Accommodation in Madeira: Where to stay if you want to explore the whole island?
Martin & Tina•
20. 04. 2026
Travel
You are planning a trip to the island of eternal spring and you look at the map with one question: Where the hell do we lay our heads so we don’t spend half our vacation in the car? Madeira may look like a tiny speck in the Atlantic on the map, but appearances are deceiving. The deep valleys, steep hills and winding roads can make the crossings very long.
Choosing the right accommodation in Madeira is therefore absolutely crucial. As a general rule, the capital city of Funchal is the best and most versatile choice for most travellers. Let’s take a look at why, and when it makes sense to head north.
Funchal: The perfect base with everything
Staying in Funchal for the duration of your holiday is not a bad idea at all, quite the contrary. Thanks to the great motorway (VR1) that encircles the island, you’re in the countryside and at the start of many levadas in a matter of tens of minutes. Other reasons to stay in the island’s capital are:
Huge choice: from cheap guesthouses to luxury resorts with infinity pools.
Great facilities: there are the best restaurants on the island, plenty of supermarkets (Pingo Doce, Continente) and evening entertainment options.
Sunny microclimate: The South is simply warmer and sunnier. Even if it rains in the north, you’re likely to be sunbathing in Funchal.
Beautiful and spacious apartments right in the centre of Funchal, offering great facilities including a terrace. The accommodation is close to the cable car to Monte, the only drawback is the lack of parking. However, this can be solved through the nearby pay and display car park – Almirante Reis Car Park.
North of the island: A strategic move for early birds
But if you’re looking for absolute peace and quiet, or simply want to save time and gas while exploring the more remote corners, we recommend splitting your stay. Just book 1-2 nights accommodation in the northwest. You’ll gain a huge strategic advantage. You’ll be minutes away from popular spots like the mystical Fanal forest, the natural lava pools of Porto Moniz or the black beach of Seixal. So you can get there early in the morning, before the crowds of tourists arrive, who have a hard time crossing from Funchal.
Absolutely adorable villa with ocean views, private small garden and terrace. You can park your car right in front of the house. Ideal point for exploring the whole western part of the island.
Aqua Natura Bay is a 4-star hotel in Porto Moniz, in the north of Madeira, offering indoor and outdoor swimming pools, a Turkish bath, a sauna and a hot tub. It serves as a great base for exploring the northern part of the island.
Plan smart with our guide
Choosing great accommodation is half the battle. The other is to devise a program so that you don’t cross the island back and forth and exhaust yourself with unnecessary driving.
We at Retkee have created the Ultimate Madeira Itinerary Guide just for this purpose. We’ve taken all of our experiences, combined them with Google Maps, and put together itineraries so that they logically build on each other – whether you decide to stay in Funchal the whole time or split your stay. In the guide, you’ll find places to go, parking and tips on where to eat great, cheap food along the way.
