andrew henderson menu

Andrew Henderson

Founder of Nomad Capitalist and the world’s most sought-after expert on global citizenship.

ABOUT THE COMPANY

What we’re all about

MEET OUR TEAM

Meet our 95+ global team

CONTACT US

We’re here to serve you

FAQS

Your questions answered

TESTIMONIALS

Read our testimonials

NEWSLETTER

Get free email updates

NC-image-menu

ACTION PLAN

Our flagship service for entrepreneurs and investors

ACTION PLAN ELITE

Create your Action Plan directly with the Mr. Henderson himself

CITIZENSHIP BY DESCENT

Claim a second passport based on familial connections

ALL SERVICES

Click here to see all our products and services

PASSPORT INDEX

Discover the world’s best passports to have in an ever-changing world

CITIZENSHIP MAP

Explore the citizenship options using our interactive citizenship map

TAX MAP

Explore the tax details for countries using our interactive tax map

ALL RESEARCH

Click here to see all of our research and interactive tools

THE WORLD’S #1 OFFSHORE EVENT

Learn from a curated “Who’s Who” of business speakers from around the world, get our latest R&D updates, and rub shoulders with successful people from all corners of the world.

NOMAD CAPITALIST THE BOOK

Andrew Henderson wrote the #1 best-selling book that redefines life as a diversified,
global citizen in the 21st century… and how you can join the movement.

The 10 Best Places to Live in Portugal

Global Citizen

November 8, 2024

Portugal is a top tourist destination thanks to a winning combination of beautiful beaches, a warm climate and a relaxed pace of life. 

It’s also regarded as one of the most welcoming European countries, with large numbers of expats finding it easy to adapt to Portugal’s cities and region. In fact, Portugal’s resident expat population is an estimated 10.6 million people.

Still, if you’re considering moving to this popular country situated on Europe’s southwestern tip, you need to know the best destinations and compare the pros and cons of each. 

On top of that, you need to consider the extent of the investment opportunities and tax incentives available. 

Wherever you choose to live and invest, let  Nomad Capitalist look after all your residence needs in Europe and beyond. 

We can help you determine whether mainland Portugal or an island like Madeira is best depending on factors such as the cost of living, real estate and the availability of health and education facilities. 

To help provide you with a starting base, whether you’re an investor, business owner, digital nomad or retiree, here are the ten best places to live in Portugal.

Where is the Best Place to Live in Portugal?

Here are our top ten destinations we’d recommend for expats to live in Portugal, updated to reflect recent changes in cost of living, investment opportunities and more.

10. Sintra

Sintra, Portugal
Ideal for anyone seeking historic charm and natural beauty, Sintra offers a stunning landscape of palaces, gardens and mountain scenery.

Nestled in the Sintra Mountains just 30 kilometres northwest of Lisbon, Sintra is a UNESCO World Heritage Site known for its fairytale-like palaces, lush gardens and stunning landscapes. 

This picture-perfect town has long been a favourite summer retreat for Portuguese royalty and nobility, which has given it a historic charm that’s hard to match elsewhere in Portugal.

Sintra’s real estate market is varied, offering historic estates, charming cottages and modern apartments. Overall, though, it’s a fairly exclusive area, which is reflected in the property prices.

Real estate prices here are generally higher near the town centre and famous attractions, like the Pena Palace and Quinta da Regaleira. Expect to pay around €2,705 per square meter (sqm) for an apartment or €3,500 per sqm for a house in Sintra.

The town’s cooler mountain air makes Sintra a comfortable place to live compared to Portugal’s hotter areas. Overall, it’s an ideal place for expats and retirees who want to enjoy a mild, Mediterranean climate year-round.

And with frequent train connections to Lisbon, Sintra is still a convenient and accessible place to live.

9. The Azores

The Azores, Best Places to Live in Portugal
Perfect for nature lovers, the Azores offers an outdoor paradise with volcanic landscapes, hot springs and a mild climate year-round.

The Azores is a North Atlantic Ocean archipelago located around 1,000 miles (1,600 km) west of the Portuguese mainland. 

There are nine major islands, with the most significant island being São Miguel, where the capital, Ponta Delgada, is located. English is widely spoken on the larger islands, but you’ll need Portuguese to get by on the smaller isles. 

Residents of the Azores enjoy a maritime subtropical climate with moderate temperatures all year round. 

