Best Places to Live in Portugal
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Portugal has been popular with our clients for a while now. Their generous Golden Visa program was a big part of that, but it wasn’t the only reason.
It’s really the quality of life—the sun-drenched coasts, rich history, and laid-back lifestyle. And it’s nice that the country can be cheaper than similar spots in the US. But… what are the best places to live in Portugal? That’s the question.
There’s no real best answer, of course. Different strokes for different folks.
But there are some places that are more popular with American expats than others.
In this guide, you’ll learn about five places that our clients gravitate towards. Plus other useful information if you’re thinking about making the move yourself.
Why Portugal?
There are lots of reasons why people move to Portugal. How about the beautiful Mediterranean climate, long summers and mild winters—plus up to 300 sunny days a year in the south of the country!
The climate varies by region. Broadly, the northwest is rainy, the south is arid, and the northeast enjoys long, warm summers. Summer temperatures seldom climb above 82°F; it rarely drops below 58.5°F in winter.
Portugal can also offer a more affordable cost of living, high-quality healthcare and education, and a more reasonable real estate market. (Sometimes anyway.)
I recently read that an apartment in Lisbon, Portugal’s capital, is about half the price of a comparable NYC apartment. I’m not sure that’s 100% true but it’s safe to say there is a significant difference.
And, in fact, it used to be cheaper… until the old Golden Visa program that ran from 2012 to 2023 included residential real estate as a qualifying investment.
That drew in a lot of foreign investors. And in expat hotspots and the capital, that helped to push up property prices. Not only did it annoy the locals to no end, but it caused the government to pull the real estate investment option in 2023.
That has made the current Golden Visa program less attractive but likely more sustainable.
It’s also safe—the country ranks 7th on the 2024 Global Peace Index thanks to a low crime rate and the welcoming and friendly attitude of the Portuguese.
Best Places to Live in Portugal
Most of the time, when people come to us to help with their Portuguese planning, they already know where they want to be; they want our help to figure out the logistics, complete the purchase, and make it fit into their overall planning.
But every so often, clients will ask us to help them pick the right area. They like the idea of the country, but aren’t sure where to get started.
Here’s the list we send them.
#1: Lisbon
Lisbon is still popular even though the prices have gone up a lot in recent years. There’s a reason for this continued attraction.
The city has over 60 museums, a varied cuisine, and English-speaking theater, as well as gorgeous beaches.
It also has plenty of English-speaking expats from all around the world with whom you can hang out. Almost everyone in Lisbon speaks English. However, some exceptions exist; employees at most government agencies insist on speaking Portuguese. And although it’s possible to manage, especially if you have the help of a translator, it’s a good idea to try and pick up a bit of the language.
Besides all the conveniences of the modern world, Lisbon exudes old-world charm.
Portugal’s healthcare system is also very good. And with so many expats living in Lisbon, it’s relatively easy to find an English-speaking doctor.
#2: Porto
Three hours north of Lisbon, Porto—sitting on the Douro River—is the country’s second-largest city. It’s located in the wine-making region of the country, rich in both culture and history.
Just like in Lisbon, English is quite common, so you won’t have any issues fitting in. It has beautiful architecture, plenty of shopping malls, and great food.
Porto has a somewhat cooler climate, and there’s quite a bit of rain in the winter.
With that said, the city has a large expat community and one of Portugal’s three international airports, which makes traveling easier. The cost of living is on the higher end, although less expensive than Lisbon.
#3: Faro (Algarve)
Faro, the sun-drenched gateway to the Algarve, exudes a relaxed coastal charm that appeals to both locals and expats. It’s a picturesque old town with narrow cobblestone streets and historical architecture that invites strolls and impromptu café stops.
There’s a range of family-friendly beaches, notable landmarks, and iconic tiled houses. Lively squares and cozy cafes are great if you enjoy a laid-back lifestyle.
It’s been popular with English-speaking expats for years… contributing to a large run up in property prices.
Many of its residents speak English, so you won’t have any trouble getting around town. It’s still a good idea to learn a little bit of Portuguese though.
#4: Silver Coast
Caldas da Rainha, located about an hour away from Lisbon, is well known for its focus on wellness, relaxation, and healthcare. The city is built around natural hot springs, around which a hospital was established in the 1400s. It also has several public and private hospitals and clinics.
If you love fresh produce and fish, you’ll love Caldas. The town is known for its daily farmers’ market and weekly fish market, where you can buy fresh groceries and take a stroll through the flea market, looking for antiquities.
Of course, Caldas also offers modern conveniences like large grocery stores, shopping malls, and lots of restaurants. It also boasts other cultural establishments, like museums and theaters.
Life in Caldas is also more affordable than in Lisbon or Porto, especially if you eat out a lot. The monthly rent is almost 50% lower compared to Lisbon. Summer temperatures in Caldas are pleasant and spring-like, without the scorching heat. However, the winters are cold, wet, and windy, so it really pays to bring a winter jacket.
And while many locals speak some English, you’ll need to speak at least basic Portuguese to be comfortable here.
#5: Lagos
Also located in the Algarve area, Lagos is known for its vibrant nightlife. It also offers family-friendly beaches, nice hotels, and restaurants.
The city retained much of its historic charm, with its tiled plaza in the old town and remnants of a fort perched along the waterfront.
The cost of living in Lagos mirrors that of Lisbon and Porto in nearly all aspects, but there are some minor variations in the monthly rent. Lagos is more accessible to investors looking to buy real estate in the city center. However, the cost of real estate outside the city center is actually higher compared to Lisbon.
