Are you dreaming of azure coastlines, cobblestone streets, and a laid-back Mediterranean lifestyle that won’t break the bank? Portugal has quickly become one of Europe’s hottest destinations for expats, digital nomads, and retirees looking for that perfect blend of quality living and affordability. In this guide, I’ll discuss the 10 best cities to live in Portugal, breaking down what makes each location unique and who might thrive there.
Lisbon
Portugal’s capital city perfectly blends old-world charm with modern innovation. Lisbon offers everything you’d expect from a European capital: excellent public transportation, world-class dining, cultural attractions, and a thriving expat community.
The city is built across seven hills, with colorful buildings cascading toward the Tagus River. Each neighborhood has its distinct personality – from the historic Alfama district with its narrow streets and Fado music to the trendy shops and cafés of Príncipe Real.
Who Will Love Lisbon?
Lisbon is perfect for young professionals, digital nomads, and those who crave cultural experiences and vibrant city life. Lisbon could be your ideal Portuguese home if you enjoy buzzing nightlife and international communities and don’t mind some tourist crowds.
Porto
Portugal’s second-largest city has all the amenities of a major urban center but feels more intimate and manageable than Lisbon. Known for its port wine cellars, stunning river views, and distinctive blue-tiled buildings, Porto offers a more authentic Portuguese experience with fewer tourists.
The historic center is a UNESCO World Heritage Site, with winding streets that reveal hidden restaurants, charming shops, and stunning viewpoints. Cross the iconic Dom Luís I Bridge to Vila Nova de Gaia, where you can tour the famous port wine cellars and enjoy riverside dining with panoramic views of Porto.
Who Will Love Porto?
Porto is ideal for those who want city amenities without the capital’s higher prices and tourist crowds. It’s perfect for history lovers, foodies, and anyone who appreciates architectural beauty with a slightly cooler climate than southern Portugal.
Braga
Often overlooked in favor of its larger neighbors, Braga is quickly gaining recognition as one of Portugal’s most livable cities. Located in the verdant Minho region, it perfectly balances historical significance and modern development.
Braga is Portugal’s third-largest city and home to one of the country’s oldest universities, creating a youthful energy that contrasts beautifully with its ancient Roman roots and baroque architecture. The stunning Bom Jesus do Monte sanctuary’s famous zigzagging stairway is just one of many cultural treasures here.
Who Will Love Braga?
Braga is perfect for families, professionals seeking work-life balance, and anyone who wants authentic Portuguese culture combined with modern amenities. Its university presence is also significant for academics and those who enjoy a vibrant intellectual atmosphere.
Coimbra
Coimbra is home to one of Europe’s oldest universities and exudes academic tradition and cultural richness. The university, founded in 1290, crowns the city and offers breathtaking views of the Mondego River below. The sound of fado music (precisely Coimbra’s unique style) drifts through the streets, adding to the city’s romantic atmosphere.
Coimbra strikes an excellent balance between being a significant city with all the necessary amenities and maintaining a relaxed, manageable pace of life. The historic center is compact and walkable, filled with medieval streets, ancient churches, and delightful cafés.
Who Will Love Coimbra?
Coimbra is ideal for academics, culture enthusiasts, and those who appreciate living in a city with deep historical roots but modern conveniences. It’s perfect for people who want a slower pace than Lisbon or Porto without sacrificing cultural richness.
Faro
As the capital of Portugal’s stunning Algarve region, Faro combines Mediterranean charm with convenient infrastructure. While many travelers pass through Faro’s airport heading to resort towns, the city itself deserves attention as a living destination.
Faro’s walled Old Town (Cidade Velha) contains cobblestone streets and historic buildings that open onto beautiful plazas. The marina area offers waterfront dining and shopping, while the nearby Ria Formosa Natural Park provides spectacular birdwatching and nature exploration.
The climate is one of Faro’s biggest draws, with over 300 days of sunshine annually and mild winters. The city gives easy access to the Algarve’s famous beaches without the higher prices and tourist crowds of coastal resort towns.
Who Will Love Faro?
Faro is perfect for sun-seekers, nature lovers, and those who want access to beaches without the extreme seasonal tourism of smaller Algarve towns. It’s excellent for retirees who wish for warm weather year-round and convenient access to an international airport.
Setúbal
Just 30 miles south of Lisbon, Setúbal offers an authentic Portuguese experience with the bonus of spectacular natural surroundings. The city sits between the Sado River estuary (home to a resident dolphin population) and the stunning Arrábida Natural Park.
