Are you considering to relocate to the Algarve and Best Places in Algarve for expats, Portugal, but unsure where to start? Look no further than the Algarve, a stunning region that has captured the hearts of many expats. With its picturesque beaches, warm weather, and affordable cost of living, the Algarve has become a sought-after destination for foreigners looking to relocate. 

But with so many towns and cities to choose from, where should you set up your new home? In this article, we’ll take a closer look at the best places to live in the Algarve for foreigners, providing you with all the information you need to make an informed decision. 

Where is the Algarve?

The Algarve region is the southernmost region of Portugal, stretching along the country’s southern coast. It is officially known as the Faro District, with Faro being its capital city. 

The Algarve is divided into 16 municipalities, each with their own unique characteristics, such as beautiful beaches, historical sites, and natural parks. It is a popular tourist destination due to its warm and sunny weather, stunning beaches, and relaxed lifestyle. 

More than 469,938 people reside in the Algarve, according to official information available on PordataAdditionally, the Algarve has a large expat community, over 105,000 foreigners residents (22%) making it an attractive location for those looking to relocate to Portugal.

Why expats are moving to Algarve?

Weather

The Algarve has a warm and sunny climate throughout the year, which is a major attraction for expats looking for a place with good weather. This allows for outdoor activities all year round, such as hiking and cycling. 

For example, many expats enjoy spending time at the beach during the summer months, such as Praia da Rocha or Praia do Vau, or exploring the region’s natural parks, such as Ria Formosa.

Beaches

The Algarve has some of the most beautiful beaches in Europe, with golden sand and crystal-clear waters. For example, expats can enjoy long walks along the beaches of Lagos, such as Meia Praia or Dona Ana, or relax in quieter beaches, such as Praia do Martinhal or Praia do Camilo.

Location

The Algarve is located in the southernmost part of Portugal, which provides easy access to other destinations in Europe and beyond. 

For example, many expats enjoy traveling to nearby cities such as Seville in Spain, or Lisbon, which is only a few hours drive away.

Expat community

The Algarve has a large expat community, which makes it easier for expats to settle in and find a sense of belonging. 

There are many social events, clubs and associations aimed at the expat community, such as the Algarve Senior Living Association, which offers support and social activities for expats.

Lifestyle

The Algarve offers a laid-back and relaxed lifestyle, which is appealing to many expats looking to slow down and enjoy life. For example, expats can enjoy the region’s golf courses, such as Quinta do Lago or Vilamoura, or explore the region’s traditional markets and local festivals.

Cost of living

The cost of living in the Algarve is relatively affordable compared to other destinations in Europe, which is a major draw for many expats. For example, expats can enjoy a high standard of living at a lower cost, such as eating out in local restaurants or purchasing fresh produce from local markets.

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What Are Best Places in Algarve for expats?

Sagres

Sagres is a small town located on the southwestern tip of Portugal. It is known for its stunning cliffs, rugged coastline, and world-class surfing. Sagres is a popular destination for both tourists and expats, but it retains a laid-back and authentic atmosphere.

Expats in Sagres are drawn to the town’s natural beauty, active lifestyle, and sense of community. There is a thriving expat community in Sagres, with people from all over the world living and working together.

The cost of living in Sagres is slightly higher than in other parts of the Algarve, but it is still relatively affordable. The average rent for a one-bedroom apartment in Sagres is around €780 per month.

Sagres is a good place to live if you are looking for a quiet and relaxed lifestyle, surrounded by nature. It is also a good place to live if you are interested in surfing or other outdoor activities.

Pros of living in Sagres

  • Stunning natural beauty
  • Active lifestyle
  • Sense of community

Cons of living in Sagres

  • Can be expensive
  • Limited job opportunities
  • Can be isolated
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Lagos

Lagos is a larger town located on the Algarve coast. It is a popular tourist destination, known for its beautiful beaches, lively nightlife, and historic center. Lagos is also home to a large expat community. 

While the entire district is home to around 33,632 residents, official data points out that only approximately 35% are foreigners. Expats in Lagos are drawn to the town’s cosmopolitan atmosphere, its many amenities, and its proximity to other popular tourist destinations such as Albufeira and Faro.

The cost of living in Lagos is slightly higher than in Sagres, but it is still lower than in other parts of Europe. The average rent for a one-bedroom apartment in Lagos is around €953 per month.

Lagos is a good place to live if you are looking for a more lively and cosmopolitan lifestyle than Sagres offers. It is also a good place to live if you are looking for a town with a large expat community.

Pros of living in Lagos

  • Beautiful beaches
  • Lively nightlife
  • Historic center

Cons of living in Lagos

  • Can be crowded during the summer
  • Traffic can be heavy
  • Cost of living can be high
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Vilamoura

Vilamoura is a resort town located on the Algarve coast. It is known for its golf courses, marina, and casinos. Vilamoura is a popular destination for wealthy tourists and expats.

