Where to Stay in the Algarve for Couples (Best Towns)

The Algarve is our happy place. We got married here, came back for our first wedding anniversary, and have spent winter months exploring it, from the cliffs of Sagres to the islands of the Ria Formosa. The question we get asked most is “where should we stay?”, so here’s our honest answer, town by town, with the places we’ve stayed ourselves.

Short on time? Our quick picks:

For beaches and nightlife: Lagos
For a quiet, authentic town: Olhão
For surf and wild coast: Sagres or Carrapateira
For a romantic villa escape: the countryside around Pêra
For cliff walks and boat trips: Carvoeiro or Alvor

Updated October 2026: before you go

We live here now: we are based in the Algarve, and these are still the places we would recommend to friends.
Getting around: the A22 motorway has been toll-free since 2025. Compare car hire on Discover Cars.
More places to stay: our sister site compares every town in where to stay in the Algarve, and has a list of family resorts.
Beaches: see our favourite Algarve beaches, chosen by locals.

Jump to:

1. Lagos: Best All-Rounder
2. Olhão: Best for a Real Portuguese Town
3. Pêra and the Countryside: Best for a Romantic Villa
4. Carvoeiro and Alvor: Best for Cliffs, Caves and Boat Trips
5. Sagres: Best for Surf and the Wild West
6. Carrapateira and Bordeira: Best for Quiet Beaches
7. Quarteira and Vilamoura: Best for Beach-on-Your-Doorstep

1. Lagos: Best All-Rounder

When we decided to move to the Algarve, Lagos was top of our list. It has a gorgeous old town of cobbled streets and whitewashed houses, great restaurants, and some of the most famous beaches and cliffs in Portugal (Ponta da Piedade, Praia da Balança). It’s lively in summer, so book early.

Stay near the marina: Avenida Hotel overlooks the marina and is a short walk from the old town.
Stay near the beach: Vila Galé Lagos is right by Meia Praia.
Want privacy? We loved a two-bedroom garden villa with a jacuzzi just outside town: close enough to walk in, far enough from the bustle. Look for villas on the edge of town rather than in the centre.

Where to eat: Casa do Prego (book ahead, it’s one of our favourite tapas spots in the Algarve) and Mar d’Estórias for rooftop drinks. More in our best restaurants in Lagos guide.

2. Olhão: Best for a Real Portuguese Town

Olhão surprised us. It’s a working fishing town with a huge market, narrow streets and flat rooftops, and far fewer tourists than its neighbours. We spent two nights in a converted salt house with a rooftop terrace and watched the sunset from the balcony both evenings.

Hotel: Real Marina Hotel & Spa is right on the waterfront.
Don’t miss: the boats out to the Ria Formosa islands for empty sandy beaches. Book a Ria Formosa boat trip.

3. Pêra and the Countryside: Best for a Romantic Villa

For our first wedding anniversary we rented a rustic villa (Quinta Marula) near Pêra for 10 days: long afternoons by the pool, evenings by the fireplace and views over the hills, yet only a short drive from the beaches and restaurants. If you want to properly switch off, stay inland. Countryside villas and quintas around Pêra, Silves and Loulé give you space and quiet at a fraction of beachfront prices.

You’ll need a car out here. Compare prices on Discover Cars.

4. Carvoeiro and Alvor: Best for Cliffs, Caves and Boat Trips

This is the stretch for the famous Benagil cave and the Seven Hanging Valleys trail, one of the most beautiful coastal walks in Europe. We stayed at Tivoli Carvoeiro, on the clifftop, and loved it.

Alvor is a relaxed fishing village with a long boardwalk beach and a marina that’s perfect at sunset. Our favourite beach lunch spot is Restinga (get the chilli prawns).
Book a Benagil cave boat trip. Go early in the morning, before the crowds and the wind.

5. Sagres: Best for Surf and the Wild West

At the south-western tip of Europe, Sagres is all surf, cliffs and end-of-the-world sunsets at Cabo de São Vicente. We stayed at Memmo Baleeira and can’t recommend it enough. It’s stylish, relaxed and a short walk from town. Eat at Arte Bianca (sourdough pizza) and Three Little Birds (the shrimp tacos!).

6. Carrapateira and Bordeira: Best for Quiet Beaches

If you’d rather avoid towns altogether, head up the west coast to the little village of Carrapateira. The Amado and Bordeira beaches are minutes away, there are great surf schools and coastal hiking trails, and evenings are wine on the terrace and silence. We stayed in a small stylish house overlooking the village and didn’t want to leave.

7. Quarteira and Vilamoura: Best for Beach-on-Your-Doorstep

For a “roll out of bed onto the sand” holiday, Quarteira has apartments with terraces right on the seafront promenade, and Vilamoura’s marina, bars and restaurants are next door. It’s less charming than the old towns, but unbeatable for easy beach days.

Prefer something special? See the best luxury hotels in Albufeira nearby.

Monchique: For a Night in the Mountains

For a change from the coast, spend a night up in the Monchique hills: hiking trails, sweeping views and thermal spas. Find a stay in Monchique.

Tips for Booking in the Algarve

Book early for July and August. The best places in Lagos and Carvoeiro go months ahead.
Visit in shoulder season (April to June, or September and October). It’s still warm, there are far fewer people, and prices are much better. Winter is mild and quiet, and it’s how we fell in love with the place.
Hire a car. The best beaches and villages aren’t on the bus routes.
Compare hotels and apartments on Booking.com.