Is it profitable to do Airbnb in Madeira, Portugal?

What is the occupancy rate of Airbnb in Madeira, Portugal?

What is the average daily rate of Airbnb in Madeira, Portugal?

Airbnb Revenue in Madeira, Portugal: 2025 Short-Term Rental Data & Insights

Average Airbnb Revenue in Madeira

A typical short-term rental in Madeira is booked for 321 nights per year, generating a medium Airbnb occupancy rate of 88% and an average daily rate (ADR) of €111 ($120). In June, 2024 - May, 2025, the average annual short-term rental revenue in Madeira was €33K ($35K). As of 4th July, 2025, there are 6,002 active Airbnb listings in Madeira.

Madeira Airbnb Income Data Summary

Madeira Average Monthly Revenue
€2,772 ($2,981)
Madeira YoY Revenue Change
19.81%
Madeira Average Airbnb Occupancy Rate
88%
Madeira Average Daily Rate
€111 ($120)
Mid Scale
Madeira Number of Listings
7,077
Big
Airbnb Seasonality in Madeira
Strong
Most Profitable Month for Airbnb in Madeira
May
Airbnb Laws in Madeira
Strict
Learn More >
** Period: June, 2024 - May, 2025 | Last Updated on: 4th July, 2025

Madeira Airbnb Revenue by Month

June, 2024 - May, 2025
Low
€2,113
Average
€2,876
High
€4,459



Is Airbnb Profitable in Madeira, Portugal?

Yes, starting an Airbnb business in Madeira can be very profitable as there is strong short-term rental demand. An average vacation rental revenue of €33,276 ($35,781) and a median occupancy rate of 88% are considered good in the hospitality space. With 7,077 active listings, the Madeira Airbnb market is strong but not oversaturated.
Tip: Investing in a short-term rental can be both stable and highly profitable.
Stability: Vacation rentals in a market like Madeira are a stable investment strategy because they combine investing in real estate and in hospitality. While many potential investors worry about increasingly stricter Airbnb laws, if you can no longer rent out your property on Airbnb, you can convert it into a long-term rental and lease it to tenants on a monthly basis. Monthly rentals yield less, but they are less heavily regulated and even more stable than short-term rentals.
Profitability: Buying an Airbnb property in a city like Madeira is highly profitable because the monthly cash flow from a short-term rental investment is typically double the rental rate of traditional rentals.
As a Madeira Airbnb host, you can boost the performance of your short-term rental by choosing the optimal property type and the right property size and furnishing your listing with the most demanded amenities in the area.
Demand by Amenities

Average Airbnb Occupancy Rate in Madeira

You can find the distribution graph of daily rate and revenue in our market dashboard. A typical Madeira listing recorded a 88% average short-term rental occupancy between June, 2024 - May, 2025. The Madeira vacation rental market has Strong seasonality, with May and April being the busiest months for Airbnb hosts.

About 98.25% of Madeira Airbnb guests are international guests, and visitors from Germany constitute the largest group. Learn more about guest origin to inform your vacation rental marketing strategy.

On the graph below, you can see the occupancy rate distribution per number of listings.

To view the distribution of average daily rates and annual revenue, refer to our Madeira market dashboard.
Occupancy Rate: 88%
6,002 Active Listings

Starting an Airbnb in Madeira: Short-Term Rental Regulations

Before launching an Airbnb in Madeira, it's important to understand the local short-term rental rules and regulations. While Airbnb, Vrbo, and similar listing platforms are widely used in Madeira, the legal landscape can be complex, especially for a beginner host.

In general, Madeira Airbnb regulations are strict at the city level, but zoning regulations might apply to some parts of the market. Hosts might be required to register their short-term rentals with local authorities, and there might be limitations on the number of licenses that a single host can hold. You also need to pay applicable Airbnb taxes to make your Madeira vacation rental business legally compliant.
Signup and check out more in-depth vacation rental data for free.
Explore Madeira's Airbnb Data
market map image

Most Profitable Areas for Vacation Rentals in Madeira

Wondering where to invest in Madeira for the best Airbnb returns? Look no further!
The best Airbnb markets in Madeira are:
  1. Funchal, Portugal
    • Airbnb Annual Revenue: €39,813 ($42,810)
    • Airbnb Occupancy Rate: 91%
    • Airbnb Average Daily Rate: €119 ($128)
  2. Calheta
    • Airbnb Annual Revenue: €37,173 ($39,972)
    • Airbnb Occupancy Rate: 85%
    • Airbnb Average Daily Rate: €119 ($128)
  3. Câmara de Lobos
    • Airbnb Annual Revenue: €36,761 ($39,528)
    • Airbnb Occupancy Rate: 86%
    • Airbnb Average Daily Rate: €116 ($125)
  4. Machico
  5. Santa Cruz, Madeira
Find the top Airbnb location in Madeira for your specific needs and aspirations.

