Funchal is the capital of the Madeira Islands of Portugal. Funchal is also the largest city on the islands and with its neighbouring boroughs reach over 120,000 inhabitants. A modern city,it's located in a unique area; the natural geological features form an "amphitheatre" surrounding the city, which begins at the harbour and rises almost 1200 metres high on gentle slopes. This provides a natural shelter and was what attracted the first settlers.

Madeira's capital for more than five centuries, Funchal is said to have been named as such because of the abundance of fennel (funcho- in portuguese) that was growing there.