The Euro
Madeira is an autonomous region of Portugal, which is part of the Eurozone — so the currency is the euro (€), same as the mainland. There's no separate local currency or special exchange rate to worry about.
Paying by Card
Card and contactless payment are standard across Funchal and most tourist areas, and many places are close to cashless. That said, smaller family-run restaurants, market stalls, and rural cafés outside the main towns may not take cards, so it's worth carrying some cash as a backup.
Getting Cash
Portugal's Multibanco ATM network covers Funchal and most towns on the island, and generally offers better exchange rates than airport currency exchanges. When withdrawing, always choose to be charged in euros rather than your home currency — being asked to convert at the ATM (dynamic currency conversion) usually means a worse rate.
Tipping
Tipping is optional in Madeira, since service is included in the bill by Portuguese law. Rounding up or leaving roughly 5–10% for good restaurant service is common practice; taxi drivers, shop staff, and café counters generally don't expect a tip, though small tips for tour guides are appreciated.
Bottom Line
Bring a card that doesn't charge foreign transaction fees, keep some cash for smaller vendors, and you're set — money matters in Madeira are about as straightforward as anywhere in the EU.
