Is There a Tourist Tax in Funchal Madeira?
Is there a tourist tax in Funchal, Madeira? Find out how much it costs, who pays it, and what it means for your trip, complete 2026 guide.
Published on April 29, 2026
If you are planning a trip to Madeira and have been doing your research, you may have come across mentions of a tourist tax in Funchal. It is a fair question to ask before you travel, and the answer is: yes, Funchal does have one. But it is simple, capped, and easy to understand. This guide walks you through everything you need to know, what it is, how much it costs, who pays it, and what it means for your visit to the island.
What Is the Funchal Municipal Tourist Tax (MTT)?
The Funchal Municipal Tourist Tax, officially known as the Taxa Turística Municipal (MTT), came into effect on 1 October 2024. It was introduced by the Funchal Municipality with a clear purpose: to support the long-term sustainability of Funchal as a tourist destination. The revenue generated is directed towards preserving, enhancing, and maintaining the city's infrastructure, public services, and facilities, the very things that make Funchal such a welcoming place to visit.
This type of tax is not unique to Madeira. Cities across Europe, from Lisbon to Amsterdam and Barcelona, have introduced similar measures in recent years. Funchal's version is among the more modest ones, and its structure is deliberately straightforward.
How Much Is the Tourist Tax in Funchal?
The tax is set at €2 per person, per night. It applies to a maximum of 7 consecutive nights, meaning the maximum any individual guest can be charged in a single stay is €14.
To put that into perspective: if you are travelling as a couple for 10 nights, each of you pays €2 per night for the first 7 nights only. After that, no further tax is charged for the remainder of your stay. A family of four with two adults and two children aged 12 or under would pay €2 per adult per night, again capped at 7 nights.
Your accommodation provider charges the tax, whether that is a hotel, aparthotel, guesthouse, or short-term rental, and must be collected before or during your stay.
Who Has to Pay the Funchal Tourist Tax?
The tax applies to anyone staying in Funchal who is over the age of 12 and does not live in Madeira. In practice, this means virtually all international and mainland Portuguese tourists staying within the municipality of Funchal are subject to the charge.
Who Is Exempt?
Three categories of guests are fully exempt from the Municipal Tourist Tax:
- Children aged 12 or under: the tax only applies from age 13 upwards.
- Guests with a recognised disability of 60% or more: proof of disability status may be required at check-in.
- Residents of the Autonomous Region of Madeira: locals are not subject to the tax, as it targets tourism specifically.
Where and When Is the Tax Collected?
The Municipal Tourist Tax is collected by your accommodation. It is not something you pay at the airport, at a car rental counter, or through any third-party booking platform. Your hotel or rental host is responsible for collecting it from you either at check-in or during your stay, and for remitting it to the municipality.
If you are staying in Funchal but visiting other parts of the island, like the dramatic north coast, the volcanic landscapes of the central mountains, or the charming village of Câmara de Lobos, the tax is only linked to your accommodation within the Funchal municipality. It does not affect activities or services you purchase elsewhere on the island.
Does the Tourist Tax Apply Across All of Madeira?
This is an important distinction. The MTT is a Funchal-specific tax, meaning it applies to accommodation within the municipality of Funchal only. Other municipalities in Madeira, such as Santa Cruz, Machico, or Ribeira Brava, are not covered by the same tax unless they have introduced their own equivalent measures.
If you are basing yourself in Funchal, which is where the majority of visitors stay, the tax will apply. If your accommodation is in a different municipality, you should check with your host whether a similar local tax is in effect.
Does the Tourist Tax Affect Car Rentals in Madeira?
No. The Municipal Tourist Tax is strictly an accommodation charge. It has absolutely no bearing on car rental bookings, pricing, or transactions. Renting a vehicle in Madeira remains independent of this tax.
Exploring Madeira by car is one of the most rewarding ways to experience the island. The winding levada roads, clifftop viewpoints, and hidden villages scattered across the island are best reached with the freedom of your own vehicle. If you are planning to get behind the wheel, 7M Rent a Car offers a modern, well-maintained fleet with unlimited mileage, airport delivery, and transparent pricing, so there are no surprises when it comes to what you pay. Before you set off, it is also worth reading our guide on driving safely in Madeira, which covers the essential road rules every visitor should know.
Planning Your Budget for Funchal: A Quick Summary
For most travellers, the tourist tax will be a minor line item in their overall trip budget. Here is a quick reference to help you plan:
| Scenario | Tax Applied | Total MTT Cost |
|---|---|---|
| 1 adult, 5 nights | €2 × 5 nights | €10 |
| 1 adult, 10 nights | €2 × 7 nights (cap) | €14 |
| 2 adults, 7 nights | €2 × 7 × 2 people | €28 |
| 2 adults + 2 children (≤12), 7 nights | €2 × 7 × 2 adults only | €28 |
| Madeira resident, any duration | Exempt | €0 |
For more information directly from the municipality, you can visit funchal.pt or call 291 211 000.
Is the Tax Worth It? The Bigger Picture
Beyond the numbers, it is worth considering what the tax is for. Funchal is a city that invests heavily in keeping its streets beautiful, its public spaces welcoming, and its infrastructure capable of handling millions of visitors each year. The Monte Palace gardens, the iconic cable car, and the mosaic pavements of the old town, these are maintained and funded in part through local public resources. A contribution of up to €14 per stay goes directly back into the city that is hosting you.
Visitors who come to Madeira and choose to explore it independently, by renting a car and discovering the island at their own pace, are often the ones who gain the most from that investment. The roads, viewpoints, and coastal paths that make Madeira so extraordinary are a shared resource worth protecting.
If you are curious about what makes Madeira a destination worth every cent of your trip budget, take a look at our article on why travellers consistently choose 7M Rent a Car when they arrive on the island, or explore our full vehicle fleet to find the right car for your journey.
Frequently Asked Questions
Is there a tourist tax in Funchal, Madeira?
Yes. The Municipal Tourist Tax (MTT) came into effect on 1 October 2024. It applies to visitors staying in Funchal who are over 12 years old and do not reside in the Autonomous Region of Madeira. The charge is €2 per person, per night, capped at a maximum of 7 consecutive nights, so the highest amount any individual can pay per stay is €14.
Who is exempt from the Funchal Municipal Tourist Tax?
Three groups are fully exempt: children aged 12 or under, guests with a recognised disability of 60% or more, and residents of the Autonomous Region of Madeira.
Does the tourist tax in Funchal affect car rentals?
No. The Municipal Tourist Tax is an accommodation-based charge collected by hotels, guesthouses, and other lodging providers. It has no impact on car rental bookings or pricing in Madeira.