These 12 Beautiful Small Towns in Portugal Are Perfect for a Budget-Friendly Escape

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Are you looking for an affordable getaway? Consider Portugal. This European country is a treasure trove of charming small towns that promise memorable and inexpensive getaways. Far from the bustling crowds of Lisbon and Porto, Portuguese small towns offer an enriching glimpse into the authentic Portuguese way of life, brimming with rich history, stunning architecture, and warm hospitality.

Looking for Portuguese destinations that will be gentle on your pocket? Whether you’re seeking picturesque coastal retreats, quaint medieval villages, or vibrant cultural hubs, these 12 beautiful small towns in Portugal will captivate your heart and provide a fun escape without breaking the bank.

Óbidos, Leiria

Castles in Portugal Castle of Obidos, Obidos — © dudlajzov / Adobe Stock

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Nestled on a hilltop and encircled by ancient walls, Óbidos is a picturesque medieval town that feels like stepping back in time. Its well-preserved castle, narrow cobblestone streets, and charming whitewashed houses adorned with colorful flowers create a fairy-tale ambiance.

One of the best ways to appreciate Óbidos is by walking along its fortified walls. This elevated path provides panoramic views of the town and the rolling hills beyond, especially mesmerizing during sunset. The Castelo de Óbidos dominates the town’s skyline and offers breathtaking views of the surrounding countryside.

A daily budget of $143- $301 is sufficient for a budget-conscious traveler. Couples can get around on a budget of $321-544 per day. This includes accommodation in a budget hotel or guesthouse, meals, and entrance fees to major attractions.

Sintra, Lisbon

Underrated Destinations in Portugal Sintra — © Yasonya / Adobe Stock

Sintra, a UNESCO World Heritage site, is a treasure trove of architectural wonders and natural beauty. Among this municipality’s landmarks is the National Palace of Pena. This colorful palace perched on a hilltop offers sweeping views of the surrounding landscape. Its vibrant façades and whimsical design elements make it a must-visit.

Quinta da Regaleira opened in 1912 and is another tourist site worth visiting. The castle features Gothic Revival architecture and has an enchanting garden filled with underground tunnels, grottos, and the famous Initiation Well.

In Sintra, a daily budget of as low as $124 can cover accommodation, meals, local transport, and entrance fees to some popular attraction sites.

Évora, Alentejo

Cities in Portugal Evora — © Rh2010 / Adobe Stock

Évora is a town steeped in history. Its well-preserved old town showcases a blend of Roman, Gothic, and Baroque architecture. This city is ideal for budget-conscious travelers looking to immerse themselves in Portugal’s rich heritage. A daily budget of around $117 is manageable, covering accommodation, food, and local transportation.

The 1st century AD Roman Temple of Évora is among the tourist sites that can be admired freely. For a small entrance fee, you can tour the Chapel of Bones, which is decorated with human skulls and bones. This is a site you should not miss during your trip to this town.

Tavira, Algarve

Tavira’s relaxed atmosphere and affordability make it an ideal destination for a peaceful getaway. A budget of $1,385 is sufficient for a month-long getaway in this town. This includes rent in a decent holiday apartment, food, and transport.

Budget aside, Tavira has a lot of charming spots to explore. The Castle of Tavira is among the town’s unmissable landmarks. Visitors climb the castle’s towers and ramparts for superb views of Tavira. Moreover, there’s a botanical garden where you can admire pretty flowering trees and shrubs or just relax after a long day of exploration.

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Igreja de Santa Maria do Castelo also lures tourists from far and wide. This Renaissance-style Catholic church is proof of Tavira’s rich religious history.

Monsaraz, Alentejo

Castles in Portugal Monsaraz Castle, Evora — © dudlajzov / Adobe Stock

Monsaraz is a tiny hilltop village that offers breathtaking views and a sense of timelessness. Its narrow streets, whitewashed houses, and medieval castle make it a must-see destination in Alentejo. As it is one of the budget-friendly destinations in Portugal, you will not dent your bank account while holidaying here. Expect to spend around $10 to $30 daily for entrance fees to local attractions.

The village’s focal point is the Monsaraz Castle. Climb its ancient walls for panoramic views of the surrounding countryside and the Alqueva Dam, one of the largest artificial lakes in Europe.

You can also join the inexpensive wine-tasting tours in and around this municipality.

Cascais, Lisbon

Once a fishing village, Cascais has evolved into an irresistible seaside resort town. It offers a delightful blend of cultural attractions, beautiful beaches, and a lively marina.

