An Expat’s Guide to Living in Algarve, Portugal

The stunning Algarve region of Portugal is no secret among travelers and expats. Best known for its sparkling beaches, near-constant sunshine, and rich history, the Algarve region has become a favorite among retirees, digital nomads, and expats seeking a fresh start by the sea and a lower cost of living.

In this article, we’ll delve into the beauty of the Algarve and provide you with key insights about what it’s like to live in this stunning part of Portugal. We’ll also take a closer look at:

• The pros and cons of living in Algarve, Portugal
• Property prices in the Algarve in 2025
• The best places to live in Algarve, Portugal
• The types of visas for non-EU citizens moving to the Algarve

The Algarve at a Glance

Before diving into the details, here are some quick facts about the Algarve to give you an overview of the region.

The Best Places to Live in the Algarve

The Algarve, Portugal has many authentic and beautiful places to choose from. If you have decided to live in this wonderful part of Portugal, here are some of the great options for you to consider.

1. Albufeira

Albufeira is the most popular southern region in the Algarve, with the perfect mix of historic architecture and modern elegance. The warm weather, amazing beaches, and welcoming locals make it the perfect place to enjoy all year long.

Albufeira offers the best of both worlds, with old-town charm and a buzzing nightlife. The city can get a little crowded during peak summer seasons, but you can also find some quieter suburbs.

Popular among tourists while still being a practical place to live, Albufeira boasts large supermarkets, good international schools, reliable healthcare facilities and good transport links. English is also widely spoken, making it easy to settle in.

2. Lagos

Lagos in the western Algarve has the longest beach in the region with stunning turquoise blue water. The town has something to offer for all kinds of expats, whether you are a retiree, a digital nomad, or a family settling into a new life.

As one of the Algarve’s most popular areas, the town remains lively for most of the year. It has a good mix of restaurants, coworking spaces, hiking spots, and other amenities that ensures there’s never a dull moment when living in Algarve’s Lagos.

Healthcare and public transport in the area are good, too, with efficient and reliable infrastructure.

3. Faro

Faro is the capital city of the Algarve. You can find many fancy restaurants, international companies, and high-standard fashion stores in Faro. If you are looking to live in a place that is the right blend of busy streets and peaceful regions, Faro is the best option.

Faro Airport is also located here, which is perfect for easy international travel and direct flights for keen travelers. Adding to the practicality of the area, you’ll also find well-equipped healthcare facilities, the University of Algarve, and several government offices in Faro, too.

4. Monchique

Monchique is an ideal place for nature lovers, as it is surrounded by mountains and far away from crowds. The town is famous for its healing thermal water from geothermal springs and health resorts. It is the spa capital of the Algarve.

The region is also famous for its handicrafts, such as lace works, wooden chairs, and wickerwork.

Monchique offers a peaceful alternative to the busier coastal parts of the Algarve, ideal for expats seeking a slower pace of life among natural beauty.

5. Quinta do Lago

Quinta do Lago is the best place to live in Algarve if you’re after luxury. It is an exclusive golf and residential resort town with pristine golf courses, top-class sports facilities, outstanding restaurants, and luxury housing options.

Quinta do Lago places a strong emphasis on wellness, with world-class sports facilities including swimming pools, tennis courts, and fitness centers. Its stunning beaches and its setting in the Ria Formosa Nature Reserve mean easy access to natural beauty and outdoor recreation.

6. Tavira

Tavira is a calm town located along the banks of the River Gilão, offering a traditional Portuguese lifestyle and a slower pace. It overflows with traditional Portuguese houses, churches, and cobblestone streets.

Down south, you can find the Ria Formosa Natural Park, protected waterways, and bird sanctuaries. You will find that Tavira and the Eastern Algarve, close to the Spanish border, are the most authentic parts of the Algarve region.

You will come across more affordable properties for sale here and the cost of living is also relatively low. Public transport is reliable, and Faro International Airport is less than 40 minutes away, adding to its practicality.

Buying Property in the Algarve

In Portugal, you’ll be pleased to know that there are no restrictions on foreigners buying property.

This section explores all you need to know about property prices in the Algarve and the steps and documents needed to ensure a successful purchase.

Property prices in the Algarve

The property prices in the Algarve vary based on the city you choose to live in, but a good tip is that houses outside the city center and further away from the coast are usually more affordable.

There are many types of properties to choose from, such as beach houses, modern apartments, and luxurious villas. Bear in mind that the type, size, location, and proximity of the properties to the beach will all influence the asking price of the home.

