9 Best Beach Towns to Live in Portugal For Under $2,500 a Month

In recent years, Portugal has become one of the most livable destinations in the world, not only for retirees but also for digital nomads and young families with children. It’s not surprising given its endless miles of Atlantic coastline, affordable, safe living, and superior healthcare.

Despite its small size, Portugal offers seaside living for almost every budget. Here are some of the lesser-known gems.

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The Green Coast

As the name suggests, this part of the country sparkles like an emerald with lush, verdant fields, orchards, vineyards, and flowers. But more green means that the area receives more rain, a small price to pay for so much beauty.

Most of the rain falls during the winter months, leaving the rest of the year for sunbathing, hiking, or cycling. Winters here are wet and cold, while summers are mild and never get too hot.

Viana do Castelo

Golden sand dunes at Cavadelo Beach in Viana do Castelo.|©iStock/jessicahyde

Starting in northern Portugal, less than an hour’s drive from the Spanish border, is the beautiful city of Viana do Castelo. Praça da República, in the heart of the historic center, features a 16th-century church and town hall, a Gothic cathedral, and a sprinkling of restaurants offering the freshest seafood at affordable prices. With rich ties to the cod fishing and shipbuilding industry, this compact town offers a slice of Portuguese life and culture.

Viana do Castelo is situated at the estuary of the Lima River with pristine Atlantic coast beaches nearby. Praia Cabedelo, the most well-known beach, is a favorite spot for surfers, kitesurfers, bodyboarders, and others who enjoy the natural surroundings and white supple sand.

Life in this affordable haven comes complete with a private hospital, modern shopping center, gyms, dental clinics, and restaurants.

Here's a breakdown of a budget for a couple living in Viana do Castelo.

Vila do Conde

Vila do Conde, a historic town in Portugal's Norte region, where tradition meets serene seaside living.|©iStock/Alexey_Fedoren

Just a 30-minute drive from the beloved city of Porto is the coastal town of Vila do Conde. Unknown to foreign tourists, this charming stretch of scenic coastline is frequented by Portuguese families who delight in the relaxed vibe. It’s situated at the mouth of the Ave River, which divides the beaches into two distinct types—a more tranquil area for families on one side and a surfer’s paradise on the other.

Once a center for shipbuilding and seafaring, life in Vila do Conde revolves around the sea. The women here still produce traditional bobbin lace with intricate designs inspired by the sea, as they have since the 17th century.

Life in Vila do Conde is authentic, with traditional cobbled plazas, historic churches, and Old-World charm. But you’ll also find all the necessary amenities. Modern shopping centers, grocery stores, hospitals, medical and dental clinics, and gyms offer expats who choose to live here all the comforts of home. It’s also easy to get to Porto by car or public transportation.

A couple can live nicely in Vila do Conde for $2,500 a month or less, depending on lifestyle. It is possible to rent a two-bedroom apartment just a short walk to the beach for under $1,000 a month.

Here's a sample monthly budget for a couple living in Vila do Conde.

Aveiro – The Costa Nova

Costa Nova in Aveiro, with its iconic candy-striped houses and pristine coast.|©iStock/Antonio Duarte

Often dubbed “the Venice of Portugal,” the picturesque city of Aveiro is a livable Portuguese city with all the modern amenities needed to make it home. Aveiro does have its share of tourists who come to relish the charms of the colorful boats called “moliceiros,” once used to collect seaweed but now serve only to transport tourists.

Just a ten-minute drive from the center of Aveiro are the multi-level candy-striped homes that face the seafront in an area called the Costa Nova. Once designed as colorful fishing shacks, this magical little village offers a relaxing vibe, towering sand dunes, and clear blue water. Sink your toes into the sand, picture yourself living in one of the darling shanties, and grab a giant draft beer called “a caneca” while you sun your buns.

