The Best Places to Live in Portugal: 2026 Guide for Expats

How to choose where to live in Portugal?

Choosing the best places to live in Portugal means matching your way of life, work opportunities, and long-term goals to the right region. Costs, safety, climate, healthcare, schools, and even local amenities like parks or coworking spaces all matter.

For digital nomads and remote workers, having reliable high-speed internet, accessible coworking spaces, and a large expat community can make a huge difference. Places like Lisbon, Porto, or Braga are particularly appealing. They offer both professional opportunities and social networks.

Families often prioritize safe neighborhoods, family-friendly amenities, and international schools in Portugal. Places like Cascais, Oeiras, or parts of the Algarve provide low crime rates and plenty of outdoor activities.

Retirees may look for peaceful towns with good healthcare access and a warm climate. Regions such as Madeira, Évora, and smaller northern cities like Braga combine slower-paced living with affordable housing and quality healthcare in Portugal.

Investors, on the other hand, are often drawn to high-demand cities with strong rental potential. Areas such as Lisbon, Porto, and Cascais have property markets with long-term growth potential. The Portugal real estate market is growing with the second-largest annual increase in house prices in Europe.

What are the best cities to live in Portugal?

Looking for the best place to live in Portugal for English speakers? Here is a breakdown of the top locations based on lifestyle, affordability, and expat communities.

Lisbon

Lisbon is one of the best cities for expats in Portugal — and it’s easy to see why. The Portuguese capital offers everything from cobbled streets and ancient architecture to museums, markets, restaurants, and live music.

Moving to Lisbon is best for digital nomads, families, executives, and students. Some of the best areas to live in Portugal are in Lisbon, in neighborhoods such as Estrela, Parque das Nações, Oeiras, and Avenidas Novas.

Why it’s great:

• Job opportunities: Lisbon is one of the richest cities in Portugal, producing about 31 percent Portugal’s gross domestic product (GDP). The start-up scene is thriving with over 4,700 active startups and major events like Web Summit that attract global talent in software, digital marketing, finance, and tourism.
• Expat-friendly: The various co-working spaces and the 36 international schools in Lisbon make it one of the most expat-friendly cities in the country.
• Transport: Lisbon’s transport network includes a metro system with four lines and 56 stations carrying nearly half a million passengers daily, extensive buses, trams, and a commuter rail line. The Libson airport (LIS) directly connects the country to major global destinations.
• Property: The cost of living in Lisbon is high, but more affordable than in many Western European countries. Average property prices in Lisbon city are €6,934 per square meter and €4,935 in the Greater Lisbon Area.
• Lifestyle: It combines a relaxed coastal lifestyle with vibrant nightlife, cultural events, and gourmet dining. The city offers historic districts, seaside access, and a vibrant food and café culture.

Porto

Located in northern Portugal, Porto combines scenic beauty with a strong expat community and more affordable housing than Lisbon. Its rich history, gastronomy, and riverside charm along the Douro River make it one of the best cities to live in Portugal.

Porto is a historic city that is best for families, digital nomads, retirees, and students.

Why it’s great:

• Affordability: The cost of living in Porto is more affordable than in Lisbon. The average property prices in Porto city are €4,883 per square meter and €3,937 in the Greater Porto Area.
• Expat community: The city has a large expat community as an up-and-coming hub for start-ups. There are excellent co-working spaces and a thriving real estate investment market. You can find out more in our Porto, Portugal, real estate guide.
• Culture and lifestyle: Porto offers the modern amenities of a big city with the beautiful scenery of the Douro River, historic architecture, museums, and a vibrant culinary scene. Most notably, Porto’s historic center is a UNESCO World Heritage Site, making it a popular holiday destination.
• Transport: The Porto Airport (OPO) makes international business and leisure trips easy. The city has a reliable train network to reach other parts of Portugal and Spain, alongside extensive metro, tram, and bus services.
• Education and healthcare: Expats can enjoy quality healthcare and six international schools in Porto.

Braga

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 is home to many famous churches, including the iconic landmark church and sanctuary of Bom Jesus do Monte, located close by in Northern Portugal.

Braga is best for digital nomads, families, and retirees, and those seeking affordable city living with cultural charm. For many expats, Braga is the best place to live in North Portugal.

Why it’s great:

• Cost: The cost of living in Braga is low, with an average asking price of €1,832 per square meter. The monthly rent is significantly cheaper than in Lisbon and Porto, with prices varying from €608 to €801 for a one-bedroom apartment.
• Safety: One of Portugal’s safest cities, known for low crime rates, high quality of life, and a peaceful atmosphere.
• Lifestyle: Braga offers history, modern amenities, and a slower pace of life. It’s a great option for families and retirees who want culture without big-city prices. Those drawn to the historic architecture often invest in Braga, Portugal, real estate.
• Accessibility: The low-density city is situated just 15 minutes from the mountains, 30 minutes from beautiful beaches, and 40 minutes from Spain. There is a high-speed train connecting you to Porto, and a good network of buses for easy travel.

Coimbra

Coimbra is one of the best place for foreigners to live in Portugal, for those who prefer historic atmosphere, cultural activities, and relatively affordable prices. Known for its beautiful beaches the city has an active Portugal nightlife scene.

