Many expats like the Algarve region for the climate and beach lifestyle. For some expats, there is an added consideration of wanting to live near other English-speaking people. It is not always easy to figure out where expats are living in a given country. The Algarve region is known to host some of the largest concentrations of English-speaking expat communities. Based on internet research and discussion forums, we identified several towns popular with English-speaking expats and Americans living in Portugal. We visited these hotspots on our recent scouting trip and share our initial observations about the best places to retire in Portugal below.
Faro (Top Pick – Best Places to Retire in Portugal)
Capital of the Algarve region (population around 50,000), Faro sits near the center of the southern coast. This makes it very convenient for accessing all areas of the Algarve. Faro hosts an international airport which makes it great for residents of the Algarve to access flights to both the U.S, and to other international cities. Check out our transportation section to learn how inexpensive it is to fly from Faro to other major European cities. Faro and the surrounding area have a large amount of shopping and services including two of the largest malls in the Algarve. Faro also has both public and private hospitals, and numerous other health services.
Our take on Faro:
- Great central location
- International airport
- Excellent shopping and services including both public and private hospitals.
- 15 minutes from the MAR Shopping Mall; the largest indoor shopping mall in the region. The mall is also right next to an outdoor outlet mall and a Leroy Merlin (home-improvement store like a Home Depot, but way nicer).
- Easier to drive in/around than many towns (if you stay out of the old town)
- Not as touristy
Tavira (Top Pick – Best Places to Retire in Portugal)
Tavira is a beautiful little town (population around 25,000) in the eastern part of the Algarve. It is just up the Gilão river from the coast, and the river divides the town down the middle. On the western side of the river next to the town market, a public outdoor amphitheater and small square host events and town festivals with the ruins of the old castle looming overhead. Restaurants and cafes line the square, and a river ferry transports people to and from the town beach which is out on a small island to the south.
The Roman Bridge provides easy access to restaurants and shopping on the eastern side of the river as well. On the east side of town, there are several supermarkets including a Continente attached to the small but nice Centro Comercial Tavira Plaza indoor shopping mall. Tavira also boasts a 1-star Michelin restaurant which can be of great interest to foodies.
Our take on Tavira:
- The town is one of the most beautiful in the Algarve, and is a wonderful place to dine at a restaurant and take a stroll.
- The Tavira beach is separated from the town, making it less touristy than other popular Algarve towns.
- Driving and parking in the commercial area on the eastern side is easy, though we recommend avoiding any driving in central Tavira unless you enjoy navigating tiny cobblestone streets.
- Great town market for fresh meats and produce
- Tavira is about 40 minutes from Faro; still close enough for great airport access, and for less-frequent trips requiring more extensive shopping or services.
Vila Real de Santo António (VRSA)
VRSA is one of the best places to retire in Portugal. VRSA is a wonderful small town (population around 20,000) on the eastern border of the Algarve directly across the river from Spain. It is about a 25-minute drive from Tavira, and less than two hours from Seville, Spain. It sits on the banks of the Guadiana River, and has a lovely river walk, marina, and beach. A ferry runs back and forth across the river to the Spanish town of Ayamonte. The area around the main town plaza across from the marina has charming pedestrian streets lined with restaurants and shopping.
Our take on VRSA:
- Location on the far eastern side of the Algarve makes it less popular with tourists, and more authentically Portuguese.
- Large town market for fresh meats and produce. Shopping at local markets is a great way to reduce the cost to retire in Portugal.
- The town feels very modern with lots of shopping and services, but the town center still has a nice classic charm.
- It was an easy town to drive and park in.
- The proximity to Spain presents some nice local exploring and vacation opportunities.
- Large public health center.
- Close to Tavira.
- We could definitely see living between VRSA and Tavira and enjoying the best of both towns. This area of the eastern Algarve may be one of the best places to retire in Portugal.
Loulé (Top Pick – Best Places to Retire in Portugal)
Loulé is a city (population around 70,000) about 20 minutes northwest of Faro. It is not a tourist city, and has a very authentic Portuguese atmosphere. It also has all the infrastructure and services required to support a population going about their daily lives. Loulé hosts the largest weekly Saturday market in the region. This brings in people from the surrounding areas to shop in the historic Moorish-influenced market building. On Saturdays, the market spills into the surrounding streets with an impressive array of vendors. The surrounding streets also have lots of great shopping winding through historic cobblestone streets. There are many residential options both within in the city limits, and in the surrounding areas in villages such as Santa Bárbara de Nexe and Almancil. Almancil boasts a 1-star Michelin restaurant which is great for foodies.
Our take on Loulé:
- Not a tourist town.
- As someone who enjoys cooking, the market is a big attraction. Note, however that many Algarve towns have great weekly markets; just not as large.
- Excellent shopping and services including both a large public health center and a private hospital.
- Only 20 minutes from Faro and its shopping, services, and international airport.
- 10 minutes from the MAR Shopping Mall; the largest indoor shopping mall in the region. The mall is also right next to an outdoor outlet mall and a Leroy Merlin (home-improvement store like a Home Depot, but way nicer).