It is possible to find a long-term rental with sea views for $1100 or perhaps to find less costly places just ten minutes away in Aveiro. Since Costa Nova is a resort village, if you choose to hang your towel here, you would need to commute to Aveiro for groceries, medical care, and shopping.

Here is a sample monthly budget for a couple living in Costa Nova or Aveiro:

The Silver Coast

Considered by some to be the “real Portugal,” the Silver Coast begins below the city of Aveiro near the coast of Figueira da Foz and extends north to Lisbon. Named for the color reflected off the ocean waves when illuminated by the sun, the Silver Coast is a mix of green, variegated hills, fields of wildflowers, farmland, castles, and historic sites.

As in the north, the area receives a good amount of rain per year, cold winters, and springlike summers for those who cannot take the heat. Just a one-hour drive north of Lisbon, the Silver Coast is bursting with potential and affordable seaside options.

Nadadouro - Foz do Arelho

Foz do Arelho, a charming coastal village in Portugal.|©iStock/Wirestock

The parish of Nadadouro sits on the border of the well-known lagoon of Óbidos, Portugal’s largest coastal lagoon. The tranquil lagoon empties into the Atlantic Ocean at Foz do Arelho, giving swimmers the best of both worlds. Just a short drive from Nadadouro and Foz do Arelho is the city of Caldas da Rainha. The city is a mix of a cobbled old town, a daily mercado, a modern shopping center, hospitals, clinics, gyms, restaurants, and a sizable expat community.

The name Caldas da Rainha translates to “the queen’s baths” since the city was constructed around a thermal hospital, one of the oldest in the world, that is still in use today. The medieval village of Óbidos is just a short drive from the city center. Throughout the year, Óbidos comes alive with its medieval and chocolate festivals, Christmas village, and other events.

The coastal areas are a lively mix of beaches, hiking paths, bars, restaurants, and summer fun. The Portuguese adore the beach, and according to them, no vacation is complete without some relaxing family time on the beaches.

Here’s a sample budget for a couple living in Nadadouro/Foz do Arelho:

São Martinho do Porto

São Martinho do Porto, known for its serene, horseshoe-shaped bay.|©iStock/Daiane Carvalho

The resort town of São Martinho do Porto sits on the north side of a sandy bay protected from the Atlantic Ocean by a rocky bluff. Here, the beaches are positioned along a horseshoe-shaped bay with tranquil waters, the perfect spot for families with small children or the elderly. On the south side of the resort is a raised walkway used to meander around the entire bay and admire the pristine natural surroundings.

The town is stocked with restaurants, shops, a hospital, and clinics. For more services, the nearby city of Caldas da Rainha is just a twenty-minute commute, and the municipality city of Leiria is just a bit further.

Here’s a sample budget for a couple living in São Martinho do Porto:

Lisbon Coast

The capital city of Lisbon and its environs offer some spectacular but expensive real estate and coastal havens. But with a bit of patience, it is possible to find bargains. The city of Setúbal has some of the country’s best beaches, all within an easy commute to Lisbon. Even in the famed Costa da Caparica, known for its stunning coast and crystal-clear waters, long-term rentals can be found for $1000 or under if you look hard.

Setúbal

The bustling port of Setúbal, a gateway to some of Portugal's finest beaches.|©iStock/mtcurado

The industrial city of Setúbal sits on the northern bank of the Sado River estuary and has become a popular destination for expats from around the world. Even the Portuguese find that living in Setúbal is more affordable, and commuting into Lisbon for work—just thirty miles south—is doable on a daily basis. The best part is that the city has some of the finest beaches in the country. Praia da Albarquel and Praia da Saúde are within walking distance from the city center or a short commute for those living further out.

Setúbal has a large traditional mercado filled with produce, meat, poultry, seafood, handicrafts, and other items, along with restaurants to sample the goods. Besides a traditional market, the city boasts a private hospital, medical and dental clinics, plenty of gastronomic options, gyms, shopping centers, and a large expat community.

