Best Areas To Stay In Madeira / Complete Guide To All Towns

This guide breaks down the best areas to stay in Madeira, whatever your needs or travel style. You’ll find a clear overview of each town and its accommodation options, so you can choose the place that actually works for you. Whether you’re coming for a few days or a few weeks, renting a car or relying on public transport, travelling solo or as a family, I’ll walk you through it step by step.

I travelled around Madeira solo, on a budget, for a total of six weeks. During that time, I changed my plans more than once based on what turned out to be convenient, what I learned about public transport, and what I wanted to see. So this is very much a first-hand guide from a solo traveller figuring things out along the way.

Madeira can be a bit tricky to navigate, especially if you’re not planning to rent a car.

But despite what many people say, you can hike and travel around Madeira without a car; you’ll just face some challenges. That’s why choosing the right town to stay in is so important, especially if you want decent transport connections around the island.

For each area, I’ll tell you what type of traveler that town is best for, whether it’s a good base with or without a car, what you can do and see there, and I’ll share my honest, no-nonsense opinion based on my own experience.

By the end of this post, planning your Madeira trip should feel much easier.

We’ll start with a quick overview that highlights the best town or area depending on your travel style and budget.

Finally, you will find more detailed information on the best towns in Madeira to stay, with some of my personal recommendations. So let’s start!

Best areas to stay in Madeira – overview

Best Areas To Stay In Madeira For Solo Travelers

The best places for solo travellers in Madeira are Funchal, Machico and, for those who prefer a quieter and more remote base, Santana.

Funchal works especially well if you’re travelling solo on a budget. You’ll find the widest choice of affordable accommodation, the best public transport links, and a couple of sociable hostels if you want to meet other travellers. After a day of exploring, the city gives you endless options for food, drinks, cafés, and shops. For convenience, atmosphere, and value, it’s easily the best all-round base in Madeira.

If you’re a solo traveller who wants to stay right by the beach, Machico is the way to go. It has reliable public transport, a lovely golden, sandy beach, great hiking nearby, and easy day trips both to Funchal and to smaller towns like Caniçal.

For those who prefer a remote and nature-focused stay, Santana is a peaceful option. You won’t find hostels, many supermarkets, or many solo travellers here, but it’s a brilliant base for some of the most stunning hikes in Madeira, like Pico Ruivo or Levada do Rei.

Quick Summary: Where to Stay for Solo Travellers

Best all-round option: Funchal
Best solo beach base: Machico
Best remote hiking base: Santana
Why these work: Good public transport, social options, or access to iconic trails.

Best Areas To Stay In Madeira For Families

The best areas for families in Madeira are the Lido area of Funchal, Caniço, Machico and Calheta. These towns offer good beaches or bathing complexes, plenty of activities, playgrounds and a wide choice of hotels and homestays. Each one works well as a relaxed destination on its own or as a base for exploring the island.

The Lido area of Funchal offers a more resort-like feel while still being close to the historic centre. Families often choose it for the Lido Bathing Complex, which has seawater pools for both adults and children and access to the ocean. The proximity to Praia Formosa, shops and restaurants makes it an easy and comfortable area for a family trip.

Caniço is another great family option, especially if you want a quieter seaside atmosphere. It has several family-friendly hotels with pools, playgrounds and kids’ activities. Being halfway between Funchal and Machico makes it convenient for day trips, and many organised tours will pick you up from here.

Calheta is ideal for families who want a beach town with shallow sandy beaches, playgrounds, a large supermarket, and plenty of accommodation choices. Public transport is limited, so Calheta is best if you’re renting a car. It is, however, beautifully located, surrounded by incredible nature and many hiking trails, and the beach is perfect for kids.

Quick Summary: Where to Stay for Families

Best family-friendly zone overall: Funchal (Lido area)
Best hotel facilities for kids: Caniço
Best easy beach days: Machico and Calheta
Why these work: Safe swimming spots, family facilities, and plenty of activities.

Best Areas To Stay In Madeira Without The Car

The best area to stay in Madeira if you’re travelling without a car is Funchal. It has the best transport connections across the island, plenty to do on the days you don’t feel like venturing far, and a huge selection of tours that depart directly from the city if you’d rather not deal with buses at all.

If you don’t mind a few challenges and want something a little more off the beaten path, with some access to public transport or the occasional taxi, Machico and Câmara de Lobos are also good options.

Câmara de Lobos is a traditional fishing village with a postcard-perfect bay full of colourful Xavelhas boats and dramatic ocean views. It’s one of Madeira’s oldest settlements and has a lively waterfront with fresh fish restaurants, local bars, a lovely promenade, and viewpoints like Pico da Torre or Jardim do Ilhéu, which overlooks the bay.

