Portugal is one of the most popular countries to visit or move to as a digital nomad, and the Algarve is one of the most popular parts of the country. If you’re considering a move to Portugal or just visiting this area, there are a few things you should know about this fascinating, ancient part of Portugal.

Let’s take a closer look at what life in Algarve, Portugal, is like, and what you can expect when you visit or move to the area.

About Algarve

The Algarve is the southern most region of mainland Portugal, and home to nearly 470,000 full time residents. During the summer, this popular tourist destination sees many times that number of visitors.

This region is also one of the most important food production regions in Portugal, and there are many farms growing crops as well as a fishing industry with a history that goes back centuries.

The weather in this part of Portugal is almost always warm, and the beaches along the Atlantic coastline are universally magnificent.

If Portugal has a riviera and a playground for the rich and famous, this is definitely it.

Living in Algarve

The Algarve is very similar to what you might see in any other area that is popular with tourist. It’s beautiful, there is amazing architecture, the weather is perfect, the people are friendly, and the food is amazing.

The Algarve is also very well connected since there is an international airport at Faro – so you don’t have to fly elsewhere and drive into the area if you choose not to.

While it is definitely an international cultural melting pot today, the Algarve is still heavily touched by its Moorish history, and you can see signs of it on the architecture and even food and culture.

You could say that the Algarve is one of those special places where you can live and work and still feel like you are on the best vacation every day. Which is probably why so many people choose to live here.

Cost of Living in the Algarve

The good news about living in the Algarve is that unlike other European beachside regions, it’s surprisingly affordable – especially if you choose to live outside of the larger city centres. Here are some costs you might expect to pay in this area:

Quality of LifeSalaries in the Algarve tend to be relatively modest too, but most people should not have any trouble living a relatively comfortable life on them.

The quality of life in the Algarve is very much tied to the area itself. It’s very hard to have a miserable or depressing life when you have some of the most beautiful beaches and scenery on your doorstep all the time.

Most people who live in the Algarve are relatively laid back and relaxed, and it shows.

As a tourist area, people in the Algarve tend to speak English too, which makes life a lot easier for English speaking expats in the area.

This is also a family friendly area, and bigger cities and towns have all the infrastructure you would expect, including high quality medical care, schools, parks, childcare and activities and attractions.

Weather

Even though the Algarve is on the Atlantic coast, it very definitely has a Mediterranean climate. In fact, it’s one of the warmest places in southern Europe.

Even in the winter, the weather is usually around 16 or 17 degrees Celsius, but in the summer, it can get up to a very hot 40 degrees Celsius – so you might want to find accommodation that has air conditioning if you’re not used to that kind of heat!

The Algarve area doesn’t get excessive precipitation, but you can expect some rain in the winter months, peaking in December.

Beaches

The beaches of the Algarve are one of the biggest attractions. Many are perfect golden sand encircled by rocky cliffs that protect from the wind. Unfortunately, because this area is on the Atlantic Ocean, the water never gets very warm, and you can expect it to be a maximum of about 20 degrees Celsius in the middle of summer. However, since summer days can be up to 40 degrees, you will probably still seek relief in the water!

Life in the Algarve is very beach centric, but some locals do find it a little too crowded in the busy tourist season, so you might have to venture further afield to find a quiet beach to enjoy!

Safety

Life in the Algarve, like most of Portugal, is considered very safe, and has excellent law enforcement in place.

Violent and serious crime is very rare in the Algarve, although you should be wary of petty crime and pickpockets, who might target tourists and newcomers in particular.

Transportation

The Algarve offers several ways to get around, each of which have different pros and cons.

If you are planning a long-term life in the Algarve, you might want to buy a car. The easiest and most convenient way to get around (like most places) is by car, and there are two major highways and many well-maintained roads to do just that.

Most of the bigger cities and towns in the Algarve are also accessible by bus, and there are several bus operators in the area. This might not make life in the Algarve easier in the long term, but it’s a good option if you would prefer not to buy or rent a car.

There is a train line that runs along the coast, connecting Lagos and Vila Real de Santo António and stopping at or near towns like Portimão, Faro, Taviro and others. The stations along the route are not always in the city or town centre though, so you may also need to take a taxi to reach your destination. Uber also works in the Algarve, so if you prefer ride sharing, you won’t be disappointed.

Of course, as mentioned before, there is also an international airport at Faro, so you can fly direct to several domestic and international destinations if you need to.

International Community

Up until recently, the Portuguese government allowed golden visa applicants to buy property in the Algarve to support their application, and the result is that there is a huge international community in the area.

You will find expats from all over the world here, including families and retirees. Of course, because Portugal is also a “pink” country, there is also a large contingent of LGBTQ people enjoying the gay life in Algarve.

While most people in the Algarve are very LGBTQ friendly, it is worth noting that LGBTQ life in Algarve is easier if you put down roots in a larger city or town. Rural parts of Portugal, like many other places, tend to have more old-fashioned ideas.

Tax Flexibility

Portugal is not what you would consider a tax haven – but that doesn’t mean there aren’t tax benefits to life in the Algarve.

First, there’s the NHR or Non-Habitual Resident tax program that offers tax benefits to people in their first ten years living in Portugal.

