Best Places to Live in Portugal: Ideal Cities for Expats

Feeling the itch to move to Portugal? You are not alone. According to the latest Portuguese Migration and Asylum Report for 2023, the foreign resident population in Portugal currently totals 1,044,606, an increase of 33.6 percent from 2022 to 2023.

Offering 300 days of sunshine a year and the option to live in a bustling city center or along the calming coast, Portugal is one of the most popular European countries among expats looking to relocate abroad. With so many attractive locations across the country, including UNESCO World Heritage sites, deciding on the best places to live in Portugal can be overwhelming. To help you make your choice, this guide outlines the best cities in Portugal for expats to live.

If you’re looking to relocate to a country that offers a great quality of life, Portugal is the place for you. With its breathtaking scenery, delicious local cuisine, rich and diverse culture, and fascinating historic charm, this popular European country has many wondering where the best cities to live in Portugal for expats are.

Portugal provides a high standard of life, a relaxed, laid-back lifestyle, amazing weather throughout the year, a great health care system, excellent international schools, and affordable real estate options. In addition to this, the country offers its inhabitants a good social life, modern public transportation systems, low crime rates, welcoming locals, and a diverse culture.

With so many lifestyles available across Portuguese cities, anyone looking to relocate to the country is guaranteed to find a location that meets their needs. For example, sun-seekers will enjoy Portugal’s Algarve region, characterized by sunlight and warm temperatures, thanks to the influence of the Atlantic Ocean. Those who prefer more moderate temperatures will enjoy northern Portugal. These excellent conditions have seen organizations like Forbes describe Portugal as one of the best countries for expats to live in.

Porto

Portugal’s second-largest city can be found in the north of the country along the Douro River. The weather can be a bit colder than the rest of Portugal, but with its charming atmosphere, art nouveau buildings, and breathtaking scenery, Porto is guaranteed to give you an authentic Portuguese experience. Porto’s historic center is a UNESCO World Heritage Site, which, along with its architecture, shopping malls, gastronomy, and Port wine, has made it a popular holiday destination for tourists from all over.

Not only is Porto a great destination for holiday-makers, but it is also considered one of the best places to live in Portugal for expats and digital nomads. For those looking to work in Portugal, Porto is a fantastic choice, particularly if you are an entrepreneur. Over the years, the city has served as an up-and-coming hub for the start-up scene and welcomed many international entrepreneurs who have identified the opportunities offered by Porto and chosen this amazing city to be their new home.

If you’re searching for a more affordable city to live in with authentic Portuguese culture, Porto should be on your list. Slightly cheaper than Lisbon, Porto offers a variety of properties, such as luxury homes, family homes, townhouses, apartments, or new developments.

Some of the best neighborhoods in Porto include Avenida do Aliados, Boavista, Campanha, Foz do Douro, and Riberia. With so many great choices, our guide to buying property in Porto, Portugal can help you make your decision.

Faro

Portugal’s southernmost region, the Algarve, is known for having the best weather, a stunning coastline, and picturesque beaches. Faro is the Algarve’s main city, located along the Spanish border, and its golden sun, tranquil sea, and delicious seafood have caused many retirees and other expats to relocate and settle in the city. With its exceptional weather throughout the year, slower pace, laid-back lifestyle, and nearby beaches, the advantages of living in Faro are unmatched for many.

In terms of real estate, Faro’s market is booming. With a strong expat community and lower rental property prices than in Lisbon, Faro is a great city to live in. The cost of houses for sale in Faro is cheaper in comparison to properties for sale in Lagos and Albufeira. If you’re interested in investing in a property in the capital of the Algarve, our guide to Faro Portugal real estate will give you a fantastic overview.

Faro is only about a two-hour drive from the capital city, Lisbon, and its transportation system is well-developed, making it a hassle-free experience to navigate between cities. Expats can easily explore the Algarve region from Faro too. It also has an international airport, a short 10-minute drive from the city center, making it easy to travel both nationally and internationally.

There are many gems in the Algarve, and Faro is one that is often overlooked for more well-known locations. Despite this, Faro’s cobblestone streets, historic charm, hot weather, quieter lifestyle, and desirable location continue to attract visitors from all over, making it one of the best cities in Portugal for expats to live.

Viseu  

The medieval city of Viseu is located in the center of Portugal. On multiple occasions, Viseu has been ranked as one of the best cities in Portugal to live in, as well as one of the best European cities. It’s not hard to see why when expats can find anything they need to lead a happy life in the city of Viseu.

Viseu Portugal real estate market is attractive to buyers worldwide. Its inhabitants enjoy an excellent quality of life in the form of fantastic weather, efficient public transportation, and top-notch medical care. In addition to this, real estate in Viseu is not expensive, and the job market is on the rise.

What’s more, Viseu is the perfect city for those who like to hike and go on excursions in nature as it is surrounded by mountains and rivers.

The city’s charming Renaissance architecture displays its rich culture and history, as do the statues that decorate its cobbled streets. While it is less well-known than cities like Lisbon and Porto, Viseu sees its fair share of tourists and expats, meaning English speakers can be easy to find. If you want to practice your Portuguese, however, Viseu would be a great place to do so.

With an affordable cost of living, a lively café culture, and plenty of activities to keep you entertained, Viseu is the perfect city for expats looking for a peaceful lifestyle and excellent quality of life.

