Where to live in Portugal: the best places for expats

If you are thinking of moving to Portugal, there are some fantastic locations to call home. And with each one offering its own unique character and charm, there are housing options to suit all tastes and preferences.

Moving abroad involves many financial considerations, from transferring your savings to managing regular payments between countries. Setting up your finances early with services like Wise can make your transition smoother. With the mid-market exchange rate and transparent fees, Wise helps expats avoid hidden costs when moving money to Portugal, whether for daily expenses or larger investments like property.

Whether you want to live in the heart of a bustling city or enjoy laid-back life by the sea, here are some of the best places to live in Portugal as an expat:

Properstar

If you’re looking to buy property in Portugal, Properstar can connect you with trusted local agents who know the market inside out. As the world’s largest global property platform, Properstar has the expertise to simplify real estate transactions and help you find your dream home today.

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How to find a place to live in Portugal

If you’re looking for a place in Portugal to rent or buy, try checking out one of these property portals:

• Airbnb (for short-term and holiday stays)
• HousingAnywhere
• Idealista
• Pearls of Portugal
• Properstar
• Spotahome

When you’re ready to take that big step toward buying a Portuguese property, you’ll need a mortgage provider or a financial advisor.

When securing your Portuguese property, you’ll likely need to send a deposit or down payment from your home country. Banks can often charge high fees and unfavorable exchange rates for international transfers, which can add significant costs to your property purchase or deposit. Using Wise for these transactions can help you avoid losing money to hidden bank fees and poor exchange rates. Their transparent fee structure means you’ll know exactly how much the transfer costs upfront.

For example, when transferring 250,000 USD for a property down payment, you could save 2,211 EUR for using Wise compared to using a bank transfer*. Wise also allows you to track exchange rates using their rate alerts feature, helping you transfer at the optimal time.

_{*The calculation is from the comparison tool from the Wise website on the 5th of Sept of 2025 that compares USD transfers to EUR via Wise, OFX and Chase bank in the US.}

Lisbon

With its iconic cobbled streets and beautiful ancient architecture, Lisbon is one of those obvious best places that draws many expats to Portugal. Situated on the southwest coast, the nation’s capital offers a diverse range of lifestyles across the various Lisbon neighborhoods, from bustling shopping districts and thriving nightlife hubs to cozy local quarters and scenic coastal spots.

Lisbon also home to some of Portugal’s most famous landmarks, including the 11^th-century São Jorge Castle and the 16^th-century Torre de Belém. These historical delights, coupled with the numerous cafés, restaurants, and shops on offer, attract millions of tourists each year; therefore, you might want to choose your neighborhood carefully.

With good public transport links and a vibrant local labor market, it is easy to navigate the city and enjoy the various local attractions on offer. And with a temperate maritime climate that brings hot and dry summers and mild winters, it ticks many boxes for sun-seeking expats.

Moving

Where to live in Lisbon: the best neighborhoods for expats

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Chaves

Situated 10km south of the Spanish border, the small rural town of Chaves – which means “key” – is a historical gateway into Portugal. It is famous for its many spas and thermal baths which are believed to have healing properties. The bathhouses in Caldas da Rainha, for instance, have been used to treat various ailments since Roman times. The site is now a modern thermal complex, complete with a green park and several bars. Chaves also boasts fantastic architecture dating back to Roman times and is home to two 17th-century fortresses and a tall tower that marks the remains of Chaves Castle.

Although many of the villages surrounding the town are extremely poor, the residents are renowned for their friendliness. While property in Chaves is a fraction of the price in Lisbon, you will experience shorter summers and cooler winters. However, with several airports nearby, you’re never far away from your next sunny vacation.

Porto

Located along the Douro River estuary in northern Portugal, Porto is the second-largest city in the country and has its own airport. The city is considered to be a center of culture and entertainment that rivals Lisbon. Furthermore, its historic center was classified as a World Heritage Site by UNESCO in 1996. As a result, it is hugely popular with tourists. Therefore, when choosing the best places to live in Portugal, it might be worth exploring the areas in the outskirts of the city if you seek a more peaceful lifestyle.

Property prices in the surrounding areas are lower than the city center and there is also a good variety of accommodation on offer, from apartments to family homes. The new quarter, Vila Nova da Gaia, which lies just south of the city, for example, is a popular choice for expats. The seafront properties at Madalena and Lavadores are also top choices.

Other popular expat neighborhoods include Campanha, which lies just outside the city center, and Ribeira, one of Porto’s most vibrant areas and part of the historic center. Meanwhile, the district of Ramalde continues to expand as the population grows, and many expats with generous budgets settle in Foz do Douro, an upmarket but expensive beachside area.

Wise account

Are you an expat or thinking of moving to Portugal? Managing your money across borders shouldn’t be complicated. With a Wise account, you can hold over 40 currencies and pay with a Wise debit card in more than 150 countries. Whether you’re using spending abroad, receiving or sending money home, Wise can help make international money management simpler.

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Braga

Located in the north of Portugal, Braga is the country’s third-largest city (after Lisbon and Porto) and the oldest. This elegant city is characterized by its narrow lanes which are lined with lively cafés and high-end boutiques. It is also home to several famous ancient churches, including the hillside church of Bom Jesus do Monte, one of Portugal’s most iconic landmarks. Despite its rich heritage, Braga boasts plenty of modern properties and a popular housing market.

