So, you want to travel Europe without selling a kidney? Good news: Portugal is your golden ticket. While France will drain your bank account faster than you can say “croissant,” Portugal lets you sip wine, eat seafood, ride trains, and stay in charming towns—without going broke.
I’ve traveled Portugal on a shoestring (and yes, I still splurged on pastel de nata daily—don’t judge), and I can confirm: this country is ridiculously good value. Whether you’re backpacking or just trying to keep costs down, Portugal proves you don’t need billionaire status to live your best European summer.
Let’s break down exactly how to travel Portugal on a budget—without sacrificing fun.
Why Portugal Is Europe’s Budget-Friendly Star
Here’s the deal: Portugal isn’t just “cheap” for Europe, it’s affordable without feeling cheap. You still get the stunning views, world-class food, and charming cobblestones—but at a fraction of the price of Paris, Rome, or Barcelona.
- Meals out? A hearty plate of bacalhau (codfish) with wine can cost less than €12.
- Public transport? Intercity trains often run under €15.
- Accommodation? Hostels are trendy and boutique-like, and even mid-range hotels don’t break the bank.
The best part? You never feel like you’re missing out just because you’re budgeting. Portugal gives you luxury vibes… on a backpacker’s wallet.
Budget Travel Basics in Portugal
Daily Budget Breakdown (per person)
Here’s what you can expect on different budgets:
- Backpacker (€35–50/day): Hostels, budget meals, public transport, free attractions.
- Mid-range (€60–100/day): Airbnbs or guesthouses, mix of local restaurants, some tours.
- Comfort (€120+/day): Boutique hotels, nicer meals, private excursions.
Even at the low end, you can eat well and see a ton.
Cheap and Delicious Eats
Food is where Portugal shines. Honestly, I still dream about the meals I had there.
What to Eat on a Budget
- Pastel de nata: Flaky custard tarts that cost less than €1 each. Warning: you’ll eat five.
- Menu do dia: Many restaurants offer a fixed-price lunch (starter, main, drink, sometimes dessert) for €8–12.
- Francesinha: Porto’s giant meat-and-cheese sandwich smothered in sauce. Not elegant, but unforgettable.
- Seafood rice (Arroz de Marisco): Pricey elsewhere in Europe, but affordable in Portugal.
Street Food & Markets
Markets like Time Out Market (Lisbon) or Mercado do Bolhão (Porto) let you sample dishes for a fraction of restaurant prices. Perfect for grazing without overspending.
Pro tip: Avoid restaurants with menus in six languages and photos of the food. Stick to family-run taverns where grandma is cooking in the back.
Affordable Places to Stay
Accommodation is where Portugal gives you options.
Hostels
Portugal has some of the best hostels in Europe. They’re clean, stylish, and social. Think rooftop bars, free walking tours, and even free breakfasts. Lisbon and Porto are hostel heaven.
Guesthouses & Pensions
These are basically budget hotels, often family-run. Cozy, charming, and usually come with breakfast included.
Apartments
Airbnb or local rentals are a steal, especially if you’re traveling as a pair or group. Bonus: you can save money cooking your own meals.
Budget tip: Book early in summer—Portugal is no longer a “hidden gem.”
Getting Around Without Going Broke
Trains
- Affordable, scenic, and comfy. Lisbon–Porto can be under €20 if you book in advance.
- Regional trains to towns like Sintra or Coimbra are even cheaper (think €3–8).
Buses
Even cheaper than trains, though slower. Great for reaching smaller towns.
Metro & Trams
Lisbon and Porto’s metros are efficient and cheap. A day pass in Lisbon is €6.60 (and yes, it includes the iconic tram 28).
Car Rentals
Renting a car is pricier but worth it if you want to explore the Algarve’s beaches or Douro Valley’s vineyards. Pro tip: book early and get the smallest car possible—those medieval streets weren’t designed for SUVs.
Free & Cheap Things to Do in Portugal
Who says travel has to cost a fortune? Portugal is full of amazing free or cheap activities.
- Lisbon’s viewpoints (miradouros): Free panoramic views across the city. Miradouro da Senhora do Monte is my personal favorite.
- Porto’s Ribeira District: Wandering cobblestone streets costs nothing—and is arguably the best part of Porto.
- Beaches in the Algarve: Sun, sand, and surf—all free.
- Sintra’s old town: Stroll for free, splurge on one palace (I recommend Pena Palace).
- Coimbra’s University: Beautiful architecture and history—entry fees are low.
Pro tip: Many museums are free on Sunday mornings.
Portugal on a Budget by Region
Lisbon on a Budget
Lisbon is a wallet-friendly capital compared to the rest of Europe.
- Stay in hostels or Alfama guesthouses.
- Take tram 28 early in the morning to skip crowds.
- Eat in Mouraria or Graça neighborhoods—cheaper and more authentic than Baixa.
Porto on a Budget
- Sample €2 glasses of port wine at small cellars.
- Cross the Dom Luís I Bridge for free skyline views.
- Stay in Ribeira hostels with river views (seriously, they’re affordable).
The Algarve on a Budget
- Skip the resorts—stay in guesthouses in towns like Lagos or Tavira.
- Beaches are free, so beach-hop to your heart’s content.
- Take local buses instead of tours.
Douro Valley on a Budget
- Day-trip from Porto by train (cheap and scenic).
- Visit small, family-run wineries for affordable tastings.
- Pack a picnic instead of eating at fancy vineyard restaurants.
Budget Travel Tips for Portugal
- Travel off-season: Spring (April–May) or fall (September–October) means lower prices and fewer crowds.
- Eat where locals eat: If it’s packed with tourists, your wallet will cry.
- Book trains early: Advance tickets are always cheaper.
- Learn basic Portuguese phrases: Locals appreciate the effort, and sometimes you get better service.
- Cash is king: Smaller places may not accept cards, so always carry some euros.
Common Mistakes to Avoid
- Only staying in Lisbon and Porto: Portugal’s charm is in the smaller towns.
- Overpacking your itinerary: The trains are good, but don’t try to cram six cities into five days.
- Underestimating the hills: Lisbon and Porto both have serious hills. Pack comfy shoes.
- Not booking in advance (summer): Prices shoot up, especially in the Algarve.
FAQs
Q: Is Portugal really the cheapest country in Western Europe?
Yes. Spain comes close, but Portugal wins for food, transport, and accommodation.
Q: How much should I budget per day?
€40–50 for backpackers, €70–100 for mid-range travelers.
Q: Is Portugal safe for budget travelers?
Absolutely. Pickpocketing happens in touristy areas, but overall it’s very safe.
Q: Can I travel Portugal without a car?
Yes, trains and buses cover most routes. Only rent a car if you want flexibility in rural areas.
Final Thoughts
So, is Portugal really Europe’s most affordable country? Absolutely. You can sip wine in Porto, watch sunsets in the Algarve, explore palaces in Sintra, and eat your weight in custard tarts—all without blowing your budget.
If you’re choosing between Paris, Rome, or Lisbon for your next trip, let’s be real: your wallet will thank you for Portugal. And honestly, your stomach will too.
One last tip—if you’re traveling Portugal (or anywhere in Europe), don’t skip travel insurance. Trains get delayed, luggage goes missing, and seafood feasts sometimes backfire (yep, learned that the hard way).
Pack light, eat big, and let Portugal prove that budget travel can still feel luxurious.