Olhão offers an authentic slice of Portuguese life that’s increasingly rare to find in the Algarve. This working fishing port, with a population of around 45,000, maintains its traditional character while gradually embracing a growing expat community. Located just 8 kilometers (5 miles) east of Faro, Olhão stands out for its distinctive Moorish-influenced architecture and its status as the Algarve’s largest fishing port. The town’s heart beats around its waterfront, where the famous red-brick markets sell the day’s catch and local produce. Unlike many Algarve towns that have transformed into tourist resorts, Olhão maintains its Portuguese soul while offering the advantages of coastal living. The town connects to pristine barrier islands with unspoiled beaches, accessible by regular ferry services, providing a unique living experience that combines urban amenities with natural beauty.
Renting & Buying Property
The property market in Olhão presents an interesting alternative to the more expensive western Algarve, attracting those seeking authentic Portuguese living with coastal benefits. The town has seen increasing interest from international buyers, though prices remain more moderate than in nearby Faro or popular western Algarve destinations.
Buying
Property prices in Olhão vary significantly based on location and condition. Traditional townhouses in the historic center needing renovation can start from €150,000, while renovated properties range from €250,000 to €400,000. Modern apartments with sea views typically start at €300,000, and luxury villas in the surrounding areas can reach €1 million or more. The historic center features traditional cubic houses with roof terraces, while the outskirts offer modern apartments and villas with gardens.
Renting
Monthly rental prices in Olhão are relatively affordable compared to other Algarve coastal towns. A one-bedroom apartment in the center starts around €600-800 per month, while three-bedroom properties range from €900-1,400. Modern apartments near the marina command higher prices, often €1,000-1,500 for two bedrooms. Long-term rentals can be found in both the historic center and newer developments.
For more detailed information about renting in Portugal, including contracts and requirements, visit Portugalist’s renting guide.
Cost of Living
Living expenses in Olhão are notably lower than in popular tourist destinations like Albufeira or Lagos. A couple can live comfortably on €2,000-2,500 per month, excluding rent. Local markets offer fresh fish and produce at reasonable prices, and dining out costs less than in tourist-heavy areas. Utility costs average €100-150 monthly for a medium-sized apartment. Healthcare, both public and private, is affordable, with private insurance starting around €50 per person monthly.
Can I Move to Olhão?
Portugal offers several visa options for those dreaming of living in Olhão:
- EU/EEA/Swiss nationals enjoy freedom of movement and can settle here without significant paperwork.
- The D7 visa attracts retirees and passive income earners, requiring proof of regular income equivalent to the Portuguese minimum wage (around €760 monthly as of 2024).
- Digital Nomad Visa holders find Olhão’s growing remote work community appealing, with good internet infrastructure and lower living costs than Lisbon or Porto.
- The Golden Visa program accepts investments in qualifying Portuguese investment funds (minimum €500,000), offering minimal residence requirements.
- The D2 visa supports entrepreneurs, with Olhão’s maritime economy and growing tourism sector offering business opportunities.
For personalized advice about moving to Portugal, contact Portugalist.
Attractions
Mercado Municipal
Olhão’s crown jewel is its historic market complex, consisting of two distinct red-brick buildings dating from 1915. The fish market offers the region’s freshest seafood, while the adjacent produce market showcases local fruits, vegetables, and regional specialties. These markets exemplify the town’s authentic character and provide a daily glimpse into local life.
Barrier Islands
The Ria Formosa Natural Park’s barrier islands, accessible by regular ferry service, offer pristine beaches and natural beauty. Ilha da Culatra and Ilha da Armona feature kilometers of undeveloped beach, small fishing communities, and excellent swimming conditions. These islands provide year-round recreation opportunities and make living in Olhão unique among Algarve towns.
Historic Center
The Moorish-influenced historic center, known as the Barreta, features distinctive cubic houses with roof terraces. This maze of narrow streets and well-preserved architecture offers insight into the town’s maritime heritage and provides photographers and history enthusiasts with endless exploration opportunities.
Expat Life
Olhão hosts a diverse expat community that’s growing but remains smaller than those in the central and western Algarve. The majority consists of British, French, and German residents, with increasing numbers of Americans and Canadians discovering the area. The expat community maintains a good balance with local life, and integration opportunities exist through various social groups and cultural activities. Local markets, cafes, and cultural events serve as natural meeting points for both expats and locals.
Retiring Here
Olhão presents an attractive retirement option for those seeking authentic Portuguese life with modern conveniences. The flat terrain in the town center makes walking easy, though some historic streets are cobbled. Healthcare options include the public hospital in nearby Faro and several private clinics in town. The cost of living benefits retirees on fixed incomes, and the year-round mild climate supports an active lifestyle. The presence of other international retirees makes social integration easier while maintaining the Portuguese character that drew them here.
