The Algarve played host to the Portuguese stage of the World Rally Championships in 2007, beginning in Vilamoura and holding the special stages at Estadio Algarve in Faro. It was a tremendous success and is planned again for next year. Although final approval is still awaited, reportedly, there is to be a much discussed FIA approved motor-racing complex northwest of Lagos. The project is expected to be completed in 2009 and there is talk of being used for Formula One testing.

"A large number of international footballers and other celebrities from other sports have homes in the region."

The 2004 UEFA European Football Championship, commonly called Euro 2004, was held in Portugal between June 12 and July 4, 2004. This was the first time that the competition was held in Portugal and UEFA considered the tournament "the best ever". This was mostly due to the high level of football played. There were big surprises - Germany, Italy and Spain were knocked out in the group stage. Title-holders France were sent home by unfancied Greece. Hosts Portugal managed a winning streak towards the Final, following their opening defeat, beating spain, England (on penalties) and the Netherlands along the way.

Many European and International Sports Teams, including football teams from the English Premiership, frequently use the training facilities in the Algarve. A large number of international footballers and celebrities from other sports have their homes in the region.