Want to join the 660,000 expats who already call Portugal home? British people looking at the best places to live in Portugal need to weigh more than just stunning beaches and picturesque fishing villages.
Portugal stands out as one of Europe’s most desirable retirement destinations, and with good reason too. British retirees moving to Portugal can enjoy warm weather, excellent healthcare, and substantially lower living costs. Cities like Funchal cost about 25% less than Lisbon, which already offers great value compared to British prices. Portugal also ranks at the top of global retirement indexes for safety and sits among the world’s top ten nations for peace and stability.
You might love Lisbon’s cosmopolitan vibe, where foreign-born residents make up over 21% of the population. Or perhaps the sun-soaked beaches of Lagos would suit you better, with its amazing 3,000 hours of annual sunshine. This piece will help you find your perfect Portuguese home. We’ve researched seven ideal locations for your 2026 move – from ancient cities like Braga, which dates back to 136 BC, to peaceful island living.
Funchal – Best for Digital Nomad Place and Urban Living
British retirees once saw Funchal as their peaceful retreat. Today, this vibrant capital of Madeira draws a diverse mix of British expatriates. Young digital nomads and families head there to boost their quality of life.
Why Funchal Appeals to British Expats
The rise of Funchal from a quiet retirement haven to a thriving hub for British expatriates comes from its perfect blend of natural beauty and modern amenities. The Financial Times recently showed how a “hoodies and hiking-boots crowd” of digital nomads, many from the UK,brought new life to the island’s property market. Madeira’s stunning landscapes, temperate climate, and state-of-the-art infrastructure drive this influx.
British expatriates love the city’s location on Madeira’s south coast. They get breathtaking Atlantic Ocean views and quick access to the island’s diverse natural landscapes. The city’s year-round sunshine creates ideal conditions for an active outdoor lifestyle.
British residents enjoy excellent transportation links to home. Regular direct flights connect the city to London and Edinburgh, along with major European destinations including Lisbon and Porto. Travel between Madeira and the UK remains straightforward.
Cost of Living in Funchal
British cities can’t compete with Funchal’s affordability. Numbeo data shows Funchal’s cost of living sits 150% lower than London’s. This substantial difference shows up in almost every expense:
- Monthly rent for a one-bedroom apartment in Funchal center: €1,500–€2,500
- Monthly rent outside center: €800–€900
- Three-bedroom apartment in central Funchal: €1,500–€2,500
- Basic utilities (electricity, heating, cooling, water, garbage): €80–€160
- Internet (60 Mbps or more): €22–€59
Daily expenses cost less here than in the UK. From dining and groceries to utilities and transportation, everything stays economical. A meal at an inexpensive restaurant costs about €12, making dining out more available.
Job Market and Digital Nomad Scene
Remote workers and digital nomads flock to Funchal. The city offers reliable internet connectivity and modern coworking facilities. Madeira’s main economic center provides most job opportunities on the island.
Traditional employment opportunities remain limited for expatriates, especially those who don’t speak Portuguese or work outside tourism and hospitality. Many British residents work remotely for UK companies or run location-independent businesses.
Digital nomads continue to discover Funchal, making it perfect for remote professionals. Several coworking spaces welcome this community:
- Cowork Funchal: A 300-year old historical building houses thirteen offices with flexible membership options
- Design Center Nini Andrade Silva: A coworking café showcases stunning views of Funchal and the Atlantic
- Funchal Innovation Hub: Professional amenities come with ocean views
Expat Community and Integration
Residents from the UK, US, Canada, and throughout Europe create a vibrant international expatriate community. The city buzzes with a lively gastronomic scene, music venues, and cultural events that celebrate both Madeiran heritage and global influences.
Life changes bring challenges, but Funchal’s local community welcomes newcomers. Madeirans’ friendly nature helps expatriates become part of the island’s social fabric. Newcomers find volunteering with local charities a great way to meet people and help the community.
Families can choose between the International School of Madeira (British curriculum) and the International Sharing School (International Baccalaureate). Healthcare remains available through Portugal’s public SNS system at minimal cost. Private clinics with English-speaking professionals supplement these services.
