JUST three days into their holiday with friends, James and Kate O’Sullivan knew this sun-soaked European island paradise was the place they wanted to call home.
Now, the couple enjoy year-round festivals, daily sea swims and large glasses of wine for £2.50. And they are just two of thousands of Brits making the four-hour flight to start dream lives on this subtropical EU island.
Closer to Africa than Europe, but officially part of Portugal, Madeira is known for stunning volcanic landscapes, a mild subtropical climate and unique fortified wine. And of course, it’s the birthplace of superstar footballer Cristiano Ronaldo.
Expats say the wallet-friendly holiday island, a Portuguese archipelago in the North Atlantic, is the perfect place for Brits wanting to ditch the rainy UK.
Around 1,300 British expats live in Madeira, including James O’Sullivan, 72, who says he’s found a home for life.
“We’ve got financial security, health security, fantastic standards of living and great weather all year round,” the retired entrepreneur tells the Sun.
He and his wife Kate live in the quiet village of Loreto, which boasts a traditional, peaceful atmosphere and elevated sea views.
“It’s a lot cheaper in Madeira, and your money buys a lot better.
“We have lots of fish, lots of fruits, everything that you should be eating.
“A medium beer, which is about half a pint, will cost me €1.50 (£1.30) maximum, a large glass of wine €3 (£2.50).”
Expat numbers in Portugal as a whole have increased 150 per cent since 2018, with 70 per cent choosing to stay for five years or more.
The island of Madeira has deep-rooted links with the UK, with English widely spoken, British schools and churches and a history of tourism dating back to Victorian times.
Famous British fans of the island include former prime ministers Winston Churchill, who wrote his memoirs there, and Margaret Thatcher, who honeymooned on the island.
When they relocated from France 11 years ago, James and Kate, also 72, bought a two-bedroom house made out of traditional stone and wood, saying it is now worth €400,000.
“We’d been happily living in central France for ten years, we had horses, a donkey, ten acres of land,” says James, who is originally from Grimsby, North East Lincs.
“When friends suggested we go on holiday to Madeira, we had to look up where it was, but within three days we’d fallen in love with the place; it was paradise.
I’ll go to the accident and emergency, where I’ll be seen in 20 minutes
James O’Sullivan,
“Our electricity bill is somewhere in the region of €20 (£17.50) a month, but we do have solar panels. Council tax is about €120 (£105) a year.”
Thanks to an agreement between Portugal and the UK, because he receives a UK State Pension, James can access Portuguese healthcare like a resident, with the UK government footing the bill.
“The healthcare works incredibly for me – I have Parkinson’s disease, and I see my neurologist every six months,” he says.
“If I get an ear infection and it’s really bad, I’ll go to the accident and emergency, where I’ll be seen in 20 minutes.
“A couple of days later, I’ll get what looks like an invoice posted to me, but it’s just a notification of the charge – €34 (£30) for the A&E visit, which will be paid by the UK government.
“If I want to see a consultant privately, it will cost €60 (£52) compared to £400 back in the UK.”
There is a range of visa options on offer for expats looking to relocate to the island, with a Digital Nomad Visa launched in 2022, meaning expats who work for a foreign company can live in Portugal for one year or longer term provided they have an income four times the minimum wage, which equates to at least €3,480 (£3,000) a month.
Retirees can secure a D7 visa, which requires a bank balance of 12 months’ income to fall back on and earnings of €920 (£800) a month.
James has an Irish passport as well as a British one, meaning he could move freely to the island under the EU.
But it’s not just retirees moving to the island.
In 2025, around 174,000 16-to 34-year-olds quit the UK in the first three months of last year, sparking fears of a “brain drain”.
One young person who has fallen in love with the paradise isle is Hope Martyn, 30.
Hope was already living in Portugal with her parents when she fell in love with both her Madeiran partner and his holiday island home.
“I moved to Madeira nearly five years ago,” she says.
“I came on holiday, fell in love with the island and also met my soulmate – the rest is history.”
Originally from Norfolk, Hope lives with her fiancé and his family in the historic mountaintop village of Monte, which sits 500 metres above the Madeiran capital, Funchal.
“Monte is the perfect location,” she says.
“It’s peaceful, and the temperatures are cooler but not cold.
“It’s pretty temperate all year round, we don’t get snow, but January to March is light jacket weather.”
British products on sale
The expat, who works as an online English teacher, has found a supermarket where expats can find favourite foods from home, including Quality Street chocolates, Robinsons Squash and her favourite occasional, delicious treat – Heinz baked beans.
“You can find British products, you can go and get your HP Sauce, and I got mince pies at Christmas”, says James, who, with Kate, publishes a popular guide to Madeira called Madeira NOW and runs the Madeira Life Facebook group.
“I don’t think any other Brits live close to us; our best friends are a Danish couple who live a few miles away.
“The concentration of British expats are more at the coast, but we meet many of them at the dinners we organise every month, they’re like the United Nations.”
Tax rates in Madeira are generally lower than in mainland Portugal, and a UK-Portugal Double Taxation Convention came into force this year, meaning British expats can be relieved of double taxation on pensions, employment income, and investment returns through credits or exemptions.
My wife tries to swim in the sea every day, the water temperature right now is about 20 degrees
James O’Sullivan,
“Madeira has beautiful weather, and it’s a place where I can really be myself,” says Hope.
“I love my peaceful, happy life here.”
“Madeira has everything you want, from nature to walks to mountains,” says James, who is “planning to stay here forever”.
“From adrenaline sports to a laid-back lifestyle, it’s all here for you.
“My wife tries to swim in the sea every day. The water temperature right now is about 20 degrees.
“And the people are really friendly – we come back home, and there will be a string of tomatoes on the fence.
“Madeira has about 150 festivals, so there’s always something happening.
“It’s paradise, we’re lucky to call the island our home.”