Coimbra is best for digital nomads, retirees, and students. It is a great choice for those who want to attend universities in Portugal.

Why it’s great:

• Cost: The average asking price for property in Coimbra is €1,547 per square meter. The cost of rent is also affordable, ranging from €572 to €792 for a single bedroom apartment. You can read more about it in our Coimbra, Portugal, real estate guide.
• Culture: This charming university city with a vibrant student life forms part of Portugal’s Silver Coast or Costa de Prata. It has many university events, libraries, festivals, and an active music scene.
• Expat appeal: Good for families and retirees seeking a blend of tradition and modern living. The pace is slower than Lisbon or Porto, making it ideal for those who enjoy culture, education, and a relaxed yet vibrant lifestyle.
• Safety: Coimbra is a very safe city for tourists, locals, and solo female travelers.
• Transport: As with most of the best places to live in Central Portugal, Coimbra has an excellent bus system and infrastructure. But, if you want to explore the surrounding area, it would be better to have a car.

Aveiro

Aveiro, often called the “Venice of Portugal”, is a traditional Portuguese city situated in Central Portugal. It offers a rich culture, history, and beautiful architecture.

For many foreigners, Aveiro is one of the best quiet places to live in Portugal, as it is smaller than major cities. There is a great variety of shopping malls, cafés, and indoor markets, making Aveiro best for digital nomads, families, retirees, and students.

Why it’s great:

• Cost: Property prices are relatively affordable at €1,975 per square meter. Rent is equally manageable from €636 to €866 per month for a single apartment. For more information, you can check out our article on Aveiro, Portugal, real estate.
• Community: Friendly, close-knit community that combines local traditions with a touch of international influence.
• Safety: 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 in Portugal.
• Lifestyle: The area has coastal access, charming canals, and festivals. This creates a welcoming atmosphere with a slower pace of life.
• Accessibility: Aveiro is well connected to Porto, and you have many buses to get around in the city. It is very walkable, and there are no slopes that you get in Lisbon or Porto.

Cascais

Dubbed the “Portuguese Riviera,” Cascais is ideal for luxury coastal living with beaches and a large expat community. Real estate investment in Cascais is popular among luxury buyers and celebrities.

For many high-net-worth investors, Cascais is one of the best coastal places to live in Portugal. It offers premium amenities such as world-class golf courses, fine dining, a marina, and an exclusive atmosphere.

Why it’s great:

• Cost: Cascais is a prime location in Portugal, best for luxury buyers and affluent investors. The average asking price is €7,260 per square meter, while luxury properties often exceed €11,000 per square meter.
• Lifestyle: This is a sophisticated coastal town with breathtaking natural landscapes and picturesque beaches.
• Transport: Cascais has excellent transportation links with easy access to Lisbon. The town is connected to Lisbon by the train line (Cais do Sodré station), while buses serve local routes. Roads are well-maintained for car travel, and Lisbon Airport (LIS)

Ericeira

Ericeira is part of Portugal’s Silver Coast, known for its walkable feel, cobblestone streets, and whitewashed houses. It is the best town to live in Portugal if you prefer an intimate atmosphere in a small seaside community.

Ericeira is best for families, remote workers, and young professionals. This charming coastal town is a surfer’s paradise, popular with expats seeking a tight-knit international community and a relaxed lifestyle.

Why it’s great:

• Lifestyle: The area offers a laid-back coastal lifestyle with plenty of surf schools, local cafes, and outdoor activities. To compare lifestyle, check our guide about Algarve vs Silver Coast.
• Cost: Ericeira is slightly more affordable than Lisbon, with average rents of €850 to €916 for a one-bedroom apartment.
• Access: Ericeira is a small coastal town with modest but functional transport options. It’s highly walkable locally, while buses, rideshares, and roads connect it with Lisbon.

Setúbal

Setúbal is a coastal city in Portugal along the Setúbal Peninsula. For many, Setúbal is one of the best expat cities in Portugal because of its coastal beauty, easy access to Lisbon, and high quality of life.

The Setúbal, Portugal, real estate market offers high value and access to waterfront properties with stunning views. It is best for nature lovers, families, and young professionals.

Why it’s great:

• Cost: With average asking prices of €2,865 per square meter, properties are relatively affordable compared to other major cities in Portugal. The monthly rent for a single apartment is between €704 and €877.
• Natural beauty: Setúbal is a paradise for nature lovers, combining coastal beauty, mountains, and wildlife. Highlights include Serra da Arrábida Natural Park with its cliffs and hiking trails, the sandy beaches like Praia da Figueirinha, and the Sado Estuary, where dolphins and rich birdlife can be spotted.
• Lifestyle: The lifestyle in Setúbal is relaxed and outdoors-oriented. There are fish markets, cultural festivals, and modern amenities.

Faro, Lagos, and Tavira (the Algarve)

The Algarve region is world-famous for its sunny climate, stunning beaches, and expat-friendly lifestyle, making it one of the best places to live in Portugal for families, retirees, luxury buyers, and international students.

