MyPortugalHoliday.com
The best independent guide to Portugal
MyPortugalHoliday.com
The best independent guide to Portugal
Where to go in Portugal? - Top 10 Portugal – Portugal's best beach – 1 week suggestions – A weekend in Portugal
Portugal Budget Travel Guide: Essential Tips for Budget Travelers
Portugal is an excellent holiday destination, especially if you're travelling on a tight budget or are a backpacker. It is one of the cheapest countries in Western Europe and remains a great budget destination - so long as you know how to travel inexpensively.
Portugal's appeal to budget travellers lies in its combination of cheap public transport, reasonably priced accommodation and affordable dining options. However, to make the most of these budget-friendly aspects, it's important to plan ahead and book in advance, especially for accommodation during the peak season.
This article will provide a guide to visiting Portugal on a budget, with practical tips on how to make your money go further. You'll find advice on finding cheap accommodation, eating out inexpensively and finding low cost activities.
Travel like a local, not act like a tourist…
Portugal can be an inexpensive country for a holiday, largely due to the low minimum wage of €820 per month. This figure that's particularly striking when you consider the high cost of renting in places like Lisbon and the Algarve.
The key to an inexpensive holiday in Portugal is to live like a local rather than act as a tourist. Travel by public transport, shop at local markets and eat in cafés or supermarkets.
It's very possible to visit Lisbon or Porto on a budget of €45 a day (€22 for a dorm room, €15 for food, and €8 for entertainment and transport) or to find an off-season holiday in the Algarve for less than €350 (for two people, one week, including flights and accommodation).
Insight: English is much more widely spoken in Portugal than in Spain, France or Greece, so language will rarely be a barrier when trying to live like a local. This can make it easier for you to navigate local services and find budget-friendly options.
The season is important for budget Portuguese travel
Portugal, along with the whole of southern Europe, is a summer holiday destination. At the height of the summer, flights will be at their most expensive, hostels and hotels fully booked, and good value rental rooms and villas sold out
If you're forced to have a holiday in the summer due to work or school commitments, always book everything as far in advance as possible.
Another summer tip is to look for lesser-known holiday locations, or places where the Portuguese go on holiday. Why head to the expensive Algarve when the western Portuguese coastline offers much better value.
Consider places such as Sesimbra, Nazaré, Espinho, Costa Nova or Póvoa de Varzim. These destinations often provide a more authentic experience and can be significantly cheaper than the popular tourist hotspots, while still offering beautiful beaches and charming coastal towns.
Spring or late autumn are much cheaper seasons to visit Portugal. May and June are great for a beach holiday, while October is ideal for a city break or touring holidays. Lisbon and Porto are bustling cities that can be visited almost all year round, as long as you're prepared for the occasional rainy day in winter.
During these shoulder seasons, you'll find fewer crowds, more affordable accommodation, and pleasant weather for sightseeing. The beaches may not be as warm as in peak summer, but you'll still enjoy pleasant temperatures for outdoor activities.
If you're flexible with your travel dates, visiting during these off-peak periods can significantly reduce your overall costs, while still allowing you to enjoy all that Portugal has to offer.
Budget and Hostel accommodation
Portugal has a wide range of excellent hostels and budget hotels. The key with them is to book them as far in advance as possible. Dorm rooms typically cost €15-35 in the major cities, and the standards are generally high. Always check reviews, as there are substandard places that cater specifically to migrant workers.
For reviews we always trust booking.com, even if you do not decide to book with them, as their reviews are written by visitors who have actually stayed there. When booking a hostel, always check the proximity to public transport and major attractions.
It would be impossible to list all of the best hostels in Portugal but some of our favourites are (the links are to booking.com):
Lisbon
Home Lisbon - The best hostel in Lisbon with a welcoming atmosphere ideal for female travellers
Yes Lisbon - A popular hostel with a lively atmosphere
Lost Inn Lisbon - A characterful hostel set in a historic building
Sunset Destination - Fantastic location and with roof swimming pool terrace
Porto
The Passenger Hostel - Located within the São Bento Station this hostel - modern amenities and historic charm
The Central House Porto Ribeira - This hostel provides a friendly atmosphere and easy access to Porto's main attractions.
Best Guest Porto Hostel - Known for its excellent location in the heart of Porto
Lagos
Lagos is a popular budget beach destination in the Algarve and decent hostel options include Boutique Taghostel, Olive Hostel and Orange3 Hostel.
Budget travel and transport for Portugal
Traveling around the Portugal can be inexpensive, especially when using the low-cost bus services between major cities. Most major towns have the options of either train travel and express buses, and usually bus travel is the cheaper option.
