The 59-year-old pop diva took to Instagram to make the news official.
"I used to be a basket case but now I live in Lisbon!" wrote Madonna, alongside a picture of different types of Portuguese baskets.
Earlier, the "Love Profusion" singer had shared a post with a painting, saying the energy of the country is a new source of inspiration and the move will add value to her forthcoming film "Loved".
"The energy of Portugal is so inspiring. I feel very creative and alive here and I look forward to working on my film 'Loved' and making mew music! This will be the next chapter in my book! It's time to conquer the world from a different vantage point!" she wrote.
She has been staying in a hotel, after buying a house in the resort of Sintra, 27 km north-east of Lisbon.
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