Where do most expats live in the Algarve? 7 best places to live

Moving to the Algarve isn’t just about sun and sea. The exact town you choose will shape your daily life more than the country itself. When people ask where most expats live in the Algarve, what they usually want to know is which areas genuinely feel like the best places to live in the Algarve once the holiday ends and real life starts. 

Why the Algarve is one of the best places to live in Portugal

Before you zoom in on specific towns, it helps to understand why the Algarve ends up on so many relocation shortlists. It has a long-established international community, a mild climate even in winter, and an infrastructure that, while imperfect, is geared towards both tourism and long-term residents. 

Of course, the Algarve has its pros and cons, but a lot of expats from the UK, Ireland, Germany, the Netherlands and North America choose the Algarve because it combines relatively low day-to-day costs with decent healthcare access, easy flights, and a relaxed pace of life.

Best places to live in the Algarve: top expat towns and areas

This is the section you probably care about most. When people talk about where most expats live in the Algarve, they’re usually referring to a handful of coastal hubs. Plus, we can't forget to mention the inland towns that have quietly grown an international crowd.

In 2026, the best places to live in the Algarve for expats include:

1. Lagos – historic, sociable, and walkable
2. Albufeira – a resort town with a big British and Irish community
3. Portimão & Praia da Rocha – city-sized amenities with a long sandy beach
4. Carvoeiro – small coastal town that appeals to retirees
5. Tavira & Cabanas – east Algarve with a slower, more traditional feel
6. Loulé & Almancil – pricier but practical for families and golfers
7. Silves & inland villages – quieter, more affordable countryside life

Dahee Son on Unsplash

Below is how each one feels to live in, and who tends to be happiest there.

Lagos: year-round social scene

Lagos is usually the first name that comes up when expats talk about the best places to live in the Algarve. It’s busy enough in winter to avoid that “ghost town” feeling, has a big international mix, and you can mostly live without a car if you stay close to the centre.

• Historic centre with cafés, restaurants and small shops that stay open outside peak season, plus a marina and several beaches within walking distance.
• Large expat and digital nomad community, especially from the UK, Germany and northern Europe, so it’s relatively easy to make friends in English.

Albufeira: resort lifestyle and a big British expat community

If you picture the Algarve and immediately think of hen parties and stag weekends, you’re probably thinking of Albufeira. But beyond “the Strip”, there’s a sizeable year-round community of British and Irish expats, plus lots of seasonal work and services in English.

• Long-established British and Irish presence, so you’ll find familiar pubs, international supermarkets, English-language doctors and tradespeople.
• The central areas are very seasonal and noisy in summer, but residential neighbourhoods a little further out feel calmer and more “normal” for everyday life.

Portimão & Praia da Rocha: city convenience by the sea

Portimão feels more like a real city than a resort, with a working port, shopping centres, and public services that attract both Portuguese families and expats. Next door, Praia da Rocha stretches along one of the region’s largest beaches.

• City-scale infrastructure: large supermarkets, retail parks, hospitals, sports facilities and a riverfront area, so you’re not constantly driving to another town for basics.
• Praia da Rocha gives you a long sandy beach, a promenade, and plenty of cafés and bars; in winter, it’s quieter but still more active than many smaller resorts.

Carvoeiro Unsplash

Carvoeiro: best place to live in the Algarve for retirees

Carvoeiro is a smaller coastal town between Lagos and Albufeira that has steadily attracted retirees from the UK, Ireland, the Netherlands and Germany. It’s postcard-pretty but also practical if you don’t need big-city buzz.

• Compact centre with restaurants, cafés and a small beach hemmed in by cliffs, plus plenty of coastal walks and nearby golf courses.
• Quiet in winter compared with Lagos or Portimão, which many retirees see as a benefit; younger expats may find it a bit too sleepy.

Tavira & Cabanas: East Algarve charm and a slower pace

On the east side, Tavira and nearby Cabanas de Tavira attract expats who want a more traditional Portuguese setting and slightly fewer tourists than the central Algarve. The beaches here are on barrier islands, reached by short boat crossings.

• Attractive old town with a castle, riverside squares and tiled buildings, plus a calmer atmosphere than many central Algarve resorts.
• Cabanas has a more low-key, fishermen-village feeling, with boardwalks and easy access to the Ria Formosa lagoon and island beaches.

Loulé & Almancil: upscale living near the coast

Move slightly inland from the famous Golden Triangle resorts of Quinta do Lago, Vale do Lobo and Vilamoura, and you hit Loulé and Almancil. This area feels more residential and is especially popular with families, golfers and higher-budget expats.

• Close to several international schools, golf courses and beach resorts, which is handy if you have children or guests visiting regularly.
• Property here can be significantly more expensive than in smaller inland towns, especially for villas with pools and sea views.

Silves & Inland Algarve: more space and better value

If you’re less bothered about being within walking distance of a beach and more interested in space, gardens and price-per-square-metre, Silves and the inland Algarve can work very well. The expat community is smaller but usually more settled long-term.

• Silves is a historic hill town with a castle and a quieter, more traditional feel, surrounded by orange groves and countryside.
• Property tends to be more affordable than on the coast, with a higher chance of finding a detached house and land for the same budget.

Francois Olwage on Unsplash

How to choose the best place to live in the Algarve as an expat

Once you’ve got a shortlist, the next step is matching those towns to your actual priorities, not just the photos that show up on Instagram. Before you fall in love with a specific street, look at the basics like the cost of living. These are the things most expats in the Algarve end up caring about after the honeymoon period.

When comparing locations, focus on:

• Amenities and healthcare: how close you are to supermarkets, pharmacies, a health centre or hospital, and simple things like a reliable dentist.
• Schools and childcare: for families, check where the international and bilingual schools are, plus school bus routes and traffic at peak times.
• Transport and connectivity: not just distance to Faro Airport, but also bus and train options, and whether you can realistically live without a car.
• Noise and seasonality: some coastal areas are very loud and crowded from June to September, and then feel half-empty from November to February.

Vale do Lobo Resort, Loulé Unsplash

Matching the best Algarve places to your lifestyle

Rather than asking, “what’s the best town?”, it’s more useful to ask, “for someone like me, which few places are worth a serious look?”. Here’s a simple way to line that up.

Rough matches between expat profiles and locations:

• Retirees: often happiest in Carvoeiro, Tavira, Silves, or quieter neighbourhoods of Lagos, where day-to-day errands are easy and nightlife isn’t essential.
• Families: tend to favour Loulé, Almancil and the Golden Triangle area (for schools and services), as well as parts of Portimão and Tavira.
• Digital nomads and remote workers: usually gravitate to Lagos, Portimão and slightly less touristy parts of Albufeira, where you can find coworking spaces and decent internet.
• Budget-conscious expats: look more at inland areas around Silves and small villages slightly away from the coast, where housing tends to stretch further.

Praia da Rocha Unsplash

• Find property for sale in the Algarve
• Find long-term rentals in the Algarve