Expats in Vilamoura are drawn to the town’s luxurious lifestyle, its many amenities, and its proximity to other popular tourist destinations such as Albufeira and Faro.

The cost of living in Vilamoura is the highest of the three regions discussed here. The average rent for a one-bedroom apartment in Vilamoura is around €1,000 per month.

Vilamoura is a good place to live if you are looking for a luxurious and exclusive lifestyle. It is also a good place to live if you are interested in golf or other high-end activities.

Pros of living in Vilamoura

  • Luxury lifestyle
  • Many amenities and best marina in the Algarve
  • Close to other popular destinations

Cons of living in Vilamoura

  • Can be expensive
  • Can be crowded
  • Not as authentic as other regions of the Algarve
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Portimão

Portimão is a city located on the Algarve coast of Portugal. It is the second largest city in the Algarve, and is a popular tourist destination. Portimão is home to a number of beaches, including Praia da Rocha, one of the most popular beaches in the Algarve. The city also has a number of historical sites, such as the Portimão Museum and the Igreja de São Sebastião.

Official data indicates that of the approximately 60,194 residents in the district, and around 34% are foreigners. Portimão is a good place to live for expats because it offers a good mix of urban and coastal living. 

The city has all of the amenities that you would expect from a city of its size, such as hospitals, schools, and shopping malls. However, it is also close to a number of beaches, so you can enjoy the best of both worlds.

The cost of living in Portimão is relatively affordable. The average rent for a one-bedroom apartment in Portimão is around €885 per month.

Pros of living in Portimão

  • Good mix of urban and coastal living
  • All the amenities you need including Marina
  • Close to beaches

Cons of living in Portimão

  • Can be noisy
  • Traffic can be heavy
  • Not as picturesque as other regions of the Algarve
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Albufeira

Albufeira is a city located on the Algarve coast of Portugal. It is one of the most popular tourist destinations in the Algarve, and is known for its lively nightlife and its many beaches. Albufeira is home to a number of beaches, including Praia da Oura, Praia dos Pescadores, and Praia da Falésia. The city also has a number of historical sites, such as the Castelo dos Mouros and the Igreja de São Sebastião.

As of 2021, the city has a population of 44,546 residents, with 16,433 being foreigners, accounting for 36.89% of the population. Albufeira is a good place to live for expats who are looking for a lively and cosmopolitan lifestyle. The city has a lot to offer, including a wide range of restaurants, bars, and shops. However, it is important to note that Albufeira can be very crowded during the summer months.

The cost of living in Albufeira is slightly higher than in Portimão. The average rent for a one-bedroom apartment in Albufeira is around €960 per month.

Pros of living in Albufeira

  • Lively nightlife
  • Many restaurants and bars
  • Central location in the Algarve

Cons of living in Albufeira

  • Can be crowded during the summer
  • Can be noisy and sometimes dirty
  • Cost of living can be high
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Faro

Faro is the capital of the Algarve and has a population of 67,924 residents, with 9,714 being foreigners, accounting for 14.30% of the population. It is a city with a rich history and culture, and is home to a number of historical sites, such as the Sé Catedral de Faro and the Museu Municipal de Faro. Faro is also a major commercial center, and is home to the Algarve International Airport.

Faro is a good place to live for expats who are looking for a city with a good balance of history, culture, and commerce. The city has all of the amenities that you would expect from a capital city, such as hospitals, schools, and shopping malls. However, it is also relatively small and easy to get around.

The cost of living in Faro is slightly lower than in Albufeira. The average rent for a one-bedroom apartment in Faro is around €773 per month.

Pros of living in Faro

  • Capital city of the Algarve
  • Rich history and culture
  • All the amenities you need

Cons of living in Faro

  • Can be expensive
  • Traffic can be heavy
  • Not as laid-back as other regions of the Algarve
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Tavira

Tavira is a charming town located in the eastern Algarve region on the banks of the Gilão River and boasts several stunning beaches, including Praia do Barril and Praia da Ilha de Tavira. These beaches are accessible by a short boat ride and offer a range of beachfront cafes and restaurants.

It has a population of 27,609 residents, with 7,238 being foreigners, accounting for 26.22% of the population.

Tavira’s historic center is a well-preserved medieval town with a range of historic landmarks, such as the Roman Bridge, the Tavira Castle, and the Church of Santa Maria. The town also boasts a range of museums, art galleries, and cultural centers, such as the Tavira Municipal Museum and the Casa das Artes.

