Economy[edit]

The Gross domestic product (GDP) of the region was 4.9 billion euros in 2018,
accounting for 2.4% of Portugal's economic output. GDP per capita adjusted for
purchasing power was 22,500 euros or 75% of the EU27 average in the same year.
The GDP per employee was 71% of the EU average.[77]
Madeira International Business Center[edit]

Caniçal on the left and Madeira Free Trade (Industrial) Zone on the right

Main article: International Business Center of Madeira

The setting-up of a free trade zone, also known as the Madeira International
Business Center (MIBC) has led to the installation, under more favorable conditions,
of infrastructure, production shops and essential services for small and medium-sized
industrial enterprises. The International Business Centre of Madeira comprises
presently three sectors of investment: the Industrial Free Trade Zone, the
International Shipping Register – MAR and the International Services. Madeira's tax
regime has been approved by the European Commission as legal State Aid and its
deadline has recently been extended by the E.C. until the end of 2027. The
International Business Center of Madeira, also known as Madeira Free Trade Zone,
was created formally in the 1980s as a tool of regional economic policy. It consists of
a set of incentives, mainly of a tax nature, granted with the objective of attracting
inward investment into Madeira, recognized as the most efficient mechanism to
modernize, diversify and internationalize the regional economy. The decision to
create the International Business Center of Madeira was the result of a thorough
process of analysis and study. Other small island economies, with similar
geographical and economic restraints, had successfully implemented projects of
attraction of foreign direct investment based on international services activities,
becoming therefore examples of successful economic policies.
Since the beginning, favorable operational and fiscal conditions have been offered in
the context of a preferential tax regime, fully recognized and approved by the
European Commission in the framework of State aid for regional purposes and
under the terms for the Ultra-peripheral Regions set in the Treaties, namely Article
299 of the Treaty on European Union. The IBC of Madeira has therefore been fully
integrated in the Portuguese and EU legal systems and, as a consequence, it is
regulated and supervised by the competent Portuguese and EU authorities in a
transparent and stable business environment, marking a clear difference from the so-
called "tax havens" and "offshore jurisdictions", since its inception. In 2015, the
European Commission authorized the new state aid regime for new companies
incorporated between 2015 and 2020 and the extension of the deadline of the tax
reductions until the end of 2027. The present tax regime is outlined in Article 36°-A of
the Portuguese Tax Incentives Statute. Available data clearly demonstrates the
contribution that this development programme has brought to the local economy over
its 20 years of existence: impact in the local labor market, through the creation of
qualified jobs for the young population but also for Madeiran professionals who have
returned to Madeira thanks to the opportunities now created; an increase in
productivity due to the transfer of know how and the implementation of new business
practices and technologies; indirect influence on other sectors of activity: business
tourism benefits from the visits of investors and their clients and suppliers, and other
sectors such as real estate, telecommunications and other services benefit from the
growth of their client base; impact on direct sources of revenue: the companies
attracted by the IBC of Madeira represent over 40% of the revenue in terms of
corporate income tax for the Government of Madeira and nearly 3.000 jobs, most of
which qualified, among other benefits. Also there are above average salaries paid by
the companies in the IBC of Madeira in comparison with the wages paid in the other
sectors of activity in Madeira.[78]
Regional Government[edit]
Madeira has been a significant recipient of European Union funding, totaling up to
€2 billion. In 2012, it was reported that despite a population of just 250,000, the local
administration owes some €6 billion.[79] Furthermore, the Portuguese treasury (IGCP)
assumed Madeira's debt management between 2012 and 2015. The region
continues to work with the central government on a long-term plan to reduce its debt
levels and commercial debt stock. Moody's notes that the region has made significant
fiscal consolidation efforts and that its tax revenue collection has increased
significantly in recent years due to tax rate hikes. Madeira's tax revenues increased
by 41% between 2012 and 2016, helping the region to reduce its deficit to operating
revenue ratio to 10% in 2016 from 77% in 2013.[80]
Tourism[edit]

The manufactured coastal beach of Calheta: replacing the dark rock/sand of the volcanic island with beach
sand.

Tourism is an important sector in the region's economy, contributing 20%[81] to the

region's GDP, providing support throughout the year for commercial, transport and
other activities and constituting a significant market for local products. The share in
Gross Value Added of hotels and restaurants (9%) also highlights this phenomenon.
The island of Porto Santo, with its 9-kilometre-long (5.6 mi) beach and its climate, is
entirely devoted to tourism.
Visitors are mainly from the European Union, with German, British, Scandinavian and
Portuguese tourists providing the main contingents. The average annual occupancy
rate was 60.3% in 2008,[82] reaching its maximum in March and April, when it exceeds
70%.
Whale watching[edit]
Whale watching has become very popular in recent years. Many species of dolphins,
such as common dolphin, spotted dolphin, striped dolphin, bottlenose dolphin, short-
finned pilot whale, and whales such as Bryde's whale, Sei whale,[83] fin whale, sperm
whale, beaked whales can be spotted near the coast or offshore.[84]

