Best Cities and Towns to Retire in Portugal

Most English-speaking retirees settle in the Algarve (particularly around Lagos, Albufeira, and Tavira), Lisbon and its suburbs (especially Cascais and Estoril), and increasingly, the Silver Coast and Porto. The Algarve has the largest concentration of British retirees, while Americans tend to prefer Lisbon, Cascais, and Porto. Canadian retirees are spread throughout these regions as well. Each area has developed English-speaking communities with social groups, activities, and services catering to expats.

Lisbon and Porto offer the most comprehensive healthcare options with numerous public and private hospitals, specialist clinics, and English-speaking medical professionals. Coimbra is also excellent, home to one of Portugal's top university hospitals. In the Algarve, private hospitals in Faro, Portimão, and Lagos provide high-quality care with English-speaking staff. For retirees with complex health needs, being near a major city is advisable. The Hospital da Luz network and CUF hospitals are well-regarded private options throughout Portugal with locations in multiple cities.

The most affordable cities for retirees include:

• Coimbra - A university city with rich culture and significantly lower housing costs than Lisbon
• Braga - In northern Portugal, offering excellent quality of life at approximately 30% less than Lisbon
• Setúbal - Just south of Lisbon with good amenities but much lower housing costs
• Caldas da Rainha - On the Silver Coast with affordable housing and authentic Portuguese lifestyle
• Tavira - In eastern Algarve with lower costs than western Algarve while maintaining the southern climate

In these cities, a couple can live comfortably on €1,500-2,000 per month including rent.

The Algarve region (particularly cities like Lagos, Albufeira, and Tavira) offers Portugal's best climate for retirees seeking warmth, with over 300 sunny days per year, mild winters (rarely below 10°C/50°F), and warm summers moderated by ocean breezes. Lisbon and Cascais also enjoy excellent weather with slightly cooler winters. Madeira Island (Funchal) offers perhaps the most consistent climate in Portugal with spring-like temperatures year-round. The Silver Coast has slightly more rainfall and cooler temperatures than the Algarve, while northern cities like Porto experience more rainfall and cooler winters, though still much milder than Northern Europe or Northern US states.

Your need for a car depends entirely on your chosen location. In Lisbon and Porto, public transportation is excellent and a car may be more of a burden than a benefit due to limited parking and narrow streets. Suburbs of major cities typically have good bus and train connections. However, in the Algarve, Silver Coast, and more rural areas, a car becomes much more essential for daily life and exploring. Many retirees in cities like Lisbon or Porto choose to live without a car and rent one occasionally for trips, while those in smaller towns or rural areas find having a car necessary. Electric bicycles are also becoming a popular option in flatter coastal towns.

Portugal has excellent internet infrastructure in most urban and suburban areas. Fiber optic internet with speeds of 100-500 Mbps is widely available in major cities and towns at reasonable prices (€30-50/month). Lisbon, Porto, and the Algarve have particularly good coverage. Even in many smaller towns, fiber connections are available. However, very rural areas and some parts of the interior may still rely on slower ADSL connections or 4G/5G mobile internet. Before settling in a specific location, it's advisable to check internet availability with providers like MEO, NOS, or Vodafone. For remote workers or digital nomads, Portugal's network of co-working spaces in cities and even smaller towns provides additional connectivity options.