The Best Places to Live in Portugal

Learn about the best places to live in Portugal as a foreigner or expat, including why each city made the list, along with rent prices.

Scenic view of golden cliffs and turquoise waters at a beach in Algarve, Portugal, with white buildings on the cliffs and a clear blue sky.

Popular Cities in Portugal for International Citizens

Whether you are considering studying, working, or retiring in Portugal, the country has something for everyone! With Portugal having the lowest cost of living in Western Europe and sunny weather and mild climate for most of the year, it is no wonder that many people are researching the best places to live in Portugal and making it their second (or primary) home.

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Renting an Apartment in Portugal

Before we jump into our list of best places to live in Portugal, we want to share a few words about the procedure of renting an apartment here.

Depending on the apartment’s location, you can find furnished apartments to rent starting from as little as EUR 500 a month, up to EUR 1,200 for more luxurious ones, especially if located near the coast or featuring a sea view.

Singing a Rental Contract in Portugal

When signing a contract as an expat in Portugal, you need to present a copy of your passport and proof of income (such as your last payslip or a tax return showing your Portuguese fiscal number).

In addition, you will be asked to pay a usual two-monthly deposit, which will be returned to you at the end of the contract, which usually lasts two years.

The Best Places to Live in Portugal

Now that we know the procedures to expect when finding a new home in Portugal, and the expected price range, let’s jump to the list of the best places to live in Portugal for expats!

Lisbon

Portugal’s capital and largest city, Lisbon, is the obvious choice for expats looking to move to the country and hoping to find a great work opportunity.

Large multinational companies are opening offices here, creating job opportunities in e-commerce, fashion, and technology.

Scenic terrace in Lisbon with colorful tables and chairs, offering a panoramic view of the city's rooftops, historic buildings, and the distant river under a clear blue sky.

Google, Amazon, Mercedes-Benz, and German fashion e-commerce giant Zalando have opened their offices in Lisbon.

The city itself is a combination of cobblestone streets, large monuments and shopping boulevards, bustling nightlife, and a never-ending array of charming cafes.

This makes it an ideal city for active and city-loving expats who want to work and play in one of Portugal’s most exciting cities.

Lisbon also has an excellent public transportation network, including trams, buses, and four metro lines.

Rent Prices in Lisbon

1-bedroom apartment in City Center: EUR 700 – 1,200
1-bedroom apartment outside the City Center: EUR 500 – 900

Porto

The second-largest city after Lisbon, Porto is located along the Douro River estuary in northern Portugal.

Considered the true center of arts and culture, Porto rivals Lisbon in terms of tourist attractions and numbers.

There are plenty of job opportunities in the entertainment and tourism sectors for expats, as well as in the IT sector.

Porto is also the birthplace of Port wine, and many cafes, restaurants, and wine cellars offer Port and other wine tastings.

Rent Prices in Porto

1-bedroom apartment in City Center: EUR 550 – 800
1-bedroom apartment outside the City Center: EUR 600 – 600

Chaves

Chaves, meaning “keys” in Portuguese, is named after its close proximity to the Spanish border in the North of Portugal and its role as a gateway to Portugal.

This popular spa resort is famous for its thermal springs, which offer Europe’s hottest bicarbonate waters.

Because of Chávez’s proximity to the mountains, the temperatures don’t go very high during summer. This makes it a beautiful and peaceful location to retire, or take a break for a couple of months, at least.

The cost of living in Chaves is very wallet-friendly, too.

Rent Prices in Chaves

1-bedroom apartment in City Center: EUR 300 – 400
1-bedroom apartment outside the City Center: EUR 210 – 350

Braga

Braga is Portugal’s third-largest city, after Lisbon and Portugal. Situated in the northern part of the country, it is a perfect combination of laid-back living with work and study opportunities.

Braga is the oldest city in Portugal, founded in the year 20 BC by Roman Emperor Augustus, and it is home to the world-famous 18th-century Bom Jesus do Monte shrine. It is a city rich in history and architectural gems.

