Portugal (pôr'chugul) [key], officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the Atlantic Ocean. Portugal is bordered by Spain on the east and north and by the Atlantic Ocean on the west and south. The capital and by far the largest city is Lisbon.