15 Best Algarve Towns Ranked for 2025

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Looking for the best Algarve towns? We’ve got you covered!

Trying to pick which Algarve towns to visit on your upcoming trip can be tough!

There are so many cute and exciting towns in the Algarve to visit. Deciding where to go and what to see is no small challenge. We get it – because we’ve been there!

As travelers who explored the Algarve for several weeks in 2023, we know that choosing from the array of awesome towns in the Algarve can be a daunting task for trip planning.

To make it easier for you, we’ve compiled and ranked a list of the 15 best towns in the Algarve from our travels, each offering its unique charm and attractions.

From the captivating coastal town of Lagos in the Western Algarve to the tranquil retreat of Monchique in the lush mountains, you’re sure to find a destination that suits your preferences.

So, let’s dive into this journey through the Algarve’s best towns!

The Algarve is famous for its beaches, but the best Algarve towns make the trip worth it

15 Best Algarve Towns

Below we have a full breakdown of the best Algarve towns to visit and all the details on the top activities and where to stay.

But first, let’s hand out some awards! Here are some superlatives for the best Algarves towns:

AwardTownTop ActivityFavorite Hotel
Best Beach TownVilamouraParasailingDomes Lake Algarve, Autograph Collection
Best Adventure TownAlbufeiraDolphin Watching and Cave ToursPine Cliffs Hotel
Best Birdwatching TownAlvorBirdwatchingTivoli Alvor Algarve
Best Town for Day TripsPortimãoVisit the Benagil CavesRR Hotel da Rocha
Best Town for HistorySagresSunset Sagres & Jeep off-road tourMartinhal Sagres Beach Family Resort Hotel
Best Relaxation TownMonchiqueWine Tasting TourMonchique Resort
Best Town for HikingAljezurStand Up Paddle Amoreira River TourPraia do Canal Nature Retreat

1. Lagos

Lagos, known for it castle, is number one on our list of best Algarve towns

Lagos, located in the Western Algarve, is a gorgeous coastal town with a rich history and a plethora of attractions.

We loved strolling around the Old Town and the marina area. The cobblestone streets, beautiful architecture, and street murals were spectacular. Be sure to explore the Forte da Ponta da Bandeira, a historic fortress with a fantastic view.

Next to it is the Mercado de Escravos, Europe’s first slave market. Now there is a memorial that serves as a reminder of the town’s complex past.

We also recommend strolling Infante Dom Henrique Square and the Antigo Mercado, a traditional market. There is a restaurant on top of the Mercado with a spectacular view as well!

Lagos also boasts beautiful beaches, and Praia Dona Ana and Meia Praia are among the most popular.

Don’t miss the stunning Ponta da Piedade, a series of iconic sea cliffs and grottoes. You can visit them by land and water – we did both and the views were incredible! If you can only do one or the other, we recommend by sea – the experience is wonderful.

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Lagos Grotto Trips

Lagos also has a lively nightlife, particularly around the bustling Rua 25 de Abril – a street where bars and restaurants offer a fun atmosphere (A Petisqueira was our favorite restaurant).

Overall, Lagos offers a perfect mix of natural beauty, historical significance, a great hub for day trips, and a vibrant atmosphere, making it #1 on our best towns in Algarve list.

The Ponta da Piedade is a fun place to hike or take a bout tour

Recommended Activities for Lagos

  • Ponta da Piedade Boat Tour:
    • Explore the stunning rock formations, grottoes, and sea caves along the coast of Lagos with a boat tour at Ponta da Piedade. The vantage point from the ocean is incredible!
    • You can choose from various types of tours, including kayaking and stand-up paddleboarding for a more active experience. Personally, we really enjoyed the boat tour because you can relax and enjoy the views!
  • Historical Walking Tour:
    • Learn all about the rich history and culture of Lagos by taking a historical walking tour. You’ll visit the old town, learn about the town’s maritime heritage, and explore landmarks like the Slave Market Museum and the Santo António Church. We had a great time on this tour!
    • If you’d prefer to skip the walking, take a tuk-tuk tour! These tours provide insights into the town’s past and its role in the Age of Discovery.
  • Sunrise Hot Air Balloon Flight:
    • Soar above the Algarve’s coastline in a hot air balloon for breathtaking aerial views and celebrate the experience with sparkling wine, juice, and memorable photos and videos.

Where to Stay for Lagos

💎 LUXURY: Lagos Avenida Hotel

  • Beautiful hotel with a full spa, a year-round rooftop pool with stunning views, an ideal location, and lavish rooms.

