The magical Algarve coast in southern Portugal is one of the most popular summer destinations in Europe, and with good reason.
With a rugged coastline interrupted by mesmerizing beaches that are met by the deep blue Atlantic Ocean, the Algarve towns are set in a paradise location.
But even so, it’s just as amazing to explore Algarve in the winter months as you avoid the crowds and can enjoy these beautiful towns at a slower pace.
I’ve traveled to this area of Portugal extensively over the last few years and I’ve found so many enchanting places.
The friendly locals, cute tiled houses, the boardwalks, the islands, the water sports, and I could keep going.
There is so much to add to your Algarve itinerary. In this post, I’ll show you the best towns in the Algarve so you can find the perfect place for your next trip.
Disclosure: This post may contain affiliate links. That means that if you make a purchase through one of those links, I will get a small commission at no extra cost to you. As an Amazon Associate, I earn from qualifying purchases.
Hi, I’m Linn Haglund, the face behind Brainy Backpackers. I’ve been based in Spain for the last 10+ years, and travel locally and abroad whenever I have a chance. I’m passionate about responsible travel, slow and off the beaten path travel, and outdoor activities, especially hiking. I’m currently slow traveling in my van Persistence (Persi among friends) with my fiancée Mohammed and rescue puppy Atlas. I’m excited to help you explore this planet responsibly!
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Best towns in the Algarve Portugal
Tavira
Tavira is one of the most underrated and beautiful towns in Algarve with its charming streets, traditionally tiled houses, and vibrant old town. Set on the east coast by the Ilha de Tavira and Rio Formosa Natural Park there is a lot to do in Tavira.
First of all, make sure you explore the old town. The astounding Moorish castle ruins and gardens are set right next to Igreja Matriz and Camara Obscura, which is set in an old water tank.
Make sure you visit Igreja de Santa Maria do Castelo, the church that was built where the old mosque was in Moorish times. The square of Praça da República is the center of any walk in Tavira and is situated by the old bridge, taking you over to a multitude of great restaurants.
But no visit to Tavira is complete without exploring the Ilha de Tavira and the beach in the natural park. You can walk or take the train over to Praia do Barril, where you can visit the fascinating anchor cemetery.
Getting to Tavira from Faro Airport takes about half an hour by car. There are also buses and trains, but no direct ones, so you’ll have to change, and the trip can take anywhere from one to two hours.
While the Algarve isn’t exactly Portugal off the beaten track, Tavira is a lovely getaway on the otherwise busy coastline.
Where to stay: Authentic Tavira Hotel
Lagos
Lagos is another of my absolute favorite towns in Algarve with so much fun to do. Loved by backpackers and surfers, the chill vibe is contagious. Jam-packed with small restaurants, cafes, and live music venues, this is a great base for your stay on the coast.
Among the top things to do in Lagos are all the water sports like scuba diving, surfing, SUP, and snorkeling. But there are also fun boat trips to take in Lagos to see caves and rock formations, and not to mention the spectacular beaches like Dona Ana Beach and Camilo Beach to explore.
One of my favorite places to explore next to Lagos is Ponta da Piedade with its astounding rock formations. You can drive or walk there from Lagos town, but you can also hop on a boat trip to explore this amazing piece of coast.
There are simply so many reasons to visit Lagos, but it’s also a great base for going on day trips to nearby towns.
Lagos is an easy one-hour drive from Faro Airport. If you travel by public transport, take the bus no. 16 from the airport to Faro bus terminal, and from there you find interurban and express buses leaving frequently.
I recommend taking the express bus, though, as it only takes two hours; otherwise, it can take some time.
Where to stay: Hotel Marina Rio
Loulé
Just a short day trip from Albufeira, you get to the old defensive town of Loulé. The Moors used the town as an important defense post, and the Loulé fortress was central in protecting the area.
However, it played an important role all the way to the Bronze Age. You can also explore Roman remains in Cerro da Vila to get an idea of how they lived on the Algarve.
If you love exploring markets or not, the market in Loulé is absolutely worth a peek. It’s truly the most beautiful in the Algarve with its red-painted oriental domes.
Other attractions worth seeing are the Capela de Nossa Senhora da Conceição and the astounding Almacil parish that dates back to the 1600s.
Loulé is also a wonderful destination for going on a wine tour. The region’s wineries produce exquisite wines like Chardonnay, Sirah, and Cabernet Sauvignon. I highly recommend this wine tour.
If you fancy the beach, it’s a 20-minute drive to Vilamoura’s beaches. There are no direct buses, so unless you have a rental car, I would recommend splitting your trip by staying in different locations to soak in the beach vibes.
