In 1276, a hermitage dedicated to Our Lady of Funchal was built on the site where an image of Our Lady had appeared; in 1536, this medieval construction was replaced by a church dedicated to Our Lady of The Incarnation, the seat of the parish founded in the meantime. Having suffered considerable damages after the 1755 earthquake, the church was rebuilt in the Baroque style. The chancel shows a 17th Century gilded wood carved altarpiece and the ceiling painted in brutesco, with a central medallion representing the Virgin. Paintings by Coelho da Silveira and Pedro Alexandrino and interesting 18th Century tile panels portraying episodes from the life of the Virgin Mary can also be seen.