the sea and a hotel with parking: the Lido and São Martinho.
Early flights and a quiet base near the city: Caniço.
Local life a short drive from Funchal: Câmara de Lobos.
A long stay with a place to work: Ponta do Sol.
A villa, the beach and the west of the island: Calheta.
Questions
Is it better to stay in Funchal or in the west with a car?
Funchal keeps the airport about 17 to 23 km away and the city on foot, but parking is metered. The west, around Ponta do Sol and Calheta, means smaller towns about 39 to 48 km from the airport by road.
How long can a car stay at a Funchal meter?
From 61 minutes in the central yellow zone to 364 minutes in the outer brown zone. Meters run on weekdays from 08:00 to 20:00 and on Saturdays from 08:00 to 14:00; Sundays and holidays are free.
Do children pay the tourist tax in Madeira?
In Funchal and Calheta guests aged 12 or under are exempt, and in Câmara de Lobos, Ponta do Sol and Santa Cruz guests under 13 are.
Where can a guest park near the Lido?
Frente MarFunchal runs two Lido car parks with 105 spaces each, open 08:00 to 22:00, with day maximums of EUR 6 and EUR 7 and monthly cards.
Is there a fee for hiking in Madeira?
Since 1 January 2026, non-residents over 12 pay to walk the classified trails, EUR 4.50 for most, booked in advance on SIMplifica.