In the past decade, Portugal has transformed into one of the most popular European countries for expats. This beautiful nation offers fantastic cities to call home, each offering unique character and charm.
Whether you want to live in the bustling capital city of Lisbon or enjoy a laid-back life near the Atlantic Ocean in southern Portugal, the country offers everything from year-round sunny weather, golden-sand beaches, and warm, friendly locals to rich history, vibrant culture, fresh seafood, and stunning landscapes to explore.
In this article, we will discuss why expats are moving to Portugal and which of the major cities offer the best lifestyles for locals and expats alike.
Why are expats moving to Portugal?
Imagine waking up amidst the rolling hills and scenic valleys in northern Portugal or touring the vineyards and lush mountains of the Alto Douro Wine Region, which is also a UNESCO World Heritage Site.Â
When living in Portugal, you can soak up the sun on stunning beaches and immerse yourself in the laid-back lifestyle in the Algarve region or opt for everyday life amidst the rich culture and historic charm of Lisbon city center.Â
All these stunning landscapes contribute to the authentic Portuguese experience, with the cost of living in Portugal also being renowned as being more affordable compared to other Western European countries. According to a recent CNBC report, Portugal ranked first among the top seven countries Americans are trying to move to, based on the number of visa requests sent through the American payroll and compliance provider Deel.Â
In addition, Portugal checks all the boxes on the average retiree’s checklist and remains one of the best options for a new life. Portugal ranks second out of 16 countries according to the Retirement guide for US citizens created by Global Citizen Solutions’ Global Intelligence Unit.
According to the 2024 Global Peace Index, Portugal is the seventh safest country in the world. It offers incredible gastronomy, cultural and recreational activities, and festivals throughout the year. The level of English spoken across the country is high, as Portugal ranks 8th in the 2023 Education First English Proficiency Index. Plus, Portuguese cities generally offer a lower cost of living compared to other European cities.Â
With a diverse range of picturesque seaside towns and bustling cities like Lisbon, the capital of Portugal, and Portugal’s second-largest city, Porto, expats, are spoilt for choice when it comes to finding the right destination that meets their needs.Â
In addition to the advantages of an affordable, high-quality, peaceful lifestyle Portuguese life offers, there are also a number of key advantages to buying property in Portugal. These advantages include a dynamic real estate market, low cost of living, sublime climate, top-quality education and healthcare services, and no restrictions on foreign property ownership.Â
In the sections that follow, we will delve into this Portugal best cities guide by introducing you to a few of the best places to live, whether you are looking for a big city lifestyle with bustling streets or a coastal area with beautiful beaches and a relaxed and peaceful lifestyle.
Lisbon
Lisbon is one of Portugal’s most popular cities, and for good reason. This Portuguese city, the country’s bustling capital, is known for its traditional architecture and cobbled streets, along with many iconic landmarks to explore.Â
Lisbon is one of the best places in Portugal for expats to live, offering all the amenities you need for a seamless lifestyle. Restaurants, museums, concerts, markets, and theaters are abundant, making city life vibrant and engaging. Even better, it’s not far from beautiful nearby beaches, making quick getaways from the busy main city easy for all.Â
English is widely spoken, making it one of the best places to live in Portugal for English speakers. It’s no surprise that this beautiful city is home to a large expat community. Humberto Delgado Airport, informally known as Lisbon International Airport, is located just seven kilometers northeast of the city center, making international travel easy.
Lisbon’s job market is robust, providing plenty of job opportunities and good public transport, making it easy to navigate the city without a car. It’s also an excellent destination for remote workers and digital nomads, boasting a high-speed internet connection and plenty of co-working hubs. The city houses prestigious universities, adding to its appeal for students and academics. With shopping malls and all the necessary amenities close at hand, living in Lisbon is convenient and enjoyable.Â
Some of the best neighborhoods to live in Lisbon include Alfama, Baixa, Chiado, Bairro Alto, Principe Real, Avenidas Novas, Graça, and Estrela. These areas offer safety and a range of housing options to suit different preferences. Lisbon’s combination of fast-paced city life and the picturesque scenery of the coast makes it one of the best cities to live in Portugal.
Cascais and Estoril
Living here means enjoying a well-developed, safe area with top-notch healthcare and education, all while embracing Portugal’s more affordable cost of living compared to other coastal towns in Western Europe.