There are two main express bus companies in Portugal; Rede Expressos and FlixBus. Rede Expressos is the largest express bus company of Portugal and have routes to every town within the country. FlixBus are a low-cost operator who provide many services along popular routes.
For train travel, Comboios de Portugal (CP) operates the national railway network. While often more expensive than buses, trains are more comfortable for longer journeys.
As a budget traveller Flix bus should be the first operator you look at for cheap tickets, but Rede Expressos have now lowered prices to compete with them. Whichever option you use for travel, it is always advisable to buy tickets directly from the transport operator rather than third-party resellers.
Combioso de Portugal - www.cp.pt
FlixBus - FlixBus
Rede Expressos - rede-expressos.pt
When travelling by bus, always purchase tickets as far in advance as possible for the lowest prices. FlixBus services often sell out during the peak season, and their business model requires buses to be at least 80% full. This can mean your journey may be cramped, and if you're travelling solo, you'll likely sit next to someone.
To reduce costs, FlixBus often do not depart from a town's main bus station. Always check your ticket for the precise departure location to avoid any last-minute stress or missed connections.
Rede Expressos buses are generally less crowded than FlixBus, but they're usually more expensive. However, they typically use the main bus stations, which can be more convenient depending on your travel plan
Eating on a budget in Portugal
With the relative explosion of tourism in Portugal, food and eating out prices have risen, and sadly, some places' standards have lowered.
It is possible to eat very cheaply in Portugal by heading to cafés and tascas. Tascas are small, family-run places that serve traditional Portuguese food at good prices. These are easy to find in smaller towns, but in popular tourist destinations, these types of eateries have been pushed out and replaced by higher-priced establishments.
Local cafés and tascas often serve hearty, traditional meals at reasonable prices. Look for "prato do dia" (dish of the day) specials, which typically include a main course, drink, and sometimes a soup or dessert, all for one price.
Markets are great for picking up fresh, local produce if you're self-catering. Many markets also have food stalls where you can enjoy affordable meals.
Bakeries ("pastelarias") offer inexpensive snacks and light meals. Street food can be a cost-effective option. Look for stands selling bifanas (pork sandwiches) or prego (beef sandwiches).
Remember, lunch is often cheaper than dinner at restaurants, so consider making lunch your main meal of the day to save money.
Also don't hesitate to ask your accommodation staff for their favourite budget-friendly eateries. Often, the best and most affordable meals can be found in unassuming establishments tucked away from the main tourist thoroughfares.
Socialising on a Budget in Portugal
Portugal's warm culture and vibrant social scene make it an ideal destination for budget-conscious travellers seeking to meet people and have fun without emptying their wallets.
Many bars and cafés in Portugal offer "hora feliz" (happy hour) specials, typically between 17:00 and 20:00. During these times, you can often find two-for-one drinks or substantial discounts on beverages, sometimes up to 50% off. Popular areas for happy hour deals include Bairro Alto and Cais do Sodré in Lisbon, and the Ribeira district and Galerias de Paris street in Porto. Keep an eye out for chalkboards outside establishments advertising their specials.
Portugal's cities are renowned for their beautiful viewpoints, known as miradouros, which serve as perfect spots for budget-friendly socialising. Instead of splurging at expensive bars, consider buying drinks from supermarkets or small shops and heading to these scenic locations.
In Lisbon, Miradouro de Santa Catarina and Miradouro de São Pedro de Alcântara are popular choices, while in Porto, Jardim do Morro and Miradouro da Vitória offer stunning views. These spots often transform into lively social hubs as the sun sets, providing a perfect backdrop for meeting fellow travellers and locals alike.
Venturing off the beaten path can lead to more authentic and affordable experiences. Seek out less touristy bars and cafés, often found in residential neighbourhoods away from the main tourist drags.
Money-Saving Tips
Savvy travellers can stretch their budgets further in Portugal with a few practical strategies. One of the easiest ways to cut costs is by getting a local SIM card. Portugal has some of the cheapest mobile data rates in Europe, with 30-day prepaid plans offering generous data allowances for around €10-15.
This can save you a fortune on roaming charges and give you reliable internet access for navigation, translating menus, and looking up budget-friendly spots on the go.
Portugal's cities are dotted with public drinking fountains, many of which are charming historic features. Carry a reusable water bottle with you and fill it up for free as you explore, and ask for a refill when you enter a café.
If you're a student or senior, always ask about discounts when visiting attractions or using public transport. Many museums, galleries, and historic sites offer reduced entry fees for students and seniors, sometimes up to 50% off the regular price. Some cities also provide discounted public transport passes for students and older travellers. Always carry valid ID to prove your eligibility.
Discover the best of Portugal with our guides
A complete list of all of our guides to Portugal
-