👌 MID-RANGE: Hotel Marina Rio

  • Hotel on the marina with a rooftop pool (heated in winter), comfortable plush beds, and a game room.

💲BUDGET: Agua Hotels Vila Branca

  • Great budget-friendly option a bit outside of the city center. Shuttle service into Lagos, good pool area, and apartment-style rooms.

2. Albufeira

Albufeira has one of the best Old Towns in the Algarve

Albufeira is a vibrant coastal town known for its lively atmosphere, resorts, and stunning beaches.

Albufeira is known for “Fishermen’s Beach” with its colorful fishing boats that are seen in many Algarve photos. We highly recommend soaking up the sun in Albufeira and swimming in the refreshing waters.

The beach is surrounded by bars, restaurants (try the seafood at Três Coroas), and shops, making it easy to find refreshments and a variety of water sports activities.

Praia da Oura and Praia dos Pescadores are other top beaches while Albufeira’s marina is a hub for boat tours, including dolphin-watching excursions.

For history buffs, the Castle Wall in Old Town Albufeira offers panoramic views and a glimpse into the town’s past.

Additionally, Albufeira has a fun nightlife. Most of the action is centered around “The Strip,” offering a wide range of bars and clubs.

We rank Albufeira as our #2 best town in the Algarve because of its charm as a town but also because it serves as an excellent base for day trips around the Algarve.

If you stay in Albufeira, you will have easy access to both east and west Algarve towns and nearby attractions like the Zoomarine theme park.

The beach at Albufeira is a great place to relax

Recommended Activities for Albufeira

  • Dolphin Watching and Cave Tours
    • Albufeira’s coastline is famous for its stunning caves and grottoes, and it’s also a great place for dolphin-watching.
    • Book this boat tour that takes you along the coast to explore these natural wonders and offers the chance to spot playful dolphins in their natural habitat.

Where to Stay for Albufeira

💎 LUXURY: Pine Cliffs Hotel

  • Beautiful rooms on a property with stunning gardens. Full spa, 8 restaurants, a seasonal water sports center, golf course, beach club, mini golf, and a kids club.

👌 MID-RANGE: Vila Gale Collection Praia

  • Modern rooms next to the beach with a spa with a sauna, indoor pool, gym, bike rentals, and onsite restaurants.

💲BUDGET: Alfagar Alto da Colina

  • The bright and colorful apartments at Alto da Colina include a kitchen and the grounds include 3 swimming pools with a great view of the Atlantic Ocean.

3. Faro

Arco de Repouso was the main gate in and out of Faro city originally.

Faro, the capital of the Algarve, offers a diverse range of attractions – plus, it is home to the main airport!

The Old Town, known as Cidade Velha, is the epicenter of history, featuring the Arco da Vila, a neoclassical arch, and Faro Cathedral, with its stunning panoramic views from the tower. We loved wandering the old town!

The city’s Ria Formosa Natural Park is a unique coastal ecosystem, perfect for birdwatching and boat tours.

Faro is also a hub for nightlife, with many bars and clubs, particularly around the Rua do Prior and the Arco da Vila area. There are plenty of nighttime activities, bars, and nightclubs to visit!

Faro provides an authentic Algarve experience with historical richness and contemporary vibrancy, making it a well-rounded destination.

Going to Ria Formosa Natural Park is our favorite reason to visit this Algarve town, Faro

Recommended Activities for Faro

  • Ria Formosa Natural Park:
    • Discover the stunning natural beauty of the Ria Formosa, a protected lagoon and wetland area just outside Faro.
    • We recommend taking a boat tour to explore the diverse birdlife, salt pans, and unique ecosystems. The park is beautiful!
  • Faro Marina and Waterfront:
    • Enjoy a leisurely walk along the Faro Marina and waterfront, where you can watch the boats and dine at waterfront restaurants. It’s a perfect spot to relax, people-watch, and savor fresh seafood in a picturesque setting.
3HB is our favorite place to stay in Faro
3HB Faro

Where to Stay for Faro

💎 LUXURY: 3HB Faro

  • Modern and luxurious rooms, indoor or outdoor pool, stellar rooftop, and a fantastic spa.

👌 MID-RANGE: AP Eva Senses

  • Situated on the marina with a rooftop pool and health club, equipped with a sauna and Turkish bath. Situated on the marina.

💲BUDGET: Best Western Hotel Dom Bernardo

  • Pet-friendly hotel with clean rooms and a good location.

4. Vilamoura

Vilamoura is one of the best Algarve towns to visit because of the golf and the marina

Vilamoura, a luxurious resort town, is renowned for its world-class golf courses and stunning marina.