Machico is a great base without a car if you’re after a beach town with a golden sandy beach. You can reach it easily by bus from Funchal, and you can get to hikes like Vereda da Ponta de São Lourenço or Vereda do Larano entirely by public transport. It’s a smaller town than Funchal but still has plenty of good restaurants, bars, cafés, and a charming old centre.

Best Areas To Stay In Madeira For Hiking And Nature

Honestly, anywhere really! But if you want to stay close to multiple beautiful walks, be surrounded by mountains, enjoy spectacular nature, and soak up some peace and quiet, then São Vicente, Santana, Ponta do Sol and Machico are all excellent choices.

São Vicente is a great base for exploring the north, with easy access to the Fanal Forest and nearby trails – perfect for nature lovers and those seeking to hike in lush laurel forests.

Ponta do Sol is a scenic seaside village with access to trails like Levada Nova and Levada do Moinho, both known for their incredible views.

Funchal, Santana, and Calheta are also top bases for hiking.

From Funchal, you can reach many trails by public transport, which makes it one of the most convenient places to stay if you don’t want to rent a car.

Santana is ideal if you want to hike Levada do Rei, Balcões, Levada do Furado, Levada do Caldeirão Verde and even Pico Ruivo.

From Machico, you can access two of Madeira’s most spectacular coastal hikes: Vereda da Ponta de São Lourenço and Vereda do Larano.

Calheta works best if you want quick access to Levada do Norte, Levada das 25 Fontes, Levada do Paul, Levada do Moinho, and Levada Nova.

Quick Summary: Where to Stay for Hiking

Best central base: Funchal
Best for classic lush hikes: Santana
Best for coastal and ridge walks: Machico
Best for levada-heavy itineraries: Calheta
Best for peaceful nature stays: São Vicente

Best Areas To Stay In Madeira For Beach

If you are coming to Madeira to relax and spend a lot of time on the beach, then you should consider staying in Calheta, the Lido part of Funchal, Ribeira Brava, Ponta do Sol, or Machico.

Calheta and Machico both have lovely golden sand beaches. Around Funchal Lido, you’ll find the bathing complex and Praia Formosa, which is great for swimming and sunset walks.

Santa Cruz and Ribeira Brava offer pebble or dark sand beaches, and Seixal has some of the most stunning black volcanic beaches on the island. That said, I wouldn’t recommend Seixal as a base. It’s beautiful, but pretty small and remote.

If you are looking for an ultimate beach holiday in Madeira, you could also consider staying on the smaller island of Porto Santo. This smaller island has long stretches of golden sand and a wonderfully remote, slow-paced feel. In fact, I think that Porto Santo is one of the best-kept stunning golden beach secrets out there!

Quick Summary: Where to Stay for the Beach

Best golden sand beaches: Calheta, Machico
Best for bathing complexes: Funchal (Lido area)
Best scenic small towns: Ribeira Brava, Ponta do Sol
Best ultimate beach escape: Porto Santo

Considering renting a car? If you are traveling in high season, book early. Prices increase the later you book a car. Of course, you can also rent a car at the airport. There are several car rental agencies outside the arrival terminal. You can also search for the best prices and pre-book online on Rentalcars or Discover Cars websites. 

Best Areas to Stay in Madeira – Complete Breakdown of ALL towns

If you are looking for more detailed information on each town or area, including things to do, this part of this article is for you.

Funchal

Funchal is, without a doubt, the best place to base yourself in Madeira. It’s a capital city, and there are plenty of things to do in and out of the town, and you can get to almost any part of Madeira by bus from here

In my opinion, it is also one of the most affordable places to stay in Madeira. You can find all kinds of accommodation here, including budget hostels, and with many supermarkets and stores to choose from, it is very easy to stay on a budget when you are in Funchal

Funchal will make a great base for all your explorations, and when you return from your adventures, you can easily find a good restaurant to relax in and a sunset to ponder over. Since everything is within walking distance, it’ll be easy to relax after a long day of hiking or exploring.

Please note that Funchal is divided into 2 distinctive parts – the old town and the Lido. Lido is where you will find most of the hotels and all-inclusive resorts. The Old Town is the beating heart of Funchal, and here you will find some of the best restaurants and landmarks in town.

Who is Funchal best for:

Anyone. But if you are visiting Madeira for the first time or want to explore Madeira by bus, Funchal is probably the best choice. Funchal is also great for travellers on a budget, as well as those who would like to splurge on good restaurants and excellent shopping. Funchal is the best area in Madeira for those travelling without a car.

The transport links are excellent and you can reach almost any part of the country by public transport. Also, if you are looking for a very cultured area where you can explore museums, historical sites, and seasonal events, Funchal should be your choice.