Pros and Cons of Living in Funchal
Pros:
- Year-round mild climate ideal for outdoor activities
- Substantially lower cost of living than most British cities
- Growing digital nomad and international community
- Excellent healthcare system with affordable options
- Strong transportation links to the UK and mainland Europe
- Safe environment with low crime rates
Cons:
- Limited job opportunities outside tourism and remote work
- Housing market becoming increasingly competitive
- Language barriers for those who don’t speak Portuguese
- Higher costs for imported goods due to island location
- May feel isolated compared to mainland destinations
- A car is essential for exploring beyond the city limits
Funchal gives British expatriates a unique lifestyle. The city blends urban amenities with natural beauty and balances professional opportunities with leisure pursuits. Despite recent price increases, the cost remains attractive.
Ponta do Sol – Best for Retiring to Portugal from UK
Ponta do Sol sits majestically on dramatic cliffs above the Atlantic Ocean. British retirees love this spot for its authentic Portuguese lifestyle and endless sunshine. This charming spot on Madeira’s western coast gives you the best of both worlds – traditional charm and modern comforts that UK retirees find irresistible.
Why Ponta do Sol is Popular with British Retirees
The name Ponta do Sol means “Sun Point,” thanks to a rocky outcrop that bounces sunlight across the area. This sunny paradise gets more sunshine each year than anywhere else in Madeira. No wonder it attracts Brits who want to escape their gloomy weather back home.
You’ll feel the authentic Portuguese atmosphere right away through the town’s traditional architecture. Picture-perfect whitewashed houses show off beautiful tile decorations and red roofs. The scene looks straight out of a postcard. The property prices here are among the most affordable on the island. This helps British retirees make the most of their pension money.
The town stays peaceful compared to tourist hotspots, yet you’ll find everything you need. About 8,862 people call this 46.19 km² municipality home. It feels like a close-knit community without being cut off from the world.
Climate and Outdoor Lifestyle
British retirees love Ponta do Sol’s climate. The warm subtropical weather brings exceptional sunshine year-round. August and September are the warmest months. Daily temperatures reach 27°C and stay around 21°C at night. February might be the coolest month, but it stays mild at 19°C during the day and 14°C at night.
Beach lovers can enjoy perfect water temperatures of 23°C or higher from June through October. June brings 30 days of pure sunshine with barely any rain. October sees the most rain, but that’s only 30 mm spread over three days.
The area offers more than just beach life. Several Levada walks wind through the region, including the historic Levada Nova – Rota do Açúcar. These paths once served the early sugarcane farmers. Today, these scenic irrigation channels-turned-hiking trails let active retirees stay fit while taking in Madeira’s beautiful landscapes.
British Expat Community in Madeira
Ponta do Sol has grown beyond its reputation as a quiet retirement haven. The island now attracts younger UK buyers alongside retirees.
The international community keeps growing. People from the UK, US, Canada, and various European countries add to its cultural diversity. This mix has brought new life to the area. You’ll find buzzing food scenes, music venues, and cultural events that blend local traditions with global influences.
Ponta do Sol village has earned recognition as a “Nomad Village.” It offers free working spaces, community events, and outdoor activities. While this mainly serves digital nomads, retirees benefit from the extra services and cultural events it brings.
Pros and Cons of Living in the Ponta do Sol
Pros:
- Most sunshine hours in Madeira
- Better property prices than other parts of Portugal
- Traditional Portuguese character with whitewashed buildings and decorative tiles
- Beautiful ocean views from dramatic cliff settings
- Year-round warm weather with little rain
- Thriving international community that keeps its Portuguese charm
- Direct flights connect Madeira to London and Edinburgh
Cons:
- Fewer urban amenities than Funchal
- Heavy focus on agriculture might not suit everyone (though banana and sugarcane farms add charm)
- Not much flat land due to cliff location
- Major medical facilities are far away in Funchal
- Fewer English-speaking services than larger towns
- Can feel quiet during off-season
Ponta do Sol gives British retirees everything they need – sunshine, good value, and authentic Portuguese living. The town balances traditional Madeiran culture with a welcoming expat community. The pleasant year-round weather makes outdoor living enjoyable in every season.
Porto Santo – Best Sunny Place and Affordability
British expats love “The Golden Island” of Porto Santo because it gives them a Portuguese living experience that’s different from what they might expect. This tiny 42 km² island sits just 27 miles off Madeira’s coast. It blends stunning natural beauty with a relaxed lifestyle that many people find hard to resist.
Why Porto Santo Attracts British Residents
Porto Santo ranks among the best places for Brits to live in Portugal thanks to its amazing beach—a 9-kilometer stretch of golden sand that won recognition as Europe’s most beautiful beach in 2022. The European Best Destinations organization named it the “European Safest beach 2021”.
