Portugal is a top tourist destination thanks to a winning combination of beautiful beaches, a warm climate, and a relaxed pace of life.
It’s also regarded as one of the most welcoming European countries, with many expats finding it easy to adapt to Portugal’s cities and regions.
If you’re considering moving to this popular country on Europe’s southwestern tip, you need to know the best destinations and compare the pros and cons of each.
You also need to consider the investment opportunities and tax incentives available.
Wherever you choose to live and invest, let Nomad Capitalist look after all your residence needs in Europe and beyond.
We can help you determine whether mainland Portugal or an island like Madeira is best, depending on factors such as the cost of living, real estate, and the availability of health and education facilities.
Here are ten of the best places to live in Portugal.
Where is the Best Place to Live in Portugal?
Here are our top ten destinations we’d recommend for expats to live in Portugal, updated to reflect recent changes in cost of living, investment opportunities, and more.
10. Sintra
Nestled in the Sintra Mountains just 30 kilometres northwest of Lisbon, Sintra is a UNESCO World Heritage Site known for its fairytale-like palaces, lush gardens, and stunning landscapes. It has long been a favorite summer retreat for Portuguese royalty and nobility, giving it a historic charm.
Sintra’s real estate market is varied, offering historic estates, charming cottages, and modern apartments. However, it’s a fairly exclusive area, reflected in the property prices.
Real estate prices here are generally higher near the town center and famous attractions like the Pena Palace and Quinta da Regaleira. Expect to pay around €2,705 per square meter (sqm) for an apartment or €3,500 per sqm for a house in Sintra.
The town’s cooler mountain air makes Sintra a comfortable place to live compared to Portugal’s hotter areas. It’s ideal for expats and retirees who want to enjoy a mild, Mediterranean climate year-round.
With frequent train connections to Lisbon, Sintra is still a convenient and accessible place to live.
9. The Azores
The Azores is a North Atlantic Ocean archipelago located around 1,000 miles (1,600 km) west of the Portuguese mainland.
There are nine major islands, with São Miguel being the largest, where the capital, Ponta Delgada, is located. English is widely spoken on the larger islands.
Residents of the Azores enjoy a maritime subtropical climate with moderate temperatures all year round.
Real estate prices in the Azores can vary, but property is relatively affordable compared with mainland Portugal and Lisbon. For example, the median price for an apartment for sale in the Azores is €2,406 per sqm.
8. Alentejo
Situated in southern Portugal near the Algarve, Alentejo is Portugal’s agricultural heartland and largest region.
It also has stunning beaches and coves along its coastal edge, but it’s better known for its rolling countryside with crops, cork forests, vineyards, and olive groves.
This rural area produces two-thirds of the world’s output of cork.
Alentejo is especially ideal for retirees, with 25% of the population aged over 65.
Foreign creatives have been drawn to Alentejo’s laid-back charm, including fashion designer Christian Louboutin, architect Vincent Van Duysen, and artist Anselm Kiefer.
Expats are drawn to its stunning hilltop towns and the opportunity to sample locally produced wines, and it’s just over an hour by car from Lisbon.
7. Madeira
Madeira is one of two inhabited islands, the other being Porto Santo.
Like the Azores, the Madeira Islands are a North Atlantic Ocean archipelago. Major industries include tourism and the production of the famous Madeira wine. The capital, Funchal, is the 8th biggest city in Portugal, with a population of just over 100,000.
Madeira has become attractive to foreign investors looking to grow their real estate portfolio.
Funchal’s most famous son is soccer superstar Cristiano Ronaldo, who owns a mansion in his hometown. He has partnered with Portugal’s largest hotel group to establish a portfolio of Pestana CR7 hotels, planning to extend the brand into real estate with an apartment complex. The territory also offers lucrative tax benefits for companies, with a low corporate tax rate of 14.7%.
6. Aveiro
West Coast Aveiro borders the ocean. Here, you’ll find colorful moliceiros, boats traditionally used to collect algae, now used for sightseeing trips.
Aveiro is the 17th largest city in Portugal, with a population of around 55,000. It’s a striking place with canals, Art Nouveau buildings, a cathedral, and museums.
Aveiro’s property prices are steadily increasing, making it a good long-term investment. You can expect to pay around €2,950 per sqm for an apartment in Aveiro.
A rail network expansion project that includes Aveiro is set to connect Portugal’s largest cities with high-speed services.
5. Braga
Braga, the fourth biggest city in the country, has a population of just over 120,000 inhabitants. It’s located in northern Portugal with good rail and road connections to Porto.
Braga was the seat of the Portuguese court from 1093 to 1147 and is the oldest city in the country, founded by the Romans in 16 BC. It’s considered one of the happiest metropolises in Europe and one of the best cities in the world to retire in.
