- A car isn’t compulsory. You can get around Funchal and the surrounding area by bus and Bolt, and reach the trails on a tour. For sunrise on Pico do Arieiro, Fanal and the north of the island, though, a car makes life much easier.
- Prices on comparison sites (11 October 2026): from about €21 a day in January to about €47 in August. Since 1 June 2026 there’s also a regional fee of €2 per day, for a maximum of 10 days.
- You need a credit card in the driver’s name. Rental companies block a deposit on it, for example €600–1000.
- The roads are toll-free. You pay for fuel (about €2 a litre in October 2026) and parking, for example €4 an hour on Pico do Arieiro.
- An EU category B driving licence is enough. Choose a small car with a decent engine and, if you don’t enjoy hill starts, an automatic.
Madeira looks small on the map, but it’s demanding behind the wheel: hairpin bends, tunnels and steep climbs. The most popular places in my guide, the peaks, the trails and Fanal, are where buses run rarely or not at all. Below I’ve gathered what’s worth knowing before you book a car.
I haven’t hired a car in Madeira for any length of time myself, but readers often ask me about having a car on the island. So I checked how it works in practice: prices, airport pick-up, deposits and insurance, roads and parking.
A car from the airport: compare car hire prices at Madeira Airport (FNC) on DiscoverCars.
Do you need a car in Madeira?
Not always. Madeira’s official tourism website says a car isn’t essential, but it is recommended if you want to explore the island independently.
A car makes sense if:
- you want to see sunrise on Pico do Arieiro without watching the timetable,
- you’re heading to the Fanal forest or the Paul da Serra plateau, where no buses run,
- you’re planning walks in different parts of the island,
- you’re travelling with small children or a bigger dog.
You can skip the car if you’re staying in central Funchal and mainly exploring the city, Monte and Câmara de Lobos, you’d rather go hiking with a guide, or you don’t feel confident on narrow, steep roads. A good middle ground: a few days in Funchal without a car, then 2–3 days with one for trips around the island.
Public transport in Madeira: SIGA buses
Since July 2024 Madeira’s buses have run as a single SIGA network, operated by Horários do Funchal, Siga Rodoeste and Companhia de Autocarros da Madeira (CAM). Older guides still mention SAM and Rodoeste. You can plan your route at siga.madeira.gov.pt.
A ticket bought from the driver costs €2.05 within one municipality and €2.65 for a journey anywhere on the island. The Aerobus from the airport is €6.70 from the driver. A tourist pass covering all lines, Aerobus included, costs €13.75 for 24 hours or €36 for 7 days, plus €0.50 for the GIRO card (Horários do Funchal fares, checked 11 October 2026). If you’re not travelling from the airport, a regular SIGA island-wide day ticket for €6.55 (without the Aerobus) will do (SIGA fares). Away from the main routes buses run less often, and many trails and viewpoints aren’t served at all.
A Horários do Funchal bus runs to Pico do Arieiro every day from the lower cable car station in Funchal: at 6:00 and 13:30, reaching the top at 6:45 and 14:15. Return trips leave at 12:15 and 19:00, and from 25 October 2026 the second one returns at 18:00. A ticket costs €3 one way (Horários do Funchal, checked 11 October 2026).
Taxis, Bolt, transfers, tours
Taxis, Bolt and Uber all operate in and around Funchal. They’re a handy option for short trips and getting from the airport (I’ve covered prices in my airport guide). For longer journeys, for example to Porto Moniz, a transfer with a price agreed in advance or an organised tour works better. You can also get to the Fanal forest on a jeep tour.
Car, bus, taxi or tour: a comparison
| Option | Cost (October 2026) | Pros | Cons |
|---|---|---|---|
| Hire car | from about €21 a day in January, plus fuel, parking and the €2 daily fee | total freedom, sunrises, Fanal, the north of the island | deposit, parking in Funchal, narrow mountain roads |
| SIGA buses | €2.65 per journey, day ticket €6.55 (€13.75 for 24 h with the Aerobus) | cheap, no stress behind the wheel | infrequent services away from the main routes |
| Taxi, Bolt, Uber | by the meter or the app | fast, door to door | longer journeys get expensive |
| Transfer or tour | price per route or per person | no logistics to worry about | fixed plan and times |
From the airport to your hotel: taxi, Aerobus or car?
