Planning a trip to Madeira’s sun-soaked capital and wondering whether a tourist tax will appear on your hotel bill? You are not alone. Since Funchal introduced its municipal tourist tax in late 2024, this question has become one of the most searched queries by visitors planning a stay on the island. The short answer is yes, there is a tourist tax in Funchal. The slightly longer answer explains the cost, who pays, who is exempt, and how the funds are allocated. Read on for a clear, up-to-date breakdown.
What Is the Tourist Tax in Funchal?
Portugal gives each of its municipalities the authority to set and collect a tourist tax, known locally as the taxa municipal turística. Funchal, the capital of Madeira, introduced its own version on 1 October 2024. The rate is €2 per person, per night, applied for a maximum of seven consecutive nights per stay. This means the highest amount a single adult visitor can be charged at one accommodation is €14 in total.
The tax applies regardless of nationality. Both international and domestic tourists pay it, with one key exception: residents of the Autonomous Region of Madeira are fully exempt.
Who Pays the Tourist Tax in Funchal?
The tax applies to anyone aged 13 or over who is staying overnight in paid accommodation within the municipality of Funchal. This includes:
- Hotel rooms and aparthotels
- Guesthouses and bed-and-breakfasts
- Short-term rentals, including Airbnb and similar platforms
Who Is Exempt?
The following groups are not required to pay the Funchal tourist tax:
- Children aged 12 and under
- Residents of the Autonomous Region of Madeira
- People with a certified disability of 60% or higher, provided they present a document proving the condition at check-in
How and When Is It Paid?
The tourist tax is collected by your accommodation provider, not by the municipality directly. In most cases, you will be asked to pay it at check-in or check-out, either in cash or by card. If you book through a platform such as Booking.com or Airbnb, the tax may appear as a separate line item on your booking confirmation, and some platforms collect it at the time of booking. If you are unsure, ask your host or check the payment breakdown in your confirmation email before you arrive.
One practical detail worth knowing: if you change accommodation during your stay, the seven-night counter resets. A visitor who stays seven nights in one hotel and then moves to a second property for another seven nights will pay the tax for both periods separately.
What About Cruise Ship Passengers?
Since 1 January 2025, Funchal also charges a sea-arrival tourist fee of €2 per passenger disembarking from a cruise ship during a stopover. This applies to all transit visitors aged 13 and over. The levy is settled through a written agreement between the municipality and the Port Administration of the Autonomous Region of Madeira (APRAM), so cruise passengers do not handle the payment themselves directly.
What Is the Tourist Tax Used For?
The revenue collected from the Funchal tourist tax is earmarked for the upkeep and improvement of services that visitors rely on. According to the municipality, the funds are allocated to urban cleaning equipment, road maintenance and repairs, garden upkeep, cultural events, and transport management services. By 2026, the tourist tax is estimated to represent around 21% of Funchal’s municipal revenue, corresponding to approximately €14 million per year.
Accommodation providers also receive a small administrative compensation: they retain 2.5% of the tax fees they collect, plus VAT, to cover the administrative burden of collection.
Important update for 2026: In January 2026, the Funchal city council unanimously approved the start of a formal review process for the tourist tax regulation. A rate increase is officially on the table, though any change must go through a public consultation period followed by approval at both the municipal council and the municipal assembly levels. This process is expected to take between six and nine months, meaning the current €2 rate remains in force throughout early 2026. Visitors planning trips later in the year should check for updates closer to their travel date.
Is Funchal the Only Place in Madeira With a Tourist Tax?
Not anymore. Funchal is the most prominent municipality to charge the tax, but it is part of a wider regional trend. As of early 2025, seven of Madeira’s eleven municipalities have introduced a tourist overnight tax, all at the same rate of €2 per person per night for a maximum of seven nights. The municipalities include Santa Cruz (the first to introduce a tax in Madeira, back in 2016), Santana, Ponta do Sol, Machico, Ribeira Brava, and Calheta. If you are splitting your time between Funchal and other parts of the island, it is worth confirming with each property whether the tax applies.
Practical Tips for Your Visit to Funchal
A tourist tax of €2 per night is a modest addition to a travel budget, but it is worth factoring in, especially for families or longer stays. Here are a few tips to keep in mind:
- Budget €2 per adult, per night, up to seven nights, for each accommodation you book.
- Keep your disability certificate accessible if you qualify for the exemption.
- Check your booking confirmation for any pre-collected tourist tax amounts before paying again at check-in.
- If you are a cruise passenger, the fee is handled at the port level and does not require any action on your part.
Beyond the practical side of planning, Funchal rewards every euro spent on it. From its vibrant waterfront and botanical gardens to its award-winning restaurants and historic old town, the capital is genuinely one of Europe’s most engaging cities. For a deeper look at what to see and do, discover the top five Funchal attractions you simply cannot miss, or browse our full guide to eight unmissable things to do in Funchal for a well-rounded itinerary.
If you are a tea lover, you will be glad to know that Funchal has a wonderful café culture waiting for you. Our locals’ guide to the best tea houses in Funchal is a great starting point. And if you follow a plant-based diet, check out our guide to vegan eating in Funchal for the best plant-based restaurants and cafés in the city.
For a full overview of everything the island has to offer, head over to Madeira by a Local, your insider guide to experiencing Madeira the way residents do.
Frequently Asked Questions
Is there a tourist tax in Funchal, Madeira?
Yes. Funchal introduced a tourist overnight tax of €2 per person, per night, capped at seven consecutive nights per stay. It has been in force since 1 October 2024 and applies to hotels, guesthouses, and short-term rental accommodation such as Airbnb. Children aged 12 and under and Madeira residents are exempt.
Do cruise ship passengers pay the tourist tax in Funchal?
Yes. Since 1 January 2025, cruise ship passengers who disembark in Funchal pay a separate sea-arrival fee of €2 per person. Children aged 12 and under are exempt from this charge as well.