This northern city is also crypto-friendly. In May 2022, an apartment was sold for three Bitcoins – Portugal’s first-ever 100% crypto transaction.
4. Coimbra
Coimbra is a city and municipality in west-central Portugal. With close to 107,000 inhabitants, it’s the sixth-largest city in Portugal.
Parts of Coimbra’s downtown have UNESCO World Heritage status.
During the Middle Ages, Coimbra was Portugal’s capital for over 100 years. It’s home to the country’s oldest and most prestigious university.
Well connected by train to both Lisbon and Porto, Coimbra guarantees a low cost of living compared with more tourist-popular areas.
3. Porto
Porto, located on the banks of the Douro River estuary in northern Portugal, is the country’s second-largest city, with an estimated 1.3 million residents.
It’s 280 km north of Lisbon. An international airport offers flights to and from a wide range of global destinations.
Porto’s historic center is a UNESCO World Heritage Site.
The export of Porto, port wine, is now a world-famous regional drink only made in the Douro Valley. This northern city has a rich culinary tradition that includes caldo verde.
2. Lisbon
Like Porto, Lisbon is a safe city that attracts remote workers drawn to coworking hubs with high-speed internet connections. With an estimated population of at least 3 million, Lisbon has around twice the population of Porto.
As a capital city, it attracts large numbers of expats. The cost of living may be higher, but there are more facilities and services than in out-of-the-way locations.
Cascais, known as Lisbon on Sea, is a 25-minute train journey from the capital and forms part of the Lisbon District.
1. Algarve
The Algarve region enjoys some of the warmest weather in Portugal. As well as its beaches, the Algarve is renowned for its golf courses.
Popular Algarve hotspots include Tavira, which enjoys some of the best weather in the country, and Lagos, where the tourism industry has seen the development of high-quality coastal real estate.
Faro is a small city of 70,000 people, with a more affordable cost of living than Lisbon. Its historic center includes city walls and a vibrant town square.
Faro’s airport is small but well connected to the rest of Europe and beyond.
Living in Portugal
Living in Portugal is affordable and the climate is pleasant, with over 300 days of sunshine a year. This has seen the country become one of the most popular European destinations for expat retirees.
It’s also family-friendly, with good state education options.
How to Move to Portugal
There are a few different options for non-EU individuals looking to move to Portugal. If you don’t have Portuguese ancestry or family ties, the golden visa and the D7 Visa are the most popular routes. Both can lead to long-term residency and eventual citizenship.
The golden visa is an investment-based residency option, where you invest a minimum amount in a Portuguese VC fund, business, or research.
The D7 Visa, often called the passive income visa, is geared toward retirees or those with stable, recurring income. Applicants must show a minimum monthly income of €820 and financial savings in a Portuguese bank account.
After holding the D7 visa for five years, residents can apply for permanent residency or citizenship – as long as they have maintained continuous residency.
Best Place to Live in Portugal: FAQs
Where are the best places to live in Portugal for families?
Lisbon and Cascais are popular destinations for families due to their excellent schools, parks, and family-friendly amenities. The Algarve also appeals to families, where you can enjoy a relaxed lifestyle, outdoor activities, and international schools.
Where are the best places to live in Portugal for expats?
Lisbon, Porto, and the Algarve are top choices for expats, each offering a mix of expat communities, amenities, and cultural experiences.
Where is the best place to live in Portugal for English speakers?
Lisbon, Cascais, and the Algarve are the best choices for English speakers due to their larger expat populations and easy availability of English-speaking services.
Where are the best places to live in Portugal for Americans?
Lisbon and the Algarve are mostly preferred by Americans for their lively expat communities and conveniences.
Where are the best places to live in Portugal for retirees?
The Algarve is the most popular for retirees, offering a mild climate, affordable living, and beautiful coastlines.
Where are the best places to live in Portugal by the sea?
The Algarve and Cascais are standout options, with their stunning beaches, beachside cafes, and high quality of life.
Is Portugal a safe place to live?
Portugal is a safe place to live, ranking seventh on the Global Peace Index.
Will I pay lower taxes in Portugal?
There may be better deals elsewhere in Europe, particularly in tax-friendly countries like Cyprus, Malta, and Ireland.
Can I get by speaking English in Portugal?
Generally, yes, but it depends on the location.
Where do most expats live in Portugal?
Lisbon is home to people of over 80 nationalities.
How can I become a resident of Portugal?
Portugal’s golden visa is a fast-track residence-by-investment program. New legislation closed the path to Portuguese citizenship through property investment.
Is Portugal Right for You?
Portugal is a popular destination for expats due to its culture, natural beauty, and welcoming environment.
Choosing where to settle can be tricky. Our Nomad Capitalist team can help you find the best place to settle, whether you’re seeking a new home, a Plan B location, or want to expand your financial options.
Contact us today.