Choose a destination and enter your details. The calculator works out the taxi fare from the official tariff, the Aerobus and car hire, then tells you which option pays off.
Verdict–
Taxi: IMT Madeira tariff in force since 1 January 2026 (daytime €4.00 for the first kilometre and €0.10 for every further 69 m; nights, weekends and public holidays €4.80 and €0.10 per 58 m; €1.50 per piece of luggage), without traffic or waiting time. A taxi usually takes 4 people. Aerobus (line 500): €6.70 from the driver, €5.55 with a GIRO card (SIGA fares from 1 April 2026). Car: price per day plus the regional fee of €2 per day (max. 10 days), excluding fuel. Distances from the airport: OSRM, checked 16 October 2026.
Where to pick up the car: FNC airport or Funchal?
You’ll find the most offers at Cristiano Ronaldo Airport (FNC). In August 2026 eight companies had desks in the arrivals hall (level 0, before security): Avis-Budget, Europcar, Goldcar, Guerin, Hertz, Madeira Rent, Rodavante and Sixt (DNoticias, 20 August 2026). The other companies have offices outside the terminal and either pick customers up by minibus or have a representative waiting in the arrivals hall. You’ll find the instructions in your voucher.
In Funchal both the big chains and local firms have offices. Some local rental companies deliver the car to your hotel, which Madeira’s rules allow with a confirmed booking (DLR 7/2025/M).
Read nextMadeira Airport (FNC). 🛬 The landing, the wind and getting to FunchalGetting from the airport to Funchal, transfers and what’s worth knowing about landing in Madeira.
Clouds in the north, sunshine in the south? With a car you can drive to wherever the sun is out. Localrent compares local car hire companies in Madeira, some without a deposit, with pickup at the airport or in Funchal.
How much does car hire in Madeira cost?
Prices change every day, so I’m giving averages from comparison sites. They usually include basic insurance with an excess, but not fuel or extras.
| Source (checked 11 October 2026) | Cheapest | Most expensive | Average |
|---|---|---|---|
| DiscoverCarsaffiliate link, FNC airport | January | August | – |
| Localrentaffiliate link, airport area | January: about €21 a day | August: about €47 a day | no data |
All the comparison sites I checked show the same pattern: it’s cheapest in January and February and most expensive in July and August.
Add the regional fee to the price you see online. Since 1 June 2026 rental companies have added €2 per full day, for a maximum of 10 days, so up to €20, to every rental contract signed in Madeira. For an electric car it’s €1 a day. The fee appears on the invoice after the rental ends, so you usually won’t see it in the booking price (Portaria n.º 214/2026). Extras cost money too: a young or additional driver, a child seat, zero-excess insurance.
Deposit, insurance, credit card
Every hire car in the EU must have third-party liability insurance, which should be included in the price (Your Europe). Everything else is optional, and this is where offers differ the most.
- CDW limits your liability for damage to the car to the amount of the excess.
- SCDW, or a “super” or “full” package from the rental company, reduces the excess, even to zero, and may lower the deposit.
- The deposit is a hold on funds on your card, released after you return the car. Example: Enterprise at FNC airport blocks €600 for mini and economy cars and €1000 for higher classes, and half those amounts with the Super CDW package (Enterprise, checked 11 October 2026).
Be careful with cover bought from booking sites. DiscoverCars’ “Full Coverage”, for example, works as a refund: if there’s damage, you pay the rental company and then claim the money back. The rental company can’t see that package, so it will still block a deposit on the main driver’s credit card (DiscoverCarsaffiliate link).
Many companies only accept the deposit on a credit card. There are, however, offers with a deposit on a debit card, in cash or with no deposit at all: on Localrent you’ll find them with the “No deposit”, “Cash” and “Debit card” filters. Also remember that with car hire you don’t get the 14-day cooling-off period for contracts made online. Free cancellation depends on the terms of the offer (Your Europe).
Requirements: age, licence, driving experience
A driving licence issued in an EU country is valid throughout the EU, so you don’t need an international one. A temporary licence or a certificate won’t do, though (Your Europe). When you collect the car you’ll also need to show your ID card or passport. Age and driving experience requirements depend on the company and the car class.
Rental company requirements
Automatic or manual?
In Madeira you’re constantly driving uphill or downhill, and in Funchal you’ll sometimes have to pull away on a steep little street right behind another car. If you drive a manual every day and have a good feel for the clutch, you’ll be fine. If not, go for an automatic: tick it in the filters and check the offer description.
