The best of both worlds is living in Lisbon while working remote for at least a European company and even better an American one. Since I arrived here in 2004 I've worked for British, French and now Swiss-based companies. I have only worked for one Portuguese company (the somewhat well-known one from Coimbra) and I'd never do it again.

fmsf's comment about the sweatshop environment is accurate, but only because the skills of Portuguese management are spectacularly bad. All management decisions are based on a single variable: cost and cheaper always means better. Having said that there are some spectacularly awesome, world-class, engineers here.

If there was more money floating around, Lisbon would be an awesome center for startups (there are quite a few already) - great beaches, decent night-life, plenty of culture and awesome weather (though a little too warm for my tastes).