Portugal has many advantages, whether you're looking for a holiday home or planning to move there. The cost of living is affordable, the lifestyle is relaxed, the food and wine are exceptional, and the weather is fantastic, especially in the southern regions.

On top of that, property prices remain relatively low, particularly in inland areas, compared to other attractive European destinations.

However, Portugal's cities and regions offer very distinct atmospheres, property markets, and attractions. For instance, if your idea of a great time involves evenings at the opera, you might not choose the same town as someone who prefers lounging on the beach. Here’s our guide to the best places to live in Portugal and what makes each one unique.

Porto is a northern powerhouse, a city whose historic trade in port wine brought wealth in the 19th century and which remains cosmopolitan to this day. As Portugal’s second-largest city, it punches above its weight economically, with many Portuguese companies headquartered here. Porto offers a big-city lifestyle with a small-town charm and intimacy.

Scenically, Porto is stunning, set along the Douro River with cobbled streets, old warehouses, historic merchants' houses, and art nouveau architecture spread across its steep hillsides. Summers are warm, often above 30°C (86°F), while winters are mild but can be rainy. The nearby coast, including Foz do Douro, is just a short trip away.

Porto attracts tourists with its stylish bars, vibrant cultural life, and historic charm. Property prices here remain more affordable compared to Lisbon, with central Porto apartments averaging around €2,400 per square meter.

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Bonfim

Bonfim is a popular area just east of the historic center. Known for its residential vibe, greenery, and two large parks, Bonfim has a strong community feel. It’s a favorite for students and families, thanks to its affordable housing options, excellent cafés, and restaurants.

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Cedofeita

To the north of Porto, Cedfeita is an up-and-coming artistic district. With quirky street art, numerous galleries, and a thriving café culture, it’s a vibrant neighborhood. Despite being close to the city center, Cedofeita offers a quieter environment, making it ideal for families or those seeking a balance between cultural life and tranquility.

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Gondomar (São Cosme)

Gondomar, located just east of Porto along the Douro River, offers a rural escape from the city. Once the retreat of Porto's wealthy wine merchants in the 18th and 19th centuries, Gondomar is still known for its lush gardens, greenery, and tranquil charm. The area boasts river beaches, countryside, and forests, yet remains just 25 minutes from Porto by bus.

While many British and American buyers head further south, the area around Porto, including smaller towns like Guimarães and Braga, is increasingly popular with the French.

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Viseu consistently ranks as one of the best places to live in Portugal. Nestled inland in the wine-growing Dão region, it boasts hot summers and mild, though occasionally wet, winters. The charming old town blends history with modern vibrancy, featuring a thriving economy supported by its university and active trade sector. Parks, gardens, and even an ice rink make it a fantastic place for families, and the nearby mountains offer excellent hiking opportunities.

Property prices in Viseu are highly affordable. City-center apartments average around €1,200 per square meter, while suburban homes cost even less. Renovation projects in the countryside can start as low as €20,000, and decent villas begin at €100,000 and up.

For those seeking sunnier climates or an escape from northern winters, the south of Portugal offers excellent alternatives.

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Portugal's playground on the Estoril coast

Heading west from Lisbon brings you to the Estoril Coast, where the Tagus River meets the Atlantic. Cascais is a vibrant seaside resort with a population of around 200,000, located just 40 minutes from Lisbon via a well-connected train line. Unlike many seasonal seaside towns, Cascais is lively year-round. It has a sizable expat community, including South Americans, Asians, and Europeans, drawn by its international schools, proximity to Lisbon, and high quality of life.

Cascais' old town is a picturesque blend of historic charm and 19th-century elegance, a legacy of its time as a retreat for Portuguese nobility. The area balances casual seaside vibes with refined style, which is reflected in its property prices, ranging from €3,000 to €4,000 per square meter.

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Estoril

Estoril, just 2 km from Cascais and connected by a scenic beachside promenade, is often considered its twin town. While Estoril lacks the historic charm of Cascais, it makes up for it with its lively nightlife and attractions, including the iconic Estoril Casino, which famously inspired Ian Fleming’s first James Bond novel.

For those venturing further south, the Algarve offers the quintessential Portugal of sun, sea, and sand. Beyond the coastline, the inland Algarve reveals rolling hills, lemon and orange groves, and a more tranquil side of the region.

