Portugal,[e] officially the Portuguese Republic,[f] is a country in the Iberian Peninsula in Southwestern Europe. Featuring the westernmost point in continental Europe, Portugal borders Spain to its north and east, with which it shares the longest uninterrupted border in the European Union; to the south and the west is the North Atlantic Ocean; and to the west and southwest lie the Macaronesian archipelagos of the Azores and Madeira, which are two autonomous regions of Portugal. Lisbon is the capital and largest city, followed by Porto, which is the only other metropolitan area.

The western part of the Iberian Peninsula has been continuously inhabited since prehistoric times, with the earliest signs of settlement dating to 5500 BC.[14] Celtic and Iberian peoples arrived in the first millennium BC. The region came under Roman control in the second century BC, followed by a succession of Germanic peoples and the Alans from the fifth to eighth centuries AD. Muslims conquered Portugal's current mainland in the eighth century, but were gradually expelled by the Christian Reconquista. Modern Portugal began taking shape during this period, initially as a county of the Christian Kingdom of León in 868, officially declared a sovereign Kingdom with the Treaty of Zamora in 1143.[15]

During the Age of Discovery, the Kingdom of Portugal settled Madeira and the Azores, and established itself as a major economic and political power, largely through its maritime empire, which extended mostly along the South Atlantic and Indian Ocean coasts.[16] Portuguese explorers and merchants were instrumental in establishing trading posts and colonies that enabled control over spices and slave trades.[17] While Portugal expanded its influence globally, its political and military power faced internal and external challenges towards the end of the 16th century. The dynastic crisis marked the beginning of the country's political decline that led to the Iberian Union (1580-1640), a period in which Portugal was united under Spanish rule.[18] While maintaining a degree of self-governance, the union strained Portugal’s autonomy and drew it into conflicts with European powers which targeted Portuguese territories and trade routes.[19] Portugal's prior opulence was further diminished by a series of events, such as the Portuguese Restoration War and the 1755 Lisbon earthquake, which destroyed the city and damaged the empire's economy.[20]

The Napoleonic Wars motivated the Portuguese royal family to relocate to Brazil in 1807. This event reshaped the relationship between Portugal and Brazil, culminating in Brazilian independence in 1822,[21] which indirectly led to a civil war between liberals and absolutists from 1828 to 1834.[22] The monarchy was overthrown in the 5 October 1910 revolution, which led to the establishment of the Portuguese First Republic. A phase of unrest ultimately led to the rise of authoritarian regimes of the Ditadura Nacional and the Estado Novo.[23] Democracy was finally restored following the Carnation Revolution of 1974, and brought an end to the Portuguese Colonial War, allowing the last of Portugal’s African territories to achieve independence.[24]

Portugal's imperial history has left a cultural legacy, with around 300 million Portuguese speakers around the world. Today, it is a developed country with an advanced economy relying chiefly upon services, industry, and tourism. Portugal, a member of the United Nations, the European Union, the Schengen Area, and the Council of Europe, was one of the founding members of NATO, the eurozone, the OECD, and the Community of Portuguese Language Countries.

Madeira, officially the Autonomous Region of Madeira (Portuguese: Região Autónoma da Madeira), is an autonomous region of Portugal. It is an archipelago situated in the North Atlantic Ocean, in the region of Macaronesia, just under 400 kilometres (250 mi) north of the Canary Islands —Spain—, 520 kilometres (320 mi) west of the Kingdom of Morocco and 805 kilometres (500 mi) southwest of mainland Portugal Madeira sits on the African Tectonic Plate, although it is culturally, politically and ethnically associated with Europe, with its population predominantly descended from Portuguese settlers. Its population was 251,060 in 2021. The capital of Madeira is Funchal, on the main island's south coast.

The archipelago includes the islands of Madeira, Porto Santo, and the Desertas, administered together with the separate archipelago of the Savage Islands. Roughly half of the population lives in Funchal. The region has political and administrative autonomy through the Administrative Political Statute of the Autonomous Region of Madeira provided for in the Portuguese Constitution. The region is an integral part of the European Union as an outermost region. Madeira generally has a mild/moderate subtropical climate with mediterranean summer droughts and winter rain. Many microclimates are found at different elevations.