I’d recommend a small car, but not the one with the weakest engine, because those struggle on long climbs with a full load of passengers. On narrow roads and in tight car parks a small car is easier to manoeuvre than a big SUV. On the way down, use a lower gear instead of riding the brake, which is also what Madeira’s official tourism website advises.
Madeira’s roads: VR1, tunnels, mountains, fog
The island’s main road is the VR1 along the south coast: from Ribeira Brava through Funchal and past the airport to Machico and Caniçal. Beyond that run the VE expressways, including the VE2 from São Vicente to Porto Moniz and the VE4 from Ribeira Brava via Serra de Água to São Vicente (JORAM, 3 March 2016). A large part of your driving will be through tunnels. Speed limits change often, especially before tunnels and exits, so keep an eye on the signs.
Away from the fast roads, the roads are narrow, winding and steep. Before a sharp blind bend you can give a short toot of the horn. Satnav sometimes sends you on shortcuts up very steep little streets, so if in doubt, stick to the main roads (Visit Madeira).
On the Paul da Serra plateau, which you cross on the way to Fanal, and on the road up to Pico do Arieiro, fog can roll in within minutes. Slow down, switch on your dipped headlights and don’t stop on the carriageway. Before heading into the mountains, check the Madeira weather. The road to Pico do Arieiro is sometimes closed, and then the bus to the summit doesn’t run either.
Road tolls: the VR1 and VE roads
In Madeira you won’t pay any tolls. The VR1 and the VE roads work on the SCUT model, meaning “no charge for users” (JORAM, 3 March 2016). The electronic toll device you need on motorways in mainland Portugal is no use to you on the island.
Fuel: prices in Madeira
Petrol 95 and diesel have a maximum price in Madeira, set weekly by the regional government. Filling stations can sell for less (Madeira government report for 2025). In the week of 12–18 October 2026 the cap was €2.003 per litre of petrol 95 and €2.091 per litre of diesel (Despacho Conjunto 91/2026, JORAM). From 19 October the cap is €2.035 and €2.085 (JORAM, 16 October 2026). Maximum prices change every week, so treat these as a guide.
Choose “full to full” offers: you pick the car up with a full tank and return it the same way. Fill up close to the drop-off point and keep the receipt. In Madeira the contract must state the fuel level at pick-up and how any charge for missing fuel is calculated (DLR 7/2025/M).
Read nextWhere to stay in Madeira. 🏨 A base that keeps everything closeFunchal, Caniço, Calheta or the north? The areas compared: getting around, weather, car and tourist tax.
Parking in Funchal
In central Funchal most on-street parking is paid. The city has more than 1600 spaces with parking meters and time limits (CMF, 2024). You can pay at the meter or in the iParque app, which charges for the time you actually park (CMF). Check rates and hours on the meter or in the app.
White bays marked with an “M” are for residents only. Don’t park on yellow lines, on bends or in front of gates (Visit Madeira). For longer stays, use a municipal or underground car park. If you’re staying in the centre, ask your hotel about parking and its price before you hire a car.
Parking on Pico do Arieiro
Since October 2024 the car parks on Pico do Arieiro have been paid, for residents too (DNoticias, 28 October 2024). The 2026 prices are set by the fees regulation of IFCN (Madeira’s Institute of Forests and Nature Conservation).
Parking on Pico do Arieiro
For sunrise and a hike on the same day, you’ll pay at most €20 at the viewpoint car park. The lower car park is cheaper, and the Horários do Funchal shuttle, running every 15 minutes, will take you up to the summit.
The trail is a separate matter: PR1 requires registration and a fee, which I explain in my guide to buying Madeira trail tickets. According to IFCN, the trail gate opens at 8:00 (DNoticias, 14 June 2026). Beyond the Pedra Rija viewpoint the trail is one-way towards Pico Ruivo (DNoticias, 19 June 2026). If you leave your car on Pico do Arieiro and walk the whole trail, you’ll come down at Achada do Teixeira or Ilha and return to the car by taxi or transfer. You’ll find the current rules on my trail status page.
Read nextPico do Arieiro. ⛰️ The most beautiful sunrises in MadeiraSunrise above the clouds on Madeira’s third-highest peak: when to go and how to prepare.
Portuguese road rules
Road rules in Portugal
Compulsory equipment in the car is a high-visibility vest and a warning triangle. Whatever the limit back home, the rule is simple: if you’re driving, don’t drink. Poncha counts too.