The Vilamoura Marina is a focal point, lined with upscale restaurants (get the shrimp tagliolini at Akvavit), boutiques, and vibrant nightlife. It’s perfect for leisurely strolls and people-watching.

Golf enthusiasts will LOVE it here, with renowned courses like Victoria, Old Course, and Millennium, attracting players from around the world.

Relax on the beautiful Praia da Falesia, one of the Algarve’s most stunning beaches. The long stretch of golden sands and striking red cliffs creates a picturesque setting for sunbathing, swimming, and water sports.

Beachfront restaurants offer delicious cuisine with ocean views (Restaurante Rocha Baixinha was great!!).

If you’re looking for a bit of history, the Roman ruins of Cerro da Vila offer a glimpse into the town’s ancient history.

Recommended Activities for Vilamoura

  • Golfing:
    • Try one of the several world-class golf courses, including the Victoria Golf Course, Old Course, and Pinhal Golf Course.
  • Parasailing:
    • Experience a thrilling 10-minute parasailing adventure with Ocean Vision, including lifejackets, harnesses, and being at sea for up to 1 hour and 30 minutes. The view from the sea is incredible!

Where to Stay for Vilamoura

💎 LUXURY: Domes Lake Algarve, Autograph Collection

  • This hotel takes luxury to new heights. While it is a 10-minute walk from Praia da Falésia, it has an amazing outdoor swimming pool, a garden, a restaurant, an indoor pool, a sauna, and a hammam.

👌 MID-RANGE: Dom Pedro Vilamoura

  • Located by the marina and a 2-minute walk from Vilamoura Beach, this recently renovated hotel has a spa with an indoor pool, a restaurant, a buffet breakfast, and a huge outdoor swimming pool.

💲BUDGET: Luna Olympus

  • Appartment-style rooms with a balcony looking at the marina and a nice onsite pool. In a great location with a close walk to everything!

5. Portimão

The coast by Portimão is impressive and worth taking a boat tour

Portimão, one of the larger towns in the Algarve, is a great access point to some of the Algarve’s top attractions which is why it ranks highly on our Best Algarve towns list.

Praia da Rocha is a stunning beach known for its golden sands and dramatic cliffs, ideal for sunbathing and water sports.

You can visit the Fort of Santa Catarina, a historical fortress with panoramic views of the coast.

We recommend visiting the Museum of Portimão. Located in a former sardine canning factory, we really enjoyed the insights into the town’s maritime history and the canning industry.

Strolling along the Arade Riverfront and exploring the bustling riverside promenade is also a wonderful way to spend an afternoon thanks to the variety of restaurants and bars. Dona Barca is a great place to try fresh sardines!

Recommended Activities for Portimão

  • Praia da Rocha:
    • Spend a day at the renowned Praia da Rocha, one of the Algarve’s most famous beaches. Be sure to try out surfing while you are there! The calm waters make it the ideal location.
  • Visit the Benagil Caves:
    • **One of our very favorite Algarve activities**
    • Take a boat tour of the Benagil Caves from Portimao. The ride is beautiful, the guides provide excellent and funny commentary, and the cave is truly spectacular!
  • Portimão Food Tour:
    • A food tour is a great way to experience Portimão. You’ll taste a variety of Portuguese dishes and regional sweets, accompanied by local wine and brandy. We always love taking a food tour!

Where to Stay for Portimão

💎 LUXURY: Bela Vista Hotel & Spa – Relais & Chateaux

  • A stunning 5-stat boutique hotel that has every detail covered. If you are looking for ultimate beauty and relaxation look no further!

👌 MID-RANGE: RR Hotel da Rocha

  • Great hotel that is on the beach with an outdoor swimming pool, a bar serving drinks and tapas, a spa, and a buffet breakfast.

💲BUDGET: Hotel Santa Catarina Algarve

  • A no-frills hotel that is just a few minutes walk to the beach and has an onsite restaurant and parking.
The image showcases a vibrant yellow tram on the narrow streets of Lisbon on the left, symbolizing the starting point of the journey. On the right, a person stands in awe inside the majestic Algarve cave with a natural skylight overhead, representing the destination. The text "Lisbon to the Algarve" bridges the two images, indicating the travel adventure between these iconic Portuguese landmarks.

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6. Tavira

Tavira makes it on our list for best Algarve towns to visit because of the bridge and waterways

Tavira, often referred to as the Venice of the Algarve, is a charming town that offers a mix of natural beauty and historical attractions.

The Roman Bridge, known as the “Puente Romano,” is a picturesque symbol of the town, spanning the Gilão River and connecting the two sides of Tavira.