Cascais and Estoril stand out as two of the best areas to live in Portugal, attracting expats with their appealing blend of bustling coastal town life and serene living. Nestled along the Portuguese Riviera, these towns offer a unique lifestyle characterized by luxury, exclusivity, and proximity to nature. Cascais has become a favorite among expats, fostering a multilingual community with English is spoken widely. Despite being one of the wealthiest municipalities in Portugal, living costs in Cascais are not outrageously high, making it accessible for those seeking a sophisticated European lifestyle without an exorbitant price tag. There are, however, a number of outstanding Cascais luxury real estate options available.
Residents enjoy a high quality of life, benefiting from lovely weather, clean streets adorned with eye-catching flower arrangements, and a tranquil ambiance close to the hustle and bustle of Lisbon. The area is well-maintained and offers a range of captivating activities and beautiful sites. For market enthusiasts, Mercado da Vila hosts vibrant markets on Wednesdays and Saturdays, where one can find affordable clothes, handmade crafts, and fresh produce.
Cascais and Estoril are also ideal for families, thanks to their access to natural parks, pristine beaches, and numerous international schools offering excellent education. As part of the Lisbon Metropolitan Area, Cascais and Estoril have received a number of accolades from the World Travel Awards (WTA) including being recognized as the European Green Capital in 2020. These prime living destinations have also been named:Â
- World’s Leading City Destination 2018
- World’s Leading City Break Destination 2019
- Europe’s Leading City Tourist Board 2019
- Europe’s Leading City Tourist Board 2020
- Best European City Break Destination 2022
- Best Destination Metropolitan Seaside 2022
- Best Cruise Destination 2022
- Best Cruise Port in Europe 2022
The Algarve
The Algarve region in southern Portugal, situated 280 km south of Lisbon, is bordered by the Alentejo to the north, the Guadiana River to the east, and the Atlantic Ocean to the west and south. This stunning region is renowned for its peaceful lifestyle and quality of life and is considered one of the best destinations for expats, digital nomads, and retirees.
Every year, tourists and expats flock to this sunny paradise, attracted by its pristine beaches, perfect climate, rich history, and affordable cost of living. The Algarve is a melting pot of nationalities, each drawn to its glorious landscape and welcoming communities.
Faro, the capital city of the Algarve, is a cultural hub with stone-paved paths and historic landmarks that showcase the area’s fascinating history. Tavira, a serene town along the River Gilão, offers traditional Portuguese houses, churches, and cobblestone streets. Tavira and the Eastern Algarve are located close to the Spanish border and are considered the most authentic parts of the Algarve region.Â
The area’s rich cuisine, mild climate, and abundance of sunshine make the Algarve an ideal second home or permanent escape for many expats. Whether it’s the vibrant city life of Faro or the tranquil ambiance of Tavira, the Algarve provides a perfect blend of culture, comfort, and natural beauty. Other notable areas in the region include Albufeira, Lagos, Monchique, Quinta do Lago, and Silves, each offering unique charms and attractions.
Porto
Porto, the second-largest city in Portugal, is renowned for being one of the best places for expats to settle in. Nestled in the north along the picturesque Douro River, Porto offers a unique blend of historical charm, culture, modern amenities, and port wine. It is slightly more affordable than Lisbon, making it an attractive option for those looking to experience Portugal without breaking the bank.Â
The city is famous worldwide for its rich history, delectable Porto wine, exquisite gastronomy, and stunning architecture. Porto’s historic center is a UNESCO World Heritage Site, drawing tourists from all corners of the globe. As an emerging hub for start-ups, Porto has become a magnet for international entrepreneurs eager to tap into the city’s growing opportunities.Â
Interest in real estate investments is growing, and diverse neighborhoods cater to different lifestyles. For a quieter life and lower property prices, areas like Vila Nova de Gaia on the outskirts are ideal, while Ribeira in the city center offers a bustling urban experience.Â
If you are interested in purchasing property with scenic sea views, Madalena, Lavadores, and Foz do Douro present luxurious options. Despite its cooler climate compared to the south, Porto’s excellent healthcare, affordability, safety, and widespread use of English make it an exceptional place to live.
Braga
Braga, Portugal’s oldest and third-largest city, is a prime destination for expats seeking a blend of rich history and modern living. Nestled in the beautiful northern region, Braga is renowned as the religious heart of Portugal, home to many significant churches, including being situated close to the renowned Bom Jesus do Monte sanctuary.Â
This historical richness is complemented by modern amenities, with Braga’s narrow streets lined with dynamic cafés, upscale boutiques, and a vibrant nightlife. The city’s location places it just 15 minutes from the mountains, 30 minutes from golden beaches, and 40 minutes from Spain, making it ideal for nature lovers and adventurers.Â
Despite its historic charm, Braga offers modern properties and a robust housing market, appealing to those dreaming of a laid-back yet affordable lifestyle. The city is family-friendly, boasting numerous schools and Portuguese universities.Â
Though English is less commonly spoken than in other Portuguese cities, Braga’s cost of living remains attractively low. The outskirts of the city offer tranquil, spacious living with opportunities for those interested in renovating properties. Overall, Braga combines historical allure, modern convenience, and natural beauty, making it one of the best areas to live in Portugal.