Things to do in Funchal:

• Explore Old Town and its painted doors
• Visit Monte Tropical Gardens
• Relax in Funchal Botanical Garden
• Spend day at Praia Formosa
• Explore Funchal museums
• Sample local specialities like Lapas or Poncha

Best trips near Funchal:

• Camara de Lobos alongside Cabo Girao – both can be done in one day
• Santana
• Nuns Valley
• Levada do Furado and Balcoes
• Pico Arieiro

Where to stay:

For budget solo travelers, I recommend 29 Madeira Hostel or 109 Funchal Hostel.

• 29 Madeira Hostel is where I stayed, and I found it to be clean, very social, and the dorm beds were very comfortable.
• 109 Funchal Hostel is preserving its original architecture. This 19th-century building is beautiful, and the rooms are very comfortable. It offers both private and dorm rooms.

For a budget private room, look no further than Residencial Funchal. Maybe it is not the most glamorous of them all, but the location is fantastic and so is the price. You will get a small, clean, private room and access to the shared kitchen – what else do you need?

For a comfortable and beautiful stay in the Funchal Old Town:

• Alexia Room is the best budget option in Funchal Old Town.
• Hotel Cajú is a beautiful small hotel in the heart of the old town offering delicious breakfast, great views, and nicely decorated rooms.
• Finally, if you are looking for a spacious and excellent apartment, Apartamentos Praça Amarela is the best choice.

If you are looking for a great hotel near the Funchal Lido:

• Monte Verde – where I stayed. A small and basic but comfortable and clear budget room near the Lido area. Apartamentos Turisticos Paraiso is also a great budget option.
• Hotel Alto Lido is a wonderful and comfortable 3-star hotel with raving reviews and an excellent location.
• The Cliff Bay – PortoBay for the true luxury resort experience.

Finally, for the most incredible luxury stay, you just can’t beat A Belmond Hotel at Reid’s Palace. This place is just spectacular!

Canico

If you want to stay close to the action (Funchal) but are looking for a quieter resort with a nice beach, Canico might be a good choice for you. Located only a 10-minute drive from Funchal and close to the airport, Canico is a good choice if you are looking for a peaceful yet traditional resort with plenty of good hotels. This area is also very popular among ex-pats. However, when staying in Canico, it is recommended to rent a car, as public transportation is not as easily accessible as in Funchal

In Canico you will find some beautiful beaches like Praia do Garajau or Praia dos Reis Magos, but also plenty of bars, restaurants, and activities. Just your typical beach tourist resort.

Best For:

Travelers prefeing a peaceful resort vibe with a good choice of hotels, homestays, and nice beaches. Renting a car is recommended.

Things to do in Canico:

• Garajau Partial Natural Reserve, a marine park with a wide range of flora and fauna
• Cristo Rei lookout point
• Diving schools
• You will find plenty of organized activities and tour at your hotel

Where to stay:

• The Views Oasis is one of the best hostels near Canico with incredible views, a pool, and multiple restaurants and bars.
• Paradisus guest house is another highly recommended hotel with a swimming pool and very comfortable rooms.

Machico

Machico, after Funchal, is in my opinion one of the best places to stay in Madeira. It is not as vibrant and lively as Funchal but offers many things to do in and around town, some of the best hiking trails, and a beautiful golden sand beach.

Machico beach also has a promenade with small restaurants, beach bars, and ice cream parlors – an ideal place for an evening stroll, a meal, or a drink on the beach at the end of the day. Machico has a pleasant relaxed atmosphere and is perfect for a relaxing holiday.

I spent 10 days in Machico and really liked it there. I walked two stunning hikes – the Vereda do Larano and the Vereda Ponte do São Lourenço. I visited a few nearby towns and spent a fair amount of time chilling on the beach and sipping poncha. It wasn’t too bad at all.

Best for:

Families looking for a seaside resort, couples, and avid hikers. Machico is also very solo-traveler-friendly. You don’t need a car to stay in Machico – the public transport links are excellent. 

Things to do in Machico:

• Soak up the sun on the Machico beach also known as Praia da Banda d’Além
• Enjoy Water Sports Or Take A Boat Trip
• Visit Chapel of Saint Roque (Capela De São Roque)
• See the landing plane from Pico do Facho

Trips and experiences near Machico:

• Canical
• Porto do Cruz
• Funchal
• Levadas: Levada do Castelejo, Levada dos Maroços, Levada Nova and Levada do Canical
• Walk the iconic veredas: Vereda do Larano and Vereda Ponte do Sao Lourenco

Where to stay:

• Modern & Recycled Guest House has excellent reviews, and although it’s not the cheapest in the area, I do believe it’s one of the best options in Machico. It’s beautifully decorated, has a lovely shared kitchen and communal area, and the location is just perfect.
• If you are a solo traveller, you should consider Amparo, which offers simple but nice single rooms, or if you are looking for a hotel with a pool, Dom Pedro Madeira could be a good option too.
• If you are travelling as a couple or family, you should definitely consider renting an apartment or a whole house like a Residencial Familia or Kanela Guest House.
• I stayed at Apartamentos Matur, which was a great little apartment. I stayed for 10 days, so I got a good deal at the time, and I really enjoyed my stay. 
• I highly recommend booking your stay in Machico as soon as you can. Good apartments that offer great value for money get booked up quite early.