Tavira’s historic center is beautiful with its cobbled streets, traditional Portuguese architecture, and a series of elegant churches, including the Church of Santa Maria.

The Tavira Castle, although largely in ruins, provides an interesting glimpse into the town’s history.

The town is surrounded by beautiful beaches, with Praia de Tavira on Tavira Island being a standout (accessible by a short ferry ride).

Recommended Activities for Tavira

  • Tavira Island (Ilha de Tavira):
    • Take a short ferry ride to Tavira Island, a barrier island with pristine beaches, including Praia de Tavira. The island offers clear waters, golden sands, and natural dunes, perfect for sunbathing and swimming.
  • Tuk Tuk Tour:
    • Explore Tavira’s historic area, streets, churches, salt flats, and the Tuna Museum during a 2-hour tuk tuk ride, discovering the city’s heritage and main attractions.
  • Gyrocopter Flight Experience:
    • Experience the Ria Formosa Natural Park from a gyrocopter, enjoying scenic birdlife, wetlands, and Algarve vistas.

Where to Stay for Tavira

💎 LUXURY: Vila Gale Tavira

  • A lovely hotel in the center of Tavira with an outdoor pool as well as a heated indoor pool, a Turkish bath, a hot tub, and a kids club.

👌 MID-RANGE: OZADI Tavira Hotel

  • Located in Tavira, this stunning contemporary hotel has a spa, beautiful rooms, a great pool, a lovely patio, and fantastic restaurants.

💲BUDGET: Authentic Tavira Hotel

  • This brightly decorated is cozy and has an outdoor swimming pool, a shared lounge, and a terrace with a good view.

7. Carvoeiro

The Algar Seco caves are the main reason to visit Carvoeiro

Carvoeiro is a colorful coastal town with stunning cliffs and a relaxed, laid-back atmosphere.

Our favorite spot in Carvoeiro was Algar Seco, a series of sea caves and grottoes that you can explore via cliffside pathways.

The Praia de Carvoeiro, the main beach, is perfect for swimming and sunbathing and is frequently ranked as one of the best in Portugal.

Relax, swim, and enjoy the beachfront restaurants and bars that offer fresh seafood and scenic views (Tapas da Vila – Tapas & Vinhos was our favorite!).

The nearby Alfanzina Lighthouse has fantastic panoramic views of the Algarve coastline and the Atlantic Ocean.

Recommended Activities for Carvoeiro

  • Algar Seco:
    • Explore the unique rock formations and sea caves at Algar Seco. We 1,000% recommend taking this tour which explores the rocks on land and sea – it will be one of the best days of your trip!
  • Epic Escape Game:
    • When it rains or you need a break from the sun, this escape room game is the perfect option! You get to choose from two exciting scenarios and work together to solve puzzles and win the game.
  • Carvoeiro Boardwalk:
    • The whole time you’re on the Carvoeiro boardwalk, you’re basically going from one scene you think is the best picture spot until you walk a little further to the next. It is beautiful!

Where to Stay for Carvoeiro

💎 LUXURY: Tivoli Carvoeiro

  • The property and rooms at Tivoli Carvoeiro are nothing short of incredible. The pool, spa, and rooms are all top-notch and will have you wishing you could stay just a bit longer.

👌 MID-RANGE: Mirachoro Carvoeiro

  • Located right outside the hustle of the town, this hotel has a great pool, breakfast, and hot tub or in the sauna. Plus, they have a great parking lot if you are driving.

💲BUDGET: Colina Village

  • These condo-style rooms are perfect for budget travelers. There are 2 fantastic pools and a shuttle offered into Carvoeiro which is 2 miles away.

8. Sagres

Sagres Point, the fortress, and the lighthouse make the trip worth it to this best Algarve town

Sagres is located on the southwestern tip of Portugal and can easily be reached from Lagos.

The Fortaleza de Sagres, a fortress that once housed Prince Henry the Navigator’s famous nautical school, offers panoramic views of the dramatic cliffs. It’s a perfect spot to learn about Portugal’s Age of Discovery.

The dramatic Ponta de Sagres is a popular spot for photographers in Sagres for its dramatic landscapes.

Nearby is Praia do Martinhal which is a popular beach for surfers. We enjoyed watching them!

Sagres is also famous for its sunsets, with the Cabo de São Vicente lighthouse providing the perfect vantage point.

The town’s laid-back atmosphere and focus on outdoor activities, such as hiking and surfing, make it a magnet for nature and adventure enthusiasts.

