The 6 Best Places To Live in Portugal in 2025

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Portugal has captured global attention as one of the top destinations to live, retire, and invest—and it’s easy to understand why! Recently ranked the 2nd best country to retire in 2025 by the International Living Report, Portugal draws in expats, retirees, digital nomads, and investors from around the world, thanks to its exceptional quality of life, affordability, warm climate, welcoming culture, excellent healthcare system, outstanding safety, and attractive pathways to EU residency.

While vibrant hubs like Lisbon and Porto are often top-of-mind, Portugal has numerous other incredible cities and regions offering equally compelling lifestyles—from charming coastal towns to historic villages, lush countryside retreats, and hidden gems with lower living costs and breathtaking scenery. In this guide, we’ll explore the best places to live in Portugal in 2025, helping you find the perfect match for your lifestyle. With our relocation expertise, we’ll guide you through visa options, residency programs, and all the practical details, making your journey to calling Portugal home smooth and stress-free. Let’s get started!

What Are The Best Cities To Live in Portugal?

Portugal is a country of diverse landscapes and lifestyles, offering something for everyone. Below, we’ve highlighted some of the best cities to live in Portugal, giving you an overview of their lifestyle, atmosphere, location, and quality of life.

1. Sintra – A Fairytale Destination Close to Lisbon

If you dream of living in a place straight out of a storybook, Sintra is the perfect choice. Located just 30 minutes from Lisbon, this UNESCO World Heritage town is famous for its misty forests, colorful palaces, and historic charm.

  • Great for families – Sintra offers excellent schools, including the highly regarded Colégio Vasco da Gama, and benefits from Portugal’s strong education system. Its parks and welcoming community make it ideal for raising children.
  • Close to Lisbon – A popular choice for those working in Lisbon. Easy access to the capital while enjoying a peaceful lifestyle.
  • More affordable than Lisbon – Housing and daily expenses in Sintra are at a lower cost, offering a great balance between price and quality of life.

2. Ericeira – Portugal’s Surf Capital with a Relaxed Lifestyle

Nestled on the Atlantic coast, Ericeira is a laid-back fishing village and one of the world’s top surfing destinations. Its breathtaking cliffs, golden beaches, and vibrant community make it one of the best areas to live in Portugal for retirees, digital nomads, and families craving a coastal retreat.

  • Perfect for outdoor lovers – Ericeira offers world-class surf spots like Ribeira d’Ilhas, scenic hiking trails, and breathtaking ocean views, making it ideal for an active, outdoor lifestyle.
  • Authentic Portuguese charm – Ericeira boasts fresh seafood, vibrant local markets, traditional cafés, cobblestone streets, and whitewashed houses, blending coastal beauty with timeless charm.
  • Close to Lisbon – only a 40-minute drive to the capital.

3. Braga – A Historic Yet Modern City in Northern Portugal

For those considering Northern Portugal, Braga is an excellent choice. Known as one of Portugal’s oldest cities, Braga combines rich history and beautiful architecture with a dynamic cultural scene. It’s also one of the most affordable cities to live in Portugal.

  • Low Cost of Living – Braga has one of the lowest housing and living costs in Portugal, with rent often 30–40% cheaper than Lisbon.
  • Family-Friendly City – Known for excellent schools like Colégio D. Diogo de Sousa and quality healthcare at Hospital de Braga, it’s ideal for families.
  • Blend of History and Modernity – Landmarks like the Bom Jesus do Monte sanctuary sit alongside modern shopping centers and tech startups, offering something for everyone.

4. Aveiro – The “Venice of Portugal”

With its colorful canals, iconic moliceiro boats, and vibrant atmosphere, Aveiro is one of the most picturesque and best places to live in Portugal for expats. This unique city offers a relaxed lifestyle, affordability, and proximity to stunning beaches like Costa Nova.

  • Rich Cultural Scene – Host to events like the Aveiro Sweet Festival, with museums such as the Museum of Aveiro showcasing local heritage.
  • Excellent Transportation – Located on the Lisbon-Porto rail line, Aveiro offers quick access to major cities and stunning beaches like Costa Nova.
  • Coastal Charm – Its colorful houses, fresh seafood, and seaside tranquility make it a picturesque yet practical choice for expats.

5. The Algarve – Portugal’s Most Popular Region for Expats & Retirees

The Algarve is a favorite among expats and retirees, offering warm weather, golden beaches, and a laid-back lifestyle. As one of the best areas to live in Portugal, the Algarve features stunning coastlines, charming towns, and a well-established expat community.

  • Top Retirement Destination – Known for tax incentives like Portugal’s Non-Habitual Resident (NHR) program, retirees flock here for affordability and comfort.
  • Spectacular Scenery – Home to landmarks like Ponta da Piedade and sandy beaches, the Algarve features dramatic cliffs and charming fishing villages.
  • Vibrant Expat Network – Towns like Lagos and Albufeira offer English-speaking communities, making integration easier.