For your exploration, don’t miss the Boca do Inferno, or “Mouth of Hell,” a dramatic cliff formation where the waves crash with great force. It’s a spectacular natural sight and a popular spot for photography. Museu Condes de Castro Guimarães is another tourist site worth your time. This Revivalist-style museum showcases thought-provoking paintings and old books any literature and art enthusiast would love. The museum’s picturesque location by the sea adds to its charm.

Cascais is home to several beautiful beaches, but Praia da Rainha stands out for its intimate setting and clear waters. For a two-week getaway, two budget travelers can expect to spend around $3,200, including accommodation, food, and sightseeing fees.

Lamego, Viseu

Lamego offers an authentic slice of Portuguese life without breaking the bank. With a monthly budget of about $1,105 per person, you can immerse yourself in the city’s old-world charm and rich history.

Perched atop the craggy slopes of the Douro Valley, Lamego offers a taste of small-town Portugal. Its medieval center charms with winding cobblestone lanes and sun-baked plazas with baroque churches and manor houses. You can visit the 18th-century Sanctuary of Nossa Senhora dos Remédios chapel, one of Portugal’s most popular Baroque wonders.

After visiting the chapel, drop by Museu de Lamego, which features paintings and sculptures from local artists.

Aveiro, Aveiro

Imagine strolling through charming canals, crossing picturesque bridges, and admiring colorful moliceiro boats. This is what Aveiro, the “Venice of Portugal,” is about. This lovely town offers a glimpse into traditional Portuguese life.

You can rent a moliceiro (gondola-style boat) and meander through the crisscrossing canals of the Ria de Aveiro lagoon. The brightly painted boats are a typical Aveiro experience; you will like them, and so will your Instagram feed.

Take your adventure here a notch higher by sampling Aveiro’s signature treat – ovos moles (soft eggs). These rich, eggy delights come in a crispy wafer shell, perfect for foodies who like exploring new tastes.

Besides tranquil canals and mouth-watering cuisine, this city is known for its affordable prices. Cost-conscious tourists can tour the city on a daily budget of $38-$164.

Viana do Castelo, Minho

Beaches in Portugal To Live Viana do Castelo, Norte — © Fotokon / Adobe Stock

Viana do Castelo offers an authentic Portuguese experience without draining your travel fund. Here, you can wander, eat, and soak up the seaside charm on a shoestring.

Viana has several beautiful beaches, such as Praia do Cabedelo and Praia do Coral. You can relax on the soft sand or dip in the refreshing Atlantic waters. Best of all – it’s free! If you are into surfing, don’t miss out on Praia de Afife and Praia da Arda.

Seafood is king here, with dishes such as arroz de marisco (seafood rice) and caldeirada (fish stew). Also, be sure to sample caldo verde (potato and kale soup) or sarapatel (blood sausage and pork offal). Wash it all down with vinho verde, the crisp, slightly fizzy local wine.

Elvas, Portalegre

With its friendly, authentic feel and lack of crowds, Elvas makes a charming and budget-friendly base for exploring this lesser-visited corner of Portugal. In Elvas, tourists can access diverse accommodations, including hotels and villas, for as low as $48.

That aside, this compact municipality packs a mighty punch, with its star attraction being the immense fortifications and defensive walls surrounding the city. Elvas’s 17th-century Vauban-style fortifications are a UNESCO World Heritage site and among the finest examples of military architecture from that era. You’ll be wowed walking the 6.2-mile (10-kilometer) star-shaped walls, passing the impressive bulwarks and bastions.

Amarante, Norte

12 Fairytale Villages in Portugal You Have To See To Believe Amarante — © milosk50 / Adobe Stock

In the heart of northern Portugal, Amarante is a delightful small town with a rustic charm. Its iconic landmark is the 18th-century Ponte de São Gonçalo, a striking arched bridge that spans the Támega River.

Wander through the charming historic center, where you’ll find the Igreja de Sao Goncalo church and the Solar dos Magalhães, a beautifully preserved 17th-century manor house.

If you are an outdoor enthusiast, go on a kayaking adventure along the Támega River, enjoying the stunning riverbank scenery. Fortunately, a couple can tour Amarante for two weeks with a budget of less than $1,000.

Cacela Velha, Algarve

This authentic Portuguese gem feels worlds away with its charming whitewashed houses, cobblestone streets, and laid-back vibe. Perched atop sea cliffs, the village offers stunning views of the Atlantic stretching as far as the eye can see.

Cacela Velha moves at an unhurried pace – the perfect escape from the stresses of life. You can spend lazy afternoons relaxing on the soft golden sands of Praia de Cacela Velha, an uncrowded beach just a short walk from the village. As the sun sets, join locals for a seaside stroll along the cliffside path, offering gorgeous views.

Best of all, this town is a perfect destination for budget-conscious tourists. You can enjoy a month-long holiday here for around $992.