Recommended Activities for Sagres

  • Horse Riding at Bordeira Beach:
    • Taking a private horseback ride along Bordeira Beach is a great way to experience the coast and one of our top activities to recommend in the area!
  • Algarve Surf Lessons:
    • Hang ten during a surfing lesson in Sagres that is suitable for all ages. You’ll have personalized instruction, followed by a beachside lunch, and enjoy the convenience of hotel pickup and drop-off along with provided surf equipment.

Where to Stay for Sagres

💎 LUXURY: Martinhal Sagres Beach Family Resort Hotel

  • This boutique-style, 5-star hotel has it all! Beautiful rooms, 5 swimming pools in total, kids activities, tennis, 3 restaurants, close to Sagres old town, lovely gardens, and a spa.

👌 MID-RANGE: Memmo Baleeira – Design Hotels

  • Located in Costa Vicentina Natural Park, this hotel has a beautiful outdoor pool with a magnificent view of the Atlantic Ocean, a kids club, a Turkish bath, a spa, a restaurant, and great rooms.

💲BUDGET: Sagres Sun Stay – Surf Camp & Hostel

  • This hotel is well kept with multiple types of accommodations to suit all types of travelers.

8. Loulé

Loulé Market is our favorite market in the Algarve

Loulé stole our hearts for its charming market.

The Loulé Market, in the heart of the old town, is a vibrant hub where you can sample fresh local produce and artisanal products. The traditional market hall features Moorish architecture and ornate tiles.

Down the street is the Loulé Castle, partially in ruins. The panoramic views of the town and surrounding countryside are beautiful though!

The castle’s grounds also include a charming garden and an archaeological museum where you can learn about the town’s history.

Loulé also hosts the colorful and lively Carnival, one of the region’s most celebrated events, typically in April. The annual event features parades, music, and dancing, showcasing the town’s rich cultural heritage.

Recommended Activities for Loulé

Where to Stay for Loulé

💎 LUXURY: Casa Mocho Branco

  • Located a bit outside of Loulé, this charming bed and breakfast has the most incredible views that you can enjoy from its infinity pool. While the property may not have all the 5-star amenities, it is a really beautiful stay!

👌 MID-RANGE: Loule Jardim Hotel

  • One of the best mid-range hotels in the Algarve! Located in Loulé, they provide parking for guests. Their rooms are wonderful, the indoor pool is perfect year-round, and the patio is stunning!

💲BUDGET: Loulé Coreto Guesthouse

  • A perfect location and the rooms are lovely. They offer several options to help you keep your trip budget-friendly!

9. Silves

Silves Castle is one of our favorite castles in the Algarve

Silves is a historical gem in the Algarve, known for its well-preserved Moorish castle and charming old town.

The Silves Castle, an imposing red sandstone fortress, offers stunning views of the town and the surrounding landscape.

The Catedral de Silves, with its striking Gothic and Moorish architecture, is another must-visit, showcasing intricate Portuguese tiles and a tranquil courtyard.

We also loved wandering the town’s historic market hall is a bustling spot to explore, filled with local produce and artisanal goods.

Silves also hosts a Medieval Fair, typically in August, transforming the town into a vibrant medieval village with traditional food, music, and entertainment.

Recommended Activities for Silves

  • Silves Castle (Castelo de Silves):
    • It cost a couple of Euros to explore the Silves Castle but they are worth it! There is good signage explaining what you are looking at and you can enjoy the breathtaking views of the town.
  • Jeep Safari:
    • You definitely want to explore the countryside around Silves! Take this comprehensive tour of Silves where you’ll explore the ancient city’s highlights, including the Roman bridge, castle, cathedral, and historical landmarks. It’s epic!
  • Rocha da Pena:
    • Take a nature walk or hike in the beautiful Rocha da Pena area, located a short drive from Silves. This natural reserve offers scenic trails through forests and limestone formations, perfect for hiking and birdwatching.

Where to Stay for Silves

💎 LUXURY: Quinta da Luz – A Luxury Boutique B&B

  • A beautiful bed and breakfast that has a year-round outdoor pool, cozy rooms, and a breakfast that guests rave about!

👌 MID-RANGE: Mosaiko 5 Suites

  • Colorful rooms and suites that are located in the heart of Silves! The breakfast here is a big selling point but the rooms are Instagram-worthy!

💲BUDGET: Hotel Colina Dos Mouros

  • Located across the bridge, this former Arab castle has fantastic views. While the rooms are not very updated, they are comfortable and the shared amenities are very nice.

10. Monchique

The thermal spas in Monchique make it a very quaint Algarve town to visit

Monchique is nestled in the lush Monchique mountains and known for its natural beauty and spa resorts.

The Foia, the highest peak in the Algarve, provides breathtaking panoramic views of the region.