Local or international rental companies?
The differences are mainly about the deposit, insurance and where you pick up the car.
- International chains have desks in the terminal and predictable procedures. They usually require a credit card and block a high deposit, and at the counter they’ll offer you a pricier insurance package.
- Local firms often have an office outside the terminal or deliver the car to your hotel. You’re more likely to find offers with a low deposit, no deposit or a debit card option. Quality varies, so read the reviews.
- Comparison sites work in different ways. DiscoverCars gathers offers from many companies, including the chains. Localrent focuses on local firms: you pay part of the price online and the rest, plus any deposit, at pick-up.
The rental company is responsible for the contract, even if you book through a broker, unless the contract says otherwise. If there’s a dispute, the European Consumer Centre can help (Your Europe).
Madeira also has its own car rental rules (DLR 7/2025/M). If the car you booked isn’t available, the rental company must give you a car of the same or a higher class at no extra cost. It must also provide free assistance 24 hours a day.
Picking up and returning the car: a checklist
- Film a walk around the car: bumpers, wheels, windows, roof, interior, and finally the mileage and fuel level.
- Have every scratch that isn’t on the damage report added before you drive off.
- Check the deposit, excess, regional fee and additional driver in the contract.
- Make sure the vest and the triangle are in the car.
- Check the tyres, lights, air conditioning and handbrake.
- Save the rental company’s breakdown assistance number.
- When you return the car, take photos and ask for a document confirming the return. In Madeira the rental company has to issue one.
- After you get home, check that the deposit hold has disappeared from your card.
Children, child seats, dogs
Children under 12 and under 135 cm tall must travel in a child seat suited to their height and weight, as a rule in the back. A rear-facing seat in the front requires the passenger airbag to be switched off (DRET Madeira). A child seat from the rental company is a paid extra: order it when you book and check on the spot that it fits your child.
With a dog it’s trickier. Most rental companies’ terms ban carrying animals, while smaller local firms can be more flexible. Write to a few of them before your trip and ask for permission in writing. I write more about it in Madeira with a dog.
Frequently asked questions
Do you need a car in Madeira?
No. In and around Funchal, buses, taxis, Bolt and tours are enough. A car comes in handy for sunrise on Pico do Arieiro, for Fanal and for the north of the island.
How much does a day of car hire in Madeira cost?
According to comparison sites (11 October 2026), from about €21 a day in January to about €47 in August. On top of that come fuel, parking and the regional fee of €2 per day, up to €20 per rental.
Is an EU driving licence enough?
Yes. A licence issued in an EU country is valid throughout the EU, so you don’t need an international one. The rental company may, however, require a minimum period of driving experience, often a year.
Can I hire a car without a credit card?
Sometimes. The big chains usually block the deposit on a credit card. Some local firms accept a debit card or cash, or don’t take a deposit at all. Check the terms of the offer before you pay.
Are there motorway tolls in Madeira?
No. The VR1 and the VE expressways are toll-free for drivers.
Do you have to pay for parking on Pico do Arieiro?
Yes. At the viewpoint it’s €4 an hour, the first 30 minutes free, with a maximum of €20 a day. The lower car park costs €2 an hour, up to €5 (as of 11 October 2026).
Got a question about driving in Madeira that I haven’t answered here? Leave a comment and I’ll add the answer to this guide.
This guide contains affiliate links. If you book a car through them, I earn a small commission and you don’t pay a penny more.
Sources I used (21)
- Visit Madeira (visitmadeira.com)
- SIGA fares
- Horários do Funchal (horariosdofunchal.pt)
- DNoticias,
- DLR 7/2025/M (joram.madeira.gov.pt)
- Portaria n.º 214/2026 (joram.madeira.gov.pt)
- Your Europe (europa.eu)
- Enterprise
- Your Europe (europa.eu)
- JORAM,
- Visit Madeira (visitmadeira.com)
- Madeira government report for 2025 (madeira.gov.pt)
- Despacho Conjunto 91/2026, JORAM
- JORAM,
- CMF, (funchal.pt)
- CMF (funchal.pt)
- DNoticias,
- DNoticias,
- DNoticias,
- Your Europe (europa.eu)
- DRET Madeira
A car from the airport: compare car hire prices at Madeira Airport (FNC) on DiscoverCars.
