The 10 Best Places to Live in Portugal in 2025

Portugal stands as one of the top destinations for people seeking to move abroad. Known for its pleasant weather, affordable living costs compared to other European countries, and excellent safety standards, the country offers a lifestyle that suits different profiles. Whether you’re a digital nomad, a family, or a student, Portugal has something for everyone.

But where is the best place in Portugal to live? With such a diverse range of locations, deciding where to settle can be challenging. That’s why we’ve put together this guide to the 11 best places to live in Portugal.

From Lisbon’s vibrancy to the sun-kissed beaches of the Algarve and the history-filled streets of Porto, we rank the best Portuguese cities for foreigners.

Here’s what you’ll discover in our guide about Portugal’s cities:

• The best places to live in Portugal
• Why move to Portugal
• How to move to Portugal

What are the best places in Portugal to live in?

1. Lisbon

Population: 517,802

Ideal for: Professionals seeking career opportunities, digital nomads, and everyone who enjoys city living.

Top features: Historic neighborhoods, diverse food scene, excellent public transport, and beach proximity.

Lisbon blends history with modernity. Known for its iconic trams, the Portuguese capital is built on seven hills, providing stunning panoramic views of the Tagus River.

Portugal’s capital is generally more affordable than other major European capitals, though prices are rising. Dining out and entertainment remain reasonably priced, and public transportation is widely accessible and safe.

You easily can find English speaking doctors and services in Lisbon. However, bureaucratic processes are often in Portuguese, so learning the language helps.

According to recent statistics, more than half of all foreigners in Portugal live in Lisbon. The city’s popularity has been growing among tourists, digital nomads, and foreign investors.

2. Porto

Population: 249,633

Ideal for: Expats looking for a balance of tradition and modernity, as well as families and retirees.

Top features: Historic city with affordable living, a relaxed atmosphere, worldwide known wine, and a thriving real estate market.

Porto, situated along the Douro River, in Northern Portugal, is known for its production of Port wine, rich history and modern development.

Although Porto is Portugal’s second-largest city, it’s still safe and affordable. It has a lower cost of living compared to Lisbon and offers good public transport and a major airport.

Apart from its UNESCO World Heritage status, Porto is home to prestigious educational institutions like the University of Porto, ranked #278 in QS World University Rankings 2025.

Expats can choose central neighborhoods like Ribeira District, which is more expensive and tourist-heavy, or more affordable areas like Vila Nova de Gaia across the river.

It’s easy to find English speaking services, especially among in tourist areas.

Healthcare in Porto is excellent, with both affordable private and public options available.

3. Coimbra

Population: 106,582

Ideal for: Students, academics, small families, and retirees seeking a quieter lifestyle.

Top features: University of Coimbra (UNESCO site), Fado music, more affordable living, and scenic river views.

Coimbra is a smaller, affordable city in Portugal, ideal for those seeking a slower pace of life. Once the medieval capital of Portugal, it is rich in history, with Roman-era sites, medieval architecture, and cobblestone streets.

Coimbra is best known for being home to the University of Coimbra, the country’s oldest and most prestigious university.

English is widely spoken, particularly among the younger population and in academic circles.

Although history-filled, the city also offers modern amenities, including malls like Coimbra Shopping and Forum Coimbra and supermarkets like Pingo Doce and El Corte Inglés’s SuperCor.

Living in Coimbra is affordable compared to larger Portuguese cities like Lisbon or Porto, making it an attractive option for foreigners. Housing costs are significantly lower, with rental and prices for purchasing property being more budget friendly.

4. Faro

Population: 41,355

Ideal for: Retirees and expats seeking a laid-back lifestyle by the beach

Top features: Beautiful beaches, historic charm, pleasant climate, easy access to Lisbon

Faro, the capital of the Algarve, is a quiet coastal city with some of the best weather in Portugal, offering over 300 days of sunshine each year. The city is also home to pristine beaches, making it one of the best places to live in Portugal by the sea.

Apart from world-class beaches, Faro has a charming historic center, Cidade Velha, which features cobblestone streets, a medieval wall, and a cathedral.

Faro is also well-connected to other places in Portugal and in Europe. It has an international airport, the Faro Airport, and it’s located just a two-hour drive from Lisbon, making it easy to access from several cities.

5. The Algarve

Population: 467,495

Ideal for: Digital nomads and remote workers, retirees, families

Top features: Family friendly beaches, stunning landscapes, English speaking expats

The Algarve, located on Portugal’s southern coast, is a popular choice for foreigners seeking a relaxed lifestyle.

Thanks to its excellent weather, golden beaches, and welcoming expat community, it attracts retirees, digital nomads, and families.