Monchique is renowned for its thermal spas and we loved the town’s handicrafts market showcases local art and products.

Be sure to visit the Convent of Nossa Senhora do Desterro, which houses a museum and offers glimpses into the town’s history.

Monchique is one of the best Algarve towns to visit for relaxation.

Recommended Activities for Monchique

  • Hiking in the Monchique Mountains:
    • The region offers a variety of routes, including the Via Algarviana, which allows you to discover the rich biodiversity and serene beauty of the area. We think it is some of the best hiking in Portugal!
  • Caldas de Monchique:
    • We definitely recommend visiting Caldas de Monchique, a spa town famous for its natural thermal springs. This is an ideal spot for relaxation and rejuvenation.
  • Wine Tasting Tour
    • This full-day tour should not be skipped if you like wine! It includes a walk in the trails of Caldas de Monchique and a wine-tasting experience at Quinta Do Frances Winery.

Where to Stay for Monchique

💎 LUXURY: Monchique Resort

  • Surrounded by breathtaking views, this hotel has 2 outdoor pools, a variety of wonderful Spa experiences, a program of activities that guests may enjoy for free, and multiple fantastic restaurants.

👌 MID-RANGE: Pure Monchique Hotel

  • Located within the Villa Termal Caldas de Monchique Spa Resort, this hotel has a restaurant, outdoor swimming pool, and access to the thermal Spa and indoor pool.

💲BUDGET: Casa dos Batalim

  • Simple, clean rooms located right in the heart of Monchique.

11. Alvor

Alvor is known as a fishing village in the Algarve

Alvor is a dreamy fishing village. One of the highlights is the Praia de Alvor, a wide, sandy beach with sandstone cliffs and rock formations.

The Church of Divino Salvador, in the historic center of Alvor, has intricate Manueline architecture that is beautiful!

Alvor’s waterfront promenade, known as the Zona Ribeirinha, is lined with seafood restaurants offering fresh catches of the day and a beautiful sunset view.

The Alvor Boardwalk takes you through the Ria de Alvor Natural Reserve, known for its birdwatching opportunities.

Recommended Activities for Alvor

  • Birdwatching:
    • Alvor is known for birdwatching. On this tour, you’ll take a peaceful walk on the Alvor Boardwalk along the Ria de Alvor Natural Reserve.

Where to Stay for Alvor

💎 LUXURY: Tivoli Alvor Algarve

  • This All-Inclusive resort has everything! They have 4 restaurants, 6 swimming pools, 2 bars, a spa, and a fitness center. This is the perfect place for anyone looking for a relaxing vacation.
  • Not looking for an all-inclusive? Check out Pestana Alvor Praia Premium Beach & Golf Resort

👌 MID-RANGE: Pestana D. João II Beach & Golf Resort

  • Right next to Alvor Beach, this is a great hotel. They have 3 swimming pools, a garden, a buffet breakfast, and clean, nice rooms.

💲BUDGET: Agua Hotels Alvor Jardim

  • A great budget-friendly option close to the beach with a nice pool, breakfast, and lovely rooms.

12. Olhão

Olhão is a very old town in the Algarve

Olhão is a traditional fishing town and definitely one of the best Algarve towns to visit.

The town’s most prominent attraction is the bustling Olhão Market, where you can savor the freshest seafood, local produce, and artisanal goods.

The town’s historic waterfront has colorful fishing boats and waterfront restaurants offering delicious seafood dishes, Pitéu da Baixa Mar being our favorite.

For nature enthusiasts, the Ria Formosa Natural Park, just outside Olhão, is a paradise for birdwatching and outdoor activities.

Olhão also hosts the annual Seafood Festival in August and is a must-attend event!

Recommended Activities for Olhão

  • Portuguese Lunch at a Fisherman’s House:
    • This is a wonderful, unique tour from Olhão with lunch at a fisherman’s house. You get a guided tour of a fishing village, stops at Armona and Farol Islands, and birdwatching with provided binoculars.

Where to Stay for Olhão

💎 LUXURY: Real Marina Hotel & Spa

  • A 5-star stay at a hotel overlooking Ria Formosa Nature Park. They have indoor and outdoor pools with panoramic sea views, a lovely spa, and multiple restaurants.

👌 MID-RANGE: Pure Formosa Concept Hotel

  • This hotel is beautifully decorated and has an outstanding rooftop pool and lounge! Guests consistently report that the breakfast is delicious.

💲BUDGET: OceanOasis

  • Clean, comfortable, and in a great location – what more could you ask for?