The island looks quite different from its neighbor Madeira. Madeira shows off lush vegetation, but Porto Santo features a drier, golden-hued terrain that earned it its nickname. This special environment creates a microclimate with warm weather year-round. Summer temperatures (August and September) hover around 25°C, and winter stays mild at 13°C even during January and February.
You’ll find housing costs reasonable compared to many UK spots. Average purchase prices sit around €600,000, and monthly rentals cost about €900. Digital nomads and temporary residents can choose from:
- Vila Baleira Hotel apartments: €900/month with breakfast (single or double occupancy)
- Porto Santo Destination Hostel: €600/month for private rooms or €360/month for mixed dormitories
Daily Life
Life centers around Vila Baleira (often called Porto Santo), the island’s main town. This charming spot has everything you need—restaurants, cafés, bars, shopping centers, museums, and government offices.
Getting around the island is easy with several options besides regular car rentals:
- Taxis take you anywhere you need to go
- “Tuks” – three-wheeled vehicles provide comfortable rides
- “Bubbles” – small rental cars make exploring simple
Residents need to buy bottled water since the island has no natural drinking water sources. Most consumer goods cost more than mainland prices because everything arrives by sea.
The island comes alive with cultural events throughout the year. You can enjoy the Columbus festival and celebrations of tuna fishing and grape harvesting. A new 18-hole golf course opened in 2022 adds more fun options. The course stays green through desalination technology, which provides 90% of the island’s water.
Porto Santo Expat Community
The expat community keeps growing but stays more close-knit than larger Portuguese destinations. Newcomers quickly become part of island life.
British expats love how the community feels like an extended family. A great example shows in a joint business venture between a local resident and an expat that brings together locals, expats, and visitors. The island welcomes digital nomads with:
- A free working space in the village center offering strong Wi-Fi and meeting rooms
- Community managers ready to help newcomers settle in
- Regular events that bring nomads and residents together
UK retirees often keep second homes here or move permanently. The beach lifestyle and relaxed atmosphere draw them in. With only 4,474 residents, everyone knows each other by name.
Pros and Cons of Living in Porto Santo
Pros:
- Award-winning 9km beach with therapeutic sand
- Crystal-clear water perfect for diving and water sports
- Beautiful gardens full of exotic plants like palms and banana trees
- Traditional architecture creating charming streets
- Relaxed lifestyle away from city stress
- Reasonable property prices compared to the UK
Cons:
- Limited entertainment beyond natural attractions
- No hospital (just health centers for basic care)
- No natural drinking water, so you must buy bottled water
- Travel limited to Madeira (2.5-hour ferry or connecting flights)
- Higher prices for imported goods
- Not much to do beyond tourism and nature activities
British retirees looking at Portugal will find Porto Santo offers something special—affordable island living where golden beaches meet crystal-clear waters, creating a unique alternative to mainland life.
Fundão – Best for Interior City
Fundão, nestled in central Portugal’s interior, gives British expats a lifestyle that’s worlds apart from typical Portuguese coastal living. This growing municipality stands out as one of the best places for Brits to live in Portugal who love countryside peace over beachfront homes.
Why Fundão Suits British Expats
British people who want a slower pace of life will love Fundão. The city sits in Portugal’s heartland and shows off stunning mountain views instead of beaches – perfect for nature lovers and hiking enthusiasts.
The city buzzes with commerce, services, and industry while keeping its rural charm. You’ll find everything you need here without sacrificing peace and quiet. The population of 30,000 spreads across the city, giving everyone plenty of breathing room without feeling isolated.
Safety makes Fundão really special, matching the high security standards of Portugal’s interior regions. This matters a lot to UK residents planning their Portuguese retirement.
The weather here changes with the seasons – winters dip to 0-5°C while summers can reach 40°C. Unlike the coast’s mild year-round climate, you’ll experience four distinct seasons here.
Cost of Living in Fundão
British expats love Fundão’s affordable lifestyle. Young people’s move to bigger Portuguese cities has made housing cheaper in this region. Property prices here are much lower than major Portuguese cities:
- Apartments: €42,000 to €170,000 (size and age affect price)
- Houses: Prices match apartment costs
Monthly living costs average £89.74, matching global figures. The after-tax median salary of £88.96 covers monthly expenses well. Fundão ranks 4873rd globally and 110th in Portugal for living costs.
Beach Lifestyle and Amenities
Fundão sits inland, so there’s no direct beach access. Beach lovers can still rent coastal properties nearby. Family Vacation Rentals lists 32 beach options around Fundão at about £150.89 per night.
