The 10 Best Places to Live in Portugal in 2025

Portugal stands as one of the best countries to live in 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. With so many places in Portugal to choose from, like Lisbon’s vibrancy, the sun-kissed beaches of the Algarve, and the history-filled streets of Porto, we rank the best places for expats to live in Portugal.

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

• How to choose the best place in Portugal to live
• Why move to Portugal
• How to move to Portugal
• Frequently asked questions about the best places in Portugal

How to Choose the Best Place in Portugal to Live

Choosing the best place to live in Portugal depends on your lifestyle, budget, and personal needs. The country has many options, from lively cities to quiet coastal towns and rural retreats. Lisbon and Porto are great for those who want an urban setting with job opportunities, cultural attractions, and international communities. If you are looking for affordability, Porto has a lower cost of living than Lisbon while still offering a vibrant lifestyle.

Consider accessibility and infrastructure as well. Look for places with good public transport, nearby airports, and access to healthcare and schools if you have a family. Expats who enjoy outdoor activities may prefer coastal areas with hiking and water sports, while history lovers might like smaller towns with rich cultural heritage. Ultimately, the best place to live in Portugal is about finding the right balance between lifestyle, convenience, and cost.

Through curated research, here’s our list of the 10 best places for Americans moving to Portugal in 2025:

1. Lisbon

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.

Why Lisbon is great for expats

Lisbon is a great city for expats. It has a friendly atmosphere, good infrastructure, and a high quality of life. One major reason it works well for foreign residents is its strong expat community. People from around the world live in the many neighborhoods in Lisbon, creating a diverse social scene with international networking events, language exchange groups, and cultural festivals.

There are many expat-friendly services, like several high-quality international schools, relocation specialists, English-speaking doctors, and international banks, which make adjusting to life in Portugal easier.

2. Porto

Porto, situated along the Douro River in northern Portugal, is known for its Port wine production, rich history, and modern development. Although Porto is Portugal’s second-largest city, it’s still safe and affordable. Its cost of living is lower compared to Lisbon’s, and it 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 in tourist areas. Healthcare in Porto is excellent, with both affordable private and public options available.

Why Porto is Great for Expats

Like many American expats in Portugal, the city is excellent for those looking for a vibrant yet relaxed lifestyle. It offers a mix of historical charm and modern amenities, with a strong local culture and a growing international community. The city has several expat groups, networking events, and English-speaking services that help newcomers settle in.

Porto is also home to a few high-quality international schools, making it a good choice for families. Its public transport system is well-connected, and the cost of living is lower than in Lisbon, making it an attractive option for those seeking affordability without compromising on quality of life.

3. Coimbra

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 most prestigious university.

According to our Global Intelligence Unit’s Global Education Report, top universities such as Coimbra attract global students due to the country’s high quality of life and affordability compared to other European destinations.

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.

Why Coimbra is great for expats

Coimbra regularly tops any ‘Portugal Best Cities‘ list, as it’s ideal for expats seeking a smaller, more affordable city with a vibrant academic atmosphere. Home to one of Europe’s oldest universities, Coimbra boasts a rich intellectual and cultural life that attracts students, researchers, and professionals worldwide.

The city features a relaxed pace of life, good healthcare services, and a lower cost of living compared to larger Portuguese cities. Although there are fewer international schools, Coimbra offers an excellent education system. Expats appreciate the friendly locals, the historic charm, and the city’s proximity to nature.

4. Faro

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.

Why Faro is great for expats

Faro is the gateway to the Algarve and a fantastic city for expats looking for a warm climate, coastal living, and a relaxed lifestyle. It has a growing international community, with many English-speaking residents and services catering to foreigners.

The city is compact, making it easy to get around, and it has good healthcare facilities. Faro has one international school and is a short drive from many more in the Algarve region. Its airport offers direct connections to many European cities, making travel convenient for expats who frequently visit other countries.

