Total Guide: 15 Best Places to Live in Portugal for Expats

Thinking about moving to Portugal? You are not alone. With its temperate climate, low cost of living, breathtaking landscapes, and friendly culture, Portugal has consistently ranked among the best places in the world for expats. Whether you are a retiree, digital nomad, or family seeking a new chapter in life, Portugal has all types of us covered.

This full guide to the best places to live in Portugal shares everything about the 15 above, including average rent and your lifestyle, as well as healthcare access and expat communities. Let’s dive in.

Why Do Expats Choose Portugal?

Before we dive into the cities themselves, here’s a quick overview of what makes Portugal so attractive to expats:

• Safe & Stable Country: According to the Global Peace Index, Portugal consistently is rated in the top 5 safest countries.

• Low Cost of Living: Overall cost of living is a huge factor — Portugal is much more affordable than the UK, France, or Germany, especially if you live outside Lisbon.

• Good Climate: Portugal has more than 300 days of sunshine a year, including mild winters and warm summers, ideal for an outdoor lifestyle.

• NHR Tax Regime The Non-Habitual Residency (NHR) scheme offers new residents attractive tax features for 10 years.

• English is Widely Spoken: The language barrier isn’t much of an issue, especially in larger cities and tourist areas.

• EU Gateway: Portugal is one of the European Union Member States, thus allowing easy travel between countries within Europe.

Quick Comparison: 15 Best Cities at a Glance

Lisbon — A Vibrant Capital for Ambitious Expatriates

But Portugal’s beating heart is Lisbon, the number one choice for expats looking for a vibrant city lifestyle. As a capital city, it offers unmatched career potential, a burgeoning startup scene, Michelin-starred restaurants, and an international community mix.

Why Expats Love Lisbon

• Fastest growing tech and startup hub in Europe

• World-class public transport — subway, trams, and ferries

• Great art scene, with museums, galleries, and live Fado music

• Big international community, English-speaking

• Near stunning beaches like Cascais and Estoril

Living Costs in Lisbon

Average rent for one-room (T1) accommodation in central Lisbon is €1,290 to €1,800 per month. A meal at a mid-range restaurant costs approximately €12–€18 per person. Lisbon is more expensive than smaller Portuguese cities, but it’s still cheaper than London, Paris, or Amsterdam.

Expats in Lisbon — The Best Neighborhoods

• Príncipe Real – Hip, upper crust with good cafés and boutiques

• Alfama – Traditional local neighbourhood with old-world ambience

• Parque das Nações — Modern, family-friendly riverside living

• Belém – Less touristy, more cultural, and closer to all the important sights

Best for: Professionals, entrepreneurs, and families seeking a cosmopolitan lifestyle.

Porto – The Soulful Artistic Town

Porto is Portugal’s second-largest city and perhaps its most enchanting. Rising up on the banks of the Douro River, Porto is known for its World Heritage-listed historic centre, globe-trotting Port wine, and creative dynamism that draws artists, writers, and young professionals from around the world.

Why Expats Love Porto

• Cheaper than Lisbon but with similar facilities

• Arts, music, and food scene

• Great food and wine culture — Port wine cellars in Vila Nova de Gaia

• A vibrant digital nomad and tech ecosystem

• Close to stunning northern beaches and the Douro Valley

Living Costs in Porto

True, another 1-bedroom apartment in the city center is €900–€1,400/month. Porto is another great value city for expats in Europe, managing to strike that balance of cost vs quality.

Best for: Artists, young professionals, and expats who love culture without the Lisbon price.

Algarve — A sun-kissed paradise for retirees

The Algarve region of southern Portugal is probably the most popular area for expats, especially retirees from Britain. With more than 300 days of sunshine a year, dramatic golden cliffs and turquoise waters as far as the eye can see, and an easy-going lifestyle, the Algarve is a dream retirement setting.

Top Algarve Towns for Expats

• Lagos – Vibrant town, beautiful beaches, and nightlife

• Tavira – More authentic, quieter, favored by retirees

• Albufeira – Tourist magnet/lots of English speakers

• Silves – Town inland with Moorish castle and local vibe

• Portimão – Good facilities but with a more local Portuguese feel

Living Costs in the Algarve

Rent varies across the region. Rent for a 1-bedroom apartment will set you back €800–€1,200/month. Limited resort properties near the beach command a high premium, while inland areas are much less expensive.