The city makes up for its lack of beaches with:
- Mountain trails and hiking paths
- Cherry orchards (Fundão’s cherries are famous)
- Quick access to Serra da Estrela
Great neighborhoods include Alcaide, Alcaria, Barroca, Capinha, Grande Fundão, Soalheira, and Três Povos.
Fundão and Cova da Beira Expat Networks
Fundão has transformed itself into “the Embracing Place”. The city supports international residents through:
- CLAIM Fundão II offers free help and information to migrants
- A Migration Center welcomes newcomers
- “On Wheels” service brings support right to migrants’ doorsteps
- Living Lab business space costs just €1 per square meter
Digital nomads now make up over 10% of new residents, and many startups thrive in this tech-friendly environment. The Cova da Beira Converge movement brings organizations and citizens together to build regional strength.
Pros and Cons of Living in Fundão
Pros:
- Much cheaper than UK and Portuguese coastal areas
- Very safe with minimal crime
- Great support for international residents
- Cheap workspace for entrepreneurs
- Gorgeous natural scenery and mountains
- Amazing local fruit, especially cherries
Cons:
- Big temperature swings through the year
- Fewer entertainment choices than big cities
- Houses need better insulation (common in Portugal)
- No nearby beaches
- Less English-speaking services than tourist spots
- Getting around costs more due to fuel and toll prices
British expats looking for real Portuguese life, good value, and peaceful living will find exactly what they want in Fundão, away from tourist crowds and seaside developments.
Madeira – Best for Island Life and Tranquility
The Portuguese archipelago of Madeira sits majestically in the Atlantic Ocean. This island paradise has grown from a tourist hotspot to become one of the best places for Brits to live in Portugal. You’ll find it about 1,000 km southwest of mainland Portugal and 520 km from Morocco. The island combines natural beauty, mild climate, and a relaxed lifestyle that draws more British expatriates each year.
Why Madeira Appeals to British Settlers
Madeira used to be known as a quiet retreat for retirees. The island has transformed quite a bit and now attracts younger UK buyers along with its traditional demographic. The Financial Times reports that a “hoodies and hiking-boots crowd” of digital nomads and remote workers—many from the UK—have breathed new life into the island’s property market.
The island gives you “the best of both worlds”: a peaceful small-region feel combined with big-city sophistication. Getting here is easy too. Regular direct flights connect Madeira to London and Edinburgh, as well as major European cities like Lisbon and Porto.
Climate and Natural Beauty
The island enjoys a mild, subtropical climate. Winter temperatures average a pleasant 16°C, while summers rarely go above 25°C—perfect for year-round outdoor living. Weather varies across the island. The north tends to be cooler and more humid, while the south stays drier and warmer.
UNESCO-protected Laurissilva forest covers 60% of Madeira. The forest features over 1,170 km of levada trails—historic irrigation channels that now serve as hiking paths. Nature lovers can enjoy canyoning, paragliding, and mountain biking right from Funchal’s doorstep.
Madeira’s Expat Community
The island boasts a diverse expat community with residents from the UK, US, Canada, and Europe. British expatriates make up the second-largest group of foreign residents, with about 1,000 people calling the island home.
Most expats choose to live along Madeira’s south coast in areas like Calheta, Ponta do Sol, and Funchal. The north coast has gained popularity among buyers who prefer quieter, greener forest surroundings.
Pros and Cons of Living in Madeira
Pros:
- Stunning natural landscapes from UNESCO forests to dramatic coastlines
- Year-round mild subtropical climate between 17°C to 28°C
- Lower living costs than European or American cities
- Thriving digital nomad scene with dedicated facilities and networking events
- Top-notch healthcare through Portugal’s public SNS system
- High-quality international education options
Cons:
- Limited travel options—mostly by air
- Scarce job opportunities for expats, especially without Portuguese language skills
- Language barriers for non-Portuguese speakers in some situations
- Some might find the island size restricting
- Island pace means slower business and bureaucratic processes
- Island location makes imported goods pricier
Évora – Best for Families and Beach Lovers
Évora, a UNESCO World Heritage site in Portugal’s sun-drenched Alentejo region, engages British families with its affordable lifestyle. This walkable city combines historic charm with modern amenities that appeal to people who think about moving abroad.
Why Évora Works for British Families
The city’s compact size creates a welcoming community where newcomers feel at home. Families settle smoothly after completing their original paperwork. Parents value the city’s exceptional safety record with its low crime rates. The education system includes public schools that support non-native speakers among the prestigious University of Évora. Children adapt quickly to their new surroundings thanks to the warm community spirit.
