CS Marítimo began as a club of dockworkers and sailors. According to available sources it was founded on 20 September 1910 in Funchal by Cândido Fernandes de Gouveia as Club Português de Sport Marítimo. It was created partly to play against teams of sailors from ships calling at the port of Madeira, and in a city strongly influenced by the English presence it set itself against the older, more upper-class rivals. Those working-class roots and a firmly Portuguese identity remain an important part of the club's image today.
The club's oldest trophy dates from the time before a national league existed. In 1926 Marítimo won the Campeonato de Portugal, the first national competition, played on a knockout basis with the winners of regional leagues invited to take part. For a time, therefore, they were the best team in Portugal. Their ranks then included one of the first top-class Portuguese strikers, Artur de Sousa, known as Pinga. Clubs from the islands later began to play in the Taça de Portugal from 1938–39, and the distance from the mainland made competition very hard. Marítimo first reached the top flight in 1977–78.
The breakthrough came in the 1990s, after the young Brazilian Paulo Autuori became coach in 1990. In 1992–93 the club became the first from Madeira to qualify for a UEFA competition. Its UEFA Cup debut came on 15 September 1993 in Antwerp, where the team lost 2–0. An even bigger moment followed in 1994–95: Marítimo reached the Portuguese Cup final for the first time in its history, eliminating FC Porto 1–0 in the semi-final, and lost the final to Sporting 2–0 at the Jamor on 10 June 1995. In the same season they met Juventus in the UEFA Cup, and the Italians won the tie 3–1 on aggregate, with all three goals scored by Fabrizio Ravanelli.
In later years the club made nine appearances in the UEFA Cup or Europa League. The old Barreiros ground welcomed, among others, Juventus, Leeds United, Newcastle United, Valencia and Rangers. The distance between Madeira and the mainland meant that a trip to Funchal could be a wearying experience even for big teams. In total Marítimo have spent 43 seasons in the top division, placing them in the top ten of the all-time table, and have twice been Portuguese Cup finalists and twice League Cup finalists.
The heart of the club remains the Barreiros ground, opened on 26 June 1927. For many years it was shared with CD Nacional, and according to guides it at times housed all three Funchal clubs. After a thorough rebuild in 2016 the stadium was renamed Estádio do Marítimo, but its historic name still lives on among supporters. The home side usually play before near-full stands, as there are few away fans. The exception is the Dérbi da Madeira against Nacional, founded in the same year, 1910, which remains the hottest event of the island's season.
The green and red colours, official since the club's beginning, gave it the nickname Os Verde-Rubros, and its standing in the region is reflected in the epithet O Maior das Ilhas (the Biggest of the Islands). In 2025–26 the team won Liga Portugal 2 and finished first, confirming its ability to bounce back. CS Marítimo remains the club that has represented Madeira on the football map of Portugal and Europe for more than a century.