The 8 Best Places to Live in Portugal for Expats

How do I choose the right place in Portugal?

To choose the right place in Portugal, consider your lifestyle and priorities. City lovers should seek Lisbon or Porto. Lisbon is the cosmopolitan capital where there is always something to see and do, and where you are in the beating heart of the city. Porto offers a quieter alternative and is renowned for its community feel and beautiful, narrow streets.

The best places to live in Portugal for families are Lisbon and the surrounding area of Cascais and the Portuguese Riviera, and Porto, as you’ll find a wide range of international schools in Portugal located there.

Other nice places to live in Portugal include the historic cities of Coimbra, Braga, and Aveiro, each of which would be perfect for retirees looking for a quieter city, digital nomads, or families.

For beach lovers, the Algarve is a no-brainer, with stunning landforms and more than 150 beaches, and is particularly favored amongst retirees. A more authentic alternative is the Silver Coast or Setúbal, while Melides and Comporta in the south west offer unrivalled luxury

For natural escapes, the Alentejo should be on your radar for affordable properties and a slower pace of life, while there is no beating the Douro Valley for its impeccable wine.

The best place for you will simply depend on your needs and your preferred location. As Portugal is quite a small country, it can be worth exploring different regions and cities to decide which spot has the right feel for you.

Best Portugal Cities by Region

The Capital City of Lisbon

• Best for: All expats, particularly digital nomads, families, executives, and students
• Property prices: €6,934 per square meter (€4,935 in Greater Lisbon Area)

Lifestyle and vibe

Lisbon is Portugal’s most popular city — and it’s easy to see why. Portugal’s capital offers everything from cobbled streets and ancient architecture to museums, markets, restaurants, and live music. Some of the best areas to live in Portugal are in Lisbon, in neighborhoods such as Estrela, Parque das Nações, Oeiras, and Avenidas Novas. Each of the best neighborhoods in Lisbon will have its own distinct energy and vibe.

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. There are also world-renowned universities in Portugal, focused in Lisbon, Porto, Braga, and Coimbra.

Lisbon is also one of the best places to live for remote workers and digital nomads, boasting a high-speed fiber internet connection and plenty of co-working hubs, with international events such as Web Summit lighting up the city each year. You also have many job opportunities in Lisbon. English is widely spoken, and Lisbon is arguably the best place to live in Portugal for English speakers, with the highest number of job opportunities in the country.

Cost of living

While the cost of living in Lisbon is higher than in other Portuguese cities, life here offers some exceptional benefits, and compared with other capitals in Western Europe, Lisbon remains affordable. The cost of living in Lisbon is 40 percent lower than in London and 25 percent lower than in Paris, including rent.

Transport and accessibility

Lisbon also has an international airport not far from its city center, making international travel easy. You also have the metro, trams, and buses to easily get around the city, with Bolt and Uber being highly accessible and cheap.

Find out more about Lisbon Real Estate.

Porto

• Best for: Digital nomads, families, retirees, and students
• Property prices: €4,883 per square meter (€3,937 in Greater Porto Area)

Lifestyle and vibe

Porto 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. Many of the best neighborhoods in Portugal are in Lisbon, but Porto also has incredible neighborhoods, such as Foz do Douro and the historic center, that can definitely rival Lisbon for beauty.

Retirees will also find a calmer city than Lisbon, with Matosinhos and Vila Nova de Gaia, two nearby cities that also stand out as locations for all types of expats.

Porto is an up-and-coming hub for start-ups, and many international entrepreneurs have relocated to the city, alongside many digital nomads, with there being excellent co-working spaces in the city. The city also boasts a thriving real estate investment market that continues to move from strength to strength.

Porto is considered one of the best cities in Portugal to live in, but being in the North of Portugal, the city 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.

Cost of living in Porto

Slightly cheaper than Lisbon, many choose to relocate to Porto as it is a highly affordable city. The cost of living in Porto is around 14 percent lower than in Lisbon, with everything from dining out to grocery shopping being quite affordable.

Transport and accessibility

Porto has its own international airport, making international business and leisure trips easy. The city itself has a reliable train network to get to other parts of Portugal and to Spain, alongside an extensive metro, tram, and bus service for the city itself.

