Portuguese Island Life: Living in Madeira vs the Azores

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Last updated on June 26, 2024 | Est. Reading Time: 10 minutes

Thinking about a little slice of island paradise? Forget Hawaii or The Caribbean. If you move to Portugal, you have your pick of the Azores or Madeira.

Whether you’re considering a move, planning an extended stay, or simply curious about life in the Azores and Madeira, this article will help you understand the unique characteristics of each destination.

Join us as we explore living in the Azores and Madeira, two island paradises that offer a glimpse into a different way of life amidst the beauty of the Atlantic.

Geography & Location

Azores

A scenic view of lush green farmland on Pico, Azores, divided by hedgerows on a sloping landscape leading to a coastline with deep blue ocean waters. A few scattered houses and farm buildings are nestled amidst the patchwork of fields, with hills in the background and a partly cloudy sky overhead.

The Azores archipelago comprises nine islands located in the North Atlantic Ocean, about 1,500 kilometres west of mainland Portugal.

The islands are divided into three groups: the Eastern Group (São Miguel and Santa Maria), the Central Group (Terceira, Graciosa, São Jorge, Pico, and Faial), and the Western Group (Flores and Corvo). Each island has its own airport, with the largest international airport on São Miguel in Ponta Delgada. Terceira’s airport is a close second.

Regular flights connect the Azores to mainland Portugal, other European countries, and North America. However, the majority of international flights leave from São Miguel. If you live on one of the other islands, you will probably need to come to São Miguel or mainland Portugal in order to get a connecting flight.

As well as Portugal and mainland Europe, there are direct flights between New York, Boston, Montreal, and Toronto.

The Azores are in the UTC-1 time zone, one hour behind mainland Portugal, which can be an important consideration for travellers and remote workers.

Madeira

Panoramic view of a hilly landscape in Madeira, Portugal featuring terraced farming and scattered houses. The scene is lush and green, extending towards a distant horizon under a partly cloudy sky. A winding road traverses the lower part of the hills.

Madeira, situated 435 miles off the African coast and 250 miles north of the Canary Islands, is easily accessible via Cristiano Ronaldo International Airport, about 30 minutes from Funchal, the capital city.

As well as flights to mainland Portugal and Europe, Madeira has flights to some North American destinations including New York, Boston, and Toronto.

Madeira shares the same time zone as mainland Portugal (UTC). Ferry connections between Madeira and the Canary Islands are occasionally available, offering an alternative travel option for those exploring the Atlantic islands.

Previously, there was a ferry between Portimão and Madeira. However, this no longer seems to be running. Madeira has a reasonably large airport for the size of the island, but flights are often cancelled (sometimes mid-flight) due to precarious landing conditions.

Size, Atmosphere, And Lifestyle

The Azores

The Azores islands vary significantly in size and character. São Miguel, the largest at 747 square kilometres, offers a mix of urban and rural lifestyles.

  • The Eastern Group, including São Miguel, is known for its historical significance.
  • The Central Group boasts dramatic volcanic landscapes.
  • The Western Group, comprising Flores and Corvo, offers a remote, untouched beauty.

While São Miguel is the largest in terms of size and population, Pico and Faial are just a 30-minute ferry ride from each other. If you live on either island, it’s easy to get over to the other so you almost have the best of two islands. São Jorge is also reasonably accessible from Pico too.

All islands share a laid-back, slower pace of life compared to mainland Europe — even more so than continental Portugal.

Madeira

Madeira, comparable in size to São Miguel at 741 square kilometres, provides a more developed tourist infrastructure, particularly around Funchal. The island is home to the expansive Madeira Natural Park, covering a significant portion of the island and offering extensive hiking and nature exploration opportunities.

Madeira tends to have a more international feel, especially in Funchal, with a growing digital nomad and expat community. There are also a large number of digital nomads around Ponta do Sol.

The other big difference is that everything is on Madeira, whereas in the Azores it is spread out across several islands.

Climate And Environment

The Azores and Madeira are almost 1,000 km from each other so, unsurprisingly, there are differences in weather.

Azores

The Azores enjoy a mild maritime climate, with temperatures generally ranging from the mid-50s to mid-70s Fahrenheit (13-23°C) year-round.

Due to their volcanic topography, some islands experience microclimates, leading to varied weather conditions within short distances. Basically, you never know what the weather will be like on any given day.

On the plus side, the archipelago is characterised by lush, green landscapes, volcanic features, hot springs, and diverse flora and fauna.

Madeira

Madeira, known as the “island of eternal spring,” has a slightly warmer and more stable climate. Summer temperatures average around 77°F (25°C), while winter temperatures rarely drop below 55°F (13°C).

Madeira experiences a rainy season typically from November to March, which can affect outdoor activities. The island is famous for its dramatic cliffs, levada walking trails, and laurel forests.

Cost Of Living And Housing

Azores

The cost of living in the Azores is generally lower than in Madeira and significantly lower than in many Western European countries. Groceries and local products are reasonably priced (for an island) on São Miguel as there is a large Continente supermarket. However, not all of the islands have large supermarkets and prices can be higher elsewhere.

