The fortress of são Tiago was built in 1614 in order to protect the citizens and the port from enemy invasions. The Fort was named in honor of the patron Saint of Funchal - the Apostle James the Younger, also called James of Alphaeus. Every year on 1 may in Funchal is a festival of this Saint. On this day in the old town of Funchal is a festive procession, namely along the streets of Santa Maria and Plaza Corpo Santo. Honoring last 4 days. Within all the holidays with music, organized recreational activities. This tradition began in the XVI century, when in 1538 the city started the plague. The population of the city died out, people desperately prayed to St. James the Younger, and the plague began to move away.

Fort Sao Tiago is situated in the old part of Funchal, which is called Velha Area. As in the fifteenth century Portugal almost completely controlled the sea route across the Atlantic ocean, the inhabitants of the island did not need special protection. It is because of this negligence in 1566 Funchal was subjected to a pirate attack, which killed a lot of citizens. And only in 1614, to avoid other attacks, was built Fort San Tiago for the protection of Funchal from the corsairs. In 1767 the Fort was extended and used exclusively for military purposes to the present day. After 1992, the regional government of Madeira has decided to use the Fort for cultural purposes.

Today, the Fort is the Museum of modern art and a restaurant with terrace, offering stunning views of Funchal.