In addition to its historic landmarks and cultural activities, Tavira is also home to several parks and green spaces, including the Parque Natural da Ria Formosa and the Jardim do Coreto. The town also offers a range of outdoor activities, such as hiking, cycling, and birdwatching.

Pros of living in Tavira

  • Friendly community and welcoming pets
  • Proximity to nature
  • Authentic Portuguese charm

Cons of living in Tavira

  • Can be isolated
  • Limited job opportunities
  • Not as many amenities as other regions of the Algarve
Best Places in Algarve for expats

Vila Real de Santo António

Vila Real de Santo António is a city located on the Algarve coast of Portugal, on the border with Spain. It is known for its beautiful beaches, historic center, and ferry to Spain. Vila Real de Santo António is a popular tourist destination, but it has retained its authentic Portuguese charm.

It has a population of 18,946 residents, with 3,231 being foreigners, accounting for 17.05% of the population. Expats in Vila Real de Santo António are drawn to the city’s relaxed lifestyle, its friendly community, and its proximity to Spain. 

Vila Real de Santo António is a good place to live if you are looking for a quiet and peaceful lifestyle, surrounded by beauty, and with easy access to Spain.

The cost of living in Vila Real de Santo António is relatively affordable. The average rent for a one-bedroom apartment in Vila Real de Santo António is around €810 per month.

Pros of living in Vila Real de Santo António

  • Relaxed lifestyle
  • Friendly community
  • Close to Spain

Cons of living in Vila Real de Santo António

  • Can be isolated
  • Limited job opportunities
  • Not as many amenities as other regions of the Algarve
Best Places in Algarve for expats

Cost of Living in the Algarve

When it comes to the cost of living in the Algarve, it is generally considered to be relatively affordable compared to other parts of Europe

Cost of Renting a house in the Algarve

Housing is one of the most significant expenses in the Algarve, with the cost of accommodation varying depending on location and property type. In popular tourist areas such as Lagos, Albufeira, or Vilamoura, the prices for apartments or houses can be relatively high, especially during the peak season. 

However, if you look at more secluded or less populated areas, you can find much more affordable options. On average, renting an apartment with 75m2 can cost anywhere between €800 to €1,000 per month.

The table provided illustrates the average rental prices per 75 m² in the Algarve’s most popular regions among expats.

The prices sourced from Idealista Portuguese real estate website (as of April 2023).

Cost of buying a propery in the Algarve

Buying property in the Algarve, can be a sound investment choice due to its strong property market and growing popularity among tourists and expats. With a wide range of properties available at different price points, the Algarve offers opportunities for both long-term capital appreciation and rental income.

The following table displays the average property prices per 100 m² in the Algarve:

Food & Drink: Best Places in Algarve for expats

Food prices in the Algarve are also relatively affordable, especially if you shop at local markets and grocery stores. Eating out can vary greatly in price, depending on where you go and what you order. 

For example, a simple meal at a local restaurant can cost around 10-15 euros per person, while a more upscale dining experience can cost 30 euros or more. A cup of coffee or a beer can be found for around 1-2 euros.

Transportation

Transportation costs in the Algarve can also vary depending on how much you travel and the mode of transportation you use. Public transportation in the Algarve is generally affordable, with a single bus ticket costing around 1.50-2 euros. 

Taxis are also relatively affordable, with the average fare in the Algarve being around 0.45-0.60 euros per kilometer.

Other expenses

Other expenses, such as utilities, healthcare, and entertainment, are also relatively affordable in the AlgarveHowever, it’s essential to keep in mind that costs can vary depending on your lifestyle and where you live within the region.

How can I travel from the Algarve to Lisbon?

Using a Car

Driving from Lisbon to the Algarve usually takes around 2.5 to 3 hours, depending on traffic and the exact destination in the Algarve. The A2 highway connects Lisbon to the Algarve, making it a convenient and straightforward route.

Traveling by Train

There is a direct train service from Lisbon to several cities in the Algarve, including Faro, the capital of the region. The journey by train typically takes around 2.5 to 3.5 hours, depending on the train type and the specific destination.

Getting a Bus

Bus services operate between Lisbon and various cities in the Algarve, including Faro, Lagos, and Albufeira. The travel time by bus is usually around 3 to 4 hours, depending on the route and traffic conditions.

Flying by Plane

If you prefer to fly, there are regular flights from Lisbon to Faro, the main airport in the Algarve. The flight duration is approximately 1 hour, providing a quick and convenient option for travel between the two regions.

Best Places in Algarve for expats

International Schools in the Algarve

For expat families living in the Algarve, there are several international schools available that provide education in English and follow recognized curriculums such as the International Baccalaureate (IB) or the British curriculum.