The table below will give you an idea of the average property prices per square meter in the different municipalities of the Algarve in 2024.

Enlisting the assistance of real estate professionals

To find your dream property in the Algarve, try working with a buyer’s agent who represents your interests and helps secure the best deal, unlike traditional real estate agents in the Algarve who work for the seller and earn more from higher sales.

Goldcrest is a local buyer’s agent based in Portugal that provides a service tailored completely to your needs. If you are considering buying property in Portugal, get in touch with us today for a complimentary call.

Required documents to buy property in the Algarve

There are certain documents you need to submit if you buy property in the Algarve. They are:

• Proof of identification (Portuguese ID card or a passport)
• Portuguese tax number (NIF)
• Contrato Promessa de Compra e Venda (CPCV): The purchasing agreement detailing the terms and conditions of the property transaction
• Energy Certificate: Provides details regarding the energy efficiency of the property and should be provided by the seller
• Imposto de Selo: The stamp duty payment, mandated by the Tax Authority for property transactions
• Caderneta Predial: The land register document containing pertinent information about the property, such as its location, boundaries, and registered owner

You can get a NIF number in Portugal from the government finance office by providing your passport and current address as proof. Note that to get a NIF number as a non-EU citizen, you will need to have a fiscal representative. It is also advisable to get a Portuguese bank account to avoid transaction costs.

Steps involved in the buying process

Below is an overview of the steps involved in buying a property in the Algarve:

1. Find your ideal property and secure financing if needed.
2. Make an offer and negotiate. Here is where a buyer’s agent can help you get the best price.
3. Sign the Promissory Contract, a binding agreement containing all the terms and conditions of the sale, and pay the deposit. Although not a requirement, we highly recommend working with a real estate lawyer.
4. Sign the Final Deed (Escritura) to transfer ownership and pay the outstanding amount.

Additional property buying costs

In addition to the amount you pay for the property, you need to bear the below-listed prices during the purchase:

• Notary fees: The Notary fees depend on the type of contract, but costs typically range between €500 – €1,000. The Notary signs the final deed that confirms the purchase of the property.
• Legal fees: You are required to pay legal fees to the lawyer to verify the documents and make sure everything is correct. Costs usually amount to €2,000 – €5,000.
• Property transfer tax (IMT): While transferring the property in your name, you need to pay the property transfer tax. The tax rates vary up to ten percent of the property value. You can read more about the property taxes that you will need to consider at the time of purchase and on an annual basis in our full guide to property taxes in Portugal.

You can read more about the property taxes that you will need to consider at the time of purchase and on an annual basis in our article: Property Taxes in Portugal 2025: An Overview.

Renting a Property in the Algarve

Renting property in the Algarve is a more flexible housing option if you’re not quite ready to buy. According to Numbeo,  you can rent a one-bedroom apartment in a city center for €1,000 per month, while a three-bedroom apartment would set you back around €1,800 per month.

Here is a brief overview of the key steps involved with finding a rental property in the Algarve:

1. Get a NIF number.
2. Submit proof of ID (Portuguese ID card or passport) along with your rental application.
3. Pay the first month’s rent and security deposit, as agreed with your landlord.
4. Sign the rental contract, which will include all details of the parties involved and the rental property terms.

The Cost of Living in Algarve, Portugal

While the region is generally an affordable location in Europe, the cost of living in the Algarve, Portugal, will depend on lifestyle habits. You should find that most things are reasonably priced, particularly when compared with the USA or other European countries.

In this section, we’ll provide some insights into the cost of living in the region, from food expenditures to internet costs.

The cost of food

The Algarve has lively local markets where you can get fresh local produce at affordable rates, alongside a wide range of supermarkets. A top tip is to buy local where possible, as imported foods can cost significantly more. See the table below to get an idea of what some pantry staples will cost when living in the Algarve.

Source: Numbeo

Restaurant costs

The prices at restaurants vary depending on the type of restaurant. There are many fine-dining restaurants in the Algarve that will make you want to visit again and again, but also more affordable options that still offer unbelievably tasty food. For authentic Portuguese cuisine, there also many family-run tascas (traditional Portuguese restaurants) offering local and affordable food.

In the table below, we have provided you with the approximate restaurant costs in the Algarve.

Internet and utility costs in the Algarve

The costs for unlimited internet will set you back around €50 per month, while the cost of Algarve basic utilities, including electricity, heating, cooling, water, and garbage, comes to around €135 per month.