14. Aljezur

Aljezur is a cute town in the Algarve close to Costa Vicentina National Park

Aljezur is in the Western Algarve and has a 10th-century Castle, providing panoramic views of the surrounding countryside.

Nearby, the Igreja Igreja Matriz de Aljezur, a charming church with stunning tile work, showcases the town’s cultural heritage.

We enjoyed visiting Ribat da Atalaia, a historical site known for its well-preserved medieval architecture and its role as a former Islamic fortress.

The region is rich in natural beauty, with the Rota Vicentina hiking trail passing through. We recommend either the Historical Way, the Fishermen’s Trail, or the Circular Routes to hike.

Recommended Activities for Aljezur

  • Guided Historical Tour:
    • Be sure to take this small-group tour to get insights into the Muslim Era and WWII of Aljezur, plus explore Costa Vicentina National Park.
  • Amado Beach Walking Tour:
    • Enjoy a walking tour exploring the Costa Vicentina National Park, historic Aljezur village, and panoramic views of Amoreira Beach and Carriagem Beach.

Where to Stay for Aljezur

💎 LUXURY: Praia do Canal Nature Retreat

  • This 5-star hotel is truly outstanding. On beautiful grounds, every direction has a wonderful view. They have 3 swimming pools, a spa, a sauna, bike rentals, yoga classes and so much more.

👌 MID-RANGE: Vicentina Hotel

  • Located within St Vincent’s Coast Natural Park, this nice hotel has an outdoor swimming pool and is close to the Castle and local restaurants.

💲BUDGET: Hotel Vale Da Telha

  • This cozy hotel has a lot to offer! A great swimming pool and deck area with wonderful views, a nice breakfast, and colorful rooms.

15. Estoi

Estoi is known for its Palace and Milreu Roman ruins

Estoi is known for its elegant architecture.

The Palácio de Estoi, an 18th-century Rococo palace, is a striking highlight with its ornate gardens, terracotta colors, and impressive azulejo tiles. The palace is now a luxury hotel, but you can still visit the beautiful gardens and admire the architecture.

The nearby Milreu Roman ruins offer a fascinating glimpse into the region’s Roman history, featuring mosaics, a villa, and a temple dedicated to the goddess Cybele.

The town’s historic sites make it an ideal destination and a best town in Algarve.

Recommended Activities for Estoi

  • Palácio de Estoi:
    • Be sure to check out this 18th-century Rococo palace with ornate gardens and stunning azulejo tiles. The palace’s architecture and well-manicured gardens make it a captivating place to explore.
  • Milreu Roman Ruins (Ruínas Romanas de Milreu):
    • This historical site offers a glimpse into ancient Roman life. The ruins are pretty well-preserved.
  • Relaxation and Spa:
    • Many of Estoi’s hotels offer spa and wellness facilities, making it an ideal place for relaxation and rejuvenation. Enjoy a massage or a day at the spa to unwind in the midst of picturesque landscapes.

Where to Stay for Estoi

💎 LUXURY: Pousada Palacio de Estoi

  • Ever wanted to stay in a palace? This is your chance! This 5-star hotel has a spa, 2 lovely swimming pools, a great restaurant, and stunning gardens!

👌 MID-RANGE: Vila Milreu Guest House

  • A splendid bed and breakfast right on the outskirts of Estoi. Perfect place to relax and enjoy Estoi and the surrounding area.

💲BUDGET: Casa de Estoi

  • This bed and breakfast was once a family home from the 1900s. It is beautifully decorated in a traditional style and the rooms are comfortable.
A collage of pictures of different places in Portugal you would visit during a Portugal 8 day itinerary.
Portugal 8 Day Itinerary

The Algarve is a part of our recommended 8-day itinerary in Portugal. We have all the transportation, accommodation, restaurant, and activity tips here!

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FAQs for Best Towns in Algarve

Where is the nicest part of the Algarve?

The nicest part of the Algarve can vary depending on personal preferences, but we consider the Lagos, Albufeira, and Faro to be the nicest. They all have beautiful beaches, a lively atmosphere, and vibrant nightlife.

There are so many incredible beaches around the best Algarve towns to visit

What is the most picturesque town in the Algarve?

Tavira is often considered the most picturesque town in the Algarve. Its historic architecture, charming riverfront, and scenic Roman bridge make it a visually captivating destination with a unique blend of cultural and natural beauty.

Is West or East Algarve better?

Whether West or East Algarve is better depends on your preferences. The West is known for its rugged coastline, surf beaches, and a more vibrant atmosphere, with towns like Lagos and Albufeira offering nightlife and water sports.