According to Louise Hudson, a UK expat currently living in the Algarve region, the welcoming community is one of the things that make the place so unique. “There are many English speakers in the Algarve, which makes life smooth. Also, it’s beautiful everywhere, and the nature and the countryside the wildlife are just gorgeous. You can reinvent yourself, start from scratch and be anything you want in Portugal”.

Louise also adds that affordable and accessible healthcare contributes to the positive experience. “The healthcare in the Algarve is great. You can have your own National Health card once you’re a resident, and you also have the opportunity buy private healthcare plan at a reasonable price, which tends to be much cheaper than in other countries”.

Popular cities in the Algarve include Faro, Portimão, Tavira, and Vilamoura.

6. Aveiro

Population: 54,162

Ideal for: Young professionals, retirees, and families looking for a charming, small-town feel.

Top features: Moliceiro boats, Art Nouveau buildings, proximity to beaches, and low cost of living.

Aveiro, often called the “Venice of Portugal,” is a small coastal city known for its canals, navigated by colorful moliceiro boats, and its Art Nouveau architecture.

It has fewer expats compared to Lisbon and Porto, which creates a more authentic experience. Plus, the cost of living is lower, and Aveiro offers an affordable cost of living, about 9% cheaper than Lisbon.

Aveiro also has a more relaxed pace of life, making it ideal for those seeking a small, well-maintained city near the ocean.

Conveniently located near Porto and Coimbra, Aveiro has efficient train connections that provide easy access to other cities.

7. Cascais

Population: 36,436

Ideal for: Families looking to enjoy both vibrant city life and natural beauty

Top features: Stunning beaches, golf resorts, luxurious casinos, prestigious international schools

Cascais is a coastal town located 30 minutes west of Lisbon. The town is well-known for its beaches, including Praia de São Pedro do Estoril, Tamariz Beach, and Praia da Rainha, which are great for relaxing or water activities.

Cascais is also close to scenic spots like the Boca do Inferno cliffs and the Sintra mountains, making it ideal for outdoor adventures.

The town is particularly attractive for families, as it has some of the best international schools in Portugal. Cascais offers a high standard of living, but real estate prices can be higher compared to other parts of the country.

8. Évora

Population: 55,620

Ideal for: Foreigners wanting to enjoy a slower pace of life in a smaller city

Top features: Affordable lifestyle, mild winters, century-old historic sites

Évora is a small city in the Alentejo region, known for its rich Roman and medieval history. It is home to landmarks like the Roman Temple and the Cathedral of Évora, as well as Gothic, Renaissance, and Baroque buildings.

The historic center, a UNESCO World Heritage site, is easy to explore and offers cultural and culinary experiences with its local wine and gastronomy.

Évora has a more peaceful lifestyle, making it ideal for families or anyone seeking a quieter lifestyle. Generally speaking, the cost of living is affordable, with lower housing and daily expenses compared to larger cities like Lisbon and Porto.

While job opportunities are limited, the relaxed environment and cultural heritage make it a pleasant place to live.

9. Chaves

Population: 17,535

Ideal for: Foreigners who want to experience the authentic Portuguese culture

Top features: Thermal springs, historic old town, welcoming environment

Chaves is a small town in northern Portugal, close to the Spanish border. It has a rich history, with landmarks like the Roman Bridge and medieval castle walls. The town is known for its thermal springs and spa centers, which are said to have healing properties.

Chaves is also famous for its local cuisine, including smoked sausages and wine. The town offers a quiet atmosphere, with a population of about 45,000 people who are known for being very friendly. The climate is warm and dry in the summer, and cold in the winter. Chaves is a peaceful town with a strong connection to its history and traditions.

10. Madeira

Population: 256,622

Ideal for: Digital nomads and remote workers

Top features: Green mountains, cliffs, and forests. Low cost of living and great weather.

Madeira is an island off the northwest coast of Africa and an autonomous region of Portugal. It has a mild climate with pleasant summers and winters, making it a comfortable place to live year-round.

Funchal is the capital city, located by the ocean and surrounded by mountains. It is a safe city with a low crime rate. Ponta do Sol, another area on the island, has more sunny days than other parts of Madeira, thanks to its unique microclimate.

Ponta do Sol offers a special program for digital nomads, with a village that hosts up to 1,000 remote workers.

As Micaela Vieira from Startup Madeira explains, in 2020 alone, the Regional Government of Madeira received over 190000 digital nomad registrations on the island. “It has been quite interesting to see projects and entities taking advantage of this initial market, visiting the island and adapting their service and project to the people visiting the island… In the end, it’s all about people. It’s about community.”

Why move to Portugal?

Affordable cost of living: Portugal’s cost of living is lower than other Western European countries. Accommodation, dining, and public transport are affordable.

High quality of life: Portugal is famous for its relaxed pace, Mediterranean climate, and rich cultural heritage. Its cities combine historical charm with modern conveniences.

