For many Americans seeking stability, safety, and cultural depth, Portugal has become an appealing place to relocate. Beyond Lisbon and Porto, the best areas for expats in Portugal to live are often found in the countryside or on the islands. These locations combine affordable living with tranquillity, history, and a strong sense of security, ideal for those wishing to start fresh abroad. Here are seven of the best regions for expats, focusing on Madeira Island and the Castelo Branco district.
1. Funchal (Madeira Island)
Overview: Funchal, the capital of Madeira, offers ocean views, a subtropical climate, and a mix of European charm and modern comfort.
Safety and lifestyle: Madeira consistently ranks among the safest regions in Europe. Healthcare is strong, crime is low, and daily life feels relaxed. Property prices are reasonable compared to U.S. coastal cities, making Funchal appealing to those seeking affordable island living.
Historical context: Funchal’s 15th-century cathedral and old harbour reflect its role during the Age of Discoveries. It also became a 19th-century refuge for European royalty and aristocracy, as well as Winston Churchill, who famously painted its harbour scenes.
2. Castelo Branco (Beira Baixa)
Overview: Castelo Branco sits between Lisbon and Porto, yet feels far removed from the pace of big cities. It is a historical provincial capital offering authentic Portuguese life at a slower rhythm.
Safety and lifestyle: The city is family-friendly, quiet, and highly safe. Housing costs remain far below U.S. standards; a spacious home here often costs less than a small condo in Boston.
Historical context: Castelo Branco preserves Jewish heritage through its old quarter and synagogue ruins. The Bishop’s Palace gardens, filled with baroque statues, highlight Portugal’s deep Catholic traditions. Local embroidery, developed in the 17th century, continues as a proud art form.
3. Fundão (Castelo Branco District)
Overview: Nestled by the Serra da Gardunha mountains, Fundão is surrounded by cherry orchards and small villages. It is ideal for those seeking countryside immersion.
Safety and lifestyle: The town is quiet and affordable, with growing digital infrastructure. Thanks to municipal co-working initiatives, expats find safety, welcoming locals, and an emerging international community.
Historical context: Fundão carries a legacy of Sephardic Jewish families who endured forced conversions during the Inquisition. This heritage is openly honoured, adding depth to the region’s cultural identity.
4. Belmonte (Castelo Branco District)
Overview: Belmonte is a hillside medieval village overlooking the Zêzere Valley, offering charm and authenticity in equal measure.
Safety and lifestyle: With fewer than 4,000 residents, Belmonte offers true escape from noise. For expats longing for security and peace, it provides a lifestyle nearly forgotten in much of the Western world.
Historical context: Belmonte is one of Europe’s most significant Jewish heritage towns. Crypto-Jewish families kept their traditions alive here for centuries in secrecy. It is also the birthplace of Pedro Álvares Cabral, the explorer who discovered Brazil in 1500. Museums and synagogues keep this dual heritage alive.
5. Covilhã (Castelo Branco District)
Overview: Covilhã lies at the Serra da Estrela, Portugal’s highest mountain range. Its altitude offers dramatic views and cool summers.
Safety and lifestyle: The city is safe, university-driven, and culturally vibrant. Housing prices remain accessible, often under half of comparable mountain towns in Colorado or Vermont.
Historical context: Once a major textile centre, Covilhã was powered by Jewish merchants and artisans in the Middle Ages. From here, emissaries were also sent to gather knowledge for Portugal’s ocean voyages. Today, street art and museums celebrate this layered past.
6. Machico (Madeira Island)
Overview: Machico, east of Funchal, sits in a protected bay with one of Madeira’s rare sandy beaches.
Safety and lifestyle: Quieter than Funchal, Machico appeals to expats wanting seaside calm with easy access to urban conveniences. Housing costs are attractive compared to U.S. coastal towns.
Historical context: Machico was the first place where Portuguese explorers landed in Madeira in 1419. Its churches and forts tell the story of the island’s settlement and defence across centuries.
7. Ponta do Sol (Madeira Island)
Overview: Ponta do Sol is a picturesque town known for its sunny climate and dramatic cliffside views.
Safety and lifestyle: It is famous for its “Digital Nomad Village,” a project that attracted international remote workers. It offers both community and safety for expats, with real estate still within reach compared to U.S. Sunbelt states.
Historical context: Sugar cultivation brought wealth to the town in the 15th century. Noble houses and chapels still reflect this prosperity, blending history with everyday life.
Conclusion
For Americans considering a life abroad, these are the best areas for expats in Portugal, as they offer safe, affordable, and historically rich alternatives. Choosing among these best areas for expats in Portugal to live means balancing seaside living, mountain retreats, or cultural immersion, all far removed from the turbulence of modern U.S. politics.
Frequently Asked Questions (FAQ)
- Is Portugal safe for American expats? Yes. Portugal consistently ranks among the safest countries in Europe, with very low violent crime rates. Madeira and Castelo Branco are exceptionally secure.
- What is the cost of living in Castelo Branco? Castelo Branco offers excellent value. A family home often costs less than $150,000, and daily expenses remain far lower than in the U.S.
- Can expats buy property in Madeira? Yes. Foreigners can freely purchase property in Madeira, with no restrictions. Many expats choose Madeira for its climate, safety, and stable real estate market.
- Do expats pay tax on U.S. income in Portugal? If you become a Portuguese tax resident, you must report worldwide income. However, Portugal’s double tax treaties and special regimes often reduce or eliminate double taxation.
- Is healthcare good in these regions? Absolutely. Both Madeira, Covilhã and Castelo Branco offer modern hospitals and clinics. Portugal’s healthcare system is highly rated and accessible to legal residents.
This article is provided for general informational purposes on the perceived “best areas for expats in Portugal” only and does not constitute legal, tax, or financial advice. Laws and regulations in Portugal are subject to change, and their application may vary depending on individual circumstances. Readers considering relocation, property investment, or tax planning in Portugal should seek professional guidance tailored to their specific situation. Madeira Corporate Services (MCS) assumes no responsibility for decisions made based on the information contained herein.
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