Porto Da Cruz

I reached Porto da Cruz at the end of my Vereda do Larano hike and what a wonderful reward that was! It’s a charming little coastal town nestled in a valley between the cliffs and surrounded by the wilderness with Penha d’Águia mountain keeping the guard over it.

There are truly dramatic views of the ocean from here, and while there’s all that much to do there, it could be a decent area to stay in Madeira if you want to get away from it all yet be strategically located near some of the most spectacular hikes on the island.

You can easily access both the Vereda do Larano and Vereda Ponte do Sao Lourenco hiking trails and enjoy a good meal and award-winning poncha at the end of the day. The next day you can spend the day in the bathing complex or learn how to surf. Because why not!

Best for:

Hikers looking for a quiet base with some good restaurants. Beginner surfers – Porto da Cruz is home to a surfing school. Those who want to escape the city and surround themselves with dramatic ocean views. Porto da Cruz is accessible by bus from both Funchal and Santana, so you do not need to rent a car to stay here. The hiking trails are within walking distance.

Things to do in Porto da Cruz:

• Try Paragliding
• Learn how to Surf
• Walk up Penha d’Águia
• Visit the old sugar cane factory of 1927
• Walk up to Fortim do Porto da Cruz, the ruins of the fort, standing on a small headland.

Activities nearby Porto da Cruz:

• Vereda do Larano and Vereda Ponte do Sao Lourenco
• Portela viewpoint
• Boca do Risco – From Larano to Caniçal
• Machico
• Santana

Where to stay:

• Jaca Hostel Porto da Cruz is one of the few hostels that exist in Madeira, making Porto da Cruz even more appealing as a base in Madeira, especially if you are a solo traveller. It is a very well-rated hostel that offers clean and nice dorms, pizza nights, and a friendly atmosphere
• If you are looking for private accommodation, I recommend Hotel Costa Linda, which offers a perfect location and great facilities.

Santana

Santana is best known for being Madeira’s most traditional municipality where you’ll find traditional A-frame houses with thatched roofs. The entire area has also been declared a Biosphere Reserve by UNESCO in recognition of its superbly preserved biodiversity and commitment to sustainability. It’s a wild part of Madeira that for a long has been quite isolated.

Although all attractions in Santana can be visited in one day, there are actually some really cool places to visit around Santana (like Faial or Levada do Rei) that you’d otherwise only be able to reach by car. Santana is also a great town to stay in Madeira for hiking.

Rocha do Navio is my favourite part of Santana, where you will find stunning views of the rugged coastline and the islet of Viúva, as well as a tiny cable car that will take you down to the Sítio da Rocha do Navio Nature Reserve.

Also be sure to visit the Núcleo de Casas Típicas, where all the typical houses are on display, and Rocha do Navio. 

You can make several day trips from Santana and many of them can be done by bus like Faial or Levada do Rei and Balcoes. Santana is also a good base for the Pico Ruivo hike.

Best for:

Hikers without a car – many trailheads can be reached by bus from Santana. Nature lovers and those looking for a cooler mountainous climate. 

Things to do in Santana:

• Natural Reserve of Rocha do Navio – viewpoint and cable car
• Núcleo de Casas Típicas Museum

Experiences and day trips near Santana:

• Faial
• Levada do Rei
• Levada do Caldeirão Verde
• Vereda da Ilha to the Pico Ruivo
• Madeira Theme Park
• Parque Florestal das Queimadas

Where to stay:

• Finding accommodation in Santana was tricky for me as a solo traveller, as I have seen entire villas and homes for nearly the same price as a hotel room. But I was determined to stay there, so I booked this cute one-bedroom studio with Discovery Apartments. I enjoyed my stay there, although it was definitely outside my usual budget.
• If you are sharing your accommodation or don’t mind spending a little more, there are some awesome villas and holiday homes you can book for a very decent price, like Litlle Zen House or Casas de Campo do Pomar.
• Hotel Quinta Do Furao is an iconic hotel famous for its location at the top of a cliff, stunning panoramic views of the northeastern coastline and rugged cliffs, and of a one-of-a-kind experience.