Digital Nomad Life
While not as established as Lisbon’s digital nomad scene, Olhão offers an emerging remote work community. The town features reliable internet infrastructure, with fiber-optic connections widely available. Several cafes welcome laptop workers, and a small but growing coworking community exists. The lower cost of living compared to major tech hubs makes it attractive for location-independent professionals. The proximity to Faro Airport (15 minutes) facilitates easy international travel.
Food
Regional specialties include:
- Arroz de Polvo – Octopus rice slowly cooked with herbs and wine, a local delicacy showcasing the town’s fishing heritage.
- Cataplana de Marisco – A seafood stew prepared in a traditional copper pot, featuring local clams, prawns, and fish.
- Caracóis à Algarvia – Snails cooked in herbs and garlic, a popular summer dish in local tavernas.
- Xerém com Conquilhas – Traditional cornmeal porridge served with local clams, representing the fusion of land and sea cuisine.
Vegan and vegetarian options are growing but limited compared to larger cities. Several restaurants now offer plant-based dishes, though traditional establishments may have fewer options. Gluten-free awareness is increasing, particularly in newer establishments catering to international residents.
Upsides & Downsides Of Living Here
Pros
- Authentic Portuguese atmosphere with less tourism impact than other Algarve towns
- Excellent fresh seafood and produce at reasonable prices
- Access to beautiful barrier islands and beaches
- Lower cost of living compared to western Algarve
- Good transport connections via nearby Faro
- Flat terrain in town center
- Strong local community feel
Cons
- Fewer entertainment options than larger Algarve resorts
- Limited international shopping options
- Some areas need renovation
- Fewer English speakers than tourist-heavy areas
- Summer can bring strong fish market odors
- Beach requires boat access (though regular ferries run)
Climate
Olhão enjoys a typical Algarve climate with mild winters and warm summers. Summer temperatures average 28°C (82°F), occasionally reaching 35°C (95°F) in July and August. Winters are mild, with temperatures rarely dropping below 10°C (50°F). The town receives around 300 days of sunshine annually. While the town itself doesn’t have a beach, the barrier islands provide excellent swimming opportunities, and regular ferry services make them easily accessible. The sea breeze helps moderate summer temperatures.
Will I Need To Learn Portuguese?
In Olhão, learning Portuguese becomes more important than in tourist-heavy Algarve destinations. While you’ll find English speakers in tourist-facing businesses and among younger Portuguese, daily life often requires basic Portuguese language skills. Local markets, traditional restaurants, and administrative offices primarily operate in Portuguese. The authentic nature of the town means fewer English-speaking services than in places like Albufeira or Lagos.
Learning Portuguese will significantly enhance your experience, allowing deeper integration into the community and easier handling of daily tasks. Even basic Portuguese helps in building relationships with neighbors and participating in local events.
For resources on learning Portuguese, check out Portugalist’s guide to learning Portuguese.
Schools
Olhão offers several educational options:
Public schools provide free education and full Portuguese immersion. The town has multiple primary and secondary schools, including the Escola Secundária Dr. Francisco Fernandes Lopes. Private schools in nearby Faro offer alternative curricula. International schools are available within driving distance, including the Nobel International School Algarve (30 minutes away).
For comprehensive information about Portuguese education, visit Portugalist’s guide to schools in Portugal.
Getting Around
- Train: Olhão station offers regular connections to Faro (10 minutes) and other Algarve towns, plus direct services to Lisbon
- Bus: EVA bus services connect to other Algarve destinations and major cities
- Car: Useful for exploring but not essential within town; parking can be challenging in the historic center
- Walking: Town center is flat and compact, ideal for pedestrians
- Cycling: Growing cycle network, though some historic streets are narrow
- Taxis and Uber: Both readily available, with reasonable rates
- Flying: Faro Airport is 15 minutes away, offering connections throughout Europe and seasonal flights to major UK cities
Day Trips
From Olhão, you can easily explore the eastern Algarve. Visit the historic town of Tavira (20 minutes), the Spanish border town of Vila Real de Santo António (40 minutes), or the beaches of Fuzeta (10 minutes). The western Algarve attractions like Lagos and Sagres make comfortable day trips by car or train. The Serra do Caldeirão mountains, offering hiking and traditional village experiences, lie just 30 minutes north.
Similar locations
- Fuzeta – Smaller, even more authentic fishing village with direct beach access, but fewer amenities
- Tavira – More touristic historic town with similar character but higher prices and more international atmosphere
- Vila Real de Santo António – Border town with strong Spanish influence and excellent beaches, but more remote location
- Quarteira – Larger, more developed resort town with beach access but less authentic character
- Loulé – Inland market town with strong Portuguese character and lower prices, but no coastal access