UPDATED: AUGUST 2023 ◊ ZMIEŃ JĘZYK NA: POLSKI

Madeira on a budget – Accommodation

For all those of you visiting Madeira on a budget, I have prepared a new series of posts about cheap, cheaper or free options for meals, accommodation and transport in Madeira. Today, a couple of ideas for free or cheap stays on Madeira.

1. Budget hotels in Madeira
2. How to find affordable hotels in Madeira?
3. List of budget hotels and guest houses in Madeira
4. Hostels in Madeira
- Hostels in Funchal
- Madeira Hostels – Outside Funchal
5. Airbnb or private rentals in Madeira
6. Tourist shelters in Madeira
7. Free campsites in Madeira

1. Budget hotels in Madeira

If you are a budget traveller and search for the English term “hotel Madeira” on Google, the top results might scare you off. But don’t worry, it is rather easy to find cheap stays, guest houses and smaller, budget hotels on Madeira.

2. How to find affordable hotels in Madeira?

Instead of searching for the term “hotel” I recommend using “Pensão Funchal” or “Residencial Funchal”.

As you can see, those results are incomparably better than the hotels in the touristic part of Funchal.

3. List of budget hotels and guest houses in Madeira

Here is a list of affordable stays in Madeira:

Right now, the best rated (above 4/5) budget stays (according to TripAdvisor) are:

Here is a list of all the budget stays available on TripAdvisor.

For all wheelchair travellers trying to travel on a budget as well, we would also like to recommend a perfectly located 2-star hotel which is the only hotel adjusted to wheelchair users in that rural part of the island. See: Costa Linda Hotel

Choose Residencial Mariazinha if you would love to stay directly in the Old Town of Funchal, next door to a number of good restaurants, live Fado music places, art galleries, amazing street art and local Poncha bars.

FUNCHAL OLD TOWN STREET ARTS

PONCHA AND OTHER LOCAL MADEIRA DRINKS – FOR DUMMIES

From our personal experience, we could also recommend Valhalla Panorama, where we stayed at exactly at the time when it changed its owner and its name from Residencial Pina. (Many locals and taxi drivers may still recognize this place by its old name). Valhalla Panorama offers a beautiful view of Funchal, tranquility, an outdoor pool & great service at a good price.

4. Hostels in Madeira

If you are fine with sharing a room with strangers to considerably cut your costs, or, if you travel in a big group, hostels would be a great option. Many Madeira hostels are modern and have high guest ratings. Most of the Madeira hotels are located in Funchal.

Hostels in Funchal

Madeira Hostels – Outside Funchal

South Coast:

Hostels in Ribeira Brava

Hostel in Calheta

Maktub Guest House

North Coast

Hostels in São Vicente

Hostel in Porto da Cruz

Jaca Hostel Porto da Cruz

Hostel in Ponta Delgada

Bruma Hostel

At the moment, the top rated hostels in Madeira (4/5 or above) on TripAdvisor are:

5. Airbnb or private rentals in Madeira

There are thousands of private rental houses, villas, and apartments on the island. The term to search for is “Alojamento Local”. Such private holiday rentals on Madeira are a great option for budget travelers and own access to kitchen & laundry, helps to save even more.

6. Tourist shelters in Madeira

This is not something I can tell you a lot about as I have never slept in a tourist shelter in Madeira, but I would like you to be aware that this option also exists.

A tourist shelter in Portuguese is called a “Casa de abrigo” and they are homes located in beautiful, remote areas in nature. You are able to stay in one of those houses for just €25.00 per day, per house. Please note, a day is considered a time frame from 00h to 23h59. One day does not include the night, for an overnight stay you need to book 2 days. For more information, please visit:

If you have slept in one of those shelters, I am extremely interested in your reviews and your tips. Would you recommend this option to others? Please leave a comment below!

7. Free campsites in Madeira

Yes, there are both commercial and free campsites in Madeira.

I have already mentioned them in one of my previous posts“Backpacking & hitchhiking in Madeira”. In order to sleep on one of these free campsites, you need a permission from the Instituto das Florestas e Conservacao da Natureza – IFCN, because the campsites are located within the national parks.

You should apply well in advance, as sometimes it takes time to receive a response. Do not leave it until the last moment. For more information please visit:

And you? Have you stayed in any of the budget hotels, hostels or shelters in Madeira? Do you have any other tips for budget accommodation on Madeira?

Let us know in the comments!

Say Yes to Madeira

Madeira on a budget – Part II – Cheap or free accommodation in Madeira