The resort town built inside an extinct volcano: pleasant climate all year round

Poços de Caldas, in the southern part of the state of Minas Gerais, Brazil, is built on one of the most unique geological formations on the planet, as it developed inside a volcanic caldera surrounded by mountains.

Located at an elevation of around 3,890 feet, the city has a strong thermal spa tradition, a well-established tourism industry, and notable socioeconomic development. These factors have led it to rank first in the 2025 Firjan Municipal Development Index.

The city sits on a volcanic caldera formed around 80 million years ago during the Cretaceous period, the result of complex geological processes. This volcanic structure covers approximately 290 square miles but there is no danger to the inhabitants as the volcano is now extinct.

The mountain ranges surrounding the area are actually the edges of the ancient caldera. Volcanic activity ceased millions of years ago, and scientists consider this formation extinct with no risk of reactivation. This geology has given rise to sulfur-rich waters, as well as deposits of bauxite, uranium, and rare earth elements, along with fertile soils that support the production of specialty coffee.

Population: 171,533

As of 2024, the population was approximately 171,533 residents. The municipality has a strong healthcare network, higher education institutions, and an economy based primarily on services, commerce, and tourism.

This environment encourages many visitors to settle in the city, drawn by its mild climate year-round and well-developed infrastructure. Its “high” Human Development Index of 0.779, calculated in the 2010 census, remains the current official reference.

The city is especially connected to its mineral springs, which have fueled the development of a hydrothermal spa industry focused on wellness and relaxation tourism. The Termas Antonio Carlos remains one of its most iconic landmarks.

If you are wondering about the best time to visit, its high-altitude climate ensures mild temperatures throughout the year, with an average of 64°F. However, the dry winter season is typically the busiest time, although each season offers its own appeal.

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