Best places to live in Portugal

Karen Burshtein

Where is the best place to live in Portugal? This depends on what you’re looking for. Portugal has been on travellers' radars for years; incredible food, historic settings, stunning beaches and reasonable prices. Word has spread and now Portugal is one of the most popular places to buy for home buyers and other aspiring expats from countries such as the UK, Germany, Denmark, and the USA. 

 

Portugal has a wealth of small villages and hidden gems, while its cities have equal measures of historic charm and sophisticated modern amenities for working and living. So if you want to know where to live in Portugal as an expat, here are our best places to live in Portugal.

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The Algarve 

Stunning beaches and charming towns have made the Algarve a favourite for expats. Most of these towns are a short drive from the Faro airport and the Algarve itself is about a four hour drive from Lisbon. (If you do relocate to the region, you will very likely want a car, as public transportation is not the best in this part of the country.) But where is the best place to live in the Algarve for expats?

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Albufeira

Once it was a quiet fishing village. Albufeira is now the Algarve’s party centra and draws plenty  of twenty somethings to its buzzing waterfront scene. But Albufeira has more to offer than just bars and nightclubs. It has some of the prettiest beaches in Portugal including the 6-km long  Praia da Falésia beach. Albufeira is a great option if you picture your days spent soaking in the sun with a break for a grilled fish lunch and late afternoon sangria followed by evenings of pumping music. Or people watching in a cafe in a square in the cobbled old town. There are also quiet, natural wonders to escape to, including the famously vibrant red and caramel coloured limestone cliffs and walks to secluded beaches you’ll get to know once you become a local. At the modern fishing port, you can mingle with fishermen or deep sea divers, or leave for boat trips and dolphin watching expeditions. 

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Loule 

Loulé is a fairy tale-like town perched atop a quaint hilltop along the coast. History lovers will love it, as much as those seeking  coastal pleasures and nature walks. Along with its old world charm Loule offers wild beauty to admire, including grasslands perfect for long days of hiking and rambling. In town there's a grand fortress, with a  whitewashed castle offering spectacular rooftop views. More medieval exploring is on offer in the Old Centre with its 17th-century chapel Capela de Nossa Senhora da Conceição.

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Tavira and Olhao

Two different towns in the southern Algarve region that are often grouped together. Tavira is the picturesque coastal getaway flanked by the turquoise waters and white sand of Praia do Barril which is accessed by a local ferry. Praia da Ilha de Tavira can be accessed by hike or a little train. While it accommodates the modern minded tourist and expat, Tavira still oozes lots of old world charm. The town is choked with traditional white-washed houses, charming cobbled streets, and historic places to explore, including the ancient fortified Tavira Castle.

Olhao is another fishing town and historically the canning and fish processing centre and it has an old school feeling  to it, with plenty of pretty pockets, and a train station right in the city centre that is convenient for day trips around the Algarve or farther, a plus in a region where public transport can be unreliable. 

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Lagos  

Bustling Lagos, is one of the most popular stop for visitors in the Algarve, thanks to its unspoiled nature: rocky coves, grottos and dramatic cliffs bordering beautiful sandy beaches, such as  Ponta da Piedade, Praia do Camilo, Praia de Dona Ana, and Meia Praia that stretch through the town. The cliffs are strategic in guarding beachgoers from wind and sun, so long relaxing days, and calm waters are some of the main attractions of the town. So, too is snorkeling, it  really is a coastal paradise. But the town's old world charm and history is also a draw. That’s why its often considered the best location to retire in Portugal.

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Madeira

Madeira is a little archipelago consisting of two inhabited islands, Madeira Island and Porto Santo. It’s famous for its sweet wine and year round pleasant weather. It is a vibrant location popular with expats, but perhaps not as much as the Algarve. It’s better suited for those wishing to really integrate into the local community.

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Portimão and Carvoeiro

Portimão is the second largest city in the Algarve after Faro with year round activities, even off season, because it's a port stop for international cruise ships. The town is known for its vibrant waterfront and cosmopolitan food scene, (with destination restaurants located at the northern point of the waterfront promenade), and old world squares where you can people-watch the afternoon away. And it’s also close to beautiful Praia da Rocha beach. The culturally curious will want to check out the excellent Museu de Portimão, and Nossa Senhora da Conceição cathedral, while beauty and adventure lovers will want to do an excursion to the spectacular Benagil caves. Portimão is also a great place to base yourself if you want to explore some of  the region’s villages and towns  including Carvoeiro just to the east, a picturesque, old world Portuguese town itself popular with expats.

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Silves

The medieval old town of Silves is sandwiched between citrus groves and vineyards, making it as picturesque as a place can get. Spend time at lovely cafes, sampling wine and local seafood. Then head out to the gold sand beaches of  Praia de Armação de Pêra and Praia Grande de Pêra. The beaches have their own innocent charm, with old-world kiosks and lovely sand dunes.  You can ride horses  around the low hills, or take children or young visitors to the popular Slide & Splash Waterpark. In mid-August, you can’t miss the 10-day Silves Medieval Fair which takes you back to the town of 1000 years ago in sight and taste. 