Best for: Retirees; beach lovers; golfers, and those looking for a permanent holiday lifestyle.

Cascais — Lavish Coastal Living Near Lisbon

Cascais is an upscale beach town approximately 30 kilometers west of Lisbon and is reached by a direct 40-minute train. Once a royal summer retreat, Cascais is a glamorous mix of lovely beaches, fine restaurants, golf courses, and an end-of-the-world international community.

• Great international schools (British, American, and IB programmes)

• Best beaches in Portugal: Praia da Rainha, Praia do Guincho

• Good private hospitals available/nearby

• Low crime rates, safe for families

• Short work commute to Lisbon

Best for: High-earning expats, families with kids, and professionals who work in Lisbon.

Braga – The Sleek Modern City with Ancient Foundations

Braga is among Portugal’s fastest-growing cities and a rising hotspot for digital nomads and young families. Sometimes called Portugal’s spiritual capital, with a rich collection of religious monuments and Baroque churches, Braga is a place where ancient roots meet an equally vibrant modern spirit.

• Cheapest cost of living among big Portuguese cities

• Booming technology and startup landscape

• City known for its university, hence a young and vibrant populace

• Nice quality of life, without the crowds in Lisbon or Porto

• Well connected to Porto (a 45-minute train ride)

Rent: Average prices of a 1-bedroom apartment: €600–€950/month.

Best applied to: Digital nomads, young professionals, and cheap expat families.

Coimbra – Portugal’s Intellectual Capital

Home to one of the oldest universities in the world (founded in 1290), it is where history and scholarly life coexist. This city, on the banks of the Mondego River, has a charming mix of medieval architecture, lively student culture, and a slow pace.

• Home to the University of Coimbra — a UNESCO World Heritage Site

• Very cheap cost of living in contrast to other Portuguese cities

• Vibrant scene of cafés and restaurants born of student life

• Central location — 1 hour from Porto and 2 hours from Lisbon

• Deep connection to local Portuguese culture and traditions

Best for: Academics, researchers, students, and expats who are fond of history and intellectual life.

Aveiro − Portugal’s Venice

Often referred to as the Venice of Portugal, Aveiro is a charming city featuring canals, brightly painted moliceiro boats, and Art Nouveau buildings. The city is a buried gem, growing increasingly popular with expats looking for that cute, small-city lifestyle plus easy access to beaches and larger urban centres.

• Picturesque canals and lagoon (Ria de Aveiro) suitable for nature lovers

• Near beautiful Atlantic beaches like Costa Nova

• Student city with a youth-infused, international mix

• Inexpensive housing compared to coastal resort towns

• Fast trains to Porto (45 minutes) and Coimbra

Ideal for: Nature lovers, remote workers, and expatriates seeking a peaceful but connected life.

Sintra – Life in a Storybook

Sintra is unlike anything else in Portugal — or Europe, for that matter. A UNESCO World Heritage Site, it’s a verdant hill town decorated with colorful palaces, enigmatic castles, and thick forests. Just a 30-minute train ride from Lisbon, Sintra is a magical place to live.

• Cultural landscape – UNESCO World Heritage

Mind-blowing architecture: Pena Palace, Quinta da Regaleira, Moorish Castle

• Verdant native environment and trails around for hiking with ocean views

• Long enough from Lisbon for a beautiful day-trip and tranquil surroundings

• A bohemian, romantic atmosphere that attracts artists and history lovers

Best for: History buffs, nature lovers, creatives, and anyone who would like to be close to Lisbon, plus be in a magical setting.

Setúbal – The Best Kept Secret In Portugal

Setúbal is one of the most underrated cities in Portugal. Situated across the Sado Estuary from Lisbon, to its south, it’s an industrial port town embraced by stunning Arrábida Natural Park, which is home to some of Portugal’s most beautiful beaches with glittering turquoise water.

