12 Budget-Friendly Cities in Portugal To Live Large for Less

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Portugal, with its natural beauty and vibrant atmosphere, is one of the few European countries that remain surprisingly affordable. While it’s a haven for budget travelers, some cities are more expensive than others. This is why you need to know which are the expensive destinations and which are budget-friendly.

Are you a budget traveler seeking a new home? You have nothing to worry about, as we have done the work for you. If you are looking for a destination that will let you enjoy the best Portuguese life without worrying about finances, we have got you sorted out with these 12 budget-friendly cities in Portugal to live in.

Braga, Braga

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This charming city in Northern Portugal offers gorgeous architecture, delicious food, and affordable living. It is a university metropolis with a youthful vibe and a lower cost of living compared to other popular cities in Portugal. Rent and dining out won’t break the bank here. You can find a one-bedroom apartment for around $536 a month and enjoy a meal with wine for under $20.

Braga is also a cultural and religious hub, home to the oldest cathedral in Portugal. With a history spanning 2,000 years, Braga has no shortage of historical sites, museums, and churches to explore. Don’t skip the picturesque Praca da Republica town square surrounded by arched walkways.

Coimbra, Coimbra

Endowed with stunning scenery, centuries of history, and a vibrant cultural scene, Coimbra offers an alluring yet budget-friendly getaway. As the original capital of Portugal for over 100 years, Coimbra has all the amenities you will need but remains reasonably priced. It is also home to one of the oldest universities in the world, the University of Coimbra, founded in 1290.

The Mondego River winds through Coimbra, and its banks are a perfect place to unwind.

As night falls, head to a fado bar to hear Portugal’s soulful traditional music. Fado was born in Coimbra, and the city remains an important center for the genre. Shows often take place in Fado ao Centro, a live music venue that provides an enchanting ambiance for an evening out.

Aveiro, Aveiro

Known as the “Venice of Portugal,” Aveiro is a beautiful city set on a lagoon. Boasting scenic canals, colorful boats, and an affordable cost of living, it’s easy to see why Aveiro attracts expats and retirees.

Rent and housing costs in Aveiro are well below the national average. A 480-square-foot one-bedroom apartment in a normal area of the city costs an average of $532 per month.

For nature lovers, Aveiro is a paradise. The Aveiro Lagoon is bordered by beaches, dunes, and pine forests. Moreover, the city has numerous parks and green spaces that make it feel open and livable. Being home to the University of Aveiro, a public university founded in 1973, this city also has an energetic, youthful vibe.

Viseu

Viseu is a charming city surrounded by vineyards, forests, and mountains. Despite its natural beauty and historical significance, Viseu remains an affordable place to call home. Rent in Viseu is budget-friendly, as a one-bedroom apartment outside the city center costs around $494 monthly. The cost of living here is lower than in most major cities in Portugal, mainly due to the abundance of fresh produce, wine, and olive oil made in the surrounding area.

That aside, Viseu offers many opportunities for outdoor recreation. You can spend your days exploring the cobblestone streets of the historic city center, which features attractions like the Viseu Cathedral and Igreja da Misericordia. Or head to the banks of the Pavia River, a popular spot for hiking, cycling, and picnics.

Evora

Nestled in the heart of the Alentejo region, Evora is a charming city with a well-preserved historic center recognized as a UNESCO World Heritage Site. Templo Romano Évora, a Roman temple dating back to the 1st century, is among the top attractions worth visiting in the city.

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Evora combines small-town charm with a rich history and culture. Its affordability and proximity to nature reserves make it an appealing choice if you want to enjoy life in Portugal without exorbitant costs. You can find a one-bedroom apartment in Evora’s city center for around $512 monthly. Head 10 to 15 minutes outside the city center, and rent drops by $140 to $200 for a comparable place.

Leiria

Located north of Lisbon, Leiria offers an authentic slice of Portuguese life without the high costs of living in the capital. You can rent a one-bedroom apartment in Leiria for around $615 per month. Groceries and dining out are also affordable. You will also like its efficient bus system, which is perfect for getting around the city without a car.

