Ponta da Bandeira, also known as the Fort of Our Lady of Penha de Franca (or simply Lagos fortress), is a small fort located on Lagos’s waterfront, where the Bensafrim River empties into the sea and overlooks Praia da Batata beach. From 1577, Lagos served as the administrative capital of The Algarve, and this fortress, built around 1690, would have been one of the key defensive structures guarding the strategically important harbour against raids by Corsairs, pirates, and the Spanish.

It was considered one of the most advanced in the Algarve region at the time of its construction. It was designed for artillery battles, with a square-shaped layout and thick walls on the ocean sides. The upper terrace is accessed via a ramp. The structure was partially surrounded by a moat and featured a single entrance that was accessed via a drawbridge. A stone coat of arms and a stone plaque above the entrance indicates that construction was begun by the Count of Sarzedas and completed by the Marquis of Nisa. It features several cylindrical sentry boxes that were not originally part of the structure. Inside, various exhibition halls, a cafeteria, and a modest church totally covered in tiles and dedicated to Saint Barbara have been added.

You get panoramic views of the town and seafront from the fort terrace.