5. Tomar

Tomar, nestled in central Portugal, offers expats a unique blend of historical charm and modern conveniences. The town’s rich cultural heritage, exemplified by landmarks like the Convento de Cristo—a UNESCO World Heritage Site—provides residents with a deep connection to Portugal’s storied past.

The cost of living in Tomar is notably lower than in larger Portuguese cities, making it an attractive option for those seeking affordability without sacrificing quality of life. Housing, dining, and everyday expenses are budget-friendly, allowing expats to enjoy a comfortable lifestyle.

Why Tomar is great for expats

While the expat community in Tomar is smaller compared to major urban centers, it is growing and diverse, including residents from countries like the UK, Netherlands, Germany, and increasingly from the US and Canada. This fosters a close-knit environment where integrating into local life is both achievable and rewarding.

The town’s manageable size ensures that amenities such as shops, cafes, and healthcare facilities are easily accessible. Moreover, Tomar’s strategic location offers good transport links, facilitating exploration of Portugal’s diverse landscapes and neighboring cities.

6. Aveiro

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.

Why Aveiro is great for expats

Aveiro is a great option for expats looking for a coastal city with a lower cost of living. Known as the “Venice of Portugal” for its canals and colorful boats, Aveiro offers a charming atmosphere with a blend of modern conveniences.

It has a growing expat community, a good healthcare system, and proximity to Porto’s international airport. While international schools are limited, families can find quality education nearby. The city’s location between Porto and Coimbra makes exploring different parts of Portugal easy while enjoying a relaxed, waterfront lifestyle.

7. Cascais

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.

Why Cascais is great for expats

Cascais is one of the most popular places for expats in Portugal. Located just 30 minutes from Lisbon, it offers a perfect balance of city convenience and coastal charm. With some of the best international schools in Cascais, a strong expat community, and excellent infrastructure, Cascais is particularly attractive to families and professionals.

The town has a vibrant cultural scene, outdoor activities, and a fantastic quality of life. Public transportation is efficient, and Lisbon’s airport is easily accessible. Many expats choose Cascais for its safety, friendly atmosphere, and high standard of living.

8. Évora

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.

Why Évora is great for expats

Évora is a great choice for expats who want a quieter, more traditional Portuguese lifestyle. This historic city is known for its well-preserved medieval architecture, cultural heritage, and relaxed pace of life.

While it has fewer international amenities than larger cities, expats appreciate its affordability, friendly community, and good healthcare facilities. There are no international schools in Évora, but Lisbon’s options are about 1.5 hours away. Expats who enjoy history, local traditions, and a slower lifestyle find Évora a charming and comfortable place to live.

9. Chaves

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.

Why Chaves is great for expats

Chaves is ideal for expats looking for a peaceful, inland town with a lower cost of living. Known for its thermal baths and Roman history, Chaves offers a unique and quiet lifestyle away from Portugal’s major cities.

It has excellent healthcare, a friendly local community, and a traditional feel. While there are no international schools in Chaves, Porto’s schools are about two hours away. The town is well-suited for retirees or those seeking a slower pace of life in a picturesque setting.

10. Madeira

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.

Why Madeira is great for expats

While there are pros and cons to living in Portugal, Madeira is a top choice for expats who love island living with the modern conveniences of the mainland. Funchal, the island’s capital, has a well-established expat community, great healthcare, and an international school. The island’s mild climate, stunning landscapes, and relaxed lifestyle attract retirees, digital nomads, and entrepreneurs.

Madeira has good infrastructure, including a well-connected airport, and offers a high quality of life with outdoor activities like hiking, diving, and sailing. It’s perfect for those who want to live close to nature while still having access to international services.

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 D8 Visa, officially known as the Portugal Digital Nomad 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

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.

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.

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.

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.

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.

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.

Is Portugal expensive for Americans?

Portugal has a lower cost of living compared to most Western European countries and the U.S 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. Comparing the cost of living in Portugal vs US, many will find that their dollars will go much further.

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.

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.