Most Popular Airbnbs in Madeira

Airbtics has been tracking all Airbnb listings since 2019. This allows us to understand interesting metrics, like which properties earn the most in the market. Here are our top picks. Go to the app to find detailed information about 6,002 listings.
listing_image
Entire home & 2 Bed
⭐5.0 (56)
Casa Eco @ Casas Da Vereda
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€315
Daily Rate
View Listing
listing_image
Entire home & Studio Bed
⭐5.0 (211)
Casa Palheiro @ Casas Da Vereda
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€138
Daily Rate
View Listing
listing_image
Entire home & 1 Bed
⭐5.0 (154)
Casa Rural @ Casas Da Vereda
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€167
Daily Rate
View Listing
listing_image
Entire home & 1 Bed
⭐5.0 (47)
Casa Eco 1 bedroom @ Casas Da Vereda
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€188
Daily Rate
View Listing
listing_image
Entire home & 2 Bed
⭐5.0 (7)
Villa Luciano,fantastic seaview
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€108
Daily Rate
View Listing
listing_image
Entire home & 3 Bed
⭐5.0 (10)
Cliff-top villa, panoramic sea-views | Cliffscape
$12,345
Revenue Potential
234
Days Available
$121,345
Revenue
74%
Occupancy Rate
€357
Daily Rate
View Listing
See Airbnb Statistics on All 6,002 Listings

Professional Airbnb Property Managers in Madeira

You can turn your Madeira Airbnb investment into a source of passive income and navigate the short-term rental regulatory framework easily by hiring one of the best Airbnb property management companies in the area.
To help you get started, we’ve compiled a list of the professional short-term rental property managers in Madeira with the most Airbnb properties.
NameListingsRatingRevenue
Feels Like Home5824.3$1,23,234
Allure Villas1124.8$1,23,234
Outsite1084.6$1,23,234
A Home In Madeira1044.8$1,23,234
Trip2Portugal564.5$1,23,234

Other short-term rental market data in Madeira

Here is a breakdown of short-let properties in Madeira. You might wonder about more specific data before buying an Airbnb property. For example, how much can an average listing with 4 bedrooms and a pool make? Or, what is the seasonality in booking? When is the peak month? Click the below button and check out more in-depth vacation rental data for free.
Madeira Airbnb Listings by Property Size


Madeira Airbnb Listings by Property Type
Madeira Airbnb Listings by Cancelation Policy Type


Madeira Vacation Rentals by Channel

Estimate Your Potential Earnings in Madeira with the Airbtics Airbnb Calculator

Ready to start looking for the most profitable Airbnb investment opportunities in Madeira?
Use our Airbnb income calculator to instantly get an accurate estimate of the earning potential of any neighborhood and area.

Madeira Airbnb FAQs

How Much Can You Make on Airbnb in Madeira, Portugal?

The average Madeira Airbnb host was able to make €33K ($35K) in June, 2024 - May, 2025. Your actual vacation rental revenue can vary depending on your listing's location, type, size, amenities, target guest persona, property management style, marketing strategy, and other factors. Check out our detailed Madeira Airbnb data to see how different factors affect revenue and estimate your potential income.

How Profitable Is Airbnb in Madeira?

With an ADR of €111 ($120) and a median occupancy rate of 88%, short-term rentals in Madeira can be very profitable. However, exactly how much money you can make from Airbnb in Madeira is determined by multiple factors. Remember that profitable Airbnb investments start with the best location. Buy an Airbnb property in one of the most profitable locations in Madeira.

What Is the ROI on Airbnb in Madeira?

The return on investment (ROI) on Airbnb properties in Madeira depends on factors like the purchase price, rental income, and operating costs. While the exact ROI varies by property, you can get an estimate by using key metrics such as annual rental income, daily rates, and occupancy.
In Madeira, the annual Airbnb revenue is €33K ($35K). To estimate your ROI, compare this income against your property's purchase price and operating expenses.
Our Airbnb calculator can help you run the numbers based on your investment and strategy.

What Is the Average Occupancy Rate for Airbnb in Madeira?

The median Airbnb occupancy rate in Madeira was 88% in June, 2024 - May, 2025. However, your actual occupancy depends on many factors, such as your property type, number of bedrooms, pricing strategy, and marketing efforts.

How Many Airbnbs Are There in Madeira?

As of March 2025, there are 6,002 active listings on the Airbnb platform in Madeira.