Energy[edit]
Electricity on Madeira is provided solely through EEM (Empresa de Electricidade da
Madeira, SA, which holds a monopoly for the provision of electrical supply on the
autonomous region) and consists largely of fossil fuels, but with a significant supply
of seasonal hydroelectricity from the levada system, wind power and a small amount
of solar. Energy production comes from conventional thermal and hydropower, as
well as wind and solar energy.[85] The Ribeira dos Soccoridos hydropower plant, rated
at 15MW utilises a pumped hydropower reservoir to recycle mountain water during
the dry summer.[86]
In 2011, renewable energy formed 26.5% of the electricity used in Madeira. By 2020,
half of Madeira's energy will come from renewable energy sources.[87] This is due to
the planned completion of the Pico da Urze / Calheta pumped storage hydropower
plant, rated at 30MW.[88]
Battery technologies are being tested to minimize Madeira's reliance on fossil fuel
imports.[89] Renault SA and EEM piloted the Sustainable Porto Santo—Smart Fossil
Free Island project on Porto Santo to demonstrate how fossil fuels can be entirely
replaced with renewable energy.[90]

Transport[edit]
Main article: Transport in Madeira

A ferry makes daily trips between Madeira and Porto Santo.

The Islands have two airports, Cristiano Ronaldo International Airport and Porto

Santo Airport, on the islands of Madeira and Porto Santo respectively. From Cristiano
Ronaldo International Airport the most frequent flights are to Lisbon. There are also
direct flights to over 30 other airports in Europe and nearby islands.[91]
Transport between the two main islands is by plane, or ferries from the Porto Santo
Line,[92] the latter also carrying vehicles. Visiting the interior of the islands is now easy
thanks to construction of the Vias Rápidas, major roads that cross the island. Modern
roads reach all points of interest on the islands.
Funchal has an extensive public transportation system. Bus companies,
including Horários do Funchal, which has been operating for over a hundred years,
have regularly scheduled routes to all points of interest on the island.

Culture[edit]
Music[edit]
See also: Music of Madeira

Bailinho da Madeira

Folklore music in Madeira is widespread and mainly uses local musical instruments

such as the machete, rajao, brinquinho and cavaquinho, which are used in traditional
folkloric dances like the bailinho da Madeira.
Emigrants from Madeira also influenced the creation of new musical instruments. In
the 1880s, the ukulele was created, based on two small guitar-like instruments of
Madeiran origin, the cavaquinho and the rajao. The ukulele was introduced to
the Hawaiian Islands by Portuguese immigrants from Madeira and Cape Verde.
[93]
 Three immigrants in particular, Madeiran cabinet makers Manuel Nunes, José do
Espírito Santo, and Augusto Dias, are generally credited as the first ukulele makers.
[94]
 Two weeks after they disembarked from the SS Ravenscrag in late August 1879,
the Hawaiian Gazette reported that "Madeira Islanders recently arrived here, have
been delighting the people with nightly street concerts."[95]
Cuisine[edit]

"Lapas", the true limpet species Patella vulgata

Because of the geographic situation of Madeira in the Atlantic Ocean, the island has
an abundance of fish of various kinds. The species that are consumed the most are
espada (black scabbardfish), blue fin tuna, white marlin, blue marlin, albacore, bigeye
tuna, wahoo, spearfish, skipjack tuna and many others are found in the local dishes
as they are found up and down the coast of Madeira.[96] Espada is often served with
banana. Bacalhau is also popular, as it is in Portugal.
There are many meat dishes on Madeira, one of the most popular being espetada.
[97]
 Espetada is traditionally made of large chunks of beef rubbed in garlic, salt and bay
leaf and marinated for 4 to 6 hours in Madeira wine, red wine vinegar and olive oil
then skewered onto a bay laurel stick and left to grill over smouldering wood chips.
These are so integral a part of traditional eating habits that a special iron stand is
available with a T-shaped end, each branch of the "T" having a slot in the middle to
hold a brochette (espeto in Portuguese); a small plate is then placed underneath to
collect the juices. The brochettes are very long and have a V-shaped blade in order
to pierce the meat more easily. It is usually accompanied with the local bread
called bolo do caco.
Other popular dishes in Madeira include açorda, feijoada, carne de vinha d'alhos.
Traditional pastries in Madeira usually contain local ingredients, one of the most
common being mel de cana, literally "sugarcane honey" (molasses). The traditional
cake of Madeira is called Bolo de Mel, which translates as (Sugarcane) "Honey
Cake" and according to custom, is never cut with a knife, but broken into pieces by
hand. It is a rich and heavy cake. The cake commonly well known as "Madeira cake"
in England also finds its naming roots in the Island of Madeira.
Malasadas are a Madeiran creation that were taken around the world by emigrants to
places such as Hawaii. In Madeira, Malasadas are mainly consumed during
the Carnival of Madeira. Pastéis de nata, as in the rest of Portugal, are also very
popular.
Milho Frito is a very popular dish in Madeira that is very similar to the Italian
dish polenta. Açorda Madeirense is another popular local dish.
The island of Madeira is famous for the quality of its Cherimoya fruits.[98][99] The Annona
Festival is traditional and occurs annually in the parish of Faial. This event
encourages the consumption of this fruit and its derivatives, such as liqueurs,
puddings, ice cream and smoothies.[100]
Beverages[edit]
Main article: Madeira wine