Welcoming communities: Portuguese people are known for their warmth and hospitality. Cities such as Lisbon, Porto, and the Algarve have expat communities, making it easier for foreigners integrate.

Ease of communication: Although Portuguese is the official language, English is commonly spoken in urban areas and tourist regions. This facilitates everyday life, job hunting, and accessing services.

Safety and stability: Portugal is one of the safest countries in the world, providing a secure environment for families, and retirees.

Strong infrastructure: Portuguese cities have efficient public transport networks, and quality education facilities, including international schools. The Portuguese healthcare system is also excellent.

Digital Nomad-friendly environment: Portugal supports remote workers through coworking spaces, high-speed internet, and digital nomad visas. Cities like Lisbon and Porto are popular hubs for location-independent professionals.

How to move to Portugal?

Digital Nomad Visa (D8)

Portugal’s Digital Nomad Visa, officially known as the Portugal D8 Visa program, is designed for remote workers who wish to live in Portugal while working remotely.

The D8 Visa allows non-EU citizens to stay in Portugal for up to one year, with the possibility of renewal.

As a D8 Visa holder, you can also travel freely within the Schengen Area, which includes 26 European countries, for up to 90 days within 180 days. This flexibility allows you to explore other parts of Europe while based in Portugal.

Portugal Retirement Visa (D7)

According to the recent US Retirement Trend report by our Global Intelligence Unit (GIU), Portugal ranks as the world’s second-best country for retirement due to its pleasant year-round climate, excellent public healthcare system, and affordable cost of living.

If you want to retire in one of the safest countries globally, the Portugal D7 Visa is the perfect option. The visa allows retirees to use passive income to cover their living expenses. The minimum required income to be eligible for the Passive Income Visa is €820.

Portugal Golden Visa

The Portugal Golden Visa is a five-year residency program that allows investors and their families to live and work in Portugal legally and travel freely within the Schengen Area.

Applicants can choose from various investment routes, including donations to art and cultural initiatives and investment funds.

After maintaining their investment for at least five years, investors can apply for permanent residency and Portugal citizenship.

Frequently Asked Questions About the Best Places to Live in Portugal

What are the best cities in Portugal to live in? 

Lisbon and Porto are popular for their vibrant culture, economic opportunities, and excellent infrastructure. The Algarve, particularly towns like Faro and Lagos, attracts retirees and expats for its sunny climate and laid-back lifestyle. Coimbra appeals to those seeking a blend of history and academia, while Cascais and Sintra offer charm and proximity to Lisbon.

Is Portugal a good place for retirees? 

Yes, Portugal is a top destination for retirees due to its affordable living costs, mild weather, high quality of life and excellent healthcare. The Algarve, in particular, is known for its expat-friendly community and relaxed lifestyle.

What is the cost of living like in Portugal?

Portugal has a lower cost of living compared to most Western European countries. Cities like Lisbon and Cascais are more expensive, especially for housing, while smaller towns and inland regions offer more affordable options. Utilities, groceries, and public transport are generally budget friendly.

Which areas are best for families? 

For families, Lisbon and Porto offer access to international schools, parks, and cultural activities. Suburbs like Cascais or the Algarve provide a safer, quieter environment with plenty of outdoor activities and good schooling options.

Is it easy to find English-speaking communities in Portugal?

Due to the large expat population, English-speaking communities are common in Lisbon, Porto, Cascais, and the Algarve. Many locals, especially younger people and those in tourism-related jobs, also speak English.

What are the top coastal towns to live in Portugal?

The Algarve is renowned for its coastal towns like Lagos and Tavira, offering beautiful beaches and a mild climate. Cascais, near Lisbon, combines coastal living with city amenities. Nazaré and Ericeira are popular among surfers and those seeking smaller communities.

How is the healthcare system in Portugal?

Portugal has a high-quality healthcare system. Residents have access to the public system, which is affordable and comprehensive, while private healthcare is also available for faster service and more specialized treatments.

Is it safe to live in Portugal? 

Yes. Portugal is the 7th safest country in the world and 5th in Europe according to the Global Peace Index. Violent crime is rare, and most areas are safe for walking, even at night. Petty crime, like pickpocketing, can occur in tourist-heavy areas but is uncommon elsewhere.

What are the best places for digital nomads in Portugal?

Lisbon, Porto, and the Algarve are hotspots for digital nomads due to their strong internet infrastructure, coworking spaces, and vibrant expat communities. Portugal’s digital nomad visa also attracts remote workers to live and work legally in the country.

How do I choose the right place to live in Portugal? 

The choice depends on your personal preferences – city life versus a quieter rural setting, proximity to the beach, budget, and amenities. Lisbon offers urban sophistication, while the Algarve and other coastal areas focus on relaxed living. Inland regions like Évora provide affordable housing and a slower pace of life.