Find out more in our Porto Real Estate guide.

Braga

• Best for: Digital nomads, families, and retirees
• Property prices: €1,832 per square meter

Lifestyle and vibe

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. More recently, Braga has exploded as one of the top tech hubs in Europe, providing tech companies, entrepreneurs, and remote workers a base to enter the European market, and agencies, such as InvestBraga, are generating targeted investment to support infrastructure and innovation growth.

Arguably the best place to live in North Portugal, 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.

Cost of living in Braga

The cost of living in Braga is low, with average prices around 26 percent lower than in Lisbon and 14 percent lower than in Porto. One of the main attractions for many relocating to Portugal is its affordability, and this is where cities such as Braga truly shine.

Transport and 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 fast train that connects you with Porto, where you have the international airport. In the city of Braga itself, you have a good network of buses to get around easily.

Learn more about this historic city in our Braga Real Estate guide.

Funchal (Madeira)

• Best for: Digital nomads, families, and retirees
• Property prices: €3,693 per square meter for Madeira, Funchal prices may be higher

Lifestyle and vibe

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. Living in Madeira means embracing a warm climate throughout the year.

One of the best places to live in Portugal, 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). The first digital nomad village was created in Madeira, making the island a gem for remote workers.

Cost of living in Madeira

If you like a more laid back lifestyle, Funchal is likely to be your destination of choice. It is less overrun with tourists than other Portuguese cities, and the cost of living in Madeira, Portugal, is lower than in Lisbon and Porto, although, as an island, imported goods can be higher.

Transport and accessibility

While there are bus networks, we recommend having a car to easily get around Madeira. The international airport does, however, offer regular flights to Europe and the USA.

Explore Madeira in greater depth in our Madeira Real Estate guide.

Ponta Delgada (the Azores)

• Best for: Retirees and nature lovers
• Property prices: €2,246 per square meter for São Miguel, Azores

Lifestyle and vibe

Ponta Delgada is the main city in the Azores, situated on the island of São Miguel, and offers a relaxed lifestyle. This city is still 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.

Cost of living in the Azores

The Azores are one of the most affordable parts of Portugal. You should find everything to be quite reasonably priced, although imported goods may be pricier. Housing and rent costs are also much more affordable than in many places in Continental Portugal.

Transport and accessibility

With international airports providing regular flights to Europe and the USA, for a small island archipelago, the Azores are quite well-connected. To get around on the islands, you will need to have a car.

Learn more about buying property in the Azores.

Aveiro

• Best for: Digital nomads, families, retirees, and students
• Property prices: €1,975 per square meter

Lifestyle and vibe

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, but it has been gaining momentum in recent years. 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.

In recent years, Aveiro has been 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.

Cost of living in Aveiro

Aveiro is an affordable coastal city in Portugal, with reasonable prices that are much cheaper than in Lisbon and Porto, although it is slightly more expensive than Braga (prices in Aveiro are around 8 percent higher).

Transport and accessibility

Aveiro is well connected to Porto, and you have many buses to get around in the city, although it is possible to walk around Aveiro quite easily, and there are no slopes that you get in Lisbon or Porto. You should have a car to get further afield, and the closest airport is the international airport in Porto, which is about an hour’s drive away.

Learn more about Aveiro Portugal Real Estate.

Coimbra

• Best for: Digital nomads, retirees, and students
• Property prices: €1,547 per square meter

Lifestyle and vibe

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 Portugal nightlife scene, and easy travel by train to Lisbon and the rest of Portugal. Coimbra, along with Aveiro, is often mentioned as being the best place to live in Central Portgual.

Cost of living in Coimbra

The cost of living in Coimbra is less than in Lisbon, Porto, and Aveiro, and on par with Braga, being just marginally more expensive.

Transport and accessibility

As with most of the best cities in Portugal, Coimbra has an excellent bus system and infrastructure, thanks in part to its strong student community. If you want to explore the surrounding area, it would be better to have a car.

Discover Coimbra in greater detail: Coimbra Real Estate.

Portimão

• Best for: Retirees and families
• Property prices €3,272 per square meter

Lifestyle and vibe

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, one of the most stunning beaches in the Algarve. It is also well connected with Lagos and Faro, other popular destinations in the Algarve, and Loulé, Quarteira, Vilamoura, where you’ll find more luxury properties in and around the famous Golden Triangle of the Algarve.