6. Funchal (Madeira) – Island Paradise with a Vibrant Community

For those seeking island living, Funchal, the capital of Madeira, is a top pick. This lush island paradise offers a mild climate, breathtaking landscapes, and a strong sense of community, making it one of the best places to live in Portugal for expats.

  • Warm Weather Year-Round – With temperatures averaging 20–25°C, Madeira is perfect for those seeking mild, sunny climates.
  • Outdoor Activities – Offers stunning hikes like Levada walks, beaches, and dolphin-watching tours.
  • Supportive Expat Community – English is widely spoken, and expats benefit from Madeira’s digital nomad village and welcoming atmosphere.

Things To Look Out For When Moving To Portugal

After exploring the dreamy allure of living in Portugal, it’s equally important to consider the practical aspects. Comparing key factors such as cost of living, job opportunities, and climate across different regions can provide valuable insights. Here’s some takeaways to help you make an informed decision:

Cost Of Living In Portugal

The cost of living in Portugal varies widely across its regions, depending on lifestyle and location. Lisbon is the most expensive city, characterized by higher housing and dining costs but offering excellent infrastructure and amenities. Porto, while more affordable than Lisbon, features a vibrant cultural scene and lower rent prices, making it an attractive option for many. Northern Portugal, including cities like Braga, is among the most affordable areas, ideal for families and retirees. The Algarve and Madeira are also relatively affordable, especially outside of tourist-heavy areas, offering good value for housing and daily expenses.

According to the data reported from Numbeo in 2025, here are the Cost of Living Indices for key regions: 

LisbonPortoBraga
Cost of Living Index49.745.442.5
Rent (1-bedroom, city center)€935.15/month€737.69/month~€600/month

Job Market In Portugal

Portugal’s job market is steadily developing, offering diverse employment opportunities across its regions based on unique industries. Sintra, with its UNESCO World Heritage status, sees high demand for tourism and culture-related jobs. Ericeira, as Europe’s surfing capital, has driven the growth of industries related to hospitality, dining, and sports. Braga, known as a center for religion and technological innovation, provides ample opportunities for IT and engineering professionals. Aveiro, with its manufacturing sector, tourism industry, and educational institutions like the University of Aveiro, attracts a wide range of talent. Algarve focuses on tourism and the real estate market, experiencing a surge in demand, especially during the peak summer season. Funchal (Madeira), supported by agriculture, tourism, and logistics, stands out as a stable employment hub. Each region in Portugal offers abundant opportunities for both local and international job seekers, tailored to its specific industries. 

Based on data from the 2025 Numbeo report*, the following outlines the rental costs and wage levels in key regions.

SintraEriceiraBragaAveiroAlgarveMadeira
Rent Per Month
( 1 Bedroom Apartment in City Centre)		~€850~€916.67~€600~€786.67 ~€1,000NA
Average Monthly Net Salary (After Tax)~€1,200.00~€1,000.00~€1,000.00~€1,079.17 ~€804.00NA

*Last update: March 2025

Portugal’s Population, Geography, and Climate

SintraEriceiraBragaAveiroAlgarveMadeira
Population EstimateApprox. 380kApprox. 11kApprox. 190kApprox. 80kApprox. 450kApprox. 110k
Geographical FeaturesMountains and forests, close to LisbonCoastal area, small fishing villagesPortugal’s third-largest city, with mountains and valleysFlat wetlands and lagoonsLong coastline with beaches and cliffsCapital of Madeira Island, featuring volcanic terrain
Climate CharacteristicsMild Mediterranean climate, wet winters, and dry summersMaritime climate, cool year-round with higher humidityMild oceanic climate, wet and cold winters, and warm summersMild oceanic climate, wet winters, and cool summersWarm Mediterranean climate, sunny year-roundTropical maritime climate, warm year-round with evenly distributed rainfall

How To Move To Portugal: Visa Options

Once you’ve found the ideal place to live in Portugal, the next step is understanding the visa options available to make your move a reality. Portugal offers several residency pathways tailored to different needs:

  • Portugal Golden Visa: A popular choice for investors, this visa allows residency through fund investments.
  • D7 Visa: Suited for retirees or individuals with passive income, this visa provides an easy route for those with sufficient financial means.
  • D8 Visa: Designed for digital nomads and remote workers, enabling them to live in Portugal while working for international companies.
  • D-Type Visa: A broader category for long-term residency, including options for students, professionals, and family reunification.

At The Golden Portugal, we specialize in helping people relocate to Portugal through investment and immigration programs. For more in-depth details, explore our guides on the Portugal Golden Visa and D7 & D8 Visa options or feel free to book your free 30-minute consultation call here.

FAQ:

We have helped more than 500 families on their Portugal Golden Visa journey. 

We are also the pioneer firm to help clients to invest through funds back from 2020 until now. Come talk with us.

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