Properties rarely come onto the market in the city’s old quarter, but expats seeking a laid-back lifestyle and attractive prices can find it in the northern quarter and the areas nearest to the Universidade do Minho. If you are seeking more tranquillity, however, or intend to retire in the region, the towns and villages on the outskirts of the city offer larger properties with plenty of land. Just bear in mind that these often need a lot of renovation, and therefore require a hefty investment.

Aveiro

Located in the center of Portugal, Aveiro is often dubbed the Venice of Portugal due to its beautiful canals, Nouveau architecture, and colorful gondolas (known as moliceiros). Despite its historical richness, Aveiro receives fewer tourists than many other best places in Portugal and is therefore popular with expats, especially those moving there to retire.

The city center has undergone a lot of modernization in recent years, bringing in more pedestrianized areas to encourage walkers and cyclists. As a result of this, it has become popular with expats seeking a quiet, family-friendly environment with little traffic. That said, there are still plenty of shopping malls, cozy cafés, and indoor markets to keep residents entertained. And with good road links to Lisbon and Porto, the city has added appeal. Apartments are the most popular type of property in the center, however, you can find better value nearer to the university.

Coimbra

Located halfway between Lisbon and Porto, Coimbra was Portugal’s medieval capital for more than 100 years and is home to the country’s oldest and most prestigious university, the University of Coimbra (UC). With a low cost and high quality of living, Coimbra has an established expat population and is hugely popular among retirees.

Luckily, finding a place to live in Coimbra is relatively easy and there are a variety of options to choose from depending on your preferences. Because the city has a large student population, areas in the center and close to the university are in high demand, but ideally designed for students. Other options include older properties in need of renovation and larger ones with more land in the rural outskirts.

Setúbal

Due to its close proximity to Lisbon, the port city of Setúbal is hugely popular with tourists and expats alike. This thriving historic town is at the heart of the Portuguese sardine industry and is famous for its sweet moscatel wine. Its atmospheric alleyways, tree-lined boulevards, and lively food markets attract many visitors throughout the year. And with a range of property types on offer, and at reasonable prices, it’s not hard to see why expats choose to settle here, too.

Properties close to the area of the port are reasonably priced, but in high demand among locals who work there. However, expats with bigger budgets often choose to live in the more expensive apartment complexes located close to the beaches. This area is particularly popular with those who are retiring due to the good leisure facilities on offer. Meanwhile, those seeking more in the way of tranquility tend to live in the surrounding small towns.

The Algarve

Located between Faro and Sagres, the Algarve region boasts some of the most beautiful beaches and golf resorts in Portugal. Coupled with the fact that the area receives glorious weather most of the year, it’s no surprise it is a major holiday destination and home to thousands of expats. Foreign buyers have been flooding to the Algarve for decades, especially as they approach retirement. They often target the apartment developments close to the beaches, and naturally, prices are higher here than other areas.

With so many holiday homes available for short-term rental, finding a permanent place to live can be a bit tricky. Therefore, it is a good idea to do your research on property prices and know your options.

Despite the many holiday-home developments on offer in Central Algarve, you can always find more options a little further out. The port city of Portimão, for example, is popular with expats largely due to its proximity to the main beach, Praia da Rocha. Those moving to the city will find a range of older 19th and 20th-century buildings dotted around the town, as well as modern apartment blocks. Meanwhile, the modern city of Faro, located in the south, offers a more tranquil and affordable lifestyle. This is ideal for expats seeking a slower pace of life away from the more developed areas. It also boasts an international airport, making traveling back home a breeze.

Buying property as an expat

Portugal’s property market is accessible to foreign buyers, with no restrictions on property ownership for non-residents. However, navigating the financial aspects of international property purchases requires careful planning.

For property purchases, Wise accounts can handle larger transfers with the same mid-market exchange rates and transparent fee structure, helping you save you thousands on your Portuguese property investment.

For example, when transferring 250,000 USD for a property down payment, you could save 2,211 EUR for using Wise compared to using a bank transfer*. Wise also allows you to track exchange rates using their rate alerts feature, helping you transfer at the optimal time.

^{*The calculation is from the comparison tool from the Wise website on the 5th of Sept of 2025 that compares USD transfers to EUR via Wise, OFX and Chase bank in the US.}

Financial considerations for expats in Portugal

When relocating to Portugal, establishing your financial infrastructure early is crucial. While opening a local Portuguese bank account is recommended, it can take time and require your NIF (Portuguese tax number) and residency documentation.

Opening a Wise account before you move gives you account details in multiple currencies, making it easier to receive money from abroad and spend in euros. You can hold and exchange money between 40+ currencies at the mid-market exchange rate, and the Wise debit card works for in-store and online purchases throughout Portugal, making it ideal during your transition period before your local banking is fully established.

Conclusion

Relocating to Portugal offers an exciting lifestyle with beautiful surroundings, friendly locals, and a relaxed pace of life. Whether you choose the cosmopolitan energy of Lisbon, the historic charm of Porto, or the sunny beaches of the Algarve, being prepared will make your transition smoother.

Setting up your finances ahead of time with services like Wise can make your transition to Portuguese life easier, ensuring you don’t lose money to hidden fees and poor exchange rates when transferring your funds abroad.