I came to the discussion to see if Portugal was mentioned, and was pleasantly surprised to see it as the top-ranked comment.

I will just add my suggestion of a another city to the mix: Aveiro. Small yet not too small, cheap, a short hop from Porto, 2hrs away from Lisbon, with trains and good highways, a very tech oriented university, excellent food, close by the sea and a huge lagoon good for all kinds of watersports.

I work for an US based company from here, and I used to live in Lisbon for 10+ years. Love Lisbon, but my quality of life here in Aveiro is so much better.