Property is typically more affordable in the Azores than it is in Madeira, but this can vary across the different islands. Finding trademen can sometimes be difficult in the Azores and because of this, any work or renovation projects may take longer than anticipated.

Search properties for sale in the Azores

Madeira

Madeira tends to be slightly more expensive, particularly in Funchal and other tourist areas. There are lots of supermarket options (such as Continente and Pingo Doce) around Funchal.

Both regions face challenges with long-term rentals due to the growing short-term rental market catering to tourists. Madeira has a wider range of luxury properties for sale, so if you’re looking for a villa with a swimming pool, you’re more likely to find it here.

Search properties for sale in Madeira

Madeira is also home to more Michelin star options. If you’re looking for a more luxurious lifestyle, you’re more likely to find it in Madeira.

Both islands have to import quite a lot – everything from furniture to cars – however, getting deliveries isn’t always easy. Many European companies (including Portuguese companies) struggle to ship there and getting letters, packages, and Amazon orders can take a while.

Economy And Job Market

Azores

The Azorean economy is primarily based on agriculture, fishing, and increasingly, tourism. Each island has its specialties: São Miguel is known for its dairy and tea production, Pico for its wines, and São Jorge for its cheese. Job opportunities for expats are mainly in the tourism sector or teaching English.

However, if you have a remote job you could easily live here.

Madeira

Madeira’s economy is more tourism-oriented, with a growing tech and digital nomad scene. The island is also known for its Madeira wine production and is actively promoting itself as a destination for remote workers and digital nomads.

Both Madeira and the Azores have tax incentives to attract businesses and startups to the region. There are a growing number of coworking spaces and business development centres in both places.

Taxes

Both Madeira and the Azores have tax incentives to encourage individuals and businesses to move there. For example, the standard rate of VAT is 23% in mainland Portugal but 22% in the Autonomous Region of Madeira and 16% in the Autonomous Region of the Azores.

Personal income taxes are also lower. As most people know, Portuguese tax rates stretch from around 13% on mainland Portugal to 48%. This is a progressive tax regime, so if you earn more than €81,199, only the income above €81,199 will be taxed at 48% (as of 2024, on mainland Portugal).

However, if you live on the Azores, that same tax band only goes as far as 33.6%. Both Madeira and Azores both potentially stand to benefit from the NHR 2.0 tax regime.

Education

Azores

Both the Azores and Madeira offer public and private education options. The University of the Azores has campuses on São Miguel, Terceira, and Faial, offering a range of undergraduate and postgraduate programs.

Madeira

Madeira has the University of Madeira in Funchal. It also has both public and private primary and secondary schools. Unlike the Azores, it also has a few international schools such as the International School of Madeira and the International Sharing School of Madeira.

Healthcare

Azores

Each of the Azores islands has its health centre, however facilities and services can be limited outside of the main islands. The biggest hospitals are on São Miguel, but also on Terceira, and Faial. São Miguel has one public hospital in Ponta Delgada and a newer private hospital in Lagoa.

Many of the smaller islands rely on doctors, dentists, and specialists who travel around the islands on a rotation basis. Residents often have to travel to another island like São Miguel or the mainland for specialised treatments.

Madeira

Madeira has a well-developed healthcare system, with the main public hospital, Dr. Nélio Mendonça Hospital, located in Funchal, as well as private clinics and hospitals.

Transportation And Infrastructure

Azores

Inter-island travel in the Azores is possible by plane or ferry, depending on the season and weather conditions. Within each island, a car is recommended for exploring, although public buses are available in larger towns.

Madeira

Madeira has a more developed road network, but its steep, winding roads can be challenging. Public transportation is more extensive in Madeira, especially in and around Funchal. However, a car is still recommended.

Culture, Community, And Social Life

Azores

The Azores maintain a strong connection to traditional Portuguese culture, with each island having its own unique festivals and customs. Notable events include the Holy Ghost Festivals and São João Festivities. The community is generally welcoming to expats, especially in São Miguel where it’s often easier to connect with locals.

Madeira

Madeira has a more international feel, particularly in Funchal, with a larger expat community and more tourist-oriented events and activities. It is also heavily influenced by the many cruise ships that dock here.

Key cultural events include the Madeira Flower Festival, Carnival, and the Wine Festival.

Food And Dining

Azorean cuisine is known for its fresh seafood, locally raised beef, and dairy products. São Miguel is famous for its cheese, milk, and locally caught tuna. You’ll find a mixture of Azorean and Portuguese dishes served at the restaurants here.

Madeira offers a mix of traditional Portuguese and international cuisine. The island is known for its Madeira wine, poncha (a local alcoholic drink), and fresh local produce, particularly bananas.

Safety

Both the Azores and Madeira are considered very safe destinations with low crime rates. The main safety concerns in both regions are related to natural factors such as steep cliffs, strong ocean currents, and occasionally rough seas.

Conclusion

In conclusion, while both the Azores and Madeira offer beautiful natural settings and relaxed lifestyles, they each have their unique characteristics. The Azores, with its nine diverse islands, offers a more traditional, less touristy experience, while Madeira provides a more developed infrastructure and a larger expat community.

The choice between them would depend on personal preferences for climate, landscape, level of development, and desired lifestyle.