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Alcoutim is a town and a municipality in southeastern Portugal near the border with Spain. The municipality has a total area of 575.32 km² and a population of 3,411 inhabitants. At the Portuguese census of 2001 it had a population of 3,770 inhabitants and was the least densely populated municipality in Portugal. The municipality is limited on the north by the municipality of Mértola, on the east by the province of Huelva in Spain, on the southeast by Castro Marim, on the southwest by Tavira and on the west by Loulé and Almodôvar. The administrative center is the town of Alcoutim, located at the extreme eastern part of the municipality on the Spanish frontier, just across the Guadiana River from the Spanish town of Sanlúcar de Guadiana in the province of Huelva. There is a Moorish castle, the (Castelo de Alcoutim), dating from the 14th century in the town.
The municipality is composed of 5 parishes, and is located in the northeast corner of the district of Faro. The present Mayor is Francisco Augusto Amaral, elected by the Social Democratic Party. The municipal holiday is June 13.