Barbara Queiróz Updated: September 12, 2025
Digital nomads are flocking to Lagos, Portugal, in record numbers. With rents roughly 30 percent cheaper than in Lisbon, a strong digital infrastructure, and welcoming coworking spaces, Lagos has become one of Europe’s smartest destinations for remote workers.
However, the cheaper rent is not the only reason online entrepreneurs are moving to the city. Portugal’s Digital Nomad Visa allows remote workers who earn at least €3,480 to apply for Portuguese residency after five years.
As most countries offer short-term tourist visas, like France, Ireland, and the United Kingdom, which forces nomads to move every couple of months, Portugal gives them a chance to settle and build their life here under the Digital Nomad Visa, so they can feel more at home.
Lagos in the Algarve region draws attention because of the comfortable work-life balance, good quality of life, and high investment potential. In this article, we will talk about the main reasons people are moving to the city, where tech careers are headed in the future, and the latest statistics for digital nomads in Lagos, Portugal.
Large Digital Nomad Community
According to the Global Digital Nomad Report by Global Citizen Solutions, Portugal is the seventh best country for remote workers, scoring 90.12 in an index published in 2025. The ranking was based on multiple categories: tech and innovation, economics, quality of life, and tax optimization.
Lagos is one of the main digital nomad hubs in the Algarve region. The city has several festivals, meetups, and events explicitly designed to build a strong community for digital nomads. There are places to host team-building events and meet-ups to find new collaborations and create a network.
Some of the most well-known locations for digital nomads in Lagos, Portugal are:
- The Historic Old Town: This area is both convenient and stunning. The dedicated workspaces, local markets, and cafés are just a short walk away.
- Near Meia Praia: This area is very close to the beach and has a relatively relaxed atmosphere. You can use the nearby coworking hubs, beach bars, restaurants, and public transport.
- The Marina: This area is a modern and popular destination. It attracts remote workers who seek comfort in modern amenities, cafés, local buses, and waterfront apartments in the stunning coastline.
Most of the digital nomads in Portugal are millennials. The table below shows the age groups that make up the digital nomad community worldwide.
Age group | Number of digital nomads |
20 to 29 years | 14 percent |
30 to 39 years | 47 percent |
40 to 49 years | 16 percent |
50 to 59 years | 19 percent |
60 to 69 years | 4 percent |
70 years or older | 1 percent |
Source: Statista, 2023
Relatively Affordable Cost of Living
Digital workers who prefer to leave Lisbon and those who are coming over to Portugal for the first time, often choose Lagos in the Algarve. The living costs in Lagos are more affordable, with a single person spending about €800 per month (not including rent).
Rent prices are around 30 percent cheaper in Lagos compared to Lisbon, with an average rent of €1,050 for a one-bedroom apartment and about €1,733 for a three-bedroom apartment in the Lagos city center, according to Numbeo.
Lagos in the Algarve is a highly desirable destination for tech workers. It is widely praised for its affordable cost of living, good quality of life, sea views, and excellent safety.
Although smaller than the Portuguese capital, Lagos offers the perfect balance of a warm climate, access to beaches, and high-speed Wi-Fi. The costs are much cheaper than in Western European cities like Barcelona, Munich, and Zurich.
Living costs in Lagos in 2025 | |
Rent for a one-bedroom apartment in the city center | €1,050 |
Rent for a one-bedroom apartment outside the city center | €1,000 |
Average cost to buy an apartment (per square meter) in the city center | €3,536 |
Average cost to buy an apartment (per square meter) outside the city center | €4,347 |
Average monthly salary (after tax) | €1,100 |
Source: Numbeo
Good Work-Life Balance
Lagos has a more relaxed, slower pace of life than high-stress work cultures like those in the United Kingdom. Many remote workers enjoy a healthy work-life balance and personal time with their family.
Portugal ranks 10th out of 53 destinations in the 2023 Expat Insider Survey. Expats enjoy their leisure options, quality of life, and safety. It is relatively easy to get settled. The tech, digital marketing, and customer service sectors are known for being more progressive and offering flexible or remote work.
