The Vila of Soajo is located inside the boundaries of Portugal's only national park (Parque Nacional Peneda-Geres). The Park has an area of 702.90 km², 52.75 km² of which is public property, 194.38 km² is private property, and the remaining 455.77 km² are commons. Jurisdictionally, Soajo belongs to the County of Arcos de Valdevez, approximately 20km to the West, and to the District of Viana do Castelo, which is 60km to the West.  The City of Viana do Castelo, the capital of the district, is Portugal's northern-most port city the coast of the Atlantic Ocean. Soajo is located in the Viana district's mountainous area of Alto Minho. Bordering Soajo to East is the Ourense, Galicia (Spain) district. Soajo is one of the main points of entry into Portugal, separated by the River Castro Laboreiro.  

Soajo is the largest village in Valdevez County covering a territorial area of 59.1 square kilometers. Located to the North of Soajo are the villages of Gavieira, Cabreiro (Valdevez County) and Castro Laboreiro (Melgaço County).To the East is Galicia, Spain.  In the South are the villages of Lindoso, Britelo (Ponte Barca County) and Ermelo (Valdevez County). To the West are the villages of Gondoriz, Cabana Maior and Vale (Valdevez County).  Although located in the high mountains of the Serra de Soajo (1,416 meters tall), the Vila de Soajo is relatively close in proximity to three of northern Portugal’s major urban centers, namely Viana do Castelo (60km), Braga (55km) and Porto (110km).