Beautiful historic church surrounded by colorful flower gardens and lush greenery in Portugal, showcasing the country's rich cultural heritage and scenic beauty.

In terms of work opportunities, roles for web developers, IT technicians, and sales and customer service support (in multiple languages, not in call centers) are available and popular in Braga.

Braga is also closely located to Porto, only about 45 minutes by car.

Rent Prices in Braga

1-bedroom apartment in City Center: EUR 500 – 650
1-bedroom apartment outside the City Center: EUR 300 – 500

Coimbra

Coimbra, Portugal’s official student city, is located between Lisbon and Porto and is also home to Portugal’s oldest and most prestigious university, the University of Coimbra.

With a high quality of life, considered peaceful and laid-back, Coimbra has an established expat population and is hugely popular among retirees.

A large student population adds vibrancy to this old, typical Portuguese city.

It offers beautiful city views and atmospheric streets to wander, features the famous Joanina Library, and, for more active citizens, you can reach a surfing spot in Nazare within an hour.

Rent Prices in Coimbra

1-bedroom apartment in City Center: EUR 350 – 500
1-bedroom apartment outside the City Center: EUR 250 – 380

Madeira

Madeira is the largest of the Portuguese islands and offers a pleasurable, year-round subtropical climate, a beautiful coastline, and a range of five-star leisure facilities and hotels. It is also ranked as the safest city in Portugal to live in.

The island is a popular tourist and second-home destination, especially among British and German citizens.

An overview of a colorful seaside neighborhood in Portugal with vibrant buildings and scenic ocean views.

There are also art museums on the island, churches with organ music festivals, and cities hosting food and folk festivals throughout the year to entertain locals, expats, and tourists alike.

Madeira’s capital, Funchal, has been named the second-best city to live in Portugal; in our opinion, this is because of the high quality of life, where the vibrant cosmopolitan city life meets a calm island lifestyle in perfect harmony.

The main jobs in Madeira are in the tourism industry, and many people choose to live here while working as entrepreneurs.

Rent Prices in Funchal

1-bedroom apartment in City Center: EUR 450 – 750
1-bedroom apartment outside the City Center: EUR 350 – 550

Faro

Faro is the main city of the Algarve region in southern Portugal. It is a popular retirement destination for many expats, including the city and the Algarve region in general, which offer delicious food, wonderful weather, and plenty of sea and sun to relax and play.

It is worth noting that Faro is a very comfortable place to live. Rental prices are cheaper than in Lisbon, while Faro is only a two-hour drive from the capital.

Faro has a well-developed infrastructure, including a public transportation system and healthcare facilities, convenient shopping, and proximity to some of Portugal’s most beautiful beaches.

Rent Prices in Faro

1-bedroom apartment in City Center: EUR 500 – 800
1-bedroom apartment outside the City Center: EUR 400 – 600

How to Choose Where to Live in Portugal

The destinations above are among the best places to live in Portugal for expats, whether you are relocating for work, retirement, study, or simply a change of lifestyle.

Each city offers something unique. Larger hubs like Lisbon and Porto provide the strongest job markets and international communities, making them ideal for professionals and digital nomads.

Meanwhile, smaller cities such as Braga, Coimbra, or Chaves offer a slower pace of life, lower living costs, and a more traditional Portuguese experience, making them perfect for retirees or those seeking balance and affordability.

Coastal and island destinations like Faro and Madeira appeal to those prioritizing climate, scenery, and quality of life.

Ultimately, the right choice depends on your priorities, whether that’s career opportunities, cost of living, lifestyle, and proximity to nature or major cities.

By aligning your goals with what each destination offers, you can find a place in Portugal that truly feels like home.

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ICI Editorial Team| Editorial Team

International Citizens Insurance has an experienced team of authors, including expatriates and world travelers, providing curated guidance for our clients.

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