• Gateway to Parque Natural da Arrábida — beautiful secluded beaches

• Inexpensive cost of living (40–50% less than Lisbon)

• A very Portuguese ambience with few tourists

• Excellent ferry and bus connections to Lisbon

• Great fishing and agricultural culture with plenty of good fresh produce

Best for: Affordable expats, hikers, nature lovers, and anyone looking for a piece of authentic Portugal without tourist hordes.

Évora – History, Wine, and Peacefulness

Évora, the capital of the Alentejo region, is one of Portugal’s most well-preserved historic cities. Enclosed by ancient walls, it boasts a Roman temple, a medieval cathedral, and the famed Chapel of Bones. Évora is also in the center of Portugal’s wine region, surrounded by vineyards and cork oak forests.

• UNESCO World Heritage City — remarkably well-maintained historic downtown

• The cost of living is one of the lowest in mainland Portugal

• World-class Alentejo wine country on the doorstep

• Retirees Target Readymade-Destinations|Peaceful Slow Life

• Senza biraz strong artistic and gastronomic tradition (Alentejo cuisine is stunning).

Average rent for a 1-bedroom apartment: €500–€800/month — some of the cheapest in the country.

Best for: Retirees, history lovers, wine enthusiasts, and expatriates in search of maximum affordability.

Funchal, Madeira – Year-Round Island Paradise

Funchal is the lively capital of Madeira Island, some 1,000 km southwest of Lisbon in the Atlantic Ocean. With a subtropical climate, Madeira enjoys year-round temperatures between 17°C and 25°C — one of the most comfortable places in Europe during all seasons.

• Exceptional nature: volcanic cliffs, levadas (irrigation channels), and laurel forests

• Each month, mild, spring-like conditions.

• Becoming more popular among remote workers and digital nomads

• Expanding expat family, and English is prevalent

• Good fresh food: tropical fruits, seafood, and Madeira wine

Best for: Digital nomads, retirees, nature lovers, and anyone who fantasizes about island living without seclusion.

Faro – Gateway to the Algarve

Faro is the capital of the Algarve and the primary point of entry for expats relocating to southern Portugal. Unlike more touristy towns, Faro has a real Portuguese feel, with an excellently preserved old town, an unblemished lagoon (Ria Formosa), and a slower pace than Lisbon or Porto.

• Ria Formosa Natural Park — a beautiful lagoon that is home to flamingos and migratory birds
• Easy and cheap travel abroad through Faro International Airport
• Cost of living is lower than in popular Algarve beach towns
• Real local culture with a small but growing expat community
• Great seafood restaurants and authentic Portuguese food

Best for: Expatriates seeking Algarve living without resort-town expense, and those who want well-placed travel connections.

Óbidos – The Medieval and The Calm

Óbidos is one of Portugal’s most magical medieval villages. Completely surrounded by ancient castle walls, this perfectly preserved town is like a time capsule from the Middle Ages. Óbidos is small, but the quaint town draws expats seeking an extremely quiet, photogenic life with easy access to Lisbon (about 80 kilometers north).

• Among the best-preserved medieval walled towns in Portugal
• Very quiet and safe area — perfect for families
• Known for Ginja (cherry liqueur) and yearly medieval festivals
• Near stunning Silver Coast praias (Praia d’El Rey, Foz do Arelho)
• Much cheaper cost of living as opposed to coastal regions

Best for: Expats looking for very quiet, charming village life outside Lisbon and the Silver Coast.

Nazaré – Surf Capital with a Fishing Village Heart

Narrator: Nazaré is world-famous for serving some of the largest surfable waves on Earth, bringing professional surfers from all corners of the world whenever conditions are perfect. But away from its record-breaking waves, Nazaré’s a pretty coastal fishing village of colourful traditions and hospitable locals, and boasts some of the most dramatic Atlantic scenery in Portugal.

• Praia do Norte, big-wave surfing, world record — draws global surf scene
• Real fishing village culture — local women still wear the traditional seven-skirt dress
• Very low cost of living, particularly outside of the peak summer months
• Deals on fresh seafood, caught by local fishers
• Short distance from Óbidos, Alcobaça Monastery, and Batalha

Best for: Surfers, outdoor and adventure lovers, expats on a budget, and anyone looking for authentic coastal Portugal.