Setúbal’s working port keeps the city grounded and authentic, while its excellent seafood restaurants have made it a foodie destination. The historic center features charming pedestrian streets, traditional shops, and local markets where you can buy fresh produce and fish caught that morning.
The nearby beaches at Portinho da Arrábida are among Portugal’s most beautiful, with crystal-clear turquoise waters and white sand backed by lush green mountains – just a short drive from your door.
Who Will Love Setúbal?
Setúbal is ideal for those seeking authentic Portuguese living with natural beauty nearby. It’s perfect for ocean lovers, outdoor enthusiasts, and anyone who wants to be close to Lisbon without city prices or tourist crowds.
Cascais
Once a fishing village and later a royal retreat, Cascais has evolved into an upscale coastal town that offers refined living just 30 minutes from Lisbon. Its beautiful beaches, marina, and pedestrian-friendly historic center make it one of Portugal’s most desirable addresses.
Cascais combines Portuguese charm with international amenities, including international schools, English-speaking medical services, and global cuisine. The town’s microclimate is particularly pleasant, protected from stronger winds by surrounding hills.
The area attracts a diverse international community, making it easier to connect with fellow expats while still experiencing Portuguese culture. The stunning Sintra-Cascais Natural Park provides endless hiking, cycling, and nature exploration opportunities.
Who Will Love Cascais?
Cascais is perfect for affluent professionals, families seeking international schools, and retirees who want refined coastal living with easy access to Lisbon. It’s ideal for those who don’t mind paying a premium for location and amenities.
Évora
In the rolling plains of Portugal’s Alentejo region sits Évora, a UNESCO World Heritage city with over 2,000 years of history. The remarkably preserved Roman temple, medieval walls, and Gothic cathedral dominate the skyline, while whitewashed houses with yellow trim line the narrow streets.
Despite its historical significance, Évora remains a living, breathing city rather than a museum. The University of Évora (founded in 1559) brings youthful energy, while excellent restaurants serve the region’s renowned cuisine and wines.
The surrounding Alentejo region offers stunning landscapes dotted with cork oak forests, vineyards, and olive groves. The pace of life here is noticeably slower, embodying the traditional Portuguese value of taking time to enjoy life’s pleasures.
Who Will Love Évora?
Évora is perfect for history enthusiasts, culinary adventurers, and those seeking authentic Portuguese living in a smaller city. It’s ideal for anyone wanting to experience Portugal’s heartland while still having access to cultural amenities and beautiful architecture.
Chaves
Near the Spanish border in northern Portugal, Chaves offers a unique living experience centered around its famous thermal springs, which have been used since Roman times. This small city of about 40,000 people provides a peaceful lifestyle in a region known for its natural beauty and historical significance.
Chaves features a well-preserved medieval quarter, a Roman bridge still in use after 2,000 years, and an imposing castle. The surrounding Trás-os-Montes region is known for its dramatic landscapes, excellent wine production, and distinctive cuisine that differs from coastal Portuguese fare.
Who Will Love Chaves?
Chaves is perfect for retirees seeking tranquility, wellness enthusiasts interested in thermal therapies, and anyone looking for a highly affordable European lifestyle. It’s ideal for those who prefer smaller communities and aren’t dependent on big-city amenities.
Conclusion
Portugal truly offers something for everyone—from cosmopolitan city life in Lisbon to peaceful thermal retreats in Chaves. The country continues to attract expats with its combination of affordable living, excellent healthcare, friendly locals, and an enviable Mediterranean lifestyle.
When choosing your perfect Portuguese city, consider:
- Your budget and desired cost of living
- Climate preferences (northern Portugal is cooler and wetter)
- Need for international amenities vs. authentic Portuguese experiences
- Access to healthcare, especially for retirees
- Visa requirements based on your nationality and situation
No matter which city you choose, Portugal rewards those who embrace local culture, learn at least some basic Portuguese, and approach their new home with curiosity and respect. The Portuguese concept of “Saudade” – a longing for something beautiful – perfectly captures what brings many expats here and why they stay.
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FAQs
Portugal offers significantly lower costs than most US cities and UK locations. Depending on the town, you can expect to spend 30-50% less on daily expenses, housing, and healthcare.
You can get by using English in major cities and tourist areas, especially among younger Portuguese. However, learning basic Portuguese will significantly enhance your experience, and locals consider it respectful.
Popular choices include the D7 visa (for those with passive income), the Digital Nomad visa (for remote workers), and the Golden Visa (for investors). Each has different financial requirements and benefits.
Portugal consistently ranks among the safest countries in the world, with low crime rates and minimal violent crime. Even major cities are considered very safe by European standards.