Bottles of Madeira labelled by the different grape varieties used to produce the many styles of wine
Coral Beer, produced since 1872[101] in the Island's main brewery, has achieved several Monde
Selection medals

Madeira is a fortified wine, produced in the Madeira Islands; varieties may be sweet
or dry. It has a history dating back to the Age of Exploration when Madeira was a
standard port of call for ships heading to the New World or East Indies. To prevent
the wine from spoiling, neutral grape spirits were added. However, wine producers of
Madeira discovered, when an unsold shipment of wine returned to the islands after a
round trip, that the flavour of the wine had been transformed by exposure to heat and
movement. Today, Madeira is noted for its unique winemaking process that involves
heating the wine and deliberately exposing the wine to some levels of oxidation.
[102]
 Most countries limit the use of the term Madeira to those wines that come from the
Madeira Islands, to which the European Union grants Protected designation of
origin (PDO) status.[103]
A local beer called Coral is produced by the Madeira Brewery, which dates from
1872. It has achieved 2 Monde Selection Grand Gold Medals, 24 Monde Selection
Gold Medals and 2 Monde Selection Silver Medals.[101] Other alcoholic drinks are also
popular in Madeira, such as the locally created Poncha, Niquita, Pé de Cabra, Aniz,
as well as Portuguese drinks such as Macieira Brandy, Licor Beirão.
Laranjada is a type of carbonated soft drink with an orange flavour, its name being
derived from the Portuguese word laranja ("orange"). Launched in 1872 it was the
first soft drink to be produced in Portugal, and remains very popular to the present
day. Brisa drinks, a brand name, are also very popular and come in a range of
flavours.
There is also a huge coffee culture in Madeira. Like in mainland Portugal, popular
coffee-based drinks include Garoto, Galão, Bica, Café com
Cheirinho, Mazagran, Chinesa and many more.

Sports[edit]
Main article: Sport in Madeira
Sister provinces[edit]
Madeira Island has the following sister provinces:

 Italy: Autonomous Region of Aosta Valley (1987)

 Jersey: Bailiwick of Jersey (1998)
 South Africa: Eastern Cape Province
 South Korea: Jeju Province (2007)
 Gibraltar: Gibraltar (2009)[104]

Postage stamps[edit]
Main article: Postage stamps and postal history of Madeira
Portugal has issued postage stamps for Madeira during several periods, beginning in
1868.

Notable people[edit]

Cristiano Ronaldo, born in Madeira, was the 2008, 2013, 2014, 2016 and 2017 FIFA World Player of the
Year

The following people were either born or have lived part of their lives in Madeira:

 Charles I of Austria, last Emperor of Austria and last King of Hungary,

deposed monarch, died in exile on Madeira in 1922
 António de Abreu, naval officer and navigator
 Miguel Albuquerque, third and current President of the Regional Government
 Catarina Fagundes, Olympic athlete for windsurf
 Vânia Fernandes, Portuguese singer who represented Portugal in Eurovision
2008
 José Vicente de Freitas, military general and Prime-Minister of Portugal
 Vasco da Gama Rodrigues, poet, born in Paul do Mar
 Alfredo Rodrigues Gaspar, navy officer and Prime-Minister of Portugal
 Teodósio Clemente de Gouveia, Cardinal of the Roman Catholic Church
 George Walter Grabham, geologist
 Herberto Hélder, poet
 Moisés Henriques, former Australian Under-19 Captain and NSW Blues player
and former Australian international cricketer
 Alberto João Jardim, second President of the Regional Government
 Luís Jardim, producer of music
 Paul Langerhans, German pathologist and biologist
 Fátima Lopes, fashion designer
 José Tolentino Mendonça, priest, theologian, poet, Cardinal of the Roman
Catholic Church and Librarian and Archivist of the Vatican Apostolic Archive
 Aires de Ornelas e Vasconcelos, former Archbishop of the former Portuguese
colonial enclave Goa (in India)
 Lloyd Mathews, British naval officer, politician and abolitionist
 Dionísio Pestana, president of the Pestana Group
 Rigo 23, artist
 João Rodrigues, Olympic windsurfer
 Cristiano Ronaldo, professional footballer for Juventus and Portugal
 John Santos, photographer
 Ana da Silva, founding member of post-punk band The Raincoats
 Elisa Silva, Portuguese singer who was due to represent Portugal
in Eurovision 2020
 Manoel Dias Soeyro or Menasseh Ben Israel (1604–
1657), Sephardi rabbi and publisher
 Artur de Sousa Pinga, former CS Marítimo and FC Porto football player
 José Travassos Valdez, 1st Count of Bonfim, governor during 1827–1828