Then there’s a program that offers 20% tax rates for people working in “high value professions”, which applies to both local and international earnings.

If you are planning a move to Portugal, make sure you take advantage of tax programs like this. It will give you more cash in your pocket to enjoy the life in the Algarve!

Buying a House in Algarve

As mentioned, you can’t purchase a home in the Algarve to support a golden visa application anymore, but that does not mean you can’t purchase a home there as an expat.

Property prices are typically fairly low in the Algarve, particularly if you look outside of the major cities and towns, and if you’re open to a renovation project.

It is fairly hard for foreigners to get a mortgage in Portugal, and you need to have a Portuguese tax number before you can start the process, but other than that, there are no barriers to buying property in the Algarve as an expat.

Property Prices in Algarve

Property prices vary enormously in the Algarve. You could pay anything from as little as 10,000 Euros for a tiny flat or a very run down home to millions of Euros for a mansion overlooking the ocean.

The property you choose will influence your life in the Algarve and your lifestyle, but there really are a lot of options, and something to match every style and budget.

Renting a House in the Algarve

Renting a house in the Algarve is another way to kickstart your life in the Algarve without investing a lot upfront. This is a great way to see what life is like in different parts of the area.

Rental prices also vary enormously from place to -place, with houses in small towns available for as low as a few hundred Euros, or an apartment in the heart of Faro for 1000 Euros or more.

Be aware that if you choose to save by living in a small town, you should be prepared to pay more for transport.

Best Places to Live in Algarve

There are no bad choices about where you live in the Algarve – they’re just different. However, you might want to do some research before you choose the town you plan to settle in for your life in the Algarve. Here are a few of the more common choices for the best places to live in the Algarve:

Albufeira

Albufeira used to be a fishing town. Now it’s a bustling tourist town with nearly full time 45,000 residents. It is located between Faro and Lagos and is close to the historic Paderne Castle.

Lagos

Lagos, Portugal should not be confused with Lagos, Nigeria. This Lagos is a seaside town in the Algarve that is famous for its historic architecture, fantastic beaches and great food and nightlife scene. It’s a smaller town, with just 22,000 full time residents.

Faro

Faro is the biggest city and the capital of the Faro district. It has nearly 61,000 full time residents and is the second biggest city in the Algarve. Faro has been occupied by humans since prehistoric times, and one of the most common pastimes for locals and visitors alike is vising the many historic sites dotted in and around the city.

Monchique

Monchique is a small municipality with a little over 6,000 residents in the Faro region. It is very popular with tourists however, thanks to the hot springs and health spas. Many visitors are also drawn to the natural beauty around the city.

Quinta do Lago

Quinta do Lago is a golf estate development and gated community near Faro. This is where the famous and fabulously wealthy spend their time in the Algarve and is a popular place for international golf tournaments.

Tavira

Tavira is a historic town in the Algarve that is famous for cobbled streets and a haunting anchor cemetery. It has a permanent population of about 26,000 people and is very much a tourist hub in the area.

Silves

Before Portugal was a kingdom of its own, the Algarve was a kingdom, and Silves was its capital. Today, this city of about 37,000 people is a major tourist destination, with the historic city wall and Moorish architecture being some of the biggest attractions.

Castro Marim

Castro Marim is another small town in the Algarve. It has been inhabited since Roman times and currently has about 6,800 full time inhabitants. This town is home to an annual medieval fair that celebrates this part in the Algarve’s long history.

FAQ

Do I need to speak Portuguese to Manage Life in the Algarve?

No. Most people in bigger cities and towns in the Algarve speak English quite well, and there is a large British expat community in many of the bigger towns. So, you should be able to get by while you find your feet.

Can I get a golden visa to move to the Algarve?

Not anymore. You used to be able to buy property in the Algarve to support a golden visa application, but the Portuguese government changed that rule in January 2022. However, that does not mean you can’t purchase property elsewhere, rent it out and put your own roots down in the Algarve.

Can I go to university in the Algarve?

Yes. If your life in the Algarve includes plans for further studies, there is the University of the Algarve, which is located in Faro.

Is there a strong culture in the Algarve?

Yes – and because the Algarve has been settled by so many different groups over the years, it’s quite diverse and very interesting.

How long have people been living in the Algarve?

The Algarve region has been inhabited since prehistory. People also lived here during the ancient roman empire and the medieval period, so there’s a lot of history to explore!

Are there any risks to living in the Algarve?

The Algarve area is noted to be one of the highest risks for earthquakes and tsunamis in Europe, and although that has never happened (that we know of), there’s no guarantee that it won’t at some point in the future.

Is the food good in the Algarve?

If food is going to be a big part of your life in the Algarve, you will be very pleased to know that it is excellent. There’s a lot of traditional Portuguese food on offer, but also strong Moorish influences, and many expats have also opened up restaurants offering all kinds of other cuisine. Because this area is a food producer, most of the produce is very fresh, and there is a big “farm to table” movement.

Are there any dangerous animals in the Algarve?

On land, the biggest concern is the formerly endangered Iberian Lynx, which is a wild cat. In the oceans, there are sharks, but while some beaches have had to issue shark alerts, there are no recorded incidents or attacks to worry about.