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Top 13 Cities to Live in Portugal in 2026

  • Writer: Micah H
    Micah H
  • 5 days ago
  • 6 min read
Crowded city square with a yellow tram and people watching a street performer. Colorful buildings in the background, sky at sunset.

Finding the Top 13 Cities to Live in Portugal in 2026 depends on your budget and lifestyle goals. Portugal offers a mix of sunny beaches, quiet mountains, and fast-paced cities. We have spent five years researching every corner of the country to find the best spots for you.

Quick Stats for Living in Portugal

  • Average Monthly Rent: €700 to €1,500 for a one-bedroom apartment.

  • Safety Rating: Portugal consistently ranks in the top 10 safest countries globally.

  • English Level: High in major cities like Lisbon, Porto, and Braga.

  • Climate: 300 days of sunshine per year in the southern regions.


Key Takeaways

Feature

Best City

Why it Wins

Luxury Living

Cascais

High-end homes and international schools.

Best Value

Castelo Branco

Low rent and plenty of space.

Quality of Life

Viseu

Consistently ranked #1 for resident satisfaction.

Island Life

Funchal

Mild weather year-round and amazing scenery.

Overall Winner

Porto

Perfect balance of size, food, and culture.

Aerial view of a coastal city at sunset, with colorful rooftops, a prominent modern hotel, and a waterfront promenade. Calm, warm ambiance.
Cascais

Coastal Luxury and Northern Shore Options


Cascais sits just outside Lisbon and serves as a premier escape. It used to have a reputation for being only for the wealthy. Now, a younger international crowd is moving in. You will find trendy cafes and boutique shops everywhere. Getting around is easy by foot or bus. If you have a healthy income, the quality of life here is exceptional.

Matosinhos is a great alternative located near Porto. It provides direct access to the sea and a world-class seafood scene. The city is flat and walkable. You can take the metro into Porto in just a few minutes. Many new apartments are currently under construction. This makes it a smart choice for those who want coastal living without the highest prices.


Monthly Living Comparison

City

Average 1BR Rent

Proximity to Airport

Vibe

Cascais

€1,300+

35 Minutes

International/Luxury

Matosinhos

€950

15 Minutes

Coastal/Active

Quiet Coastal Living and Inland Bargains

Setúbal is a smaller city south of Lisbon. It has a tight community of residents and expats. People come here for the fresh oysters and fried cuttlefish. The pace of life is slower than in the capital. Rent is much lower here. You can walk to most places in the historic center. It is a great spot for families who want to be near the water but avoid the crowds.

Caldas da Rainha offers a unique charm inland. It is famous for thermal springs and local pottery. With about 50,000 residents, it feels lively but manageable. The cost of living is quite low. You will find friendly locals and a supportive network of international residents. It is perfect if you value a creative and tranquil environment.


Expert Insight: When you eat seafood in Setúbal, try using lime on your fish instead of lemon. Local experts swear it brings out the flavor of the fresh catch.


Street with palm trees in sunny coastal town. Yellow building on left, flags on right. Red flowers line path. Clear blue sky above.
Castelo Branco

Best Value Cities for Remote Workers

Castelo Branco is a city that many foreigners overlook. It is a modern town with plenty of room to breathe. Rents here are often half the price of what you find in Porto. You will likely need a car to get around because public transport is limited. It is a great choice for families who want a big house and a quiet lifestyle.

Braga is a favorite for many people moving to Portugal. It has a youthful energy thanks to the local university. The city center features beautiful gardens and historic architecture. It has a very established English-speaking community. Be prepared for the weather. Summers are very hot and winters are colder than on the coast. Check out our Portugal Retirement Guide to see how Braga compares for long-term stays.


City

Urban Population

Known For

Castelo Branco

34,000

Affordability

Braga

193,000

Youthful Energy

Island Living and Capital City Opportunities

Funchal is the capital of Madeira Island. It is Portugal's sixth-largest city. The weather stays mild all year. You can enjoy incredible mountain views and a distinct food scene. Rental prices have gone up recently and now sit close to Lisbon rates. It is an excellent home for remote workers who love the outdoors.

