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Madeira

Location
The Madeira archipelago, which is part of Portugal, is located in the Atlantic Ocean, 978km southwest of Lisbon. The archipelago is of volcanic origin. It comprises the islands of Madeira (736km2), Porto Santo (43km2), Desertas (14km2) and Selvagens (4km2). Only the first two islands are inhabited. The latter two are nature reserves.

Mountain system and climate
The island of Madeira possesses quite a pronounced mountain system. The island´s highest points are Pico Ruivo (1.862m) and Pico do Areeiro (1.818m). The mountain sides and exposure to prevailing winds allow a number of micro-climates to exist on the island. These micro-climates together with the exotic vegetation are an important factor in attracting tourism, the region´s main economic activity. There are no great variations in temperature throughout the year. The climate remains mild, with average maximum temperatures of 22°C and minimums of 16°C. The sea temperature is constant due to the Gulf stream - 22°C in summer and cooling gradually over the winter, reaching 17°C by winter´s end.

The island of Porto Santo, on the other hand, has a geomorphologic composition that is completely opposite to that of the island of Madeira. It is very flat and has 9km of beaches of fine, golden sand. It is a tourism resort with great potential that is still largely unexploited.

Population
The most recent data (2000) indicates a resident population of 242 400, which is concentrated around the city of Funchal, the region´s capital. Around 75% of the population lives in just 35% of the territory, primarily on the southern coast. This is the zone in which most of the economic activity occurs and where most of the hotels are located.

Economy
The region´s economy is fundamentally based on internationally-orientated services. Tourism and the International Business Centre are the regional economy´s main sources of revenue.

The main products of the agricultural sector, which has a smaller share of the economy, are bananas, which are principally for consumption in the local and mainland Portugal markets, and the famous and internationally known Madeira wine.

The industrial sector, has segments such as handicraft activities, producing goods such as embroidery work, tapestries and wicker objects for export, co-existing with other activities that primarily target the regional market, such as upstream and downstream civil construction activities, mills and bread and confectionery/pastry products, milk products, beer, tobacco and wine.

The climate of political stability that has been in place since the last quarter of the twentieth century, as well as joining the EEC in 1986, has allowed the region to recover from its structural backwardness.

Political system
In political terms, Madeira has been an autonomous region of Portugal since 1976. Portugal is a member state of the OECD and European Union. Madeira possesses political-administrative status and its own governmental bodies that are democratically elected: the Regional Parliament and Regional Government. The Portuguese State is represented in the region by its Representative, who is appointed by the Portuguese President, after consultation with the Portuguese Government.

The region´s autonomy has gradually increased over the last 25 years. Madeira now has the powers to pass legislation on the majority of matters concerning its own development.

In 2005, the regionalization of the tax system occurred and management and administrative powers of the Portuguese Tax Authorities were transferred to the region.

Cost of living
The cost of living in Madeira is considerably lower than the rest of Europe. The majority of goods are much cheaper than in the other European Union countries, including the price of property, renting, food, drinks and entertainment. It is difficult to calculate the average cost of living in Madeira since it depends on the circumstances and type of life led by each person. The fact of the matter is that the majority of foreigners living in Madeira coming from Western European countries consider the cost of living to be up to 50% lower than in the country of their birth.

Some typical costs:

  • rented quality apartment located in Funchal: EUR 20/m2/month 
  • purchased quality apartment located in Funchal: EUR 1,250/m2 
  • meal in a mid- to high-quality restaurant: EUR 20/meal 
  • purchased offices in the centre of Funchal: EUR 1,750/m2 
  • rented offices in the centre of Funchal: EUR 20/m2/month


Labour costs:

  • Minimum wage in Madeira: EUR 570/month 
  • Salary of a newly graduated professional without work experience: EUR 750/month 
  • Salary of a university graduate (engineer, accountant, economist, lawyer) with two years’ work experience: EUR 1,500/month 
  • Salary of a highly qualified top-level manager with more than five years’ work experience: EUR 3,000/month

CONTACTS

Contact us to find out more about these advantages

 

Madeira
Tel.: +351 291 210 200               
Fax.: +351 291 210 209
info@newco.pro

Malta
Tel.: +356 21 223 120
Fax.: +356 21 223 119
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Madrid
Tel.: +34 654 201 029
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Lisboa
Tel.: +351 213 430 500
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