In contrast, the East is characterized by a calmer, more traditional feel, featuring towns like Tavira and Olhão with historical charm and tranquil beaches. It’s a matter of whether you prefer a lively, touristy experience in the West or a quieter, authentic ambiance in the East.

In general, we prefer the East!

How many days in the Algarve is enough?

We recommend spending around 5 days in the Algarve to visit the best towns and enjoy a well-rounded experience. This allows you to explore popular towns like Lagos, Albufeira, Tavira, and others while also having time for beach relaxation, cultural experiences, and trying local cuisine. It strikes a balance between seeing the highlights and savoring the region’s charm.

Promotional image for a 'Lisbon and Algarve Itinerary' blog post, featuring split views of Lisbon's historic architecture and the Algarve's dramatic cliffs.

View 5-day to 10-day options for your Lisbon and Algarve trip here!

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In Conclusion: Best Algarve Towns

With this list of the 15 best Algarve towns, you’re on the cusp of an incredible adventure!

The Algarve is a treasure trove of picturesque destinations, from the captivating coastal allure of Albufeira to the tranquility of Silves’ rolling hills. As travelers who’ve roamed these charming towns, we understand the challenge of choosing your Algarve destination.

Now that you know what each town is known for, you can pick which one you will explore next! Your adventure awaits!

We wish you the best travels, and don’t forget to set your “Out of Office!” 

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Read More About Portugal

Central Portugal

Northern Portugal

Algarve (Southern Portugal)

Portugal Travel Planning Guide

🚙💨 Is it safe to rent a car in Portugal?

Yes! Renting a car is a necessity in most of Portugal if traveling between cities!

If you want to go on day trips or adventures outside of the major cities, you can use public transportation, but we recommend renting a car. Discover Cars is our go-to choice for car rentals in Portugal.

📲 Will my phone work in Portugal?

Maybe, but it will be expensive! Depending on your provider, plans can charge you $10 per day while in Europe.

To use your phone in Portugal and save money, we recommend an eSim with Airalo. Airalo simplifies the steps and provides you with all the necessary data for convenient travel.

There is not a lot of free WIFI in Portugal, so you’ll need your phone for navigating.

🌐 Do I need a VPN when on the internet in Portugal?

While abroad, we consistently prioritize our online security by using a VPN to appear as if we’re streaming from the US and protect ourselves from cybercrime.

NordVPN serves as an incredibly convenient solution for both mobile phones and laptops, effortlessly ensuring our safety while browsing or streaming.

🏩 What’s the best way to book my Portugal accommodations?

Our go-to for Portuguese hotels is Booking.com. They offer the widest range of choices, and their filtering system simplifies the process of discovering the perfect accommodation for your needs.

✈️ What’s the best site to buy flights to Portugal?

For finding cheap flights to Portugal, we recommend Kayak. Their awesome multi-city flight search and handy price notifications help us save big, allowing us to splurge on other adventures once we arrive.

TAP Air Portugal is usually our airline of choice while in Portugal.

🚐 Should I book tours in Portugal? Do the guides speak English?

We LOVE taking tours in Portugal.

We prefer to book our tours on Viator and GetYourGuide for easy searching, trusted reviews, and transparent pricing. We always filter for the tours that are offered in English.

For free walking tours in English, we always book through GuruWalk.

🚑 Should I buy Portugal travel insurance?

100% YES! Portugal has a publicly funded healthcare system known as the Serviço Nacional de Saúde (SNS), which provides universal healthcare coverage to all Portuguese citizens and legal residents!

Foreigners visiting need travel insurance in case anything happens on their visit. We recommend Safety Wing – they provide general travel coverage as well as medical!

💧Can you drink the water in Portugal?

Sometimes! In many areas of Portugal, the water is safe to drink. However, there can be variations in water quality from one location to another.

In some rural or remote areas, or in older buildings with outdated plumbing systems, water quality might not be as high.

For an extra layer of protection, we recommend always using a LifeStraw Go Series to stay safe and hydrated.

🎫 Do I need a visa for Portugal?

Likely Not! US passport holders don’t need Portuguese visas for travel less than 3 months. If you plan to stay for more than 3 months, you will be considered a resident and must have an entrance visa.

Kelsea and Nicholas

Meet Kelsea and Nicholas, the dynamic team behind Out of Office Mindset. They're on a thrilling quest to visit all 7 continents in 5 years, traveling non-stop. So far, they've had an epic year-long US road trip and visited 20 countries (and counting!). They're all about diving into different cultures and learning from their experiences. As avid explorers, they know how a well-planned trip can change you. Their mission? Helping every visitor to Out of Office Mindset plan their next awesome adventure with ease.