Lisbon is the center of the country. It offers the most jobs and international schools. You will find any type of food or event you want here. However, it is the most expensive place to live. Many residents spend a large part of their salary on housing. If you want the capital city lifestyle, look at our City Guide for Lisbon to find the right neighborhood.


Coastal village with terraced hills, colorful houses, and turquoise water pools by rocky shores under a clear blue sky.
Funchal

Plan Your Move with Expert Help

We started a new initiative at Portugal Travel Now to help you find your perfect home. We book personalized trips to every area of the country. Our team finds the best prices and package deals for your specific needs. Whether you want to scout neighborhoods or just see the sights, we handle the details. Visit our booking page to see our current offers.


Top Quality of Life in the Algarve

Loulé is growing in popularity among international residents. It sits slightly inland in the Algarve region. This gives you a calm home base away from the tourist crowds. You can reach the beaches of Quarteira in about 15 minutes by car. It is a great spot for golfers and people who want sunshine without living right on a noisy boardwalk.

Viseu is the city that surprises most people. It consistently ranks as the best place to live for quality of life. The city is clean, safe, and has great healthcare. It is not a major tourist spot, so you will get an authentic experience. The cost of living is low and the locals are very welcoming. Check our Cost of Living Guide for more details on these rates.


Aerial view of a lively plaza with people at outdoor cafes and market stalls. Checkerboard pattern on walkway. Overcast sky, cityscape backdrop.
Loulé

Quality of Life Indicators

City

Safety Rank

Healthcare Access

Nightlife

Loulé

High

Good

Moderate

Viseu

Very High

Excellent

Low

History and Southern Charm

Coimbra is famous for its ancient university. It is a hilly city with a lot of history. A new metro system is currently being built to make travel easier for residents. It offers a mix of student energy and quiet residential zones. Rents are affordable compared to the coast. It is a highly connected city that makes traveling to the rest of Portugal simple.

Tavira is located in the eastern Algarve. It has incredible weather and beautiful beaches. The city feels very traditional with its tiled houses and narrow streets. It has become very popular with English speakers recently. Supply for housing is low, so rents have increased. It is a perfect fit for retirees who want a slow pace of life in the sun.


Riverside view of a city with colorful buildings under a blue sky with clouds. Boats on the river and a bridge in the background.
Porto

The Best City to Live in Portugal

Porto is our top choice for 2026. It is the second-largest city and feels "just right." It is not as crowded as Lisbon but still offers plenty to do. The food scene is world-class and the airport is easy to use. The metro is expanding with new lines opening in 2026. Porto is more affordable than Lisbon or Cascais, making it a better value for most people.

You will find a vibrant energy here fueled by history and views of the Douro River. It is easy to find other English speakers, though the community is spread out. Whether you want to walk along the coast or explore the city center, Porto delivers. It is a polished option for anyone moving to Portugal this year.


Porto Growth Stats

Metric

2026 Projection

Metro Expansion

2 New Lines

Food Scene

10+ Michelin Mentions

English Speakers

15% of Urban Center

Common Questions About Living in Portugal

Is Portugal still affordable in 2026?

Some cities have seen rent increases, but inland towns like Viseu and Castelo Branco remain very cheap.

Do I need to speak Portuguese to live there?

You can get by with English in big cities, but learning the local language helps you connect with neighbors in smaller towns.

Which city is best for digital nomads?

Lisbon, Porto, and Funchal have the best internet speeds and the most co-working spaces.

Is the Atlantic Ocean warm enough for swimming?

The water is cold even in the summer, especially in the north. The Algarve has the warmest water.

Do I need a car in Portugal?

In Lisbon and Porto, you do not need a car. In smaller inland cities, a car is usually necessary.

Which city is the safest?

Viseu is often cited as one of the safest cities in the country.

Are there international schools outside of Lisbon?

Yes, you can find international schools in Porto, Cascais, and the Algarve.

What is the weather like in the north?

Northern Portugal is greener and rainier than the south, with cooler temperatures in the winter.

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