Educan

Educan is a private, co-educational school located in the Algarve region of Portugal. The school offers a bilingual education in Portuguese and English to students from the age of 3 to 18. 

Educan is accredited by the Council of International Schools (CIS) and is a member of the Association of IB World Schools in Portugal.

  • Address: R. de Portugal 3,  Loulé
  • Curriculum: British
  • Languages: English
  • Ages: 5 to 16
  • Yearly Fees: €5,740 to €7,574

Nobel Algarve British International School

Nobel Algarve British International School is a private, co-educational school located in Lagoa, in the Algarve region of Portugal. The school follows the British national curriculum, offering a broad range of subjects to students from the age of 3 to 18. 

Nobel Algarve is a member of the Council of British International Schools (COBIS) and is accredited by the British Schools Overseas (BSO).

  • Address: Barros Brancos, EN125, Lagoa
  • Curriculum: British, Portuguese
  • Languages: English
  • Ages: 3 to 18
  • Yearly Fees: €5,622 to €17,790

Eupheus International School Algarve

Eupheus International School Algarve is a highly respected international school located in the scenic Algarve region of Portugal. It offers an outstanding academic curriculum for students from kindergarten to high school, combined with a range of extracurricular activities that promote personal growth and development. 

With a focus on academic excellence, character development, and global citizenship, Eupheus International School Algarve is an exceptional institution that prepares students for success in university and beyond.

  • Address: Parque Industrial de Loulé
  • Curriculum: British
  • Languages: English
  • Ages: 3 to 14
  • Yearly Fees: €6,450 to €13,500

You might like to read our article about the International Schools in Portugal.

Best Places in Algarve for expats

How can I move to the Algarve?

EU Citizens

If you intend to stay in the Algarve for more than three months, it is mandatory to apply for a registration certificate. The application can be submitted upon arrival in the country, and once approved, the certificate is valid for up to five years.

Non-EU Citizen

If you are a non-EU national planning to reside in the Algarve, you must apply for a Portuguese residency visa before your arrival. After your visa expires, you will be required to obtain a residence permit.

We recommend reading our comprehensive guide about the best ways to obtain residency in Portugal. However below you can find the most sought visas to Portugal:

Portugal D7 Visa

An attractive option for many retirees who want to avoid the high costs of living in their home country is the D7 visa, which allows for living in the Algarve.

Portugal Digital Nomad Visa

You can choose to live in Lisbon under the Digital Nomad Visa. It’s a popular route for many digital nomads and remote workers.

D2 Visa Portugal

You can live in Portugal and take advantage of a supportive ecosystem, as well as a range of qualified professionals in multiple sectors through the D2 Visa.

Why choose Portugal Residency Advisors for your move to the Algarve?

Local Expertise

We know Portugal and Best Places in Algarve for expats.  Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information. 

Holistic Approach

One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle. 

Transparent Service

We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.

Simple Process

Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.

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Frequently Asked Questions About The Best Cities to Live in the Algarve for Foreigners

The most popular cities include Faro (the regional capital), Lagos (historic and vibrant), Albufeira (known for its nightlife), Tavira (charming and traditional), and Vilamoura (luxury living with a marina and golf).

Yes, the Algarve offers a lower cost of living compared to many parts of Europe, especially when it comes to housing, dining, and utilities, though prices can be higher in tourist-heavy areas.

 

Tavira and Lagos are favorites for retirees due to their laid-back atmosphere, beautiful surroundings, and good access to healthcare. Both towns offer a mix of tranquility and amenities.

Yes, cities like Portimão, Faro, and Loulé are family-friendly, offering good schools, safe communities, and plenty of activities for children, such as parks, beaches, and sports facilities.

Lagos and Faro are great for working expats and digital nomads, offering coworking spa

Albufeira is known for its vibrant nightlife, with numerous bars, clubs, and restaurants. Vilamoura also offers upscale entertainment options, including a glamorous marina and casinos.

Yes, cities like Faro, Portimão, and Lagos have excellent healthcare facilities, including both public hospitals and private clinics with English-speaking staff.

Tavira and Lagos stand out for their rich history, with cobbled streets, historic churches, castles, and well-preserved architecture reflecting Portugal’s past.

Yes, Vilamoura and Almancil are known for their luxury villas, high-end properties, exclusive golf courses, and upscale amenities, catering to expats looking for a premium lifestyle.

Sagres, Lagos, and Monchique are perfect for nature lovers. These areas offer beautiful coastlines, hiking trails, nature reserves, and stunning mountain landscapes.

Yes, the Algarve has several international schools that cater to foreign residents, providing education in English or other foreign languages.

Job opportunities for foreign residents in the Algarve can vary depending on the industry and language skills. Tourism, hospitality, and real estate sectors often offer employment opportunities for foreigners.