The 8 Best Places to Live in Portugal for Expats

Wondering where the best places to live in Portugal are? You’re not alone. Whether you’re an expat dreaming of a fresh start or a digital nomad chasing sun and slower living, this question is at the top of nearly everyone’s list.

The good news? Portugal delivers, no matter your lifestyle preference. From buzzing city centers to serene seaside towns, this country offers an incredible mix of lifestyles, landscapes, and homes to match every taste. So, if you’re thinking of making the move, here’s your guide to some of the most welcoming, beautiful, and livable spots Portugal has to offer.

Where do expats live in Portugal?

If you are an expat considering a big move to Portugal, it’s only natural to wonder about the best city to live in Portugal for expats, so that you can meet people from similar backgrounds while integrating into Portuguese culture. 

So, where do expats live in Portugal? Well, most tend to settle in areas that offer modern convenience and a welcoming community.

Unsurprisingly, Lisbon tops the list. It’s vibrant, international, and full of life, with great food, a buzzing tech scene, and plenty of English speakers. Nearby spots like Cascais and Estoril are popular.

The Algarve region is another favorite among beach-lovers, especially areas like Lagos, Tavira, and Albufeira. Porto, in Northern Portugal, is also hugely popular for its historic charm, great wine, and a slightly more relaxed feel than Lisbon. 

Of course, more adventurous expats are spreading out into smaller towns and even rural areas. However, the coast, the big cities, and a few cultural hubs remain the top picks for most expats looking to make Portugal their new home. This list of the eight best destinations will help you decide where to live in Portugal.

The Capital City of Lisbon

Lisbon is one of Portugal’s most popular cities — and it’s easy to see why. This lively capital offers everything from cobbled streets and ancient architecture to museums, markets, restaurants, and live music.

Plus, with beautiful beaches just a short ride away, you can enjoy the best of both city life and coastal escapes. Families will also have their pick of schools, with eight international schools in Lisbon, and a total of 20 international schools in the Greater Lisbon Area.

While Lisbon is more expensive to live in than other Portuguese cities, life here offers some exceptional benefits. English is widely spoken, and Lisbon is arguably the best place to live in Portugal for English speakers. Lisbon also has an international airport not far from its city center, making international travel easy.

Lisbon is also one of the best places to live for remote workers and digital nomads, boasting a high-speed internet connection and plenty of co-working hubs.

Porto

Slightly cheaper than Lisbon, Porto is considered one of the best cities in Portugal to live in. It is Portugal’s second-largest city, situated in the north along the Douro River, and famous around the world for its authenticity, Port wine, gastronomy, and architecture.

Most notably, Porto’s historic center is a UNESCO World Heritage Site, making it a popular holiday destination and a favorite among expats settling in the country. Porto is an up-and-coming hub for start-ups, and many international entrepreneurs have relocated to the city. The city also boasts a thriving real estate investment market.

Porto, being in the North of Portugal, has a more moderate climate than places located in Southern Portugal. However, Porto’s great health care, affordability, safety, and common use of English more than make up for it.

Braga

Attracting expats from across the globe with its beautiful northern location, Braga is Portugal’s oldest and third-largest city. Known for its rich cultural heritage, Braga is regarded as the religious center of Portugal and plays home to many famous churches, including the iconic landmark church and sanctuary of Bom Jesus do Monte, which is located close by in Northern Portugal.

Over the years, Braga has combined this rich history with modern properties and tourist attractions, and its narrow streets boast dynamic cafés, high-end boutiques, and a lively nightlife.

The low-density city is situated just 15 minutes from the mountains, 30 minutes from golden beaches, and 40 minutes from Spain. The city is family-friendly, offering a wide range of schools to choose from, including the Braga International School, and is considered one of the best places to retire in Portugal.

Funchal (Madeira)

With warm temperatures year-round set against the backdrop of lush forest slopes, rough mountains, and a sparkling blue ocean, Funchal, Madeira’s capital city, delivers at every turn.

Funchal is an up-and-coming destination for expats that offers a safe, family-friendly environment with plenty to do. Friendly locals offer you the chance to practice your Portuguese, and cheap taxis make it easy and affordable to navigate the city.

Known for its sunny weather, wine, and crafts, Funchal offers many popular spots for you to visit, such as the Farmer’s Market (Mercado dos Lavradores), the Sacred Art Museum, and the Cathedral of Funchal (Sé).

If you like a more laid-back way of life, Funchal is likely to be your destination of choice. It is less overrun with tourists than other Portuguese cities, and the cost of living is lower than in Lisbon and Porto.

Ponta Delgada (the Azores)

Ponta Delgada is the main city in the Azores and offers a family-friendly lifestyle. This city is also something of a hidden gem, being less frequented by tourists.

Having started as a simple fishing village, Ponta Delgada has grown to offer expats many of the advantages of island life combined with a cosmopolitan city center, such as good air quality, magnificent surroundings, and a lively local culture and economy.

