It can make some difference to have someone within easy travelling distance, if any manual searches/visits are required, or where the escritura (notary-based completion) takes places near the property.
However, we have mostly found the former element to be conducted remotely (online or by post), so the more major element could be the escritura. Where this takes place depends on the respective locations of buyers and sellers, and is by agreement. However, this seems often to mean wherever is convenient for the seller! So, if they're in Lisbon or Porto, it may happen there. I'd ask the agent where the sellers live/are likely to want to go for the notary.
(The issue in all this is travel cost and time - it's perhaps marginal, but if you had an Algarve lawyer, and got a 9am notary appointment in Coimbra, say, you might end up paying their travel plus hotel plus travel time, in a worst case)
The other advantage of a "local-type" lawyer is that there is no need to pay flashy city prices for the service. If the lawyer has experience of property transactions, good English, and is recommended, that's all you need for the purpose. This should cost no more than 700-800€ plus any search fees, plus travel. (This excludes notary fees and taxes/duty, etc, of course). Some "international-type" lawyers charge many multiples of these, sometimes for added-value services (which you may not need) or sometimes just because people don't know and will pay.
In short, go for an honest, recommended, local-type lawyer in a place which makes sense (in this case, my guess is in Beja, Evora, Setúbal or Lisbon districts) unless you need them to deal with a non-property matter which is unusual or complex as well.
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