Madeira, uninhabited at the time, was claimed by Portuguese sailors in the service of Prince Henry the Navigator in 1419 and settled after 1420. The archipelago is the first territorial discovery of the exploratory period of the Age of Discovery.

Madeira is a year-round resort, particularly for Portuguese, but also British (148,000 visits in 2021), and Germans (113,000). It is by far the most populous and densely populated Portuguese island. The region is noted for its Madeira wine, flora, and fauna, with its pre-historic laurel forest, classified as a UNESCO World Heritage Site. The destination is certified by EarthCheck. The main harbour in Funchal has long been the leading Portuguese port in cruise ship dockings, an important stopover for Atlantic passenger cruises between Europe, the Caribbean and North Africa.[16] In addition, the International Business Centre of Madeira, also known as the Madeira Free Trade Zone, was established in the 1980s. It includes (mainly tax-related) incentives.

Plutarch in his Parallel Lives (Sertorius, 75 AD) referring to the military commander Quintus Sertorius (d. 72 BC), relates that after his return to Cádiz, he met sailors who spoke of idyllic Atlantic islands: "The islands are said to be two in number separated by a very narrow strait and lie 10,000 furlongs [2,000 km] from Africa. They are called the Isles of the Blessed."

Archaeological evidence suggests that the islands may have been visited by the Vikings sometime between 900 and 1030.

Accounts by Muhammad al-Idrisi state that the Mugharrarin ("the adventurers" – seafarers from Lisbon) came across an island where they found "a huge quantity of sheep, the meat of which was bitter and inedible" before going to the more inhabited Canary Islands, in Spain. This island, possibly Madeira or Hierro, must have been inhabited or previously visited by people for livestock to be present.

During the reign of King Edward III of England, lovers Robert Machim and Anna d'Arfet were said to have fled from England to France in 1346. Driven off course by a violent storm, their ship ran aground along the coast of an island that may have been Madeira. Later this legend was the basis of the naming of the city of Machico on the island, in memory of the young lovers.

The fourth and final sheet of the four-sheet Corbitis Atlas (1384–1410)

Madeira appears in several medieval manuscripts, including the Book of Knowledge of All Kingdoms from the early 14th century, the Medici-Laurentian Atlas from 1351, the Soleri Portolani from 1380 and 1385 and Corbitis Atlas from the late 14th century. These texts refer to Madeira as Lecmane, Lolegname, Legnami (the isle of wood), Puerto or Porto Santo, deserte or deserta, and desierta. It is widely accepted that knowledge of these Atlantic islands existed before their better-documented discovery and successful settlement by the Kingdom of Portugal.

Statue of João Gonçalves Zarco

In 1418, two captains, João Gonçalves Zarco and Tristão Vaz Teixeira, while exploring the African coast in the service of Prince Henry the Navigator, were driven off course by a storm to an island which they named Porto Santo (English: "holy harbour") in gratitude for divine deliverance from a shipwreck.

The following year, Zarco and Vaz organised an expedition with Bartolomeu Perestrello. The trio travelled to the island of Porto Santo, claimed it on behalf of the Portuguese Crown, and established a settlement. The new settlers observed "a heavy black cloud suspended to the southwest" and upon investigation discovered the larger island they called Madeira (Portuguese: madeira, lit. 'wood').

The first Portuguese settlers began colonizing the islands around 1420 or 1425. The first settlers were the three captain-donees and their respective families, a small group of members of the gentry, people of modest conditions and some former inmates of the kingdom

The majority of settlers were fishermen and peasant farmers who willingly left Portugal for a new life on the islands, a better one, they hoped, than was possible in a Portugal which had been ravaged by the Black Death, and where the best farmlands were strictly controlled by the nobility.

To have minimum conditions for the development of agriculture on the island, the settlers had to chop down part of the dense forest and build a large number of water channels, called "levadas", to carry the abundant waters on the north coast to the south coast of the island. 

Initially, the settlers produced wheat for their own sustenance but later began to export wheat to mainland Portugal, In earlier times, fish and vegetables were the settlers' main means of subsistence.

