Portugal is still one of western Europe's better value countries, with an important qualification: Lisbon detached from the rest of it on price over the decade to 2024, and the national averages no longer describe the capital.
The price gap
| Lisbon | Porto | Coimbra / interior | |
|---|---|---|---|
| Hostel dorm | €20–35 | €15–25 | €12–20 |
| Mid-range double | €90–160 | €70–110 | €45–75 |
| Prato do dia | €9–13 | €8–11 | €7–10 |
| Dinner out | €15–25 | €12–18 | €10–15 |
| Daily total | €65–90 | €50–70 | €40–55 |
Porto is the better base for a budget trip. It has an equally good old town, the port lodges across the river, the Douro line starting from São Bento, and costs 25–30 percent less.
The prato do dia
The single most useful thing to know about eating in Portugal.
Weekday lunch, a main course with bread and often soup and a drink, €8–13 at ordinary restaurants. Look for a handwritten board outside; it is frequently not advertised in English.
Eating the main meal at lunch and something small in the evening cuts the food budget nearly in half, and the food is better because the kitchen is cooking for regulars rather than visitors.
Two other habits: an espresso standing at the counter is €0.70–1.00, and supermarket wine at €4–8 is genuinely good.
Trains
| Leg | Time | Cost |
|---|---|---|
| Porto → Lisbon (AP) | 2h45 | €25–35 ahead |
| Porto → Pinhão (Douro) | ~2h | €13–15 |
| Lisbon → Sintra | 40 min | €2.30 |
| Lisbon → Lagos | ~4h | €22–30 |
| Porto → Coimbra | 1h10 | €15–22 |
Book Alfa Pendular a week or more ahead — walk-up fares are roughly double. The slower Intercidades is cheaper if time is not tight.
The Douro line to Pinhão is the best value scenic journey in Portugal: two hours for under €15, with the final 45 minutes running beside the river through terraced vineyards.
Where the money goes further still
Coimbra — the old university city, cheap, with a student population keeping prices down.
The Alentejo — Évora and the walled hill towns, at roughly half Lisbon prices. Needs a car for the smaller villages.
The Serra da Estrela — Portugal's mountains, almost no visitors, and guesthouses at €45–70.
Braga and Guimarães — historic, close to Porto, and cheap.
Two costs that catch people
Couvert. The bread, olives and cheese put on your table are charged if eaten — typically €2–5. Normal practice, not a scam, and waving them away is entirely acceptable.
City tax of €2 per person per night in Lisbon and Porto, charged at check-in and not in the booking price.
When to go
April to June and September to October: warm, everything open, prices below peak.
Winter is cheap and mild on the coast, with one significant caveat — Portuguese buildings are frequently unheated and single-glazed, so a cheap January room can be genuinely cold indoors. Check for heating before booking a winter stay.