Faro

Faro is the Algarve's often-overlooked capital — the city most people fly into and drive straight through, which is a significant mistake. The walled old town (Cidade Velha) around the cathedral and bishop's palace is one of the most atmospheric corners of southern Portugal. The town lagoon, Ria Formosa, laps right up to the city walls, and the ilha de Faro beach is 10 minutes by car.

As the regional capital, Faro has the best public services in the Algarve: the main public hospital, the courts, the university (Universidade do Algarve, 7,000 students), the main government offices, and the widest range of specialist professionals — accountants, lawyers, architects, notaries. This makes it the most practical base for people navigating NHR tax status, residency applications or property transactions.

Property in Faro is the most affordable of any Algarve coastal town: one-bedroom apartments from €120,000, three-bedroom modern apartments from €200,000, and townhouses with outdoor space from €250,000. The buy-to-let market is underpinned by university students and young professionals year-round, reducing the seasonal risk that affects tourist towns. Gross yields of 5–7% are achievable on well-located central apartments.

The airport (Faro International) is 6 minutes from the city centre — an advantage that is impossible to overstate for frequent travellers or those managing businesses between Portugal and Northern Europe. Direct flights to London, Amsterdam, Frankfurt, Hamburg, Düsseldorf, Zurich and over 40 other European cities operate throughout the year.