The Best Place to Live in Portugal: A Guide For Foreigners

Are you a foreigner trying to relocate to Portugal? The first step is to choose the best city to live in, and there’s no shortage of amazing options. In this guide, we will be taking a close look at the best places to live in Portugal, focusing on your specific needs and ambitions.

Despite being a relatively small country, Portugal boasts a uniquely diverse mix of sunny coastal cities, beautiful historic cities, and affordable real estate investment opportunities. Below, we have compiled the 8 best cities to live in Portugal.

 

1. Algarve: Best Region For Retirees

Average property price per m2: $3,536

The Algarve is a Southern Portugal region known for its stunning beaches and charming beachfront towns. The area is also a bonafide paradise for foreigners, and it’s been a safe harbor for British and American citizens for decades now.

While the Algarve is, overall, one of the best places to live in Portugal, its relaxed lifestyle, its large community of Expat citizens over 60, and its all-around warm weather make it especially attractive for foreign retirees.

Despite its relatively expensive average property price (only falling behind Lisbon and Porto), the Algarve is also great for real estate investment, offering solid returns and an annual price growth of 16%.

 

Part of what makes the Algarve so attractive to foreign investors and retirees is its dependence on tourism, which has risen 5.3% in Portugal in recent years. The region is historically known as the country’s largest tourist hub.

In the Algarve, you can find both fast-growing cities like Faro, Olhão, and Portimão and tranquil, picturesque villages such as Odeceixe and Aljezur.

2. Lisbon: Best City For Real Estate Investors

Average property price per m2: $5,931

If you’re looking to buy a property in Portugal, Lisbon is your safest bet. Despite having the most expensive local real estate market in the country, with an average property price per square meter of $5,931, Portugal’s capital guarantees a great quality of life at an affordable cost of living.

For this reason, Lisbon is ideal not just for investors, but for any foreigner looking to relocate to Portugal from a wealthier country. Lisbon’s house prices have even topped Madrid’s by 25%, but the city’s infrastructure and cultural offerings are of the highest standard, falling behind no other cosmopolitan European capital.

 

If you’re considering moving to Portugal as an American citizen, Lisbon is our number-one recommendation. Its proximity to Cascais, Portugal’s best city for foreign families, is another huge plus!

Before relocating to Lisbon, please keep in mind that the city boasts a diverse number of neighborhoods, from picturesque Alfama to the hustle and bustle of Bairro Alto. For more info, check out our article on the best neighborhoods in Lisbon.

3. Porto: Best City For Remote Workers

Average property price per m2: $3,776

Porto is Portugal’s second-biggest city and the ideal alternative for foreign citizens who may find Lisbon’s house prices a bit too expensive. Sitting in the North of the country, Porto also rivals Lisbon in terms of charm and cultural heritage.

Practically speaking, Porto has everything you need:

• An affordable cost of living compared to other major European cities;
• An efficient public transportation system with metro and bus;
• A dynamic cultural scene with many museums, theaters, and festivals;
• Renowned gastronomy and world-famous Port wine.

 

Porto’s not-too-big, not-too-small size and bustling young Expat communities also make it a perfect city for remote workers. Porto’s digital nomad trend is best exemplified by the growing number of coworking offices available in the city.

When it comes to Porto’s neighborhoods, our top recommendations include the scenic Ribeira, the ever-busy Cedofeita, and the hip residential neighborhood of Bonfim. Sitting on the other side of the Douro River, next-door Gaia is the ideal low-cost alternative for remote workers looking to settle in the area.

4. Funchal (Madeira): Best City For Expat Communities in Portugal

Average property price per m2: $3,472

Funchal is the largest city of Madeira, an island west of Morocco that is not part of Continental Portugal. This poses some challenges, as the city can be somewhat isolated from the rest of Europe, but also brings many advantages.

For one, Funchal has a dreamy sub-tropical climate with average temperatures ranging between 60.8º F and 77.º F. Additionally, it is known to combine historical charm and modernity in a tranquil living environment, making it the second-best option for foreign retirees looking to relocate to Portugal (after Algarve, of course).

 

In recent years, Funchal has also been through major changes mainly due to the arrival of many young foreign citizens; this makes it a perfect city for Expats who want to know what it’s like to live in Madeira before the island inevitably becomes as massively gentrified as Lisbon and Porto.

To catch the Funchal wave from the get-go and join Madeira’s growing number of exciting Expat communities, please don’t forget to check out our guide on buying a property in Madeira!

5. Azores: Best Affordable Portuguese Location

Average property price per m2: $1,904

The Azores are an archipelago located in the middle of the North Atlantic, about 1,500 kilometers from the Portuguese coast. Its nine volcanic islands boast beautiful and diverse landscapes, with 25% of the Azores territory classified as protected areas!

Just like Madeira, the Azores enjoy nice weather year-round (albeit with a lot more rain), but the archipelago’s biggest pro is how cheap it is, both from a cost-of-living and property-price standpoint.

