Duty free allowances for madeira?

Same as mainland Portugal.

Customs

Residents or non-residents
who leave or enter Portugal territory are free to take with them national and foreign currency in coins and notes, travelers cheques and other securities intended to pay for the travel expenses, but are obligated to inform the customs authorities if the values involved exceed 12,000 Euros (approximately US$13,000.00).

Travelers over 17 years old, may bring in the following items, duty free: 2 bottles of table wine, 1 bottle of hard liquor, 200 cigarettes or 250 grams of tobacco, 1.75 ounces of perfume and small quantities of tea or coffee for personal use. Bringing fresh meat into Portugal is forbidden.

Madeira isn't specifically mentioned in any HMRC information that I could find, so I'm guessing that it's the same as mainland Europe. However, I'd check with them first as you don't want to max out you limit with ciggies only to find you're over you've wasted lots of money.
For an UK citizen travelling within the EU have a look at: http://customs.hmrc.gov.uk/channelsPorta...

Hi I live in Albufeira, Algarve, Madeira has the same laws it is not tax free like Tenerefe its part of the EC which means their is no such think as duty frees.
duty is paid and you are allowed 3200 cigs each (16 sleeves)
and as much booze as you can carry, their is legally no limit but the HM customs set an advisory amount or guideline as it is for your own use or gifts for family and Friends, if you stay within the HM customs guidelines they will not take any off you on your return got to a HM customs website

Madeira is not cheap,there are no tax concessions as in Spanish Canaries. There are shops at Santa Catarina airport (Funchal) but it is hardly worth while buying unless you are into Madeira wine in a big way.