Aveiro
Aveiro, often referred to as the Venice of Portugal, is one of the best areas to live in Portugal. Located in central Portugal and not far from Porto, this charming city is renowned for its magnificent canals, Art Nouveau architecture, and picturesque gondolas known as moliceiros.Â
Despite being smaller and less frequented by tourists, Aveiro boasts an exceptionally rich culture and history which adds to its authentic Portuguese charm. The city is safe, and the quality of life is high, attracting students, remote workers, and expats, especially retirees.Â
Recent modern updates have enhanced Aveiro’s appeal, making it a pedestrian and cyclist-friendly city with a variety of shopping malls, cafés, and indoor markets. Excellent road links to Lisbon and Porto further contribute to its desirability, offering easy travel between these major cities. Aveiro’s blend of historical richness and modern conveniences makes it an ideal place to call home.
Coimbra
Coimbra, a charming university city in Central Portugal. Nestled by the Mondego, the longest river in Portugal, Coimbra boasts a vibrant student life and a rich historical heritage.Â
Home to the oldest and most prestigious university in the country, the University of Coimbra, and the 12th-century Sé Velha cathedral, the city is a haven for history enthusiasts. The region’s proximity to beautiful beaches, good weather, and historic towns offers affordable real estate, making it an ideal destination for expats. Coimbra’s mild winters, with temperatures ranging between 5 and 14 degrees C (41 and 57 degrees F), and its low cost of living contribute to its popularity among retirees and expats.Â
The city is known for its safety, delicious local cuisine, and lively nightlife, featuring many trendy bars and restaurants. Travel to and from Coimbra takes just a few hours thanks to the reliable train routes to Lisbon and the rest of Portugal further, which provide convenient travel options for residents.
Setúbal
Setúbal, is a bustling port and major fishing center that is rich in history and seafaring heritage. This town is set against the stunning backdrop of the Serra da Arrábida Natural Park and the Tróia Peninsula, offering a blend of natural beauty and exclusive luxury.
Residents can find waterfront properties with breathtaking views, and the historic center, featuring narrow streets and large plazas like Praça de Bocage and Mosteiro de Jesus church, showcases late Gothic (Manueline) architecture. Sesimbra is one of the most popular areas to live in Setúbal, and further south you will find the towns of Tróia, Comporta, and Melides, each offering similar yet unique charm.Â
The Serra da Arrábida Natural Park provides amazing hiking trails, ocean views, and picturesque beaches for relaxation. Avenida LuÃsa Todi, the main avenue, is lined with bars, restaurants, and green spaces, while Praça de Bocage serves as the heart of the city, perfect for unwinding and enjoying the vibrant atmosphere.
The Azores and Madeira Islands
The Azores and Madeira Islands are two of the best areas to live in Portugal, each offering a unique blend of natural beauty, friendly communities, and a high quality of life. Madeira, with its capital city, Funchal, attracts expats and remote workers with its year-round warm temperatures and stunning landscapes.Â
Nestled amidst lush forests and rugged mountains, Funchal offers a safe, family-friendly environment with a rich cultural tapestry. The city’s highlights include the bustling Farmer’s Market, the Sacred Art Museum, and the historic Cathedral of Funchal. The warm hospitality of the locals, affordable transportation, and numerous recreational activities make Funchal an ideal place for those seeking an island lifestyle.
On the other hand, the Azores, an archipelago known for its affordability and breathtaking scenery, is perfect for retirees and those desiring a slower pace of life. Ponta Delgada, the main city, offers a family-friendly atmosphere with a blend of old-town charm and modern amenities.Â
Though public transport can be unreliable and job opportunities are fewer compared to larger cities, Ponta Delgada compensates with its good air quality, vibrant culture, and unique cobbled streets adorned with traditional churches and colorful houses. The island of Pico, part of the Azores, is renowned for its UNESCO-recognized vineyard culture, offering a peaceful and affordable lifestyle. Both regions provide an exceptional living experience, combining natural splendor with cultural richness, making them top choices for those looking to live in Portugal.