Where to stay: Arts by Loulé
Alvor
Alvor is one of the most picturesque Algarve beach towns you can find. There are a lot of wonderful things to do in Alvor. The astounding beaches in Alvor are perfect for a relaxing day in the sun. Go for a sunset stroll along the Alvor Boardwalk that takes you across a natural scene with a mesmerizing beach view.
The remains of Alvor Castle, dating back to the Moorish era were one of few that survived the 1755 earthquake. The only parts that are left are parts of the walls and the courtyard, which has turned into a kids’ playground.
Make sure you peek into Alvor’s beautiful main church to see the traditional tiled interior.
Of all the towns in the Algarve, Alvor is a lesser-visited one, but not because it lacks charm. Quite the contrary. However, it’s situated close to some of the most popular resort towns, and lucky for you, it stays in the shadows giving a calm atmosphere to those who venture there.
Including Alvor in your Algarve itinerary will definitely make a trip of a lifetime!
Where to stay: Pestana Alvor South Beach Premium Suite Hotel
Albufeira
NOTE! Avoid the Zoomarine! You can read more about why here and here.
One of the best towns in Algarve is without a doubt Albufeira. A popular vacation destination with pumping nightlife and a lot of activities to do.
The beaches that are just walking distance from the old town are spectacular and you can do several water sports from there to discover the cliffs and caves along the coast.
Albufeira’s old town is extremely charming, though you notice that it’s been heavily touristic for a lot longer than certain other towns in Algarve.
It’s still got its charm, though. Albufeira is set on the cliffs and winds down to the beach, so there are quite a few steep streets and epic viewpoints to cover.
You can easily get a boat trip to the famous Benagil Cave from there or explore the water by kayak or SUP if you want to do it at your own pace.
Faro Airport to Albufeira is only about half an hour’s drive. Like with the rest of the Algarve, the public transport isn’t excellent.
Both the train and bus stations are far from the center and stop running quite early, so you might be better off taking a private shuttle unless you’re heading out on a road trip in Algarve and have a car.
Where to stay: Maria Guest house
Olhão
Olhão is such a surprisingly pleasant town with far fewer tourists than other nearby places. The many narrow streets create small labyrinths behind the main street by the port. Hiding small squares and tiled houses, it’s a wonder to get lost there.
The town is also set by the Rio Formosa Natural Park, just a few kilometers east of Faro. It’s a perfect base for exploring the islands of the natural park, and there are daily boats taking you out to explore Ilha da Culatra and Ilha da Armona. Both astounding places to walk around with long white beaches.
Among of the best things to do in Olhão is to explore Algarve’s biggest food market, and if you walk up the streets from the marina, you’ll discover a street full of street art telling the fishing history of the town.
This is truly a unique place to visit if you want to avoid the most touristy places and take advantage of the natural park.
Faro Airport is just over a 15-minute drive from Olhão, so it’s not too expensive to take a private transfer. The train travel from Faro Airport to Olhão is only a 10-minutes trip and probably the easiest way to get there. The buses are more infrequent and take longer time.
Where to stay: Real Marina Hotel & Spa
Carvoeiro
Carvoeiro is one of the most charming little towns in the Algarve, with vibrant streets and full of restaurants and bars.
Yet, it’s got a peaceful atmosphere to it and a lot of nature scenes to explore in walking distance, so there’s surprisingly much to do in Carvoeiro.
Make sure you walk Carvoeiro boardwalk to Algar Seco, where you’ll discover a natural pool and stunning caves with natural windows to the Atlantic.
From Algar Seco you can even continue to one of the best hikes in Portugal. The 6 hour return hike of Seven Hanging Valleys Trail is a must for outdoor lovers, and as it takes you down to Benagil Beach, you can rent a SUP or kayak and explore Benagil Cave while you’re there.
The trail takes you across the cliffs along the mesmerizing coastline and ends up at one of Portugal’s renowned beaches, Praia da Marinha, which has been nominated among the most beautiful beaches in the world more than once.
Carvoeiro is about a 50-minute drive from Faro Airport. Again, taking the bus is a hassle. You’ll have to take the bus into Faro, change in Lagoa, and finally go to Carvoeiro. This excursion could take a couple of hours or double.
Where to stay: Hotel Carvoeiro Plaza
Sagres
At the farthest west corner of the Algarve, you find the remote coastal town of Sagres. A paradise for surf enthusiasts, there is a multitude of surf shops and some of the best surf sites in the country, starting from Sagres and up the country’s west coast.
Sagres is famous for the jaw-droppingly tall cliffs that meet the Atlantic Ocean, waves, and astounding beaches. Walking along the cliffs at sunset is true magic!
