Faro, Portugal

Faro, home to roughly 65,000 residents on the Ria Formosa lagoon, has served as the capital of the Algarve since 1756. The 1842 Arco da Vila gate, designed by Italian architect Fabri, opens onto the old town, where the 13th-century Faro Cathedral sits inside the medieval walls and faces the 1549 bishop's palace. The 18th-century Carmo Church holds a Capela dos Ossos lined with 1,245 monks' skulls, while the surrounding Ria Formosa, a 60-km chain of barrier islands, hosts more than 20,000 birds in winter. Moorish rule shaped the city from 713 until 1249, leaving layers that visitors still trace through Faro's narrow streets.