When I first planned a trip to Madeira, I had no idea where to stay. The island looked so beautiful everywhere – from the green mountains to the little seaside towns – that I didn’t want to make the wrong choice.
After exploring different areas, I realized that each part of Madeira has its own special feel. Some places are perfect if you love being close to shops and restaurants, while others are quiet and made for slow mornings with ocean views.
In this post, I’ll share what I’ve learned so you can find the best spot that matches the kind of trip you’re dreaming of.
1. Funchal, best place to stay in Madeira without a car
Funchal is the lively capital of Madeira and the most popular place to stay on the island. It’s a great choice if you don’t plan on renting a car, because buses, taxis, and tours all start here, making it very easy to get around.
The city has the widest range of places to stay, from simple guesthouses to luxury hotels and big seaside resorts. You’ll also find plenty of restaurants, coffee shops, and bars within walking distance, so there’s always something to do.
Spending time in Funchal itself is a treat. You can ride the cable car up to Monte for amazing views, wander through the botanical and tropical gardens, and even try the famous wicker toboggan ride back down.
The old town is perfect for a stroll, especially Rua de Santa Maria with its painted doors and cozy spots to eat. Wine lovers can also enjoy a tasting at one of the traditional wine lodges.
Funchal is busier and more touristy than other areas, but it’s the most convenient base if you want comfort, variety, and easy access to the rest of the island.
Best Hotels in Funchal
- (€€€) Barceló Funchal Oldtown
- (€€) Three House Hotel
- (€) Funchal Village Studios
2. São Vicente, best place to stay in Madeira for hiking and nature lovers
São Vicente is a charming village, surrounded by green mountains, deep valleys, and the wild Atlantic Ocean. It feels quieter and more authentic than the busier south, making it a wonderful choice if you want to enjoy nature and local life at a slower pace.
The town itself is small, with just a few cafés, restaurants, and shops, but the scenery more than makes up for it. Pebble beaches, dramatic cliffs, and a chapel perched on a hilltop create postcard-perfect views.
This part of Madeira is also fantastic for hiking. São Vicente sits close to some of the island’s best levada trails and forest walks, including paths through the UNESCO-listed Laurissilva forest.
If you’re up for exploring by car, you can reach other highlights on the north coast like Seixal, Porto Moniz, and Ponta Delgada within a short drive. Even the sunny south is only about 30 minutes away through the mountain tunnels.
São Vicente may get more rain than other parts of the island, but that’s also what makes it so green and beautiful. For travelers looking for peace, hiking, and stunning natural views, this village is a perfect base.
Best Hotels in São Vicente
- (€€€) Estalagem do Vale
- (€€) Mediterrâneo Madeira
- (€) The Waves Studios
3. Paul do Mar and Jardim do Mar, best place to stay in Madeira for surfing
Paul do Mar and Jardim do Mar are two small villages on Madeira’s southwest coast, loved for their charm, peaceful vibe, and ocean views. They sit between high cliffs and the sea, creating a dramatic setting that feels far away from the busy parts of the island. Both are perfect if you want to slow down, enjoy nature, and experience a more local side of Madeira.
Jardim do Mar, which means “garden of the sea,” is especially famous among surfers thanks to its powerful Atlantic waves. The village is almost car-free, with narrow stone lanes, traditional houses, and a very quiet atmosphere. It doesn’t have a sandy beach, but its natural beauty and laid-back spirit make it unforgettable.
Just a short drive away, Paul do Mar has a similar charm but feels a little more lively. Along its seafront you’ll find a few cafés, small restaurants, and bars where you can relax after a day by the water. Both places are simple, scenic, and authentic – ideal for travelers looking for calm evenings, ocean sunsets, and a real taste of village life in Madeira.
Best Hotels in Paul do Mar & Jardim do Mar
- (€€) Villas Renacer
- (€€) Boutique Hotel Jardim Do Mar
- (€) Cecília’s House
4. Calheta, best place to stay in Madeira for families and best beach resort
Calheta is a sunny seaside town on the southwest coast of Madeira, known as one of the few places on the island with a sandy beach.
The beach here is manmade, but it’s perfect for swimming, relaxing, and enjoying calm waters that feel safe even for families. Along the marina, you’ll find cozy cafés, restaurants, and spots to grab gelato after a walk by the harbor.
This town is also home to some of Madeira’s most popular resorts, including hotels with pools, spas, and direct access to the sea. If your idea of a holiday is lying in the sun, sipping a drink by the water, and having everything within easy reach, Calheta is a great choice. It’s more about comfort and leisure than adventure.
The main downside is its distance from Madeira’s famous hiking trails, which are mostly in the center and east of the island. If hiking is your priority, you’ll face long drives. But if your focus is rest, beach time, and resort living, Calheta offers the most relaxing base on the island.
Best Hotels in Calheta
5. Porto Moniz, where to stay in Madeira for natural pools
Porto Moniz is a small coastal town in the far northwest of Madeira, best known for its volcanic rock pools filled with crystal-clear seawater. These natural swimming spots are among the island’s most photographed places and are perfect for a refreshing dip on a sunny day. The town itself is quiet but welcoming, with a few restaurants and hotels, making it a nice stop if you want to spend a couple of days in this corner of the island.
Beyond the pools, Porto Moniz is surrounded by dramatic scenery. You can ride the cable car down to the hidden coast at Achadas da Cruz, visit the striking sea stacks of Ribeira da Janela, or wander through the mysterious Fanal Forest with its ancient laurel trees often wrapped in mist. This area feels more remote than the south, which adds to its charm and peaceful vibe.
The biggest drawback is distance. It takes a long drive to reach Funchal, the airport, or many hiking trails. Having a car is essential here. Still, if you love wild landscapes, ocean views, and unique swimming experiences, Porto Moniz is a memorable place to stay.
Best Hotels in Porto Moniz
- (€€€) Studios by Aqua Natura Hotels
- (€€) Cozy Apartments by Homie
- (€) Costa Azul
Featured image: Shutterstock
