When I visited the Algarve in Autumn 2006 I free camped at a lot of beaches, including Armado on the west coast, Sagres in the south west and Lagos plus others on the south coast.
It is not permitted to free camp in the Algarve, but the police do tolerate responsible free camping.
After the winter in Andalucia I came back through the Algarve. I stopped at the beaches around Lagos and saw big new signs prohibiting free camping.
Has anyone been to the Algarve since spring 2007, and what is the free camping situation like now?