Coelho was the New Democracy's candidate to the presidency in the 2011 election.[4] He won 4.5% of the vote, coming fifth, which was considerably better than expected or forecast by pre-election polling. In Madeira, Coelho reached second place, with 39% of the votes.
On 12 March 2011, he joined the Portuguese Labour Party (PTP),[5] of which he became the vice-president.[6] He was a candidate for the 2011 legislative election but, as the PTP only got 0.3% of the vote, he failed to achieve his election in the constituency of Madeira, having been unsuccessful once again in 2015.
In February 2017, José Manuel Coelho asked for political asylum in the Principality of Pontinha, which was granted by D. Renato Barros I.[7]