- 20 minutes from Quartiera Beach for your ocean fix
- We liked the suburbs and surrounding villages as potential residential areas.
Quartiera
Quartiera is a small coastal town (population around 16,000) nestled between Faro to the east and Vilamoura to the west. It is known for its excellent beach, and for being the affordable alternative to Vilamoura. Quartiera is a popular vacation spot for residents across Portugal, and for Americans retiring in Portugal. Excellent seafood restaurants line the beach promenade, and Quartiera has a great local fish and produce market as well. The town doesn’t have quite the historic charm of others in the Algarve, but it can be a great option for beach lovers.
Our take on Quartiera:
- Fairly central location about 30 minutes from Faro.
- Excellent beach with easy parking and access.
- If you like beach towns, living in Quartiera can be one way to reduce the cost to retire in Portugal. It is more affordable than other beach towns in the area.
- Private hospital
- We could see living in the area around Faro/Loulé and enjoying Quartiera as our “nearby” beach.
Vilamoura
Vilamoura is a small luxury resort town (population around 20,000) about 30 minutes west of Faro. It is home to some wonderful beaches, award-winning golf courses, and a beautiful marina lined with restaurants and nightlife. Faro boasts its own casino, tennis academy, equestrian center, and even a lawn-bowling club. It is popular with wealthy tourists and expats alike.
Our take on Vilamoura:
- Too high end for us, but if you enjoy the finer things in life and your budget supports it, then this may be the place for you.
- Great if you want to live near the beach and want all the amenities you would expect of a luxury-resort area.
- The place to be for golfers.
- May be tough dealing with the influx of summer tourists.
- Fairly central location 30 minutes from Faro.
Albufeira
The lively resort town of Albufeira is a coastal town (population around 40,000) about midway between Faro and Lagos. The charming old town hosts restaurants and tourist shops in traditional narrow cobblestone streets winding down to a bustling beach area. A little to the east, a part of the new town known as “The Strip” hosts bars and nightclubs. Combined, these areas make Albufeira one of the top destinations for nightlife in the Algarve. Albufeira also boasts a 2-star Michelin restaurant.
Our take on Albufeira:
- If you enjoy a lively atmosphere and good nightlife, then Albufeira might be a fit for you. We found it a bit too busy for us.
- 15 minutes from the Algarve Shopping Mall which is a great indoor/outdoor mall with an attached Continete grocery store.
- Great if you want to live close to the beach. Tons of restaurant options.
- Large public health center, and private hospital
Portimão
Portimão is the largest city in Western Algarve (population around 50,000). It is a modern residential city home to high-rise apartments, shopping, and services. It lacks some of the charm of some of the smaller Algarve villages, but its proximity to both services and beaches makes it a popular place for expats. Portimão does not have its own beach, but nearby Praia da Rocha offers a beautiful beach and stunning coastline. The nearby villages of Alvor and Lagoa are also popular with Americans retiring in Portugal, but we didn’t have time to visit them on this scouting trip.
Our take on Portimão:
- We did not spend a lot of time in Portimão, however it felt a little too big and busy for our style of living. The high-rise apartments and higher population density were not appealing to us as we prefer the quieter country lifestyle.
- It is a full-service city with excellent transportation options. This may be one of the best places to retire in Portugal for expats who enjoy more of a city lifestyle.
- The separation of the beaches from the main city results in fewer tourists in the city area.
- It is 30 minutes from Lagos, and has excellent bus/train connections for travel there and to other Algarve destinations.
- Traffic was noticeably heavier in this area of the Algarve.
- Public hospital in town. Private hospital nearby in Alvor.
- We have read that the surrounding villages like Alvor and Lagoa are popular with expats. They might be a potential target for our next scouting trip.
Lagos
Lagos is a fairly large town (population around 35,000) on the western side of the Algarve. I read prior to our scouting trip that some people refer to Lagos as “Little England” due to its popularity with British tourists and expats. Given this, I had a preconceived notion that I would find Lagos too touristy to consider as an expat destination. Instead, I found Lagos an interesting and endearing town that had not lost its historic Portuguese feel. Lagos occupies a position on the coastline in the middle of some of the most stunning beaches in the Algarve. If you have seen any of the typical “highlight” photos of Portugal, you have likely been looking at the Lagos area. It was the town itself, however, that caught my eye with its wonderful cobblestone streets and plazas, and great shopping and restaurants.
Our take on Lagos:
- We weren’t able to spend a lot of time in the area, but our first impressions of Lagos were very positive.
- Wonderful scenic old town with great restaurants and shopping which felt geared towards residents as much as tourists.
- Great beaches and scenery.
- Public hospital
- All the shopping and services Americans retiring in Portugal would need.
- As with Portimão, this is definitely the more “busy” side of the Algarve, and the difference was noticeable. Given this, it would be interesting to visit the area during the offseason.
Summary
That’s a wrap on our rundown of some of the best places to retire in Portugal. I hope that you found the information we gathered on our recent scouting trip to the Algarve informative. I definitely recommend taking your own trip to the region to visit any of the towns that sound like they may be a good fit for you. I know we will be back to the Algarve, and we will have more details to report then. Until then, happy retirement planning!
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