Grain production began to fall and the ensuing crisis forced Henry the Navigator to order other commercial crops to be planted so that the islands could be profitable. These specialised plants, and their associated industrial technology, created one of the major revolutions on the islands and fuelled Portuguese industry. Following the introduction of the first water-driven sugar mill on Madeira, sugar production increased to over 6,000 arrobas (an arroba was equal to 11 to 12 kilograms or 24 to 26 pounds) by 1455, using advisers from Sicily and financed by Genoese capital (Genoa acted as an integral part of the island economy until the 17th century). The accessibility of Madeira attracted Genoese and Flemish traders, who were keen to bypass Venetian monopolies.

"By 1480 Antwerp had some seventy ships engaged in the Madeira sugar trade, with the refining and distribution concentrated in Antwerp. By the 1490s Madeira had overtaken Cyprus as a producer of sugar."

Sugarcane production was the primary engine of the island's economy, which quickly afforded the Funchal metropolis economic prosperity. The production of sugar cane attracted adventurers and merchants from all parts of Europe, especially Italians, Basques, Catalans, and Flemish. This meant that, in the second half of the fifteenth century, the city of Funchal became a mandatory port of call for European trade routes.

Slaves were used during the island's period of sugar trade to cultivate sugar cane alongside paid workers, though slave owners were only a small minority of the Madeiran population, and those who did own slaves owned only a few. Slaves consisted of Guanches from the nearby Canary islands, captured Berbers from the conquest of Ceuta and West Africans after further exploration of the African coast. Barbary corsairs from North Africa, who enslaved Europeans from ships and coastal communities throughout the Mediterranean region, captured 1,200 people in Porto Santo in 1617.

Until the first half of the sixteenth century, Madeira was one of the major sugar markets of the Atlantic. Apparently, it is in Madeira that, in the context of sugar production, slave labour was applied for the first time. The colonial system of sugar production was put into practice on the island of Madeira, on a much smaller scale, and later transferred, on a large scale, to other overseas production areas.

Later on, this small scale of production was outmatched by Brazilian and São Tomean plantations. Madeiran sugar production declined in such a way that it was not enough for domestic needs, so that sugar was imported to the island from other Portuguese colonies. Sugar mills were gradually abandoned, with few remaining, which gave way to other markets in Madeira.

In the 17th century, as Portuguese sugar production was shifted to Brazil, São Tomé and Príncipe and elsewhere, Madeira's most important commodity product became its wine. Sugar plantations were replaced by vineyards, originating in the so-called ‘Wine Culture’, which acquired international fame and provided the rise of a new social class, the Bourgeoisie.

With the increase of commercial treaties with England, important English merchants settled on the Island and, ultimately, controlled the increasingly important island wine trade. The English traders settled in the Funchal as of the seventeenth century, consolidating the markets from North America, the West Indies and England itself. The Madeira wine became very popular in the markets and it is also said to have been used in a toast during the Declaration of Independence by the Founding Fathers of the United States.

Cathedral of Funchal with its tower of 15th-century Gothic style in the background

In the eighteenth and nineteenth centuries, Madeira stands out for its climate and therapeutic effects. In the nineteenth century, visitors to the island integrated four major groups: patients, travellers, tourists and scientists. Most visitors belonged to the moneyed aristocracy.

As a result of a high demand for the season, there was a need to prepare guides for visitors. The first tourist guide of Madeira appeared in 1850 and focused on elements of history, geology, flora, fauna and customs of the island. Regarding hotel infrastructures, the British and the Germans were the first to launch the Madeiran hotel chain. The historic Belmond Reid's Palace opened in 1891 as the "Reid's New Hotel" and is still open to this day.

The British first amicably occupied the island in 1801 whereafter Colonel William Henry Clinton became governor. A detachment of the 85th Regiment of Foot under Lieutenant-colonel James Willoughby Gordon garrisoned the island. After the Peace of Amiens, British troops withdrew in 1802, only to reoccupy Madeira in 1807 until the end of the Peninsular War in 1814. In 1846 James Julius Wood wrote a series of seven sketches of the island. In 1856, British troops recovering from cholera, and widows and orphans of soldiers fallen in the Crimean War, were stationed in Funchal, Madeira.