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Funchal

The capital city of Madeira has the attributes of a vibrant town, with the added advantage of being surrounded by hidden gems. There’s a cathedral dominating the old town with striking carved wooden ceiling, and a fortress surrounded by lovely rolling hills. The town mixes old and new with an excellent contemporary art gallery and a vibrant street art scene. It also has a very pretty farmers market where you can try fruit you never knew about, and lovely  gardens while its wine cellars are perfect for exploring and tasting the wine that Madeira is famous for. In short its more low key and feels very authentic, which is one reason Funchal has also become popular for working expats, especially remote workers.

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Calheta

Calheta, a picturesque  village on the southwest coast of the island of Madeira (also known as Estreito da Calheta), is protected by sea walls. The nearby villages of Paúl do Mar and Jardim do Mar attract surfers while cultural lovers are drawn to the clifftop Casa das Mudas Arts Contemporary Art Center. Around the town bananas, grapes are grown. Sugar cane has been grown here for centuries and many historic sugar mills dot the old town. One of them is now a museum, where you can also try the local speciality of bolo de mel (honey cake) as well as the  potent firewater aguardente, made from distilled cane syrup.  Like almost every town in Portugal, Calheta boasts an impressive and richly decorated church with Moorish-style wooden knot-work on the ceiling that is really breathtaking. It’s also one of the best water sport destinations in the country with everything from hiking to windsurfing to canyoning on offer.

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Cities and surrounds

Portugal's cities are beautiful, vibrant and mix old world charm with modern day amenities. Housing and cost of living are less expensive than many other European countries, making them a very attractive option for expats looking to retire or work remotely. 

 

Lisbon

Beguiling, cosmopolitan, Portugal’s capital city, is spread over seven hills along the river Tejo, and captures the hearts of all who get to know her. How could it not with its superb museums, gothic cathedrals, vibrant market places, and long lunches of ​​Portuguese cheese, meats, olives, dried fruits and pastel de nata tarts. Not forgetting the vintage trams, cobblestone streets, historic buildings with red tiled roofs and the famous blue and white azulejos. Lisbon has many co-working hubs, good high-speed internet connection and is considered one of Europe’s top  places to live, work and invest in real estate. Add the warmth of the people, and a growing economy and it's easy to see the appeal for a move whether you’re starting a business, or wanting to indulge in the city’s many pleasures and attractions. There are also more than 26 international schools in Lisbon, making it one of the best places to live in Portugal for families. 

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Cascais

The coastal town of Cascais offers sun soaked beaches, rocky cliffs, palm fringed streets, excellent seafood restaurants, and a picturesque harbour, all just a short drive west of Lisbon. It’s rather under the radar as a tourist destination and feels laidback, especially when you contrast it with the hustle and bustle of the nearby capital. The town has a lot of appeal, especially for history lovers; It was a 15th century fort and the whitewashed Nossa Senhora da Assunção church, with glazed azulejo tiles, is especially lovely. But it also has a new arts district for lovers of contemporary art. Another major draw is the Boca do Inferno “mouth of hell” grotto, though the spectacular beauty of this naturally ocean carved, rocky cliffside is anything but demonic.

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Castelo Branco  

The beautiful baroque town of Castelo Branco grew up around a Templar castle in the 13th century, (the castle now a museum showing off local artisan work including the famous Castelo Branco silk embroidery), and the town has endured wars and lots of Templar drama over the centuries. Castelo Branco was the seat of a diocese, and the Bishops’ Palace and its lovely garden are another two major draws to the city. The town is located halfway up the country’s interior not far from the Spanish Border, and its natural surroundings are as dramatically beautiful as the historic town - the Tagus river cuts through a mountain range carving a breathtaking canyon. The region around Castelo Branco is also one of the cheapest places to live in Portugal. 

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Porto

Six bridges cross the narrow Douro river in Porto, Portugal ‘s second largest city. Old villas line the city’s cobblestone streets, and magnificent azulejo tiles cover churches. Of course the city is famed as the home of Port wine and its many wine cellars are a joy to explore. The Ribeira district is popular with Instagrammers looking to capture the beauty of Portugal’s architecture, and its brimming with young businesses and start-ups, while the many markets in the city centre offer some of the best produce the region has to offer. Porto has become really popular with travellers over the past 10 years, with hundreds of flights from across Europe arriving every week. The lively city is also the gateway to the truly spectacular Douro Valley, home to some of Portugal’s best vineyards and breath-taking scenery. A boat ride along the river, with a stop at a picturesque restaurant should not be missed. If you’re looking for coastal fun, there are some fabulous beaches located along the nearby Costa Verde.

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Summary

Portugal has it all, whether you are planning to relocate to the soaring ochre cliffs, powdery golden beaches, and turquoise waters of the Algarve. Or you’re looking to enjoy the wine, food and history of Madeira or the cosmopolitan buzz of its historic cities. So if you’re asking yourself where should I live in Portugal? Hopefully we’ve given you some ideas. Whatever your choice, your days will be sunny and you’ll be joining an established expat community in a country  that is rich and historic, young and energetic, with accessibility, modern infrastructure and generally lower cost of living than most other European countries. 

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2 comments

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  • Marcel Verbeeck

    25 Jan. 2023

    Portugal altijd goed om te wonen ( prachtig land ! ) met vriendelijke groet , Marcel  - Portugal always good to live ( beautiful country )

  • Dawn

    10 Mar. 2023

    Hello Marcel, thank you for your comment on Portugal, yes a wonderful place to live, with the culture, nature, vibrant cities, quaint villages and over 900 kms of coastline.

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