Viana do Castelo – True Northern Portugal

Viana do Castelo is a crown jewel of the Minho region in northern Portugal. Perched on the estuary with the Atlantic, it’s a city of stunning natural landscapes and centuries-old traditions, and of remarkable architecture. Despite having its charms, it’s largely unexplored by the expat community, which means property prices and living costs are still incredibly low.

• Gorgeous setting between the Lima River, Atlantic coast, and wooded hills
• Some of the lowest costs of living in Portugal for expatriates
• Noted for folk traditions, gold filigree jewelry, and colored festivals (Festas d’Agonia)
• Very close to Galicia and the Spanish border
• Good seafood and traditional Minho food

Average rent for a 1-bedroom apartment: €500–€750/month — some of the best value in the country.

Best for: Families, nature lovers, and expats on a budget looking for an authentic Portuguese experience.

The Complete Financial & Tax Guide for Expats in Portugal

The NHR Tax Regime

Portugal Tax Beginners Guide: Non-Habitual Residency (NHR) Portugal: one of the best tax incentives for foreign residency in Europe. To be eligible for NHR, expats must pay a flat 20% income tax on all Portuguese-sourced income and might also get an exemption for foreign capital gains, which can last up to 10 years.

Cost of Living Overview

• Groceries: €200–€350/month for 2 people
• Meal at a local restaurant: €8–€15
• Monthly transport pass: €30–€40 in most big cities
• Private health insurance: €50–€150 per months based on coverage
• Utilities (electricity, water, internet): €80–€150/month

Healthcare for Expats

Portugal offers both a public National Health Service (SNS) and an established private health care sector. Expats with legal residency are eligible for the public system, which is low or no-cost. Many expatriates also take out optional private health insurance for speed and access to English-speaking doctors.

Frequently Asked Questions:15 Best Places to Live in Portugal for Expats

Is Portugal a great expat destination?

Absolutely. Portugal is one of the top 5 expat destinations in the world, known for its safety, affordability, quality of life, and open arms to foreigners.

If I want to live in Portugal, what visa do I need?

Non-EU citizens usually require a D7 Passive Income Visa (great for retirees and remote employees), a D8 Digital Nomad Visa, or an investment-based Golden Visa. For EU citizens, one passport is enough to travel freely.

Is it necessary to speak Portuguese if you want to live in Portugal?

Not necessarily — English is spoken in cities and tourist areas. Yes, but basic Portuguese is highly rewarding for your day-to-day experience and definitely helps with bureaucracy and connecting to the locals.

Where is the most inexpensive place to live in Portugal?

Along with Viana do Castelo and Évora, Nazaré is among the most affordable locations in mainland Portugal. АКЦИЯ: Аренда с 500–750 евро/ ночь, в зависимости от области.

Healthcare in Portugal for expats: Is it good?

Yes. Portugal’s public health care system (SNS) is very good, and private health care is excellent, cheap by Northern European standards. For ease, most expats will still use private insurance to supplement.

Is Portugal safe for expats?

Ranked 6th in the 2024 Global Peace Index, Portugal is additionally among the safest countries worldwide. Violent crime is indeed very rare, and expats always report feeling safe in all the cities and towns broken down in this guide.

Can I retire to Portugal on a budget?

Yes — retirees can actually live very well on €1,500–€2,000/month including rent, food, transport, and leisure in smaller cities like Évora, Viana do Castelo, or Nazaré.

Final Thought

Some of the most diverse expat lifestyles in Europe are found in Portugal. Whether you are captivated by the cosmopolitan energy of Lisbon, the rich culture of Porto, the sun-bleached beaches of the Algarve, or the authentic charm of Viana do Castelo, there really is a perfect corner of Portugal for you.

The 15 cities and regions featured in this guide each have their distinct advantages — consider this a jumping-off point, check out your shortlisted locations if you can before moving there for the first time, and reach out to expat communities already-monate’d there for advice straight from the horse’s mouth.

One thing’s for sure: experience the warmth of Portugal — its people, its food, its culture and, yes, its landscapes — once, and you’ll see why so many expats make it their home.

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