For example, you can choose Faro for its vibrant city life, Lagos for its spectacular coastlines, or Tavira for its affordability. To find out more about the average housing prices in the region, check our article on Algarve, Portugal, real estate.

Why it’s great:

• Lifestyle: Life in the Algarve is relaxed, sunny, and outdoor-focused. The region enjoys over 300 days of sunshine per year, pristine beaches, world-class golf courses, and scenic towns. To compare lifestyles, check our article on Lisbon vs Algarve.
• Cost: The cost of living in Algarve is higher than many regions in Portugal, but more affordable than Western European countries. The average asking price is €4,385 per square meter, where luxury properties exceed €10,000 per square meter. For monthly rent, the average costs vary from €766 to €949 for a one-bedroom apartment.
• Expat communities: The Algarve has one of the largest and most diverse expat communities, making it one of the best places for Americans to live in Portugal. The region enjoys well-established networks, international clubs, English-speaking services, and social events.
• Transport: Faro provides access to the Faro Airport (FAO) with flights across Europe, plus a train station connecting to Lisbon and Porto. Lagos and Tavira are well served by regional trains and buses, but most residents rely on cars to reach the beaches, countryside, and smaller villages.

Madeira and Azores

Living in Madeira and the Azores are among the best places to live in Portugal as an American or any foreign national. They provide stunning natural beauty, a mild climate, a slower pace of life, and welcoming communities for expats.

Funchal, the capital of Madeira, is well-known for its picturesque coastline, lush gardens, and year-round mild weather. Madeira real estate offers modern amenities, good healthcare, international restaurants, and a vibrant harbor. It is ideal for expats who prefer a balance of urban comforts and easy access to outdoor activities like hiking, ocean sports, and scenic sightseeing.

Ponta Delgada, on São Miguel Island in the Azores, is the region’s main city and economic hub, known for its volcanic landscapes, hot springs, crater lakes, and lush green scenery. Buying property in Azores is ideal for expats or retirees who want peaceful island living with a strong connection to nature and a close-knit community.

Why it’s great:

• Lifestyle: Madeira and the Azores are best for island living. They offer mild climate, ocean activities, lush landscapes, and many hiking trails in Portugal.
• Cost: According to Numbeo, the cost of living in Funchal is 10 percent more affordable than in Ponta Delgada, without including rent. Although prices in both islands can be higher than in mainland Portugal, they are cheaper than in some of the prime tourist destinations in Western Europe.
• Community: These islands have welcoming expat communities, with many retirees and remote workers from the UK, Germany, France, and the Netherlands. There are expat clubs, social groups, and English-speaking services that make integration easier.
• Transportation: Although the local population relies on cars, ferry connections keep the islands accessible. The Madira airport (FNC) connects the island to the rest of the world.

What’s the best places to live in Portugal for expats?

Families and kids

Families with children often gravitate toward Lisbon suburbs, the Algarve, or Setúbal. These areas provide excellent schools, safe neighborhoods, access to parks and beaches, and a family-friendly lifestyle with plenty of outdoor activities and community support.

However, for those seeking affordable places to live in Portugal, expats often choose rural areas or smaller cities like Tavira in the Algarve.

Digital nomads and remote workers

Lisbon, Porto, and Ericeira are ideal for digital nomads, thanks to coworking spaces, reliable internet, and vibrant social scenes. They offer a mix of modern amenities, cultural experiences, and networking opportunities that make work and life enjoyable.

For those interested in the capital city, our guide to Lisbon real estate provides a detailed outlook of the average prices.

Retirees and expats

Retiring in Portugal, especially in the Algarve, Madeira, and quieter places like Évora, offers warm weather, affordable living, and a slower pace of life. They have beautiful landscapes, relaxing lifestyles, and fine dining experiences.

However, those who prefer to settle in the best retirement communities in Portugal often choose Porto or Lisbon. These cities have the largest expat population, making it easy to integrate.

Investors

Lisbon, Porto, and Cascais are prime locations in the Portugal real estate market. Property investors often choose these prime areas due to high demand, strong rental yields, and tourism appeal.

How do the costs compare across Portugal’s regions?

When you look at the cost of living in Portugal vs USA, you will realize that Portugal is significantly more affordable. However, the monthly costs vary based on the region you want to live in. Here is a quick breakdown.

Places You May Want to Avoid as an Expat

As an expat moving to Portugal, you may want to avoid very rural areas or smaller towns, such as inland Alentejo, the interior Centro region, remote mountain villages near Serra da Estrela, and far-north inland areas like Trás-os-Montes.

Although they are one of the safest places to live in Portugal, with stunning natural beauty and a high quality of life, they often have a small expat community. Fewer people speak English, and there is a limited number of international social groups.

However, if you are open to a quiet lifestyle and learning basic Portuguese, then rural areas can be a wonderful choice. You can read more about the different locations and climates in our guide to the quality of life 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 places 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. We also help you keep up to speed with financials, such as property taxes (IMT, stamp duty, and IMI and condo fees, if applicable).

Should you be contemplating renting over buying, we also offer a rental search service, protecting you, the renter, and helping you get settled in Portugal.

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.