The five best places to live in Portugal

Portugal is becoming an increasingly popular destination for UK expats thanks to its high quality of life, low crime rate, and cheaper cost of living (not to mention the beautiful landscapes and balmy climate).

In fact, when we analysed 18,000 property purchase transactions as part of our British Expat Report 2024, we found that Portugal came third for UK buyers of overseas property, following France and Spain. And the number of foreign residents in Portugal hit a record high for the seventh consecutive year in 2024.

With so many Brits thinking about making the move, we decided to explore our top five places to live in Portugal for UK expats, catering to various lifestyles and preferences.

Lisbon – Best for career opportunities

Portugal’s capital, Lisbon, is a vibrant hub of culture, innovation and opportunity. Known for its picturesque cobblestone streets, iconic yellow trams, and the stunning Tagus River, Lisbon has become a hotspot for digital nomads, entrepreneurs and professionals.

The city offers a thriving tech scene, excellent co-working spaces, and a dynamic job market, especially in sectors like IT, tourism and the creative industries.

Beyond work, Lisbon’s lively neighbourhoods, diverse culinary scene, and rich history provide endless ways to enjoy life. For those seeking a balance between professional growth and a fulfilling lifestyle, Lisbon is hard to beat.

Porto – Best for foodies and wine enthusiasts

Nestled along the Douro River, Porto is Portugal’s second-largest city and a UNESCO World Heritage site. While still being a major city, Porto’s cost of living is generally lower than Lisbon’s, making it an attractive option – particularly for young people, families and retirees.

The city is known for its welcoming atmosphere and great food scene, along with a more relaxed pace of life that British city-dwellers could only dream of. It’s dotted with charming cafes, bustling markets, and riverside walks that inspire a sense of contentment.

It also offers a wonderful blend of modernity and tradition. The city’s thriving tech scene, efficient transport links and top-tier healthcare sit alongside its historic charm and strong cultural heritage.

Algarve – Best for retirees

The Algarve, Portugal’s southernmost region, is a sun-soaked paradise perfect for retirees. Boasting over 300 days of sunshine annually – along with golden beaches and a laid-back lifestyle – the Algarve feels like a permanent holiday.

This region is home an active expat community, making it easy to settle in and make friends. There are also world-class golf courses and excellent surfing beaches, or you can simply soak up the sun and stroll around the many quaint fishing villages.

Healthcare services in the Algarve are excellent, and the cost of living is favourable, particularly outside major tourist hubs. If your dream is to spend your days basking in the sun and enjoying fresh seafood, the Algarve might just be your perfect match.

Cascais – Best for families

Just a 30-minute drive from Lisbon, Cascais offers the perfect blend of city convenience and coastal tranquillity, making it an ideal location for families. This charming town is renowned for its beautiful beaches, excellent schools, and safe and family-friendly atmosphere.

Cascais has a thriving international community, and its modern amenities cater to diverse needs.

From weekend markets to outdoor adventures in the nearby Sintra mountains, there’s no shortage of activities to keep the entire family entertained. The town’s relaxed pace and proximity to Lisbon’s job market make it a popular choice for expat families.

Coimbra – Best for history and culture

If you’re drawn to history and culture, Coimbra is a fantastic choice. Home to one of the oldest universities in Europe, the city has a contemplative atmosphere. Its winding streets lend themselves perfectly to thoughtful evening strolls, and its medieval libraries are well worth a visit.

Despite its cultural richness, the cost of living here is significantly lower than in Lisbon or Porto, making it an appealing option for students, academics, and those who prefer a more affordable lifestyle. Coimbra’s central location also makes it an excellent base for exploring the rest of Portugal.

Find your perfect place in Portugal

Whether you’re seeking career opportunities, family-friendly neighbourhoods, or a peaceful retirement haven, Portugal offers a variety of locations to suit your needs.

These five picks represent just a glimpse of what this beautiful country has to offer, so be sure to do your research. Other popular places to live include Braga, known as Portugal’s religious capital, and Aveiro – the ‘Venice of Portugal’.

Viseu is a quieter, more rural option with a strong sense of community. And the island of Madeira is another popular choice, thanks to its subtropical climate and vibrant festivals.

How can we help?

Planning a move to Portugal? You’ll likely need to send money abroad during the process, and that’s where Currencies Direct can help.

With competitive exchange rates, no transfer fees and a selection of tailored transfer solutions, we make managing your international payments simple and cost-effective.

Want to know more? Reach out to our team or create a free account today!