Portugal, republic in south-western Europe, situated in the western portion of the Iberian Peninsula, bordered on the north and east by Spain and on the south and west by the Atlantic Ocean. The Azores and Madeira Islands in the Atlantic are considered integral parts of the republic. The total area of metropolitan Portugal, including the Azores (2,335 sq km/902 sq mi) and the Madeira Islands (796 sq km/307 sq mi), is 92,082 sq km (35,553 sq mi). Portugal has one overseas territory, Macau (Macao), in eastern Asia near Hong Kong. The capital of Portugal is Lisbon.