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Vila joya
The Ocean (vila vita)
The two best restaurants in Portugal (no portuguese), Between Faro and Lagos
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re: bimbog
Ocean is closed for 3 months (renovating the kitchen to cope with their 2nd Michelin star), which is why I did not mention it.
Ina different class, but Portuguese: Marisqueira Rui's in Silves has the best shellfish in the whole Algarve and restaurant Veneza in Mem Moniz near Paderne the best wine list...
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Lunch at Vila Joya on the terrace is a must... http://www.vilajoya.com/ until you can be more specific with your tastes and depth of wallet :o)
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