While real estate prices in the Azores can vary based on location and size, property is relatively affordable compared with mainland Portugal and the capital, Lisbon. For example, the median price for an apartment for sale in the Azores is €2,406 per sqm.

8. Alentejo

Alentejo, Best Places to Live in Portugal
Known for its peaceful countryside and traditional charm, Alentejo is a retreat for retirees and creatives who appreciate a slower pace of life and beautiful landscapes.

Situated in southern Portugal near the Algarve, Alentejo is Portugal’s agricultural heartland and largest region. 

It, too, has stunning beaches and coves along its coastal edge, but it’s better known for its rolling countryside with all manner of crops, cork forests, vineyards and olive groves. 

In fact, this rural area produces two-thirds of the world’s output of cork.

With 25% of the population in the region aged over 65, Alentejo is especially ideal for retirees. 

Alentejo’s laid-back charm has attracted foreign creatives to buy homes in the area. These include the French fashion designer Christian Louboutin, Belgian architect Vincent Van Duysen and German artist Anselm Kiefer. 

Expats who move there are drawn to the fact that Lisbon is just over an hour by car. They also go there for Alentejo’s stunning hilltop towns, where you can sample delicious yet underrated locally produced wines.

7.  Madeira

Madeira, Best Places to Live in Portugal
Best for those wanting scenic island living with tax advantages, Madeira combines stunning nature with a welcoming community and a thriving real estate market.

Madeira is one of two inhabited Islands, the other being Porto Santo.

Like the Azores, the Madeira Islands are a North Atlantic Ocean archipelago. Major island industries include tourism and the production of the famous eponymous dessert wine. The capital, Funchal, is the 8th biggest city in Portugal, with a population of just over 100,000.

Madeira has become attractive to foreign investors looking to grow their luxury real estate portfolio. €377 million was invested in Madeira’s property market in 2022, with most buyers coming from North America, the UK, Germany and France.

Funchal’s most famous son is soccer superstar Cristiano Ronaldo. He owns a seven‐story mansion in his hometown. The player has partnered with Portugal’s largest hotel group to establish a portfolio of five Pestana CR7 hotels. 

The company now plans to extend the brand into real estate with the €50 million construction of an apartment complex in Praia Formosa. Known for its Free Trade Zone, this Portuguese territory also offers lucrative tax benefits for companies, with a low corporate tax rate of 14.7%.

6. Aveiro

Aveiro, Best Places to Live in Portugal
Often called the ‘Venice of Portugal,’ Aveiro’s pretty canals and Art Nouveau buildings make it a unique coastal choice with promising investment potential.

West Coast Aveiro borders the ocean. Here, you’ll find colourful moliceiros, the boats traditionally used to collect algae and seaweed, now used for Venice-like sightseeing trips. 

The 17th largest city in Portugal, Aveiro has a population of around 55,000. It’s a striking place with canals, Art Nouveau buildings, a cathedral and museums. 

Aveiro property prices are steadily increasing, so investing there looks like a 

good long-term bet. You can expect to pay around €2,950 per sqm for an apartment in Aveiro.

A rail network expansion project that includes Aveiro is set to connect Portugal’s largest cities with high-speed services.

5. Braga

Braga, Best Places to Live in Portugal
Known for its history and affordability, Braga offers a vibrant yet relaxed city life with excellent infrastructure and a crypto-friendly environment.

Braga, the fourth biggest city in the country, is home to just over 120,000 inhabitants. It’s located in northern Portugal with good rail and road connections to Porto. 

A historic city, Braga was the seat of the Portuguese court from 1093 to 1147 and is the oldest city in the country, being founded by the Romans in 16 BC. It’s considered one of the happiest metropolises in Europe and one of the best cities in the world to retire in.

This northern city is also crypto-friendly. In May 2022, a historic milestone was reached there when an apartment was sold for three Bitcoins – Portugal’s first-ever 100% crypto transaction.

4. Coimbra

Coimbra, Best Places to Live in Portugal
Coimbra is rich in history, home to Portugal’s oldest university and provides a high quality of life at a lower cost.

Coimbra is a city and municipality in west-central Portugal. With close to 107,000 inhabitants, it’s the sixth-largest city in Portugal. 

Parts of Coimbra’s downtown, including the Renaissance-era thoroughfare, Rua da Sofia, have UNESCO World Heritage status.