Transportation in the Algarve

You can find numerous trains and buses to travel between the regions in the Algarve, and public transport is quite affordable when compared with other Western European countries.

If you are traveling long distances by public transportation, the train is the better option. The prices are affordable, and if you book in advance, you may also get a good discount.

Day passes for the bus usually cost around €3-€7, and you could catch a train from Faro to Lisbon for around €12.

If you prioritize comfort, you can also rent a car from a local rental company. This will cost about €20-€30 in peak seasons and much less during the winter months.

Living in Algarve as a Foreigner: Residence Permits and Visas

One of the best things about relocating to Portugal is the array of residency options available. Below, we explore these options, depending on where you’re moving from.

Living in the Algarve as an EU citizen

If you are an EU-citizen, and if you are going to stay in the Algarve for more than three months, you need to apply for a registration certificate at the local council 30 days after your three-month entry into the country.

Living in the Algarve as a non-EU citizen

If you are a citizen of a non-EU country and are thinking of living in the Algarve, you are required to apply for a Portuguese residency visa. The country makes this process easy by offering a variety of residency options to choose from. Below are the most popular options available.

Portugal Golden Visa: The Portugal Golden Visa program offers residency in Portugal in exchange for investment in the country. The Portugal Golden Visa is an excellent option if you are looking to invest in the country in exchange for an investment. Golden Visa options include investing in investment funds, cultural production, or job creation, with a minimum investment amount of €250,000. The Portugal Golden Visa has proved to be one of the most popular residency-by-investment programs since its inception in 2012.

D7 Visa: Also known as the Retirement Visa or Passive Income Visa, the D7 Visa allows individuals to relocate to Portugal provided they have sufficient passive income. To qualify for this visa, the minimum passive income you’ll need to earn is €870 per month (the minimum wage in Portugal)

Digital Nomad Visa: The Digital Nomad Visa grants a residence permit to those who work remotely for a non-Portuguese company and earn at least four times the Portuguese minimum wage (€3,480 per month).

These are just a few of the available options. If you’re considering a move to Portugal and want to explore your residency options further, our division specializing in residency and citizenship, Global Citizen Solutions, is ready to assist you.

Living in the Algarve as a US citizen

If you are a US citizen and planning to live in the Algarve for more than three months, you need to apply for a residence permit, as would any other non-EU citizen. The process is straightforward and easy, and the most popular options are the D7 Visa, Golden Visa, and Digital Nomad Visa, as shown above.

Things To Do in the Algarve

The Algarve is renowned for its stunning scenery. Below are a few top attractions to consider.

Benagil Sea Cave: Accessible only by boat, this cave features a striking natural dome with a hole in the ceiling, allowing sunlight to stream in and illuminate the interior. If you are looking to experience jaw-dropping nature, you need to visit the Benagil Sea Cave.

Ria Formosa Natural Park: A protected area in the center-east of the Algarve region. The Ria Formosa Natural Park is a network of lagoons, marshes, and barrier islands, rich in biodiversity and popular for birdwatching and boat tours.

Old Town of Faro: Meander around the historic center of Faro, with its cobbled streets, charming squares, and notable landmarks such as the Cathedral of Faro and the Arco da Vila gate. You’ll also find several boutique shops here selling handicrafts.

Silves Castle: For history lovers, Silves Castle is well worth a visit. Explore the well-preserved Moorish castle in the town of Silves, which offers panoramic views of the surrounding countryside. You will also find Roman ruins close to Cerro da Vila.

What are the pros and cons of living in Algarve?

Now that we have a better idea of what living in the Algarve looks like, we can accurately sum up the pros and cons of living in the region.

Pros of living in the Algarve

Some of the advantages of living in the Algarve include:

• Some of the best beaches in Europe
• Mediterranean climate with mild winters
• Many expats with a strong English-speaking community
• Affordable cost of living compared to other European destinations
• Rich cultural heritage and welcoming locals
• Top international schools
• High quality healthcare professionals and facilities

Cons of living in the Algarve

Some of the disadvantages of living in the Algarve include:

• High tourist numbers during peak seasons and overcrowding in popular locations
• Limited opportunities in the job market, particularly outside of tourism-related industries
• Bureaucracy can be slow in some areas of Portugal.
• Living in the Algarve in winter can get cold inside, as houses are often not well insulated. Ensure you have a good heating system in place for those colder days.