Portugal is one of the best countries for American expats to move to, and many US nationals have chosen to relocate to Lagos,  to the west of Portimão, which offers waterfront real estate and a high quality of life. Lagos has fast become the best place to live in Portugal for Americans, alongside Lisbon and Porto.

While Portimão offers fewer job opportunities than in Lisbon and Porto, the cost of living for an expat in the city is cheaper than in other major cities in Portugal, and remote workers will enjoy a high-quality lifestyle. You’ll also find Portimão and the Algavre in general to be a massive golf hub, with world class international golf courses here offering greens with sweeping ocean views.

Outside the busy summer months, Portimão offers a relaxed pace removed from the buzzing activities of surrounding beach towns.

If you are undecided on whether Lisbon or the Algarve is the best place for you, you can check out our comparison guide: Lisbon vs Algarve.

Cost of living in Portimão

Portimão is quite an affordable part of the Algarve, although foreign demand has bolstered the prices. When comparing the cost of living in Portugal vs the USA, Portugal is much more affordable, and coastal real estate can be a smart financial investment. The cost of living in Portimão is generally lower than in Lisbon, but it’s worth bearing in mind that this depends hugely on your lifestyle.

Transport and accessibility

Portimão is well connected through the Algarve’s rail network and local buses, although to better explore lesser-known areas and hidden gems in the Algarve region, it is best to have a car. The closest airport is Faro Airport, about an hour’s drive to the west.

Learn more about Portimão: Portimão Real Estate.

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 overseas. Here are four 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 Portugal healthcare, international schools, or even just a café with a strong Wi-Fi connection. Large cities in the Alentejo, such as Évora or Beja, will, however, have very good healthcare, although doctors may not speak as good English as in Lisbon or Porto.

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. If you are into hiking, you will find some of the best opportunities for hiking in Portugal in the Alentejo region, with many Portuguese locals choosing the region for their holidays to escape from the bustle of the city.

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 a bad thing, it does mean integration into the community can take time and effort.

Guarda

If you are seeking a charming, historic city where you’ll find affordable properties in one of the hidden gems of Portugal, living in Guarda could also be an option. Nestled close to the Serra da Estrela mountains, moving to Guarda, you’ll be able to enjoy one of Portugal’s most underrated cities, packed with stunning natural landscapes and incredible gastronomy. However, compared with Lisbon and Porto, there are fewer choices when it comes to international cuisine and events. 

Silver Coast

Portugal’s Silver Coast is one of the last unspoiled gems in Europe, situated on the coastline between Lisbon and Porto. From the whitewashed houses with blue façades in Ericeira to the authentic pace of life in Peniche, for those seeking a quieter alternative to the Algarve, the Silver Coast is an attractive option.

Find out about the best place to live on Portugal’s Silver Coast. In some of the quieter towns, however, it can be trickier to establish your network of friends, although in places where you’ll find more expats, such as the surf town Ericeira, it is much easier, with Ericeira having a strong community feel to the town. Óbidos, Nazaré, Caldas da Rainha, and Peniche are other beautiful areas on the Silver Coast that you may want to consider.

Wondering whether the Algarve or the Silver Coast is a better match for you? Check out our comparison guide: Algarve vs Silver Coast.

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, to cater to all expat types. 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.

Ease of relocating to Portugal

The fact that Portugal is one of the easiest countries to immigrate to, given its range of residency options, makes Portugal a popular relocation choice. Digital nomads can opt for the Digital Nomad Visa (D8 Visa), retirees for the D7 Visa, and entrepreneurs for the D2 Visa. The Golden Visa is also a popular residency option for investors. As a Portuguese resident, you can enjoy EU free movement.

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 a great quality of life, it’s no wonder that people keep asking about the best cities to live in Portugal.

You will find a wide range of property types to cater to different needs, including city center apartments, suburban houses, beach houses, villas, and country homes.

Find out more about the quality of life in Portugal, which is now famously attractive to foreign buyers and expats from across the globe: Portugal Quality of Life: Top Ten Reasons to Move to 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.