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Moving to the Algarve

Expats have been moving to the Algarve for decades for the abundance of warm sunshine, the top-class seafood and the slower pace of life. Located on the southern coast of Portugal, rich valleys and picturesque beaches have made this region an especially popular choice for retirees, as well as those looking to ditch the rat race for a more relaxed lifestyle.

Living in the Algarve as an expat

Life in the Algarve runs at a slower pace. Its pleasant climate and beautiful natural scenery allow residents to enjoy an outstanding and varied outdoor lifestyle. There are thousands of foreigners in the area and plenty of locals, some of whom can be very traditional in their beliefs. Expats who make an effort to integrate with their local community and learn the language are usually welcomed with open arms, though.

That being said, expats moving to the Algarve should be cautioned about the scarcity of work opportunities in the region, especially for those who don't speak Portuguese. Some degree of culture shock is also likely, especially when it comes to the glacial pace at which life is lived. The other downside to be aware of is that the Algarve, particularly the central area, gets extremely busy in July and August. Residents often comment that it feels like a different place during the high season.

Cost of living in the Algarve

One of the main benefits of living in the Algarve is its reasonable cost of living, especially when compared to other European destinations and large Portuguese cities like Lisbon. Accommodation is reasonably priced, as is transport. Getting around the region is straightforward and inexpensive, facilitated by the abundance of low-cost airlines that fly in from other European destinations.

Families and children in the Algarve

World-class private hospitals and international schools suitable for expats and their kids are scattered around the region, and there are state options too. It should be noted that the public institutions are comparable to the facilities offered by other European countries and can be inconsistent in quality. Whether an expat is eligible to use these facilities depends on their personal situation and where they're moving from, so thorough research is always required.

Parents will also have plenty of outdoor and water activities to keep their children entertained at the weekend. Landlubbers will also not be hard-pressed to find leisure options in the Algarve, as there are also zoos, entertainment parks and cave exploration opportunities. 

Climate in the Algarve

The Algarve's Mediterranean climate is easily one of its best attributes, and the area's gorgeous landscape and glittering beaches offer the perfect environment to enjoy abundant sunshine. Mild winters and warm summers provide pleasant conditions year-round.

Expats moving to the Algarve will discover that life in the region can sometimes feel like an endless holiday. While the novelty may eventually wear off, there's no denying that the area's beauty is a fantastic balm to the ups and downs of everyday life.

Working in the Algarve

With its stunning beaches and coastal resorts, the Algarve is known primarily as a tourist destination. However, despite the luxury golf courses, apartment complexes and villas, it’s also a region with high unemployment rates. The inland region of the Algarve is rural and occupied mainly by older people, farmers and expats. Fishing, farming and tourism are the primary industries, none of which offer high wages or lucrative opportunities.

Opportunities for employment in the Algarve are limited for expats unless they are fluent in Portuguese or have specialist skills. It’s possible for EU citizens to work in the Algarve without a work visa, but new arrivals should seek advice from an accountant or financial advisor to get assistance with setting up a business, registering for residency status and paying taxes.

Job market in the Algarve

Unemployment in the Algarve is high, and wages are relatively low, so there are usually plenty of local people seeking employment. Portuguese people generally have a high standard of English, which means that native English speakers aren’t especially in demand. There may be opportunities for teachers of English as a foreign language to work privately or in language schools. Work in tourism is typically low-paying and seasonal, with long working hours.

Some expats start businesses, often working exclusively for the expat market. These tend to be in trades such as building, gardening, pool maintenance and personal care, as some expats prefer to employ an English speaker to ease communication. 

Other expats work remotely as writers or business owners in their native countries. WiFi and plentiful cheap flights to Europe make ‘commuting’ possible for those whose profession doesn’t require them to be based in one place. Earning European rates while based in Portugal, with its lower cost of living, is an ideal way for expats to earn an income.

Finding a job in the Algarve

Online portals and expat newspapers advertise existing job offers in the region. Many of these are small ads posted by individuals looking for holiday accommodation cleaners or bar staff. For more professional opportunities, one would need to consider seeking employment in larger cities like Lisbon, where more international employers are based.

Before one considers starting a business in the Algarve, it’s important to research the amount of work likely to be available. New arrivals should remember that many expat tradespeople have been established in the region for decades, and starting from scratch may take some time.

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Work culture in the Algarve

Expats in the Algarve will find that paternalism and hierarchy permeate almost every aspect of local work culture. Personal relationships are important to local business people, so it’s advisable that expats put considerable effort into getting to know their co-workers and employers.

Expats who manage to learn the local language will also find that more doors are open to them, as local colleagues will usually appreciate the effort they’ve put into adapting to Portuguese culture.

Accommodation in the Algarve

From golf resorts and city-centre apartments to homes on the rural hillsides of the interior, the Algarve offers a broad range of accommodation options for expats. Prices vary widely across these different settings, and their appeal may vary depending on different lifestyle preferences. Many expats choose rural or coastal villas with pools or properties within tourist complexes.

Property in the Algarve is pricier than in many other parts of Portugal, Lisbon being the main exception. But Portugal is still one of the cheapest countries in Western Europe to find a home, and the Algarve presents plenty of options for all budgets, whether buying or renting. 

Areas and suburbs in the Algarve

Located in Southern Portugal, the Algarve is largely a part of the Faro District, which also serves as its capital city and is home to 16 municipalities. The different cities, areas and suburbs in the Algarve each offer a distinct vibe, so expats from all walks are sure to find suitable housing at reasonable prices. 