During the Middle Ages, Coimbra was Portugal’s capital for over 100 years. It’s where you will find the country’s oldest and most prestigious university. 

Well connected by train to both Lisbon and Porto, Coimbra guarantees a low cost of living in comparison with areas more popular with tourists.

Attractions include Lola des Maias, established in 1931, which offers traditional tailored suits and designer clothing and Camponeza, a gourmet market that doubles as a nighttime venue.

3. Porto

Porto, Best Places to Live in Portugal
Porto’s historic riverside setting and culinary scene make it a fantastic urban option in Portugal.

Porto, located on the banks of the Douro River estuary in northern Portugal, is the country’s second‐largest city, with an estimated 1.3 million residents. 

It’s (280 km) north of Lisbon. An international airport offers flights to and from a wide-ranging selection of global destinations.

Porto’s historic centre is a UNESCO World Heritage Site and a stroll around its old town will affirm why it is one of the best cities in Portugal. 

The great export of Porto,  (port wine) is now a world-famous regional drink only made in the Douro Valley. This northern city has a rich culinary tradition that includes caldo verde, a green soup winter warmer. 

2. Lisbon

Lisbon, Best Places to Live in Portugal
Perfect for remote workers and cosmopolitan city seekers, Lisbon’s sunny streets, coworking spaces, and modern amenities attract a global community.

Like Porto, Lisbon is a safe city that attracts remote workers drawn to increasingly popular coworking hubs with high-speed internet connections. With a population estimate of at least 3 million, Lisbon has around twice the population of Porto.

As you would expect of a capital city, particularly one as charming as Lisbon, it attracts large numbers of expats. The cost of living may be higher, but there are more facilities and services than in out-of-the-way locations, like English-speaking doctors. 

You’ll never tire of navigating the sunny streets of Lisbon’s beautiful city centre with its distinctive yellow cable cars. 

Cascais is known as Lisbon on Sea, and this coastal town is a 25-minute train journey from the capital. Geographically, it forms part of the Lisbon District and has plenty to offer, with trendy beach cafés where you can unwind and watch the world go by. 

1. Algarve

Algarve, Best Places to Live in Portugal
Ideal for beach and golf enthusiasts, the Algarve’s sunny climate, beautiful coast and diverse real estate options make it a top spot for expats.

The Algarve region enjoys some of the warmest weather in Portugal. As well as its picture-perfect beaches, the Algarve is renowned for its golf courses. There, you can combine your passion with real estate investment in apartments, townhouses and villas that adjoin golf clubs.

Popular Algarve hotspots include Tavira, which enjoys some of the best weather in the country. It’s close to the Spanish border, and its beautifully preserved old town sees traditional whitewashed houses decorated with colourful tiles. 

The tourism industry of Lagos in the western Algarve has seen the development of high-quality coastal real estate close to the family-friendly beaches.

Faro is a small city of 70,000 people, with a far more affordable cost of living than Lisbon. Its historic centre includes city walls (Muralhas de Faro) and a vibrant town square that attracts both locals and visitors. 

Faro’s airport is small but is well connected to the rest of Europe and beyond.

Living in Portugal 

Living in Portugal 
Lisbon is the capital city of Portugal.

Living in Portugal is affordable and the climate is pleasant, with over 300 days of sunshine a year. This has seen the country become one of the most popular European destinations for expat retirees.

Portugal is family-friendly, too, with good state education options. 

It might also be easier to acclimatise in a jurisdiction where English is widely spoken. With a less developed economy than some of the bigger European Union players, you can still find good-value real estate and an affordable cost of living. Looking to move overseas and gain access to lucrative investment opportunities while availing of lower taxes? Become a client, and we’ll show you how to go where you’re treated best.

How to Move to Portugal

There are a few different options for non-EU individuals looking to move to Portugal. If you don’t have Portuguese ancestry or family ties, the two most popular routes are the golden visa and the D7 Visa. Both of these can lead to long-term residency and eventual citizenship. 

The golden visa is an investment-based residency option, where you invest a minimum amount in a Portuguese VC fund, business or research. This visa is ideal for investors looking to secure residency while potentially only spending a few days each year in Portugal.

The D7 Visa, often called the passive income visa, is geared toward retirees or those with stable, recurring income from sources like pensions or remote work. 

Applicants must show a minimum monthly income of €820 and financial savings in a Portuguese bank account. 