Sao Vicente

São Vicente is a remote town of less than 6000 inhabitants located on the north coast of the island, about 45 45-minute drive from Funchal. It is a very beautiful town nestled between the mountains between Santana and Porto Moniz, and is best known for its natural pools and lava caves.

I very much wanted to stay in São Vicente for a few days, but unfortunately, the logistics of getting there were a bit complicated for me. So I didn’t go. I’m gutted and will definitely make it next time.

What my story proves, however, is that it is a tricky place to get to if you are a solo traveller on a budget and without a car. Not impossible, just a little difficult.

There are a couple of buses you can take from Funchal – Rodoeste bus nb 6 from Funchal to Boaventura and 39 bus to Porto Moniz – both busses stop in Sao Vicente. The journey is quite long but offers spectacular views, so I would not recommend it as a day trip.

But if you have all the time in the world, and what’s more, you are going to be driving then by no means please visit this amazing place! You’ll be very close to the black beach of Seixal (stunning!), and you will be able to explore all the caves and lava pools, hike, and spend time in nature. Sounds absolutely incredible!

If just going to Sao Vicente is too much for you, you can do a tour that also includes Seixal, Fanal, and Porto Moniz.

Best for:

Outdoorsy travellers wanting to spend time in nature and far from the crowds. Car is very much desired, not exactly a budget-friendly location but definitely worth it.

Things to do in Sao Vicente:

• Sao Vicente Caves and Volcanism Center
• Try Poncha in ”Taberna São Vicente”
• Check out São Vicente’s bathing complex
• Learn how to surf at Madeira Surf Center

Adventures and trips near Sao Vicente:

• Walk the Old Road from São Vicente to Seixal. 
• Ribeira da Janela beach
• Fanal Forest
• PR16 Levada Fajã do Rodrigues
• Jardim de plantas indígenas.
• Levada do Norte
• Porto Moniz and its natural pools

Where to stay:

You won’t find an array of accommodations available in São Vicente, but those that are there offer incredible views, gardens, and a true back-to-nature vibe.

• Casa Da Piedade, situated in a restored 18th-century home, also offers a swimming pool.
• Holidays Madeira would be a good option if you are travelling on a budget, yet it’s a hotel, so no option to make your own meals.
• Solar da Bica is a bit pricier but offers a heated pool, sauna, delicious meals, and a common room with board games. And spectacular views!

Porto Moniz

Porto Moniz is best known for its incredible volcanic natural swimming pools, formed by coastal lava rocks.

These natural pools were created by the sea in the lava formations. Nowadays, of course, there are additional platforms, stairs, and lounging areas that have been added, but there are still some parts that are 100% untouched. It is a great experience. The water is the perfect temperature, and the area is breathtaking.

But Porto Moniz is much more than pools and relaxation. This area of Madeira is packed with great hikes and natural wonders to explore, especially if you have a car. From Porto Moniz, you can visit the black sand beach of Seixal, Achadas de Cruz, the scenic and steep cable car, which will take you down to one of the most unique places in Madeira, or the Ribeira da Janela beach.

I, however, decided not to stay in Porto Moniz for a night because it was just too remote and hard to get to by public transport. I think it is a great day trip and very much worth visiting. I took a jeep day trip from Funchal, which included the Fanal forests, Seixal, and many other scenic areas of this part of Madeira, and it only ensured me that I made a great decision simply because of the lack of public transport links.

Best for:

Travellers looking for some relaxation by the pools, but also the opportunity to do hikes and explore the wonders of this area. A car is preferred if you want to cover most of the area. You can also get to Porto Moniz by bus from Funchal, but it’s not very frequent and it’s a bit of a journey.

Things to do in Porto Moniz:

• Natural Lava Pools
• Porto Moniz Aquarium
• Miradouro da Santinha –  a viewpoint offering great views of the town
• João Baptista Fort
• Snorkelling or diving

Things to do in the area:

• Ribeira da Janela
• Seixal
• Achadas de Cruz
• Fanal Forest
• Levada 25 Fontes hike 

Where to stay:

There are quite a few good accommodation options in Porto Moniz for families as well as for couples. Not so much for solo budget travellers, unfortunately. 

• If you are a couple or a small family, you could rent one of those cute, well-equipped studios like Ninho Gaivota or The Jolie Apartments.
• If you are travelling as a bigger family, then consider renting an apartment or a house like Casa da Grota, which features a patio, BBQ facilities, wifi, and private parking. 
• For a solo traveller, the best option would be a room with a view in Pérola Views Inn or Casa do Ribeirinho.

Ponta Do Pargo

You can visit Ponta do Pargo if you are in Porto Moniz or Calheta, but this area is also worth considering as a starting point on its own. Ponta do Pargo is still one of the off-the-beaten-path areas to stay in Madeira, although it offers spectacular sunset views and wonderful walks.

