7 Best Places to Live in Portugal as a British Expat

With its warm climate and relaxed pace of life, Portugal has become a strong contender for expats looking to leave the UK for a more balanced and comfortable way of life. Portugal is welcoming to British expats and many find it a softer move than can come from other European countries - it’s no surprise that at Clifton Private Finance, we speak to many clients who are looking to relocate there.

At Clifton Private Finance, we help you by structuring the finance required to efficiently purchase a Portuguese property. Whether you are looking for a permanent relocation into retirement, a family base in Europe, or a second home to take the edge off the winter, we have the expertise needed to make it happen.

Choosing the right city is an important early step, and understanding the differences between possible options is essential to make sure you make a move that’s right for you. Explore the possibilities in this comprehensive overview of the best places to live in Portugal for British expats.

Why Portugal is a Popular Location for British Expats

More than many European countries, Portugal is genuinely welcoming to British citizens, opening its arms to those who are looking to change their lives with a respectful move abroad. Unlike some alternatives, Portugal is a place where English is widely spoken, so the language barrier is far less imposing than in other places. With their strong sense of community and polite attitude, Portugal encourages expat integration.

This enjoyable weather encourages an outdoor lifestyle that tends to improve health - both physically and mentally. With a culture that supports long lunches, relaxed time keeping, and a willingness to while away hours in a comfortable café, Portugal can sometimes feel too easy.

In addition to the softer pace of life, Portugal is also safe - an important consideration for families, retirees, and anyone thinking of relocating alone. Healthcare, too, is well-regarded, with both affordable public services and private offerings for those looking for additional stability.

The allure of Portugal does mean it is no longer the incredible investment it once was, but it remains a strong financial option, with accessible property prices and a lower cost-of-living when compared to the UK. For expats seeking a warmer, more relaxed, and cost-effective life in Europe, this slice of the Iberian Peninsula is well worth considering.

7 Best Cities to Live in Portugal

1. Lisbon

Portugal’s capital has seen a massive upsurge in interest since the 2020 pandemic, stripping Lisbon of its previous ‘hidden gem’ status into more of a known jewel in Europe’s crown. Space is limited and competition for good family homes in the centre is extremely high. For expats, this means property prices no longer represent a true bargain, though they are still within acceptable levels for most British expats and investors.

Outside of the property prices, however, the cost of living is still substantially cheaper than in the UK or some of the other European cities. When compared to capitals such as London or Paris, Lisbon is extremely cost-effective, leading to a more relaxed way of life with less day-to-day stress.

Lisbon provides a compromise between the idealised relaxed life of Portugal, and the modern world of remote work, international travel, and technology. Both a soft, sun-drenched, café-based calmness and energetic social hustle are possible within its borders.

2. Cascais

A little more than 30km from Lisbon lies Cascais, a coastal town with fewer than half the number of inhabitants of the capital. Cascais offers the space, calm, and relaxed quality of life that many expats considering Portugal are seeking.

For families looking to merge a more peaceful existence without losing proximity to the capital, Cascais is a strong draw. With a spread of international schools and an English-speaking community, Cascais has the family-focused nature that makes it a strong competitor to Lisbon for expats with children.

These benefits, however, have increased the interest in Cascais in recent years. Property prices are among the most expensive in the country, with high demand and limited supply meaning market values can often exceed those in the capital. Investors should not be put off, however, as the stability means a long-term property purchase is unlikely to perform poorly. Cascais offers greater space, a cleaner environment, and a slightly slower pace to Lisbon - all factors that are unlikely to change in the foreseeable future.

Travel to and from the capital is efficient and cheap, with regular cost-effective trains that take around an hour, and a drive that can be accomplished in a little over half that.

Situated on the coast, Cascais offers a high-quality location that provides immediate beach access as well as capital city closeness. Perfect for families, remote workers, and retirees who still enjoy regular bouts of city-based life.

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3. Porto

Once the gateway city for the world (and especially Britain) to enjoy the rich taste of Port, Porto is now a thriving cultural hub. While the barrels may no longer be floating down the river to form the city’s famous export, Porto retains its historical ties, offering expats authentic Portugal while still embracing a modern working life.

Property is priced affordably. Like most of the country, the market has strengthened in recent years, but it remains a more budget-friendly option than Lisbon or its surrounds. Porto enjoys a vibrant selection of inhabitants - both local and expat - with a range of job opportunities as well as a significant student population.

For prospective landlords, both the student population and tourist interest combine to present a consistent and stable market, with void periods rare and competition for well-maintained properties high.

For British expats looking for a more traditional Portuguese life, willing to try the language and explore the country’s history and culture, Porto delivers.

4. The Algarve

For British expats seeking a beautiful retirement location, the Algarve region of Portugal reigns supreme. Famed for its warm, sunny climate and relaxed atmosphere, the Algarve is where expats come to wind down and enjoy life.

A region rather than a single city, the Algarve is home to population centres like Faro and Lagos. With its wide, flat beaches, grotto-like caves, and eye-catching northern mountains, the Algarve provides an outdoor lifestyle that refreshes and revitalises.

