The award was made on the day that Albufeira celebrated its municipal day and also comes 11 years after the inauguration of Rua Cliff Richard near the city’s beachfront.
Sir Cliff received the honour from Albufeira Mayor Carlos Silva e Sousa at a symbolic event on Thursday evening staged on the Praia dos Pescadores.
The record-breaking singer was unable to attend the official ceremony on Thursday as he was leading the tributes by singing at the Liverpool funeral of British entertainer Cilla Black, before jetting to Faro that evening.
According to the Albufeira Mayor, the gesture of handing the key to the city to Sir Cliff is a way of “recognising the strong contribution the artist has made to the development and promotion of the city.”
Sir Cliff Richard first fell in love with Albufeira after holidaying there in 1961, and purchased his first home in the city that same year.
Back in 2013, Sir Cliff told The Portugal News of his love for Albufeira, saying: “If I was going to sell up everything, which will probably happen one day, this would be the last place.”
The singer was the first pop or rock artist to be knighted by the Queen and also fulfilled a life-long dream of creating his own wine, Vida Nova, in Albufeira.
On Sunday morning, Sir Cliff will be a guest on the Owen Gee Solid Gold Sunday Show and will be joined by his friend, artist and fellow Algarve lover, Bonnie Tyler.
Sir Cliff Richard had been earmarked to receive the key to Albufeira last August, but decided not to attend the public event.
The decision was made based on the fact that the 74-year-old did not want allegations in the UK and controversial searches at his home in Berkshire to overshadow the event as other local individuals and organisations were also set to receive awards.