Most Lagos residents speak English, thanks to the large number of expats already living there. This makes navigating the city much easier for newcomers.
Things to Consider Before Moving
While there’s plenty to love about Portugal, it’s not all roses and gumdrops. There are certain things worth considering before moving that can help avoid any confusion and awkwardness. Here’s a more comprehensive breakdown:
Language Barrier
As already mentioned, most people in major cities and popular tourist locations in Portugal speak English. However, this doesn’t always apply to the elderly, who may speak very little or no English at all.
The same is true of many Portuguese people in rural areas. Nor does the government officially recognize English.
For newcomers, you can get by with English alone by relying on other expats and kind administration workers. But it’s a good idea to learn a bit of Portuguese.
If you plan to eventually try and get Portuguese citizenship, you will need to learn the language. That’s a pre-requisite to qualification.
Cost of Living in Portugal
As mentioned, the cost of living in Portugal is often lower than in the US.
Houses and utilities are more reasonable; we’ve heard stories of single people living comfortably for as low as $900 per month. However, that won’t get you into the most in-demand places.
Places like Lisbon and Cascais are at the pricier end of the price range. For a single individual, it’s not uncommon for the total cost of living in Lisbon to reach up to $2,500 per month.
Rent makes up most of the expenses. You can expect to spend up to $1,500 for a downtown one-bedroom apartment or around $1,000 for a one-bedroom apartment away from the city center.
Other areas, such as Braga, Viseu, and Coimbra, offer more affordable living. The price of groceries and utilities is roughly the same, but the rent is much more affordable. For example, in Braga, in the northwest of the country, you can find a single-bedroom apartment in the city center for approximately $800, or around $600 for the same apartment located away from the city center.
The price of groceries, utilities, and clothing is roughly the same, with Lisbon being a little pricier. Eating out, rent, and real estate prices are considerably more expensive in Lisbon compared to other places in Portugal.
Bureaucracy, Residency, Taxes
Portugal offers a range of residency options for people looking to move there full-time. The good thing about these is that they have a relatively low income threshold.
Portugal offers a range of visa options, including a Digital Nomad Visa, a D7 Visa, and a Golden Visa.
The D7 Visa, also known as a Passive Income Visa or Portugal Retirement Visa, is for retirees and anyone living on passive income. As of 2025, you must have a minimum passive income of at least €870 per month if you are single. For a married couple, you must earn an additional 50% (€435) per month, bringing the total to €1,305 per month. Additionally, you must earn an extra 30% (€261) per month for each dependent child under 18.
While these are the official minimum income requirements, in practice, you are unlikely to qualify unless your income is at least twice the official minimum, as Portuguese authorities often prefer applicants to have greater financial stability.
Portugal’s Golden Visa appeals to entrepreneurs, investors, and (previously) property buyers. The program allows non-EU citizens to gain residency through cultural, scientific, and job-creating investments. The minimum amount you need to spend to qualify is €250,000, but the more attractive options require a €500,000 investment.
Digital Nomad Visas are for digital nomads and remote workers who already work internationally. To apply, digital nomads have to provide a valid work contract and earn at least four times the Portuguese minimum wage, which is €870 per month in 2025. This means that digital nomads must have a monthly income of at least €3,480 to qualify.
Keep in mind, though, that US citizens are taxed on their worldwide income, no matter where they live. So if you’re a US citizen, you’ll still be taxed on your worldwide income, even if you live full-time in Portugal. Fortunately, income taxes you pay in Portugal can be credited against your US income tax liability.
(Helping US clients manage taxes across multiple jurisdictions is a big part of our work. If you’re thinking about living overseas, or you already do and are having trouble keeping on top of taxes and reporting, please get in touch to see how we might help you simplify things.)
Education in Portugal
Many of our clients are Americans enjoying their golden years. But that’s not to say we don’t regularly get a family planning engagement.
And in those cases, education for the wee ones becomes very important. Here’s a quick summary…
You’ll find many international schools in major cities like Lisbon and Cascais. These schools offer curricula such as the British, American, French, and German programs. This helps your children adapt quickly and continue their education without disruption.
Portugal’s public education system is free and open to your children until age 18. Classes are mainly taught in Portuguese. That can be a problem if your children don’t speak the language.
If language is a concern, you’ll appreciate that English proficiency is high in private and international schools. Many international schools offer bilingual or fully English-language instruction.
Cultural Quirks
Like all countries, Portugal also has some cultural quirks that might surprise newcomers. For example, many Americans are caught off guard by Portugal’s mid-afternoon siesta break. During siesta, between 1 and 3 PM, many businesses temporarily close for a mid-day post-lunch nap.
Siestas are more prominent in rural areas than in larger cities, but it’s still a good idea to avoid running errands between 1 and 3 PM.
Dining late is also a thing in Portugal, and it’s not uncommon to see a family leaving a restaurant at 10 or even 11 PM. Traffic also takes some time to get used to. Rules don’t always seem to apply—especially the use of turn signals.
If Portugal's Calling Your Name...
Over the years, Portugal has become a popular place for American clients looking for a place to land outside the US. The people are friendly, residency qualifications are pretty straightforward, and it’s very pretty.
But there’s a right way and a wrong way to go about it.
Helping US clients go offshore—and manage all the logistics and potential hassles that come with it—is something we’ve offered for more than 40 years.
If you’re serious about this, or even just wondering if it’s right for you, please reach out to us to see how we might help.
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We have 40+ years experience helping Americans move, live and invest internationally…
Need Help?
We have 40+ years experience helping Americans move, live and invest internationally…
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