At the same time, Leiria has impressive attractions. Castelo de Leiria, originally built in the 12th century, is an excellent place to admire this city’s Medieval architecture. The countryside surrounding Leiria is also attractive, with beaches, vineyards, and pine forests within easy reach. Leiria has a nice balance of city amenities and a relaxed pace of life, making it a perfect destination to relocate to.

Guimarães

Often called the “birthplace of Portugal,” Guimarães was the first capital of Portugal in the 12th century. Today, its charming cobblestone streets, picturesque plazas, and medieval architecture make it a popular spot for visitors and expats.

The cost of living in Guimarães is lower than in Portugal’s major cities, but it still offers a high quality of life. Rent for a one-bedroom apartment in the city center averages around $686 to $867 monthly.

Culture vultures will love Guimarães. It hosts many festivals, especially in the summer. St. John’s Eve festivities in June, which feature folk music, dancing, and fireworks, is one festival you will love experiencing.

Tomar

Steeped in history yet refreshingly unpretentious, this city along the Nabao River is among Portugal’s best-kept budget secrets.

Originally built as a stronghold for the Knights Templar, Tomar’s historic center is dominated by the Convent of Christ, a UNESCO World Heritage site and one of Portugal’s most important monuments. Outside the convent, wander the narrow cobblestone streets of Tomar’s old town, lined with colorful houses and cafés.

Besides its laid-back vibe and scenic natural surroundings, Tomar offers an inviting escape at an affordable price. Rent starts at around $500 per month for a two-bedroom furnished apartment, while food expenses for two people are about $400.

Castelo Branco

The cost of living in Castelo Branco is almost 25% lower than that of Portugal’s major cities, yet it still offers stunning natural scenery and a relaxed vibe. This inland city is home to the 13th-century Castelo Branco Castle, a perfect spot to take in views of Castelo Branco from an elevated point.

While the Portuguese summers can be hot, this city’s higher elevation provides cooler temperatures for most of the year. The spring and fall shoulder seasons may be the best times to enjoy the city without the crowds.

Besides that, the affordable cost of living in Castelo Branco means your savings will stretch further. Rent for a one-bedroom apartment in the city center is around $334 per month. A meal in an inexpensive restaurant costs about $7 -$10.

Beja

Life in Beja moves at a slower pace, allowing tourists and residents to soak in the city’s history and natural beauty. Despite its small size, Beja has remnants of its long history, including the 14th-century Beja Castle. The castle sits on a hill and offers panoramic views of the landscaped gardens nearby.

The affordable cost of living and mild Mediterranean climate make Beja an attractive place to settle. You can rent a cheap one-bedroom apartment for under $300 per month. Fresh, locally-grown produce is also abundant and inexpensive.

Outdoor enthusiasts will enjoy Beja’s surroundings, perfect for hiking, cycling, and bird-watching.

Faro

If you’re looking for an affordable, culturally rich city to call home, consider Faro, an enchanting coastal destination in the beautiful Algarve region. Its vibrant yet laid-back vibe, natural beauty, and low cost of living may just win you over.

Rent in Faro is lower than in many other European cities, especially compared to popular destinations in Portugal, including Lisbon. In Faro’s city center, a one-bedroom apartment costs around $500 to $800 per month.

Faro has a charming Old Town enclosed by medieval walls. Cobbled streets feature outdoor cafes, art galleries, and the historic Faro Cathedral. While summer brings many tourists, the shoulder seasons of spring and fall can be ideal for experiencing Faro like a local.

Caldas da Rainha

Popular for its hot springs and artisanal ceramics, Caldas da Rainha is an affordable city in central Portugal worth considering. Its thermal baths have sulfuric waters renowned for their healing properties. In addition, the baths are beautiful places to relax on a sunny day.

In the city center, stroll down the main pedestrian street, Rua de Olivença, lined with shops, cafes, and beautiful buildings. Check out the local pottery stores, as Caldas da Rainha is known for its long tradition of pottery production. Ensure to also spare time for Museu da Cerâmica, a museum in a 19th-century manor house exhibiting ceramics from Portugal and other parts of the world.