Chaves
Nestled in northern Portugal near the Spanish border, Chaves stands out as one of the best places to live in the country. This picturesque city is renowned for its slower pace of life, offering a tranquil retreat from the hustle and bustle of larger urban areas.Â
Chaves is steeped in cultural richness, with its roots tracing back to Roman times. The city’s ancient walls, majestic castle, and historic Roman bridge are enduring symbols of its storied past. Notably, Chaves is famous for its therapeutic thermal springs, which attract visitors worldwide seeking relaxation and rejuvenation.Â
Situated along the scenic Tâmega River and surrounded by lush green hills, Chaves provides ample opportunities for outdoor activities such as hiking. The real estate market in Chaves is thriving, drawing interest from both locals and expatriates due to its excellent investment potential.Â
The combination of natural beauty, historical significance, and promising real estate prospects makes Chaves an ideal place to call home. Its charming environment, rich cultural heritage, and delicious cuisine contribute to its appeal as a popular tourist destination. For those seeking a blend of tranquility, cultural depth, and investment opportunities, Chaves is an exceptional choice in Portugal.
Practical Information about Moving to Portugal
If you are considering a permanent move to Portugal and enjoying everyday life in any of the cities we explored in this Portugal best cities guide, you will need to understand the practicalities of obtaining residency in the country. Non-EU citizens need a Portuguese residency visa, while citizens from EU countries staying over three months require a registration certificate.Â
Once you secure residency and live legally in Portugal for five years, you will be eligible to apply for Portuguese citizenship, if you meet all the requirements under Portuguese nationality law. For tailored assistance, our division specializing in residency and citizenship, Global Citizen Solutions, is ready to assist you and ensure a smooth transition.
Applying for residency in Portugal as an EU citizen
As an EU citizen planning to stay in the Portugal for over three months, you must obtain a registration certificate from the local council after three months of moving to Portugal. This certificate is valid for five years. If your family members are non-EU citizens, they need to apply for a residence card to stay longer than three months.
Applying for residency in Portugal as a non-EU citizen
Non-EU citizens planning to live in the Algarve must first apply for a Portuguese residency visa. There are several options available which include the Portugal Golden Visa, the D7 Visa, and the Digital Nomad Visa. Original launched in 2012, the Portugal Golden Visa grants residency in exchange for investment. The D7 Visa is perfect for retirees and individuals earning a sufficient passive income, while the Digital Nomad Visa is designed for remote workers earning at least four times the Portuguese minimum wage and who work for a foreign (non-Portuguese) company or who are self-employed. Each visa offers a pathway to residence based on different criteria.
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Frequently Asked Questions about the Best Places to Live in Portugal
What is the nicest area in Portugal to live in?Â
This will depend on the type of experiences and lifestyle you expect. Luckily, Portugal offers several excellent options. Lisbon and Porto are vibrant cities with rich cultures, while Braga and Coimbra provide a historic charm. For coastal beauty, Cascais and Estoril are superb, and the Azores and Madeira Islands offer stunning natural landscapes.
Where in Portugal do most American expats live?Â
If you are wondering where to live in Portugal as an American, Lisbon, Portugal’s capital, is home to the biggest international airport and has the largest expat population in Portugal. Porto’s vibrant culture is also a big draw for Americans and other expats living in Portugal.
What is the safest place to live in Portugal?Â
According to the 2024 Global Peace Index, Portugal is the seventh safest country in the world. Among the safest places to live in the country are Lisbon, Braga, Porto, Ponta Delgada in the Azores, Funchal in Madeira, Portimão, Aveiro, and Coimbra, all offering secure living environments.
Where is the best place to live in Portugal for expats?Â
The best place to live in Portugal for expats depends on personal preferences. Lisbon, Braga, Funchal in Madeira, Ponta Delgada in the Azores, and Portimão are top choices. Most expats also find Lisbon, Porto, the Algarve region, and Setúbal appealing due to their vibrant communities.
Where are the best places to live in Portugal for families?Â
For families moving to Portugal, Lisbon, Porto, and the Algarve are excellent choices. Each location boasts numerous top-notch international schools that provide diverse curricula and extracurricular activities, making them ideal for children and family life.
Where are the best places to live in Portugal by the sea?Â
For those seeking coastal living in Portugal, Lisbon, Cascais, the Algarve, the Silver Coast, and the autonomous islands of Madeira and the Azores are prime locations. Each offers stunning sea views and proximity to beautiful beaches, making them ideal for those who enjoy living by the ocean.
What is the best place to live in Portugal for English speakers?Â
For English speakers, the Algarve, Lisbon and Porto are the best places to live in Portugal. In these larger cities, you’ll find that most people speak good English. Even in more remote areas, younger residents typically have a solid command of the English language, making communication easier.