 

If you’re a foreigner trying to relocate to Portugal on a limited budget, the Azores are the place to consider. Moreover, the archipelago’s diversity offers interesting opportunities for all sorts of Expats:

• Ponta Delgada, on the island of São Miguel, is great for families and young professionals;
• Santa Maria, Graciosa, Corvo, and Terceira are idyllic destinations for foreign retirees;
• Flores and Pico are ideal for Expats who enjoy inspiring mountain hikes and outdoor sports.

 

With an average property price of only $1,904 per square meter, the Azores are also a place where you can easily find a cheap plot to build a prefabricated house in Portugal.

6. Coimbra: Best City For Foreign Students

Average property price per m2: $1,988

Home to one of the 10 oldest universities in Europe, Coimbra was Portugal’s capital until 1255 and remains one of its most important intellectual hubs. A place where past and present meet, Coimbra’s historic center is filled with emblematic monuments such as the University of Coimbra and the Joanina Library.

With booming college life and a low cost of living, Coimbra is the best Portuguese destination for foreign students. Unlike most other important cities in Portugal, Coimbra is also refreshingly local, with fewer tourists roaming the streets.

 

More than a city for students, though, Coimbra can meet the needs of all kinds of non-nationals. The peaceful residential neighborhoods of Solum and Celas are excellent for families, Bairro Sousa Pinto meets the needs of young professionals, and the quiet Santa Clara and São Martinho do Bispo areas are where foreign retirees can find affordable properties.

For another huge plus, keep in mind Coimbra is ideally located, sitting right between Lisbon (in the South) and Porto (in the North).

7. Braga: Best City For Job Opportunities

Average property price per m2: $1,910

Braga is often deemed to be the third-largest city in Portugal, and that shows in its culture, renowned university, and plentiful job opportunities. Located in Northern Portugal, 45 minutes by car away from Porto, Braga is one of the best places for foreign citizens looking to work in Portugal.

Recently revitalized by a drastic surge in immigration (mainly led by Brazilian immigrants), Braga is filled with exciting jobs for highly qualified professionals. Industrialized, Braga is home to important institutions such as the International Iberian Nanotechnology Laboratory and a massive Bosch factory that was reinvigorated with a $53 million investment (source).

 

Like Coimbra, Braga also meets the needs of all profiles of foreigners:

• Nogueira and Gualtar are faultless neighborhoods for families;
• Praça da República and Sé are young and cosmopolitan;
• São Vicente and Parque da Ponte are relaxing locations for retirees.

8. Aveiro: Extra Recommendation For Foreigners

Average property price per m2: $2,558

Aveiro is a city located in the central coastal region of Portugal, roughly 50 minutes away from Porto (by car). Even though Aveiro is not as big as Lisbon, as sunny as the Algarve, or as Expat-friendly as Funchal, it’s still one of the best places to live in Portugal.

Aveiro has a relatively high average property price and rental prices that can go above $660 for a one-bedroom apartment. However, that shouldn’t prevent you from considering it as your future Portuguese home: truth be told, Aveiro does have something for everyone!

Known as the Portuguese Venice due to the canals that cross the city center, Aveiro is ideally located between Porto and Lisbon, sits close to the dreamy beach town of Ílhavo, in the Costa Nova, and is very peaceful without feeling like a ghost town.

 

The most attractive neighborhoods in Aveiro include Vera Cruz and Glória (in the city center), São Bernardo (cheaper, more residential, and perfect for foreign families), Esgueira (sitting next to the ocean and ideal for retirees), and Santa Joana (best known for the religious landmark of the Paróquia de Santa Joana).

Even though Aveiro is not as popular among foreigners looking to relocate to Portugal as our previous suggestions, we recommend it as a nice, lesser-known destination for families with children and retirees who are looking for a tranquil lifestyle, but still want to have access to the kind of infrastructures usually found in bigger cities.

Where to Live in Portugal for Families With Children?

• Lisbon: Expensive but filled with everything families could ever want (from thrilling cultural events to great international schools like United Lisbon International School).
• Cascais: A resort-like city on the outskirts of Lisbon, Cascais is ideal for quiet family life and even has amazing beaches for an extra. Extremely secure, Cascais is also home to the renowned St. James school.
• Porto: More affordable and less busy than Lisbon, Porto is well-suited for families who enjoy the buzz of city life but also want to live in a comparatively smaller town, where everything feels a little bit more local.
• Algarve: The best location for families that are considering relocating to Portugal to escape the cold and enjoy sunny days year-round.

 

Wherever you decide to settle, Portugal remains a destination of choice for your children, who will enjoy growing up in a country that ranks highly on the World Happiness Index.

The Bottom Line

The time to move to Portugal is now, so what are you waiting for? Carefully review your needs and choose the place to live in Portugal that suits you (and your family) the most. And the best news? Getting a mortgage in Portugal is really not that hard!

If you need help, just reach out to CAFIMO, and we will make your relocation to Portugal easier than ever: