With minimal pensions that start at 319.49 euros monthly for those who discounted less than 15 years and in the 462 euros for those who had a contributory career of over 31 years, many renovated in Portugal face growing financial difficulties. The increase in cost of living, particularly in large cities and tourist areas, has been looking for places where it is possible to live with greater economic tranquility.
Strategic location inside the Algarve
Among the destinations that stand out for the most affordable cost of living is Alcoutim, a village located in the interior of the Algarve, near the Portuguese bank of the Guadiana River. Located north of Vila Real de Santo António, the village combines the Algarve landscape with Alentejo influences, offering a calm and less subject to mass tourism that characterizes other areas of the southern region.
According to Novo Banco data, released in 2024, the price per square meter in Alcoutim was around 599 euros, a value significantly below the average of the Algarve region. Although away from the sea, Alcoutim offers other advantages, such as the peaceful lifestyle, the typical constructions with white or yellow -led white facades, and a castle that dominates the ocher tone landscape.
River beach with hot waters
One of the main business cards of the village is Pego Fundo’s river beach, where, on warmer days, water can reach 30 degrees. This beach, about 500 meters long, is fed by the Cadavais Ribeira, a tributary from Guadiana, and is equipped with infrastructure that include leisure zones, volleyball field and access for people with reduced mobility.
According to the portal, Alcoutim’s river beach “has quiet waters and complete infrastructures, including garden, volleyball and equipment that allow people with reduced mobility to enjoy the sand and freshness of water”. These elements make the village a good place for the well-being of those looking for a quiet reform.
Proximity to Spain reduces expenses
In addition to the lower incomes, proximity to Spain allows residents to benefit from more affordable prices in fuels and cylinder gas. Many inhabitants move to the neighboring Spanish locality of Sanlúcar del Guadiana to supply their vehicles or buy essential goods, taking advantage of price differences between the two countries.
Alcoutim’s history is deeply linked to the Guadiana River, which influenced the village’s economic and strategic development for centuries. Its location corresponds to the point to be felt the tides, forcing the boats to wait for the ideal time to sail, which gave the village an important role in the river traffic of goods.
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Visible historical heritage
Over time, the importance of the village as a border point led to the construction of defensive structures, of which there are still traces. It is currently possible to visit places, such as the Church of Mercy and the Castle, where is the Museum Center of Archeology. This space welcomes the largest collection of Islamic board games discovered in a single archaeological site.
The village also offers visitors and residents pedestrian routes through the riverside area, where the Chapel of Santo António stands out and the former Casa dos Condes of Alcoutim. In this area it is often found fishermen to return from their activities or sailboats anchored in small Marina, contributing to the calm and welcoming environment of the village.
Rails with smuggling history
Being a border town, Alcoutim preserves many memories of the time when smuggling was a recurring practice. Stories of secret paths and clandestine crossings are now part of tracks that can be explored on organized walks, namely during events such as the Smuggling Festival, held in March, or the gauge meetings.
For nature and discovery lovers, Alcoutim also serves as a starting point for the Guadiana Route, which accompanies the course of the river, and for the Algarvian road, which crosses the east to west Algarve. These routes promote contact with the landscape and traditions of the region, encouraging sustainable tourism and proximity.
Contrabando as a means of subsistence
For much of the twentieth century, especially in the years of the Spanish civil war (1936-1939), smuggling was a form of survival for many families in the region. Products such as coffee, sugar, rice, soap, figs and tobacco came out of Portugal, while fabrics, perfumes, soaps and almonds arrived from Spain, revealing a network of exchanges that deeply marked local life.
In an economic context where the reform represents a challenge for many citizens, Alcoutim stands out as an affordable and quality of life solution for those looking for a quiet, economic and strong cultural identity place. Among the historical heritage, the benefits of location and proximity to nature, the Algarve village is affirmed as a destination to consider to live the reform with dignity.
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