Main reasons expats move to Portugal | |
Better quality of life | 22 percent |
To retire abroad | 17 percent |
To live in this particular country | 8 percent |
Source: Expat Insider Survey, 2023
Reliable Digital Infrastructure and Coworking Spaces
Portugal is constantly working to improve its fiber-optic network and infrastructure. The country is focusing on the “Agenda Portugal Digital” action plan to make sure all households have a Gigabit network by 2030.
Major providers like MEO, Vodafone, and NOS have cables nationwide that provide high-speed Wi-Fi (often up to one Gbps or more), which you can use in urban and coastal areas like Lagos.
Since there are multiple providers to choose from, they compete with each other to offer faster, cheaper, and better internet. This is very useful if you, as a digital nomad, are using it every day for video calls, large file transfers, and cloud-based work.
Strategic Location and Accessibility
Lagos is a center for tourism, trade, and maritime activities. From here, digital nomads have easy access to the entire Algarve region, from the rugged cliffs and golden beaches to the hidden coves of the west. The public transport to Lisbon and Porto covers many destinations, and is a convenient alternative to car travel if you want to save on gas.
Lagos is about an hour’s drive from Faro Airport, the main international gateway for the Algarve. You can use it for direct flights to major European cities, like London, Dublin, Amsterdam, New York, and Berlin.
Digital Nomad Visa and Tax Benefits
The Digital Nomad Visa, also known as the D8 Visa, allows remote workers to move to Portugal as long as they earn a minimum of €3,480 per month, as of 2025. This residency visa is what makes the country incredibly popular for skilled tech workers who want to settle there.
Plus, the pathway to citizenship, and ultimately an EU passport, is much shorter than in many EU countries. In Portugal, you can become a citizen after five years of permanent residency, while in Spain, you must wait ten years.
Besides, taxes in Portugal are relatively simple, with many attractive incentives for remote workers. Although it is not a tax-free country, the Tax Incentive for Scientific Research and Innovation (IFICI), often called the NHR 2.0., offers a flat 20 percent tax rate on certain professional income for ten years.
Once you become a tax resident in Portugal, you pay taxes on your worldwide income. Digital nomads on a D8 Visa can become tax residents after spending 183 days or more in Portugal in 12 months, or if they have a habitual residence there.
If you do qualify for the ITS, your foreign-sourced income may be exempt from Portuguese tax. But the exemption only works if your home country has a tax treaty with Portugal, or your remote income is already being taxed in your home country.
High Investment Potential
Lagos attracts millions of euros in investments, especially from international investors. Buying property in Lagos, Portugal, can offer high rental yields, about 5.6 percent, with an average price to buy a house of €5,066 per square meter.
In the 2024 Wealth Report published by Knight Frank, the Algarve region took the number four spot for its strongest luxury real estate markets worldwide. There are plenty of luxury properties to choose from, like villas with ocean views and private pools.
The Future of Tech Jobs in Lagos, Portugal
The future for tech jobs is looking bright in Lagos. By 2025, job opportunities in the country are estimated to go up by 25 percent. Both local and foreign companies are hiring skilled workers. Jobs in demand are for experts in software testing, quality assurance, digital marketing, and cybersecurity.
The development of special projects, like the Algarve Tech Hub and the Algarve Tech Summit, clearly indicates that the region is actively developing into a major center for technology. These are the best places to meet like-minded people and build connections.
How can Goldcrest help you?
If you are planning to buy or rent property in Lagos, a buyer’s agent like Goldcrest can find the best property for you by scouring the local market, tracking listings, and providing the latest market data on actual and sales prices, including analysis on rental yields. Our property search service can help you find rentals all over Portugal.
Once we identify the property you would like to purchase, we can analyze potential prospects and offer valuable advice on the best investment opportunities. A buyer’s agent also offers after-sales services, like property management, leasing, and property set-up.
