Updated September 2026
Short answer: for most first-time visitors, the best place to stay in Madeira is Funchal, especially if you won’t rent a car. If you’re travelling with kids, renting a car and want a calm beach and more sunshine, pick Calheta in the west. Save the north for day trips, and keep one base for the whole week.
Search for this and you’ll find posts comparing six or eight areas and thirty hotels. That only makes the choice harder. We’ll keep it simple: two bases, three questions and one mistake a lot of visitors make. In five minutes you’ll know where to look for a place to stay.
Where to stay in Madeira: south or north?
Madeira is small but very mountainous, so it’s better to count distances in minutes, not kilometres. The good news is that from either base you can reach almost anywhere on the island in about an hour. One place to stay is enough for a week, and there’s no need to move around.
The island has two sides. The south coast is drier, sunnier and warmer, and that’s where most people stay. The north is greener, wetter and more often cloudy. It’s beautiful, but it’s worth a day trip rather than a base: you’ll wake up to sunshine more often in the south.
In the south, two places cover almost every kind of trip: Funchal and Calheta.
Funchal: the best base without a car
Funchal is the capital and the only place on the island where you can really manage without a car. It has the most places to stay and eat, the buses start here, and tour companies pick people up from their hotels. The old town, the market, the harbour and the cable car up to Monte are all within walking distance.
The mountains and the east are close too. Pico do Areeiro, the Ribeiro Frio levadas and the Ponta de São Lourenço peninsula are all roughly half an hour away.
Good for: first-time visitors, couples, anyone without a car, and people who like choosing a different restaurant every evening.
Not for you if: you dream of a sandy beach outside the door or village-style quiet. Funchal is a city, with traffic and hills.
A quieter option without a car is Caniço, next door: closer to the airport and calmer, but with less choice, and you’ll take the bus into Funchal.
Calheta: sun and a beach for families with a car
Calheta is on the west coast. It has one of the few sandy beaches in Madeira: it’s man-made, but protected from the waves, so the water is calm and good for small children. The west is often sunnier than Funchal, and the Fanal forest, the Rabaçal trails and the natural pools of Porto Moniz aren’t far.
Good for: families with kids, anyone who wants a pool-and-beach holiday with a few trips out, and everyone renting a car.
Not for you if: you won’t have a car. Buses to the west are infrequent, and in the evening there are far fewer places to eat than in Funchal.
The one mistake a lot of visitors make
An address that says “Funchal” or “Calheta” doesn’t mean you’ll be by the sea. Both names also cover the hills above town, and Madeira’s hills are very steep. A place with a great view can sit a few hundred metres above the centre, and without a car getting down into town and back up again is hard work, especially with kids.
So before you book, open the location on a map and check not just the distance but how much climbing there is. If you won’t have a car, choose somewhere right in the centre or on the seafront.
Which places to stay in Funchal and Calheta are actually worth it? Our guide lists them for three budgets, for families and couples separately, all highly rated with lots of reviews. We note which are in the centre and which are up in the hills, and what a week costs in winter and in summer. Madeira guide, €19 →
How to choose: three questions
- Will you rent a car? If not, pick Funchal (or Caniço). If yes, both bases work, and the next two questions decide.
- What are you coming for? For the city, restaurants and mountain walks in the east, Funchal. For the beach, a pool and the nature of the west, Calheta.
- Travelling with small children? Calheta’s calm sandy beach makes life with little ones much easier. With older kids, Funchal gives you more to do.
What to look for in a place to stay in Madeira
- Parking. Parking in central Funchal is hard and paid, so if you’re renting a car, look for a place with its own space.
- An apartment with a kitchenette for families. You can make breakfast yourselves and don’t have to take everyone out to a restaurant every night. Whether there’s a kitchenette often depends on the room type, so check the description of your room.
- Heating in winter. Madeira never gets cold, but winter evenings are cool, and some older houses have no heating. If you’re going between December and February, check.
- New Year’s Eve and the Flower Festival. Around these dates Funchal is at its most expensive and books up early.
- Don’t trust the forecast blindly. The weather differs between north and south, and between the coast and the mountains. A good base in the south means that even on a rainy day you’ll often find sunshine on another part of the island.
Where to stay in Madeira: questions people ask
Where is the best place to stay in Madeira for the first time?
Funchal. It has the most places to stay and eat, the easiest public transport, and tours pick you up at your hotel.
Can you visit Madeira without a car?
Yes, if you stay in central Funchal and use buses and tours. From anywhere else, it’s hard to see the island without a car.
Where to stay in Madeira with kids?
If you’re renting a car, Calheta, for its calm sandy beach. Without a car, Funchal, where the cable car, parks and pools are close by.
Is it worth staying in the north of Madeira?
Usually not for the whole week. The north is beautiful but cloudier and wetter. It’s better to visit on a day trip from the south.
Do you need to change hotels during a week in Madeira?
No. You can reach almost anywhere on the island from Funchal or Calheta in about an hour, so one base works for the whole trip.
What’s next
You now know which part of the island to stay in. Our guide Madeira: mountains, ocean and island life, for families and couples tells you exactly where: checked places to stay in both bases for three budgets with prices, drive times to the main sights, how to handle a car on mountain roads, and how the new trail booking system works. Plus the levadas, Funchal and Monte, natural pools, hidden gems, and every spot on one map.
Still choosing your dates, or want the whole trip planned around your kids’ ages and your budget? Get a custom trip plan.
Photos: Mercado dos Lavradores by Allie_Caulfield, CC BY 2.0; Calheta beach by tawalker, CC BY 2.0.