Portugal has long held a reputation as Western Europe's affordable gem, but with rising tourism and global inflation, many travelers wonder if it still deserves this status in 2025. While prices have certainly increased in recent years, Portugal continues to offer remarkable value compared to its European neighbors—if you know where to go and how to spend.
The Current State of Travel Costs in Portugal
Portugal remains one of Western Europe's more affordable destinations, especially when venturing beyond the tourist hotspots of Lisbon and Porto. According to recent travel data, daily budgets can range from €50-70 for budget travelers to €100-150 for those seeking more comfort.
However, the picture isn't quite as rosy as it was five years ago. Tourism has boomed, particularly in major cities and the Algarve region, driving up prices for accommodations and dining. A coffee that once cost €0.70 might now set you back €1.20 in Lisbon, while mid-range restaurant meals have climbed from €10-12 to €15-20 in tourist areas.
"Portugal is still one of the more affordable countries in Western Europe — and especially when you travel outside of Lisbon and Porto," notes travel blogger Lauren from Never Ending Footsteps in her 2025 budget breakdown.
Where to Find the Best Value
The key to budget-friendly Portuguese travel lies in looking beyond the obvious destinations:
Lesser-Known Coastal Towns
Instead of the packed beaches of the Algarve, consider alternatives like Sesimbra, Nazaré, or Póvoa de Varzim. These coastal gems offer authentic experiences at significantly lower prices. In Nazaré, for instance, you can still find guesthouses for under €50 per night and seafood meals for €10-15, even during shoulder season.
Central Portugal
The country's interior regions remain surprisingly affordable. Cities like Coimbra, Évora, and Viseu offer rich cultural experiences, beautiful architecture, and local cuisine at prices that will remind you of Portugal's reputation for value.
One Reddit traveler shared: "With 6 days left, I would drive up to Porto, so beautiful and cheap. You only need 3 days there and then you can go to Douro Valley for wine tasting."
How Much Should You Budget?
For a 7-day trip to Portugal in 2025, budget travelers should plan for approximately €700-900 per person (excluding flights), while mid-range travelers might spend €1,200-1,500. This includes accommodation, food, local transportation, and activities.
Here's a rough daily breakdown:
- Budget accommodation: €30-50
- Meals: €20-30 (mixing grocery shopping with affordable restaurants)
- Local transportation: €5-10
- Activities/sightseeing: €10-15
Can You Still Travel Portugal on a Tight Budget?
Yes! Despite rising costs, budget travel remains possible with these strategies:
Timing Is Everything
Visit during shoulder seasons (April-May or September-October) when weather is pleasant but prices drop significantly. A Lisbon hostel bed that costs €30 in August might be just €15-20 in October.
Free and Low-Cost Experiences
Many of Portugal's best experiences cost little or nothing. Free walking tours operate in most cities, beaches are public, and many museums offer free admission on certain days. Lonely Planet notes that "many hostels also offer budget-friendly activities, like free walking tours."
Eat Like a Local
The "menu do dia" (daily menu) remains one of Portugal's best values, typically offering a three-course meal with wine for €10-15 outside tourist zones. Markets like Lisbon's Mercado da Ribeira provide affordable food with local flavor.
The Verdict: Still Budget-Friendly, With Caveats
Portugal hasn't escaped global inflation and tourism's impact on prices. It's no longer the ultra-cheap destination it once was, but compared to France, Italy, or Spain, it continues to offer excellent value. The key is venturing beyond Instagram-famous spots and embracing a more authentic Portuguese experience.
As one recent Reddit traveler put it: "We mostly walk everywhere, survive on street food/takeaway drinks. We don't mind cheap accommodation, as long as it's clean and safe."
With thoughtful planning and flexibility, Portugal still delivers one of Europe's best combinations of quality and affordability in 2025.