You can also get boat trips from Sagres to explore the spectacular coastline from the water. It’s truly worth it.
At the very tip of the Algarve, you find Sagres Fort. It was built to protect the town from enemy attacks from Africa. Now it’s one of the most frequented tourist attractions in Sagres.
Driving from Faro Airport to Sagres takes an hour and twenty minutes. By public transport, it’s a lot more, as you might guess by now, there are no direct buses. You’ll need to change buses in Faro and in Lagos.
Where to stay: Memmo Baleeira
Santa Luzia
I couldn’t write this without giving the beguiling fisherman’s village of Santa Luzia a mention. In the outskirts of Tavira, this place gets way less attention than it deserves.
If you’re looking for local life in Algarve, sauntering the cobblestoned streets of Santa Luzia past old, colorfully tiled houses is the perfect way to spend an afternoon.
There are a few restaurants to try local food and bars where you can enjoy a coffee in the morning or a refreshing drink to cool down on a hot day.
The waterfront is crowded with small, wooden fishing boats and traditional fishing shacks line the marina. Boats can take you to Tavira Island from here too, as the village is situated in front of the Ria Formosa Natural Park.
Nonetheless, Santa Luzia is only a 20-minute walk from the footbridge connecting the mainland to Tavira Island. From there you can cross to the Anchor Cemetery either by foot or by train and enjoy a relaxing day at Barril Beach.
Where to stay: Vila Gale Tavira
Aljezur
One of the best Algarve towns is the lesser-visited town of Aljezur. With its stunning location about an hour north of Sagres, it’s cobble stoned streets through whitewashed houses are truly enchanting. Make sure you climb the 10th-century Moorish castle for spectacular views.
The biggest drawing point of Aljezur is Arrifana Beach, which attracts surfers but also beach dwellers. It’s stunningly located at the bottom of the cliffs, and the view of the beach from above is picture-perfect.
There are also other surf beaches further north where the sand dunes meet the beach.
There are also bewildering walking routes on top of the cliffs in Sudoeste Alentejano e Costa Vicentina Natural Park that you can reach from the town, perfect for those remote sunset walks.
Driving from Faro Airport to Aljezur takes about an hour and fifteen minutes. There are no direct buses (surprise!), but it can take several hours with the transfers you’ll need to take, so I highly recommend renting a car if you head up to Aljezur to save yourself the hassle.
Where to stay: Vicentina Hotel
Portimão
Portimão is one of the largest towns in the Algarve and boasts staggering beaches like Praia da Rocha and Praia do Vao.
To learn about Portimão’s fishing and canning history, make sure you visit Museu de Portimão. But if you’re into older history, you’ll love the remains of the 5000-year-old Megalithic Monuments of Alcalar.
Worth visiting is the 17th-century church, Igreja do Colégio. Walk along the Ribeirinha esplanada, lines with palm trees and people watch at the Praça Manuel Teixeira Gomes square.
Another monument you should see is the Fortaleza de Santa Catarina, where you’ll get stunning views.
Portimão is also great for water sports and boat trips to explore the cliffs and caves along the stunning Algarve coastline.
The drive from Faro Airport to Portimão is about 50 minutes. There are both buses and trains from Faro, so you need to take the bus from the airport to Faro and change there.
These are frequent, with 3-4 buses an hour throughout the day. The train from Faro takes one and a half hours, but they stop running quite early at night, so if you have a late flight, you’ll have to stay the night in Faro. The bus takes about one hour and forty-five minutes.
Where to stay: Jupiter Marina Hotel – Couples & Spa
Estoi
Estoi is one of the cute inland towns of Algarve that most people miss out on. But there are actually a few things to do in Estoi for a day trip if you want to change out the busy beach towns for a calmer sleepier vibe.
The main attraction is the 19th-century Neo-Rococco style Palacio de Estoi. It’s now a luxury hotel, but even if you don’t stay there, you can visit the beautiful gardens and ground floor.
Besides, the palace, you can visit the Roman Ruins of Milreu, the best preserved Roman Ruins in the south of the country. I loved walking around there, there are some pretty cool remains, but also amazing mosaics.
All in all it’s a small town that is nice to walk around, and I loved the campervan park they had set up.
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Reflections on Algarve towns
There is no doubt that the towns in the Algarve are worth a visit. And there are towns for everyone, whether you like to party, surf, explore, or just chill at the beach. If you have the time, I suggest you go on an Algarve road trip to see a few of these charming places on your trip.
Finally, make sure you follow these responsible travel tips so that you help preserve this beautiful corner of the world. That includes avoiding the Zoomarine in Albufeira, where you disturbingly can swim with captive dolphins. Read more about unethical animal tourism to avoid here.
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