Cost of Living in Évora
Money matters drive relocation decisions, and Évora’s affordability stands out. Property prices reach €2,809 per square meter as of October 2025, while monthly rents average €12 per square meter. An 80m² apartment costs about €960 monthly. Daily costs stay reasonable—a cappuccino runs €1.70, and basic utilities for an 85m² apartment cost €93 monthly. A couple needs €1,500-€2,000 monthly to live well, including rent.
Family-Friendly Lifestyle and Activities
Life flows at an easy pace in Évora. Families start their days with coffee at local pastelarias before shopping at the Mercado Municipal for fresh produce. The Alentejo region offers exciting family adventures—kids can explore megalithic stone monuments, break down Roman ruins, or climb castle ramparts. The Jardim Público becomes a cool retreat on hot summer days. The Hospital do Espírito Santo de Évora and local clinics provide excellent healthcare.
Pros and Cons of Living in Évora
Pros:
- Peaceful, walkable center with strong community ties
- Housing costs below Lisbon or Algarve prices
- Rich cultural heritage and authentic Portuguese lifestyle
- Outstanding regional cuisine with local specialties
- Resilient infrastructure including education and healthcare
Cons:
- Hot summers and cold winters in older houses
- Limited specialized medical care requires Lisbon visits
- Small job market suits remote workers best
- Distance from coastal beaches (river beaches available nearby)
- Language barriers at first (short Portuguese courses help)
Covilhã – Best for History and Northern Charm
Covilhã rises majestically along the eastern slopes of Serra da Estrela. This historical wool production powerhouse earned its nickname as the “Portuguese Manchester.” British expatriates find a perfect mix of mountain living and urban conveniences here.
Why Covilhã Attracts British Residents
The city’s location makes it perfect for British residents, as it sits exactly 2.5 hours from both Lisbon and Porto. The streets come alive with contemporary art through the trailblazing WOOL Festival, Portugal’s first urban art festival that started in 2011. The University of Beira Interior, established in 1979, brings a vibrant atmosphere and international diversity to the city.
Cost of Living in Covilhã
Life here remains budget-friendly with these typical costs:
- One-bedroom apartment (city center): €450
- Three-bedroom apartment (city center): €850
- Monthly utilities: €115 for an 85m² apartment
- Meal at an inexpensive restaurant: €8
- Monthly fitness club membership: €37.63
Historic Character and Daily Life
King Sancho I granted Covilhã its charter in 1186, and its rich heritage still shapes the city today. The medieval district of Portas do Sol features steep, narrow streets that test even the most determined walkers. Modern life blends with history as residents enjoy amenities like the Serra Shopping mall, home to more than 75 stores.
Pros and Cons of Living in Covilhã
Pros:
- Clean mountain air and natural surroundings
- Regional cuisine with exceptional cheeses and wines
- More affordable than coastal cities
- Rich cultural heritage and urban art scene
- Peaceful and secure environment
Cons:
- Few options for vegan dining
- Challenging hilly terrain
- Tough winter weather in the mountains
- Far from beaches and major cities
- Communication barriers for non-Portuguese speakers
Conclusion
British expatriates will find amazing lifestyle choices in Portugal. The sun-soaked country has something for everyone – from coastal homes to historic towns and peaceful islands. Your budget and preferences will guide your perfect choice.
Each location in this piece brings its own charm. Funchal draws digital nomads and city lovers with its buzz and modern features. Ponta do Sol is perfect for retirees who love sunshine and authentic Portuguese life. Beach enthusiasts looking for affordable living will love Porto Santo. If you prefer mountain views and inland living, Fundão might be your ideal spot.
British citizens find Portugal appealing for several common reasons. Your money goes further here than in the UK because living costs are substantially lower, yet the quality of life stays high. The healthcare system is also complete and affordable, which matters a lot to expats of all ages.
Portugal ranks among Europe’s safest countries. This gives both families and retirees peace of mind in their new home.
Your priorities will help you pick the right Portuguese spot. Évora’s walkable streets and strong community spirit make it great for families. Covilhã attracts history buffs with its heritage and urban art. Maybe Madeira’s subtropical weather is more your style with its year-round mild climate.
Portugal welcomes Brits with open arms. You’ll find Mediterranean charm, affordable living, and strong infrastructure here. The toughest choice might be picking which of these seven great spots matches your dream of Portuguese life.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