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Faro

Faro is the gateway to the Algarve, thanks to its international airport, but it’s also a vibrant university town with a rich medieval quarter, lively bar scene, and a laid-back atmosphere. Unlike many Algarve towns, Faro is less touristy, likely because it’s not directly on the coast. However, beautiful and uncrowded beaches are just a short trip away.

Property prices in Faro average around €2,400 per square meter for apartments, with even better deals available further inland. Faro is a great choice for year-round living, as it remains lively even in winter.

In contrast, many other Algarve destinations can feel deserted in the off-season, which might make them less appealing for permanent residents. Work opportunities can be scarce, especially if you’re not a digital nomad or fluent in Portuguese. Additionally, while Faro attracts a mix of Germans and other Europeans, much of the Algarve is heavily dominated by British expats, which might suit those seeking familiarity but could challenge efforts to integrate into Portuguese life.

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Albufeira e Olhos de Água

Albufeira is the busiest resort town in the Algarve, blending a charming historic center with modern attractions like a bustling nightlife (especially in peak season), golf courses, and a marina. The town is essentially split into two halves: the Old Town caters to families, while the New Town is a hotspot for lively stag and hen parties.

Meanwhile, Olhos de Água — part of the Albufeira municipality since 2013 — offers a quieter alternative. This former fishing village is set on a scenic sandy cove and is ideal for beach lovers and sports enthusiasts. However, its limited cultural life and poor transport links to Faro’s airport may deter frequent travelers.

Portimão

Portimão is a favorite among expats, offering a mix of tourist-oriented amenities and local culture. Its charm lies in the juxtaposition of Portuguese restaurants with Irish pubs, making it a unique blend of expat and traditional influences. Beyond its resort appeal, Portimão boasts a thriving sardine fishing industry, a historic center, museums, and a lively bar scene. It’s also the annual host of the Dakar Rally.

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We can’t discuss Portugal without mentioning its vibrant capital, Lisboa. Beautiful, lively, and exciting, Lisbon is a city of contrasts—at once touristy and expensive but also rich in culture and history.

English is widely spoken here (a rarity in Portugal, where only around 20% speak English), and the city enjoys an impressive 3,000 hours of sunshine annually. Culture enthusiasts will love its heritage sites, museums, and the grand opera house.

Choosing the right neighborhood in Lisbon

Lisbon's property prices range significantly—from €3,400 to over €10,000 per square meter, depending on the area. The atmosphere and lifestyle also vary widely between neighborhoods:

• Alfama and Graça: Lisbon’s oldest districts, known for their historic charm and tourist-friendly vibe.
• Avenida Liberdade and Chiado: Home to spacious apartments and top-notch amenities, but with some of the city’s highest prices.
• Bairro Alto: Popular with younger residents, offering vibrant nightlife—perfect for night owls but not ideal for early sleepers.
• Restelo: More relaxed, located further from the city center, with spacious, luxurious properties.
• Santos and Lapa: Quieter, family-friendly areas offering a balance of urban living and tranquility.

Seixal: A suburban alternative

For those seeking proximity to Lisbon without the big-city atmosphere or high property costs, Seixal across the River Tagus is an excellent choice. Once an industrial hub, Seixal has transformed into a modern town with a thriving business campus, cultural festivals, and a new riverside beach featuring a 2.5-kilometer sandbank.

Seixal offers significant value for money. For around €300,000, you can buy a villa with a private pool—something nearly impossible across the river in Lisbon. The commute to Lisbon is convenient, with a 20-minute drive, a 45-minute bus ride, or a quick ferry crossing that runs roughly every half hour.

Sintra: A magical retreat

For a blend of nature and history, Sintra[Sintra] is a captivating option. Known for its royal palaces, lush forests, and humid microclimate, Sintra is just a short train ride from Lisbon. It’s a haven for hikers and mountain bikers and is only a short walk from the beach. However, Sintra’s popularity means it’s often crowded with tourists in summer, and parking can be a challenge.

Wherever you decide to settle in Portugal, you’ll discover a country filled with delicious treats like pastéis de nata, a deep love of football, and a rich cultural experience. Bem-vindo a Portugal!

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