Ponta do Pargo is the westernmost point of Madeira. Here you will not only experience one of the most beautiful sunsets of your life, but also feel like you have arrived at the end of the world. Many visitors come here to admire the beautifully located lighthouse and the view of the surrounding area, stay a few hours at most, and then continue their journey.

It is definitely worth staying in Ponta do Pargo for a little longer, but again, a car would be essential if you want to make it a base and see the rest of the island from here.

In this area, you will find some spectacular hikes that will reward you with some of the best views in Madeira. And with Garganta Funda, Achada do Cruz, and Porto Moniz not too far away, you can fill your time with many trips and adventures.

The town itself is pretty laid back, and there’s not much going on, but there are some nice restaurants and places of interest. So if you are looking for a more secluded area with access to exciting hikes and activities, as well as a few restaurants and a bar or two, this could be the area in Madeira you are looking for.

Best for:

Sunset lovers looking for remote and peaceful areas and hikes with some of the best views. Definitely, a car is needed if you are looking to make the most of the area and travel to see Garganta Funda or take a day trip to Porto Moniz.

Things to do in Ponta do Pargo:

• Farol da Ponta do Pargo
• O Farol Restaurant
• Church of São Pedro

Experiences and trips nearby:

• Porto Moniz
• Ribeira da Janela
• Levada Ponta Do Pargo
• Miradouro Garganta Funda
• Achadas da Cruz
• Vereda do Pesqueiro do Calhau
• Miradouro Pico Vermelho

Where to stay:

You will only find a handful of accommodation options in Ponta do Pargo, but of great quality.

• A studio at Herdade do Pedregal is a good value for money for a couple, and a Nordic-style chalet at Madeira Sunset Cottage is just spectacular. Both options would be a great choice for couples. 
• For families or groups of friends, this Vilas Felicidade Rocha by An Island Apart villa is a great choice as it’s conveniently located and offers a swimming pool as well as a big garden, and a very well-equipped kitchen. 

Paul Do Mar / Prazeres / Jardim Do Mar

I have grouped these three villages in one chapter, mainly because of their close location to each other and similar size. They are located near Calheta and offer a remote, different kind of stay in Madeira. I suggest you choose one of them, as the other two can be easily explored on foot or by car. All 3 are often overlooked as places to stay in Madeira, but are definitely worth considering.

Paul do Mar has perfect waves for surfing, considered by some to be the best in Europe, so the village attracts many surfers. It is an old fishing village surrounded by towering cliffs and lulled to sleep by the sound of the waves. The village of Paul do Mar is located at the bottom of the cliff. If you hike up, you will reach the second of the magical villages – Prazerez.

Prazeres is a small community located on a huge terrace from where you can enjoy a breathtaking view of the sea and the surrounding area. In this small, charming village, you will find a handful of accommodations, some restaurants, and very picturesque walking paths. There is also a small zoo-like farm with a variety of animals such as pigs, goats, turkeys, chickens, and donkeys

Finally, there is Jardim do Mar – the most picturesque village in Madeira and the meeting point for surfers from all over the world. Jardim do Mar is a small, charming village with narrow cobblestone streets, colourful flowers adorning the houses, and a beautiful waterfront promenade. It’s the most beautiful of all the 3 villages I mentioned. In the village, you can enjoy surfing and dining in excellent restaurants, but also hiking the nearby levadas.

Best for:

Hikers and surfers looking for a rural area to stay in Madeira. If you make any of those villages your permanent base car would definitely be needed to see the rest of the island. 

Nearby levadas and hikes:

• PR20 Vereda do Jardim do Mar
• Levada Prazeres – Raposeira
• PR6 Levada das 25 Fontes / Levada do Risco
• PR19 Caminho Real do Paul do Mar

It is a bit tricky to find accommodation in this area, but I found this gem in Jardim do Mar, which would be great for a solo traveller or a couple.

• Cecília’s House offers great value for money and a super-friendly host. It is also perfectly located! 
• Casa Vida Alegre in Prazeres offers nice and cosy rooms with a balcony for a decent price, with breakfast included. 

Calheta

Calheta is a very popular seaside resort, renowned for its golden sandy beach, an abundance of hotels and restaurants, as well as beautiful surroundings and many great hikes and walks nearby.

Calheta is one of the few areas in Madeira that has a sandy beach. It is a man-made beach that is great for swimming, thanks to the walls built to protect it from high waves and the current. If you are looking for a place where you can enjoy the sea and the sun, Calheta is the place for you. Calheta enjoys (together with Ponta do Sol) the sunniest and warmest climate in Madeira and has an excellent tourist infrastructure.

Besides lazing on the beach, there are plenty of fun things to do in Calheta. You can visit the nearby villages of Jardim do Mar or Paul do Mar, you can surf, dive or try paragliding. The Marina is a meeting and socializing point for locals and tourists, filled with restaurants and bars. Those looking for some cultural experience can visit the Mudas Contemporary Art Museum and if you want to go hiking, you will find beautiful trails near Calheta, such as Levada do Risco, 25 Fontes or Paul da Serra.

Best for:

Tourists who want to spend most of their time at a beach resort and in the meantime have the possibility to do some day trips and hikes nearby. Calheta is also an ideal place to stay in Madeira for families. If you want to use public transportation and travel around Madeira a lot, Calheta is not the best choice for you.

Things to do in Calheta:

• Sandy beach and calm sea
• Casa das Mudas art center
• Sugar Cane Mill and Museum
• Typical resort activities like eating drinking and shopping
• Surfing / Diving / Paragliding

Experiences nearby:

• Levada 25 Fontes e Risco hike
• PR19 Prazerez to Paul do Mar
• Paul da Serra
• Jardim do Mar, Prazerez and Paul do Mar villages

Where to stay:

Given that Calheta is very much a beach resort, you won’t find many budget options here, but there are plenty of excellent mid-range and luxury accommodation options on offer.

• If you are a budget traveller and determined to stay in Calheta, The Rum Inn is located right in the centre of Calheta, not far from the beach, and boasts very comfortable rooms and excellent hospitality.  
• Renting an apartment with a view would be an excellent choice for a couple or family, and Calheta Lofts probably has everything you might need for a great stay.
• If you are looking for a great and comfortable hotel with a pool, The Estalagem Engenho Velho has it all – beautiful modern rooms, an infinity pool, and delicious food. Atrio is another hotel worth considering. It has a gorgeous garden, heated swimming pool, spa, and boats with incredible views. 
• Finally, if you are looking for a true all-inclusive experience with pools, spas, gyms, food, and all that all-inclusive jazz, then look no further than Savoy Calheta Beach.

Ponta Do Sol

Just like Calheta, Ponta do Sol is located in the sunniest part of Madeira. Here you will experience the most sun throughout the year, so Ponta do Sol is a great choice for those seeking relaxation and relaxed vibes. However, what makes Ponta do Sol different from Calheta is that the atmosphere here is a bit more residential and relaxed.

Be aware, though, that the beach in Ponta do Sol is pebbled, and it feels much more rustic compared to the tourist-friendly golden beach of Calheta. The beachfront is lined with colourful buildings that have retained their traditional character, and the old town centre of Ponta do Sol is very charming to walk around. Here you will find some excellent restaurants and a few interesting sights.

The town also strives to accommodate digital nomads. In fact, in Pont do Sol you will find a digital nomad village with plenty of coliving accommodation to rent, free working space and, of course, the chance to meet other like-minded people.

Best for:

Travellers who need sun and sea in their lives, but are looking for a more refined kind of resort. Those who do not mind pebbly beaches and like water sports and hiking. Digital nomads looking for a quiet and sunny place to work, enjoy their free time in nature, and take trips around Madeira. A car is recommended, but there is a bus that goes from Ponta do Sol to Ribeira Brava, Funchal, and Ponta do Pargo – so it’s not essential.

If you want to stay in this part of Madeira but don’t feel like a typical resort feel – Ponta do Sol will be a great choice.

Things to do in Ponta do Sol:

• Lugar de Baixo Palace
• The church of Nossa Senhora da Luz
• The Subtropical Floriculture Center
• Parque Infante D. Henrique
• Cultural Center John Dos Passos
• Palace of Zinos
• Ponta do Sol Bridge

Experiences nearby:

• Paul do Serra
• Ribeira Brava
• Cascada dos Anjos
• Madalena do Mar & Rota Banana
• PR7 Levada do Moinho

Where to stay:

• If you are a digital nomad and want to stay for a little longer, you can inquire about the accommodation with Digital Nomads Madeira or Outsite Ponta do Sol.
• You can, of course, opt for a Casa do Sol, a two-bedroom apartment with stunning views and everything you might need for a comfortable stay. 
• 1905 Zino’s Palace is the most popular place to stay in Ponta do Sol, but it is definitely on the more luxurious side. 

Ribeira Brava

For those who are looking for a beach resort with a local vibe, slightly isolated yet still with some semi-decent transport links and good access to hikes and nature, Ribeira Brava is a good area to stay in Madeira.

I wouldn’t recommend this place as a permanent stay, but if you are looking to change things around and stay in a beautiful setting while avoiding the typical vacationers from Calheta or Ponta do Sol, it’s an ideal place.

I actually seriously considered staying here for a few days, but in the end, I opted for a day trip, mostly because I didn’t find any affordable accommodation that would be centrally located. This has not changed since, so if you are a budget solo traveler, Ribeira Brava might not be the best area to stay in Madeira.

Yet, you will find some surprising things to do and places to discover in this area, like the hidden gem of Calhau da Lapa (where you can also stay in a cave hotel on a secluded beach), an excellent farmer’s market, and a nearby hike that leads up to Cabo Girao.

Best for:

Those looking for some chill time in a small seaside town with some access to hikes and activities. If you are looking for excellent transport links, think twice, but if you don’t mind waiting for a bit for a bus and navigating around bus changes if you want to go anywhere further than Funchal or Ponta do Sol, then go for it! Mostly, however, it’s an area in Madeira more suitable for travelers with a car.

Things to do in Ribeira Brava:

• Walk the stair to the hidden beach of Calhau da Lapa
• Ribeira Brava beach complex if you don’t like pebble beach
• Ethnographic Museum of Madeira
• Fort of São Bento
• Farmer’s Market

Best trips near Ribeira Brava:

• Ponta do Sol
• Camara Do Lobos
• Funchal
• Levada Nova and Levada do Norte hiking trails
• The real path of Encumeada PR2

Where to stay:

• Hostel Casal São João is a well-rated hostel in Ribeira Brava if you are looking for budget accommodation. But keep in mind that it is not centrally located. Casa do Pico offers very well-priced rooms for budget travellers.
• You will not find luxury hotels in Ribeira Brava, which, for me, adds to its charm. Tropical House is a lovely two-bedroom house offering a sun terrace, lush garden, and stunning views.
• Guesthouse -The View offers nice, clean rooms, a swimming pool, and pretty awesome views too.

Camara Do Lobos

Although Camara de Lobos is a popular day trip from Funchal, it could also be a good area to stay in Madeira if you want to stay relatively close to the capital yet in a more traditional and laid-back town.

Camara de Lobos is a cute, colourful fishing town located only 9 km west of Funchal and is definitely worth staying in for longer for its laid-back atmosphere, scenic views, and tons of photo opportunities. Although there are not heaps of things to do, Camara de Lobos has a lot of charm and could make for a great base if you just want to relax after exploring the island during the day.

Camara de Lobos bay is a picturesque place overlooking some of the highest cliffs in Europe, where brightly coloured boats rest on the beach and numerous restaurants offer the freshest fish. In fact, this bay inspired Winston Churchill, who was visiting in January 1950, and he spent his time immortalizing it in his paintings.

The great thing about staying in Camara de Lobos is that you can easily get to Funchal (even by walking), as well as some of the most famous sites like Cabo Girao.

Best for:

Travellers who want to stay in a traditional fishing village with laid laid-back atmosphere and good restaurants. Camara de Lobos is one of the best areas to stay in Madeira if you have a car. There are a few buses running through the town, but if you are planning to explore a lot, a car will be essential.

Things to do in Camara de Lobos:

• Relax at the harbour
• Photograph street art
• Eat and drink (fresh fish and Poncha)
• Viewpoints of Miradouro Winston Churchill or Jardim do Ilheu
• Praia de Vigaro for swimming

Experiences nearby:

• Levada do Norte
• Famous skywalk of Cabo Girao
• Faja do Padres Cablecar
• Curral das Freiras (Nuns Valley) and Jardim da Serra Viewpoint
• Miradouro da Torre
• Funchal

Where to stay:

• Pestana Churchill Bay is located right at the bay and boasts really nice rooms and a swimming pool with a view.
• This apartment at Villas Quinta da Lapa by Ana Lodges is slightly higher up and requires a car but the value for money is incredible. 
• Attic Bay is an apartment located at Camara Bay and is super cute and equipped with everything you might need. This one is gold!

Final Thoughts: Choosing the Best Place to Stay in Madeira

Madeira is one of those destinations where every town offers something a little different, and the “best” place to stay really depends on the kind of trip you want.

If you want convenience, buses, good food, and a bit of everything, Funchal makes everything easy. For quieter days, coastal scenery and a beach at your doorstep, Machico or Calheta offer a completely different feel. If hiking is your priority, Santana and the northern valleys will keep you busy for days. And if you’re travelling with family, the Lido area or Caniço balances comfort with plenty to do.

The island is compact enough to explore widely, yet varied enough that each area has its own charm. Once you choose a base that suits your travel style, the rest of your trip falls into place.

Wherever you decide to stay, Madeira is truly spectacular. Now that I’m back, I miss it greatly! It was the first country I visited during my adult travel gap year, and it set the bar really high. I miss Madeira.

Please say hello from me to the lush forests, stunning hikes, and perfect climate of Madeira!