After holding the D7 visa for five years, residents can apply for permanent residencey or citizenship – as long as they have maintained continuous residency.

Once a resident for five years, you can apply for Portuguese citizenship. Portugal has one of the world’s most powerful passports, and becoming a citizen gives you full access to the EU.

Follow our full guide on how to get Portuguese citizenship for more details.

Best Place to Live in Portugal: FAQs

Where are the best places to live in Portugal for families?

Lisbon and Cascais are always popular destinations for families due to their excellent schools, parks and family-friendly amenities. Cascais offers a suburban feel with easy access to Lisbon. The Algarve also appeals to families, where you can enjoy a relaxed lifestyle, outdoor activities and international schools.

Where are the best places to live in Portugal for expats?

Lisbon, Porto and the Algarve are top choices for expats, with each offering a mix of expat communities, amenities and cultural experiences. Porto and Braga offer more affordable living, while Lisbon provides a vibrant city life. The Algarve, especially around Lagos, is a top choice for retirees and families alike.

What is the best place to live in Portugal for English speakers?

Lisbon, Cascais and the Algarve are the best choices for English speakers due to their larger expat populations and easy availability of English-speaking services. In these areas, you’ll find English-speaking doctors, schools and community groups, which can make it a lot easier to settle in.

Where is the best place to live in Portugal for Americans?

Lisbon and the Algarve are mostly preferred by Americans for their lively expat communities and conveniences. Lisbon offers a bustling city life, while the Algarve provides a relaxed, seaside lifestyle with warm weather and golf resorts.

Where are the best places to live in Portugal for retirees?

The Algarve is the most popular for retirees, offering a mild climate, affordable living and beautiful coastlines. Braga and Madeira are also appealing, with Braga’s low cost of living and Madeira’s unique island charm and tax incentives.

Where are the best places to live in Portugal by the sea?

The Algarve and Cascais are standout options, with their stunning beaches, beachside cafes and high quality of life. Porto also has coastal areas, with its Douro River estuary offering scenic views and a thriving wine culture.

Is Portugal a safe place to live?

As a whole, Portugal is a safe place to live. That’s according to the Global Peace Index, which ranks Portugal at number seven, with only Iceland, New Zealand, Ireland, Denmark and Austria considered safer.

Will I pay lower taxes in Portugal?

In terms of taxes, there may be better deals out there if you want to live in Europe. Places like Italy and Greece and tax-friendly countries like Cyprus, Malta and Ireland may be worth considering. This is particularly the case since Portugal made huge changes to its non-habitual resident tax incentive

Can I get by speaking English in Portugal?

Generally speaking, yes, but it depends on where you are. English is widely spoken in Faro and across the Algarve region. There are more rural communities where only Portuguese is understood.

Where do most expats live in Portugal?

The Portuguese capital, Lisbon, is home to people of over 80 nationalities. Its sheer size means more foreign nationals reside there, but the expat population continues to grow in the other cities.

How can I become a resident of Portugal?

Portugal’s golden visa is a fast-track residence-by-investment program that grants non-EU and European Economic Area (EEA) citizens a Portuguese residence permit in exchange for a five-year investment in the country. 
This involves a donation of €250,000 or an investment of €500,000.  
New legislation passed in October of 2023 closed the path to Portuguese citizenship through property investment.

Is Portugal Right for You?

Portugal Country Overview 2

Portugal is a popular destination for expats. The culture, natural beauty and overall welcoming environment and locals make it a good choice for those hoping to establish themselves in the EU.  

It also has a fairly good tax scheme for those who qualify. However, choosing where to set up your second residence or permanent residence can be tricky. 

As you can see, there’s a degree of complexity in choosing which area to move to in any given country. That’s where our Nomad Capitalist team can help. 

Our international team of experts can help you find the best place to settle. Whether you’re seeking a new home, want a Plan B location for the future or simply want to expand your financial options, we can help. Contact us today.

Get Tips to Reduce Taxes and Build Freedom Overseas

Sign up for our Weekly Rundown packed with hand-picked insights on global citizenship, offshore tax planning, and new places to diversify.

No spam, unsubscribe at any time.

Nomad Capitalist Background
Nomad Capitalist Action Plan
Legally Reduce Your Taxes and Diversify Your Wealth
Nomad Capitalist has helped 1,500+ high-net-worth clients grow and protect their wealth safe from high taxes and greedy governments. Learn how our legal, holistic approach can help you.