Here is a sample budget for a couple living in Setúbal:

The Algarve

The southernmost region of Portugal, the Algarve, has long been the playground for British, European, and other tourists. And it’s no wonder since the area boasts some of the best weather in Portugal and all of Europe. With hot, dry summers and mild winters with little to no rain, outdoor enthusiasts never have to stay inside.

Even in the middle of winter, walking along the stunning coastline is a favorite pastime for many who relish the clear, salty air and moderate temperatures. Like Lisbon, the Algarve has some high-dollar real estate and rentals, but with time and patience, it is possible to find some good deals. And because of the influx of English-speaking tourists during the summer months, English is typically spoken by many of the locals.

Armação de Pêra

Algarve's Armação de Pêra offers serene beaches and local charm.|©iStock/AmArtPhotography

The tranquil village of Armação de Pêra sits less than 10 miles from the party town of Albufeira in the central Algarve but offers a much different pace. Colorful fishing boats can still be seen perched along the waterfront directly on the beach since there’s no harbor here. Fishermen can be spotted mending their nets called “armaçãos”—Moorish apparatuses from centuries gone by.

Cobbled and historic, the town retains its Old-World charm with small food stores, shops, and restaurants not far from the extensive sandy beaches. It’s just a short commute into Albufeira for more options, such as large shopping centers, top-notch private healthcare facilities, expat gatherings, and even more coastal wonders.

Given its popularity, long-term rentals can be difficult to find in the Algarve, but they’re not impossible.

Here is a sample budget for a couple living in Armação de Pêra:

Praia da Luz

Praia da Luz: a serene beach framed by rugged cliffs in the Algarve.|©iStock/Francesca Attanasio

In the western Algarve, near the expat haven of Lagos, sits the sleepy resort town of Praia da Luz. Once a thriving fishing village, today, the town is a tourist destination during the summer but takes on a more local vibe in the winter. The town wraps around the sandy bay of beaches that are protected from the mighty Atlantic Ocean by towering black rock basalt headland.

Lagos is just a ten-minute drive from this coastal resort. Here, expats will find top-notch private hospitals, clinics, shopping centers, gyms, and a large expat community to socialize with.

The turquoise waters of the beaches are dominated by craggy rock formations that form caves and grottoes—the ideal spot for adrenaline junkies to explore by boat or kayak. Nearby, Ponta da Piedade is a series of walkways, paths, and stairs that overlook the picturesque coastline.

Here is a sample budget of a couple living in Praia da Luz:

Vila Real de Santo António

Charming streets and river views define Vila Real de Santo António.|©iStock/CBCK-Christine

In the eastern Algarve, not far from the Spanish border, is the village of Vila Real de Santo António. The streets and main plaza of this coastal village look more like Lisbon than those of its neighboring towns like Tavira. After the great earthquake of 1755 that destroyed Lisbon and other parts of Portugal, this Algarve town was reconstructed using a design similar to Lisbon's. Today, the quaint village is lined with shops and restaurants catering to both tourists and locals alike.

As for the town’s beaches, Praia de Santo António is the easternmost beach in the Algarve and even in all of Portugal. To the west is Praia de Monte Gordo, which leads into the border town with the same name. Flanked by low sand dunes, pine forests, and hiking and biking trails, this dazzling stretch of coastline is a favorite for nature lovers.

VRSA, as it’s called locally, is serviced by a private medical clinic. The nearest hospitals are located in Faro. A handful of shopping options exist in the town, but more can be found in nearby Tavira.

Here’s a sample budget of a couple living in Vila Real de Santo António:

Conclusion

Portugal offers an array of stunning coastal towns, each with its unique charm and lifestyle. Whether you’re looking for the lush landscapes of the north, the historical richness of central Portugal, or the sun-drenched beaches of the Algarve, there’s a seaside spot to fit your budget and preferences. Consider the amenities, community, and overall vibe of each location to find your perfect beach town in Portugal.