Faro, the capital of the Algarve region, is a great place to live on a budget in Portugal as one of the cheapest cities in the country. You can easily rent a room in a shared house for around 300 Euros a month. Being a small city surrounded by nature, and beautiful beaches, Faro offers a high quality of life.
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In Coimbra or Braga a couple could live quite comfortably on that same budget of around $1,600 per month. Living in Lisbon, Porto, or trendy areas of the Algarve is going to cost more, but in other areas you can easily have a nice, cushy life for $2,000—add another $700+ to that for an equivalent Lisbon lifestyle.
Expats tend to flock to Portugal's bigger cities – particularly Lisbon and Porto. Both of these cities are renowned for their rich history, vibrant culture, and fairly relaxed lifestyle. However, smaller cities like Braga have their own charm and are popular with those seeking a quieter life.