Property prices vary across the region, with some expensive areas and others that remain accessible. Like the rest of Portugal, the Algarve has seen increased interest in recent years, so market competition is rising. There are fewer opportunities for investors, with owner-occupiers making up a larger percentage of the demographic - the Algarve is more a buy-to-live area of Europe, than a high-yield investment one.

English is spoken throughout the region, though long-term expats who want to integrate more should be prepared to learn Portuguese. It is a welcoming place, with good access to healthcare and a focus on relaxed living - perfect for those who enjoy beaches, golf, and walks in the sunshine.

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5. Braga

Under an hour’s drive north from Porto, Braga is a city that offers a more affordable move for British expats keen to live in Portugal. With a stable job market and school opportunities, Braga provides a stable move for families and professionals looking to exchange the British weather for something more forgiving.

Though there is a growing international expat community, Braga still represents traditional Portuguese living. Expats should expect to learn Portuguese during their time here, integrating with the local population rather than existing outside of it. It is a place suitable for a long-term move to a European city, focused on stability over excitement.

6. Coimbra

Home to the oldest university in Portugal, Coimbra is a city shaped by learning, with an energetic student population and education led job market. Academics and families focused on education will find much to enjoy in this historic location.

The Coimbra property market is less competitive than many of the larger cities in Portugal, with a steady demand for rentals from students and younger professionals. Investing in a home is a stable choice for those looking to move to Portugal, and family homes are sure to retain value in the future.

With its strong international presence, English is spoken readily by the younger population, though expats looking to integrate fully into life in Coimbra should be ready to learn the language.

7. Évora

The Very Noble and Ever Loyal City of Évora is situated inland, an hour and a half’s drive east from Lisbon. This historic city offers something different for British expats looking to Portugal - a focus on history and culture. It’s a smaller town, where walking around the ancient architecture and stopping for a break in one of the many fine cafés is the pace of life. For retirees seeking a little peace, or families keen to bring up children in a relaxed location, Évora is a compelling choice.

Évora can be hot and dry. Removed from the coastal winds, it can be a little less forgiving to those who don’t appreciate the higher temperatures. However, with the relaxed atmosphere, there’s always the opportunities to sleep through the hotter afternoons.

Expats willing to learn Portuguese and become part of a long-term community will find a welcoming home in Évora, where simplicity and history play a greater role than career opportunities or energetic nightlife.

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How to Buy Property in Portugal with a UK Bridging Loan

Obtaining a Portuguese mortgage as a British national is very possible, but it can be quite time consuming. Layers of paperwork and a less defined mortgage application process means that delays are common and deals can fall through while the details are being rechecked and finalised. Buyers looking to secure property in Portugal benefit from a strong, cash-ready position, able to deal with the long-term financing at a more sedate pace.

UK-based bridging finance neatly solves this conundrum. By leveraging equity in your UK property, bridging finance provides the funds quickly, putting you in the role of a cash buyer in a slower financial setting. Sellers will appreciate your efficiency, making it easier to make deals and secure your dream property.

Developed as a short-term solution that’s replaced with an ‘exit strategy’ of either long-term finance (a Portuguese mortgage) or the eventual sale of your UK property, bridging finance is the ideal tool to make yourself a compelling buyer in Portugal.

The timeline for using UK-based bridging to complete on a Portuguese property is simple and clean:

• Explore possible locations and properties in Portugal
• Outline a cost-effective bridging loan with Clifton Private Finance
• Negotiate an offer on your Portuguese property
• Begin the process of getting a Portuguese mortgage if applicable
• Obtain your bridging finance, using your UK property as security
• Complete on your new home in Portugal without delays or complication
• Move to Portugal
• Repay the bridging loan with either:

* Your new Portuguese mortgage

* Proceeds from the sale of your UK house

Bridging finance gives you the stability and flexibility to move without delay, completing any lengthy long-term funding or existing property sale at a relaxed pace. With it, you can be sure not to miss out on your desired new home, no matter how competitive the market is.

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Get the Best Bridging Loan Deal with Clifton Private Finance

Bridging finance is a specialist funding product offered by specialist lenders to UK homeowners. Clifton Private Finance have the expertise you need to secure the best bridging loan for your circumstance. Our expat team will explore the whole market of UK lenders, matching you to a tailored product that best suits your circumstances. Together, we’ll turn your move to Portugal from an item on your wish list to firm reality.

We can:

• Explore bridging options - Our established relationships with the UK specialist lenders open the doors to a wider range of products, terms, and interest rates. We will compare offers and help you choose the bridging finance that best supports your move.
• Eliminate delays - We have the experience you need to overcome challenges, keeping the process running smoothly no matter what difficulties arise. Together, we’ll improve the chance of an effortless, successful outcome.
• Explain the small print - We know that emigrating to another country is a difficult and potentially stressful time, especially if you have a family in tow. We’re here to keep a cool, professional head, and will talk you through any complication so you always feel confident moving forwards.

If you’re looking to make a move to Portugal, book an appointment with an expat adviser at Clifton Private Finance today. We’ll get you firmly on the road to sunnier climes.