Raids were carried out on streets in the Algarve cities of Lagoa and Portimão, which were the culmination of an investigation into suspicious activity involving drugs.
Thirteen search warrants were issued for the raids – 11 house searches and two on vehicles – carried out late last Wednesday night.
One of the raids took place on Rua António Libório in Lagoa, although locals say it went largely unnoticed.
The large-scale operation involved a total of 104 GNR police officers, who seized 15 kilos of hashish from one of the men arrested.
Another four suspects, aged 28 to 48, were formally identified, as well as the two men, aged 27 and 35, who are being held in police custody.
One of the suspects is subject to periodic check-ins at his local police station and prohibited from making certain contacts and frequenting specific places.
Over 31,000 individual doses of hashish and 51 doses of cocaine were seized, along with two cars, over €5,000 in cash, and electronic equipment, among other items.