Currency in Madeira: Euro, Cards and How Much Cash to Bring

Madeira uses the euro as its official currency. If you're travelling from within the eurozone, you don't need to exchange currency and pay no foreign currency fees; your Visa or Mastercard works in practically every establishment. With €50-100 in cash for the whole week you have more than enough to cover markets, taxis and the most local bars. Managing money in Madeira is, in short, exactly the same as in any European city.

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Madeira's Currency Is the Euro

Madeira is an autonomous region of Portugal and, as such, is part of the European Union and the eurozone since 2002. This has a very practical consequence for travellers from other eurozone countries: there's no currency exchange.

Your money is worth exactly the same in Funchal as anywhere else in the eurozone. There are no mandatory exchange bureaus, no "foreign currency" fees, and your bank can't charge you a commission for that. You arrive with euros, spend euros, done.

If you're coming from outside the eurozone (the UK, the US, etc.), you will need to exchange currency — see the section below.

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Credit and Debit Cards in Madeira

Card payment is completely standard in Madeira. Hotels, restaurants, petrol stations, supermarkets, tourist shops and most bars accept electronic payment without issue. Only very small establishments or rural settings might lack a card machine.

Visa and Mastercard

These are the most widely accepted cards. Practically every business with a card machine takes them, including neighbourhood restaurants, cafés, local shops and stalls at Mercado dos Lavradores in Funchal. If you're travelling with either of these, you're covered in 95% of situations.

American Express

Acceptance is more limited. It works well at four and five-star hotels, the big tourist shops in central Funchal, and some upscale restaurants. Outside that circuit, don't count on it as your only option.

Contactless payment

Widespread across the island. The vast majority of terminals accept contactless card payment. It's rare to find a tourist business that doesn't have it enabled.

Google Pay and Apple Pay

These work wherever contactless is available, which as you've just read is practically everywhere. If you have your card set up on your phone, you can easily get through Madeira without ever taking plastic out of your pocket.

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The Multibanco Network: ATMs in Madeira

ATMs in Portugal are called Multibanco and are distributed across the island: at the airport, in central Funchal, in shopping centres, and in the larger municipalities like Câmara de Lobos, Machico, Ribeira Brava or Santa Cruz.

They work perfectly with Visa and Mastercard, both credit and debit. The interface is available in English. The process is identical to any ATM back home.

The fee your own bank may charge you for withdrawing abroad varies by institution: some banks charge nothing (especially neobanks like Revolut, N26 or Wise), and traditional banks usually apply between €0 and €3 per withdrawal, sometimes plus a small percentage of the amount. Check your card's terms before leaving.

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How Much Cash to Bring to Madeira?

The honest answer is: not much. Madeira isn't a destination where you need to carry wads of notes. That said, there are specific situations where cash is still king:

• ✓Markets and farmers' stalls: some municipalities' weekly market and roadside fruit stalls operate cash-only.
• ✓Taxis: although some drivers accept cards, it's more reliable to carry cash, especially for short rides.
• ✓Poncha bars in Câmara de Lobos: the most authentic venues, the ones not designed for mass tourism, often don't have a card machine. And those are precisely the best ones.
• ✓Tips: always in cash. There's no way to add a tip on the card machine at most places.
• ✓Miscellaneous: entry to a locally-run viewpoint, paid parking in a rural area, a donation at a chapel.

Practical estimate for a week: €50-100 in cash is more than enough for most travellers. If you plan to spend a lot of time at markets or in rural areas, stay towards the higher end. If your trip is mostly Funchal and tourist establishments, €50 is plenty.

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Everyday Price Table in Madeira

A useful reference for budgeting day-to-day expenses:

Prices in Madeira are slightly lower than in medium-sized cities elsewhere in Western Europe for dining and local products. Coffee, poncha and the daily menu are especially affordable compared to what you'd pay for the same kind of product back home.

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Tipping in Madeira

Tips aren't mandatory and aren't expected as strongly as in some other destinations. But they are appreciated, especially if the service was attentive.

The usual custom is:

• ✓At restaurants: leave between 5 and 10% if the service was good. Not necessary if a cover charge is already included in the bill.
• ✓At bars and cafés: round up the bill. If you pay €0.90 for a coffee, leaving €1 is enough.
• ✓In taxis: round up the fare or add €1-2 if the ride was long or the driver especially helpful.
• ✓At hotels: tipping housekeeping isn't customary, but leaving €1-2 a day is a well-received gesture.

Always in cash. As you already know, card machines don't have a tip option at most establishments.

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Do I Need to Exchange Currency Before Going to Madeira?

Not if you're coming from the eurozone. If you arrive with euros, there's nothing to exchange.

If for any reason you arrive with pounds sterling or dollars, you will need to exchange them. The best options in Madeira are:

• ✓Funchal Airport: there are exchange offices with extended hours. The rates aren't the best on the market, but convenience is maximum if you land with another currency and need euros right away.
• ✓Exchange bureaus in Funchal: Rua do Aljube and the streets of the historic centre have several exchange offices with more competitive rates than the airport. If you can wait until you reach the centre, compare before exchanging.

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The Rental Car and Your Credit Card

This point deserves special attention before you leave home.

Paying for the car rental and, above all, the security deposit hold, requires a credit card in the main driver's name. Debit cards aren't accepted by most companies for the deposit, or they come with more restrictive conditions.

If you don't have your own credit card, apply for one before the trip or check in advance whether your bank offers a debit card with credit functionality that rental companies accept.

The amount held as a deposit varies by company and vehicle type, but usually ranges between €200 and €1,000. It's released within a few days of returning the car in good condition.

To compare rental prices in Madeira and book ahead, you can do it at Funchal Car Hire.

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Frequently Asked Questions about Money in Madeira