Those who want to be in the hustle and bustle of things will love the capital city, Faro, as it allows its residents to enjoy living in a metropolis while still being close to nature and beaches. A downside to living in Faro is the throngs of tourists that flood its beaches during the high season. 

Portimāo, a former fishing town turned tourist hub, is the perfect base for families looking for a slower and more affordable pace of life. The town is home to public and private schools and amenities such as shopping malls, hospitals and restaurants. Expats who want to avoid tourists altogether should consider Sagres. Perched in the Western Algarve, Sagres boasts quaint markets and many exciting restaurants while having easy access to major cities such as Lagos. Expats moving here will need to invest in a car since public transport is limited in the town. 

With a large expat community and lively nightlife, Lagos is one of the most popular cities in the Algarve. It has a range of amenities and historical sites that make it attractive to expats. The city is also home to smaller villages, so expats who want access to a major city while living a quieter life can find a home in Lagos as well.  

Types of accommodation in the Algarve

The Algarve offers a wide range of accommodation options, from apartments to villas and everything in between. Both traditional homes and modern apartment blocks can be found in the urban centres. Tourist complexes may present an opportunity for holiday-rental income if an expat will not be in residence all year round. These complexes tend to have communal facilities such as pools and gardens that are maintained for a fee, making them easy to ‘lock up and leave’.

There are also many expats living in the countryside away from the coast, either on golf estates or independently. The regions further inland tend to be very isolated, lacking main roads and amenities and are populated chiefly by Portuguese locals who have lived in the area for generations. Renovated or more recently built homes are also plentiful in the countryside, ranging from modest to high-end luxury. 

Short-term rentals

Owing to the high number of visitors to the Algarve, there are many holiday properties of all descriptions and locations available for weekly rental during the spring and summer months. Many of these are also available for winter lets at a vastly reduced rate. These properties are fully furnished and ideal for exploring the region before purchasing or for those not residing in the Algarve year-round.

Finding accommodation in the Algarve

Property in the Algarve is advertised on international property sites and by numerous estate agents in almost every town. Both rental and sale properties can be easily found through these portals. Expats can also choose to go through local rental agencies, but these tend to take longer and often charge high finders fees. 

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Renting accommodation in the Algarve

There are several options for those who prefer to rent. Long-term rental properties are usually unfurnished, while short-term properties are typically furnished.

Leases, costs and fees

To rent accommodation in Portugal, expats will need to sign a tenancy agreement (contrato de arrendamento). This agreement should outline the length of the lease, when it should be reviewed and how much notice the tenant or landlord needs to provide when ending the contract early.

Rental contracts can be either open-ended or fixed-term. In the case of a fixed-term contract, the duration and expiry date must be clearly stated in the contract. Expats must ensure they understand each aspect of the contract before signing it. It’s standard for landlords in the Algarve to ask for the equivalent of two months’ rent as a security deposit before a tenant can move in.

Read Accommodation in Portugal to learn more about the national rental system. 

Utilities

Typically, those renting accommodation in the Algarve won’t have to set up their own utilities. Expats will also need to check with their landlord whether utilities are included in their monthly rental fee, as this varies.

Electricity

The electricity market in Portugal is liberalised, meaning expats can choose their suppliers. Those whose utilities will be included in the monthly rental fee will likely not be able to change their electricity suppliers, but those who will be responsible for their utilities can. Expats are encouraged to conduct some thorough research as each energy supplier offers a range of tariffs as well. 

New arrivals can simply arrange a transfer of accounts with their energy supplier when renting a property. The landlord must provide the tenant with copies of previous utility bills, and it’s recommended to review meter readings with the property owner to avoid unfair charges. Expats may need to submit a copy of their passport, address, previous tenant's name, tax number (Número Fiscal de Contribuinte) and residency card. 

The energy company will send an estimated bill bi-monthly, or expats can pay via direct debit monthly. Processes differ between suppliers, so it’s essential for expats to check with their specific electricity supplier. 

Gas

Mains gas is uncommon in Portugal's rural and island communities, so expats moving to the Algarve are unlikely to encounter it. Bottled gas is the most common form of gas in the region, and in rural areas, gas tanks are common. These are typically installed by a gas company that charges a fee for supplying the gas. Property owners will usually sign a contract with a gas company of their choice and are charged a fixed minimum usage fee for the tank annually. 

Water

The Aguas do Algarve manages the water supply in the Algarve. To set up an account, new arrivals usually need to provide proof of identity, NIF (Número Fiscal de Contribuinte) number, proof of address and Portuguese bank account details. Before applying, expats should visit their local town hall to learn more about Aguas do Algarve. 

Water bills are generally sent and paid bi-monthly. Expats can choose to pay a fixed rate for their water and pay separately for any extra water they use. 

Bins and recycling

Local municipalities are responsible for waste collection and management in different regions of the Algarve. Typically, municipalities provide colour-coded bins for household waste. Blue bins are reserved for paper waste, and grey waste bins are for aluminium, toilet paper, sticky paper and pizza boxes. Plastic and metal waste will go into the yellow bins, while glass will go into the green bins. 

Household waste will typically be separated and can then be dropped off at an ecoponto, which can be found throughout towns or cities, or tenants can arrange for door-to-door collection. It’s recommended that expats visit their local municipality’s website to learn more about waste management in their town.

Useful links