Here, you can enjoy local food, explore the cobbled streets filled with colorful houses and traditional churches, and marvel at the unique tile patterns found on the city’s pavements.

Aveiro

Magnificent canals, Nouveau architecture, and inviting gondolas (called moliceiros) – no, we’re not talking about Venice. This is Aveiro, often called the Venice of Portugal, a traditional Portuguese city situated in central Portugal that offers visitors a rich culture, history, and charm.

Located not far from Porto, Aveiro is another city less traveled by tourists. This hidden gem is a safe city, and the quality of life remains high, making Aveiro popular among students, remote workers, and expats, particularly those looking to retire. To learn more about retiring in Portugal, visit our guide that tells you all you need to know.

In recent years, Aveiro is one of the European cities that has complemented its rich history with modern updates, making it easier for walkers and cyclists to move around. It now offers a greater variety of shopping malls, cafés, and indoor markets to entertain the entire family. Even better, Aveiro has good road links to Lisbon and Porto, making travel between the major cities easy.

Coimbra

Home to the longest river in Portugal, the Mondego, this charming university city with a vibrant student life forms part of Portugal’s Silver Coast or Costa de Prata. Known for its historic towns and beautiful beaches, the coastal region offers affordable real estate ideal for expats in Portugal.

Coimbra is home to the oldest and most prestigious university in Portugal, the University of Coimbra, and hosts the 12th Century Sé Velha cathedral at its historic center.

Coimbra is another very safe city that offers visitors access to delicious local cuisine, a lively nightlife scene, and easy travel by train to Lisbon and the rest of Portugal. In addition, the cost of living for an expat in Coimbra is more affordable than in many other parts of the country.

Portimão

Portimão has become a firm favorite among expats. They are drawn here not just for the golden beaches or sunny, pleasant climate, but for the unhurried pace, friendly locals, and the beautiful setting of the area with the backdrop of the Arade River.

With its large expat community, English is generally widely spoken in Portimão. The city combines historic buildings with modern apartment blocks and is located near Praia da Rocha, the main beach. It is also well connected with Lagos and Faro, other popular destinations in the Algarve.

While the city offers fewer employment opportunities, the cost of living for an expat in Portimão is cheaper than in other major cities in Portugal. Outside the busy summer months, Portimão offers a relaxed pace removed from the buzzing activities of surrounding beach towns.

Places You May Want to Avoid as an Expat Living in Portugal

While Portugal is full of hidden gems, not every location is ideal for expat life, particularly if you’re just starting your journey. Here are two places that may be better suited for more seasoned expats than first-time movers:

Deep interior villages in Alentejo

The Alentejo is known for its rolling plains, olive groves, and slow pace of life, but some of the smaller, more remote villages deep in the interior can feel a world away from modern conveniences.

Places like Barrancos or Moura, for example, offer authentic Portuguese living with rich traditions and a more peaceful lifestyle, but they’re not ideal if you need regular access to healthcare, international schools, or even just a café with a strong Wi-Fi connection.

You might also find very few English speakers and little to no expat community, which can make integration more challenging, especially for those not fluent in Portuguese.

Monsanto

Monsanto is often touted as “the most Portuguese village in Portugal,” with its granite houses nestled between giant boulders and sweeping countryside views. It’s a beautiful and historically rich destination, perfect for a day trip or even a peaceful weekend away.

But for expats considering a full-time move, Monsanto presents some real challenges. The village is small, remote, and has very limited services. Supermarkets and public transport are difficult to come by, and the population is small and aging. English isn’t widely spoken, and while that’s not necessarily a bad thing, it does mean integration into the community can take time and effort.

So, what are the best places to live in Portugal?

Like any move, relocating to Portugal comes with pros and cons, and finding the right balance of sunny weather, lifestyle, and cost can be tricky. The good news? Portugal offers a wide range of living options, from lively city centers to quiet coastal towns. Whether you want beachside peace, urban energy, or something in between, there are so many options for the best places to live in Portugal for expats.

Portugal’s allure continues to attract property buyers looking to relocate or invest. Despite house prices in major Portuguese cities rising, house sales have doubled over the past decade, indicating strong growth in demand.

Whether you’re in the market for a more family-friendly lifestyle, searching for your next country to explore as a digital nomad, or relocating for retirement, look no further than Portugal. With safe cities that offer a low cost of living and great quality of life, it’s no wonder that people keep asking about the best cities to live in Portugal.

Goldcrest: Who We Are and How We Can Help You

Goldcrest is a buyer’s agent that is based in Lisbon, Porto, and the Algarve. As such, we can help you find the best place to live in Portugal for expats, depending on your personal requirements and desires.

We provide expert, impartial advice on real estate investments and how to buy properties in Portugal. From scouting out the perfect property through to property acquisition, we have you covered.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. From sublime beach houses in the Algarve to modern renovated houses in the historic city of Porto, we are more than happy to discuss your options. Book a complimentary call with us here.