Évora 

Évora is the capital city of Portugal’s south-central region, called the Alentejo, not too far from the Spanish border and just north of the Algarve. The calm city of Évora is full of charm, with its beautiful medieval architecture hinting at its fascinating history. In fact, it is the city’s history that led UNESCO to classify Évora as a World Heritage site.

The best way to explore the history of the city is on foot. In fact, Évora’s small size makes exploring the entire city easy and enjoyable. A walk through its narrow, historic streets will show you white houses, churches, temples, and historical monuments.

If you’re a lover of history, this Portuguese city is the perfect place to establish your new home.

Évora’s local attractions include the Church of Santo Antão and the marble drinking fountain (Chafariz), which lie in the historic center of the small city. Other attractions include the Roman baths and the São Francisco Church with its mysterious Chapel of Bones (Capela dos Ossos).

Évora is also home to the second-oldest university in Portugal (the oldest being the university of Coimbra), as well as the Roman Temple of Évora (also known as the Temple of Diana), one of the greatest and most preserved Roman temples in the Iberian Peninsula. Aspiring students can learn more about higher education options in our Universities in Portugal article.

Both of these iconic landmarks are also located in the center of the city.

With so much to see, travel within Évora is easy and nothing short of fascinating. If you’re looking for things to do outside of the city, there are nearby wineries that offer the opportunity for fun day trips.

As you now know, there are many advantages to living in Évora. The weather is generally excellent, and its relatively small size means it is not often crowded. It is also not overrun with tourists, which can be a problem in Lisbon and the popular cities in the Algarve. With plenty of sites to see, friendly people to meet, and cafés and restaurants to taste the delicious local dishes, choosing to live here will allow you to enjoy a relaxed and peaceful lifestyle.

A Chance to Live in Central Portugal

Central Portugal offers a balanced blend of urban conveniences and serene landscapes to suit your desired lifestyle. Living in this region means being close to both bustling cities and the calm of nature. It’s a great area for those who want a taste of both worlds.

Central Portugal and other interior areas are becoming increasingly popular as tourists and expats seek to have experiences or settle outside of the hotspot locations.

The Beauty of the Portugeuse Islands

The Portuguese autonomous lands of Madeira and Azores are also top choices to relocate to or snap up an investment property, with each island being unique in its own way. Out of the two, Funchal is more developed, while the Azores is a wonderland for nature lovers

When buying on the islands, make sure to work with a real estate agent in Azores or Madiera to assist you with the purchase. When it comes to cities on these islands, Ponta Delgada on the Azores and Funchal on Madeira, the two capitals are good places to begin your search.

Portugal Best Cities: Cost of Living Compared

One of the main concerns about traveling to a new city in Portugal is how expensive it might be to live there. Compared to most Western European countries, Portugal is considered one of the most affordable places to live, no matter in which city you choose to settle.

However, for those considering living in one of the best cities in Portugal, comparing the cost of living can help you make an informed decision about which city to choose. Here is a breakdown of the cost of living per city, according to Numbeo, to give you a better idea.

Making Portugal Your Permanent Home

If you’re looking to relocate to any of these cities in Portugal, there are several options available that will allow non-European nationals to live in the country permanently. For EU citizens, you will easily be able to move to Portugal.

For non-EU nationals, you can explore either one of these routes. The best option for you will depend on your personal situation.

Portugal Golden Visa  

The Portugal Golden Visa is the perfect option for investors – and their families – who want to relocate to Portugal.

This five-year residency-by-investment scheme grants you residency and gives you the right to live, work, and study in Portugal, in exchange for your investment in the country’s economy.

After five years, you have the option to become a permanent resident or citizen, provided you meet all the requirements under Portuguese Nationality Law.

There are many advantages to having Portuguese citizenship, such as free movement through the Schengen area and the continued ability to live, work, and study in a safe, stable European country with breathtaking landscapes and a fantastic quality of life. You can use our guide to learn more about the Portugal Golden Visa.

The D7 Visa 

The D7 Visa is a great option for retirees looking to relocate to Portugal. You must have sufficient funds to support yourself and any dependents who may accompany you.

The advantage of the D7 Visa is that it does not require a large economic investment and after five years of holding the D7 Visa, you are able to apply for Portuguese nationality, provided you meet all the requirements.

Digital Nomad Visa (D8 Visa)

Recently launched in October 2022, after eager anticipation, the Digital Nomad Visa is a popular option for remote workers. Digital nomads may apply either for a residence permit, that may be extended for up to five years, or a temporary stay visa, valid for up to one year. The D8 Visa applies to remote workers who earn four times the local minimum wage, which works out to about €3,280.

Work Visa 

This visa is for individuals who have an employment offer in Portugal. The employer often initiates the application process, and the visa includes various categories depending on the nature of the work. 

Residence Visa for Entrepreneurs (Startup Visa) 

Aimed at entrepreneurs who intend to establish a startup or innovative business in Portugal. Applicants usually need to demonstrate potential for job creation and economic growth. 

Family Reunification Visa 

For family members of Portuguese residents or citizens who want to join their relatives living in Portugal. 

Self-Employment Visa 

For freelancers or self-employed individuals planning to work independently in Portugal. Applicants must prove they have sufficient income and usually need to have Portuguese clients.