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

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.

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Castles in Portugal Monsaraz Castle, Evora

Monsaraz, Alentejo 1/5

12 Portuguese Beach Towns So Affordable, You'll Wonder Why You Haven't Moved Yet

Tavira, Algarve 2/5

Castles in Portugal Castle of Obidos, Obidos

Óbidos, Leiria 3/5

Évora, Alentejo 4/5

Underrated Destinations in Portugal_Sintra

Sintra, Lisbon 5/5

Results

Monsaraz, Alentejo

3 5

Tavira, Algarve

4 4

Óbidos, Leiria

5 3

Évora, Alentejo

6 2

Sintra, Lisbon

6 2

Óbidos, Leiria

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.

Try the Local Ginjinha: Don’t miss tasting Ginjinha, a local cherry liqueur often served in a chocolate cup—available at small stalls throughout the town.
Visit During the Medieval Fair: If possible, plan your trip around the Óbidos Medieval Festival (July) to experience jousting, traditional food, and medieval-themed entertainment.

Sintra, Lisbon

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.

Wear Comfortable Shoes: Sintra’s attractions are spread across hilly terrain, with cobblestone streets and steep paths, so sturdy walking shoes are essential.
Lunch in Sintra: I dined at Tascantiga, a cozy spot close to Quinta da Regaleira, offering shareable Portuguese petiscos for around €10–15 ($10.95 to 16.42) per person, a great way to refuel before diving back into exploring!

Évora, Alentejo

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.

Explore on Foot: Évora’s compact historic center is best explored by walking, allowing you to take in its charming streets and architectural gems at your own pace.
Chapel of Bones Entry: The Capela dos Ossos (Chapel of Bones) is located inside the Church of St. Francis. Entry costs around €6 ($6.57), and it’s open from 9:00 AM to 5:00 PM. The eerie decor of human bones and skulls is unforgettable.

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.

Castle of Tavira Entry: Visiting the Castle of Tavira is free, and it’s open daily. The ramparts provide stunning panoramic views of the town, and the quiet botanical garden inside is perfect for a peaceful break. No booking is required, and it’s a great spot for history and photography lovers.
Visit the Mercado da Ribeira: This historic market is a great place to try local seafood, fresh produce, and traditional Portuguese delicacies while soaking up the town’s authentic charm.

Monsaraz, Alentejo

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.

Monsaraz Castle Entry: Visiting Monsaraz Castle is free, and the views from the ancient walls are a highlight of any trip. Take your time exploring the ramparts, which offer stunning panoramic views of the Alentejo countryside and the Alqueva Dam. It’s best to visit close to sunset for the most spectacular scenery.
Local Dining Tip: For an affordable meal with regional Alentejo flavors, stop by Taverna Os Templários, where you can enjoy traditional dishes like migas or black pork for around €15–€20 ($16.42 to 21.89) per person, including drinks.

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.

Museu Condes de Castro Guimarães: Entry to this scenic museum costs €5 ($5.47). Explore its impressive art, antique furniture, and illuminated manuscripts, and enjoy the peaceful gardens afterward. Check here for more info.
Visit the Local Market: Mercado da Vila offers fresh seafood, regional cheeses, and Portuguese pastries—an excellent spot for an authentic and budget-friendly meal.

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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.

Museu de Lamego: The compact but fascinating museum features Flemish tapestries, baroque sculptures, and regional religious artifacts. Entry costs €3 ($3.28). Official website
Try the Local Sparkling Wine: Lamego is known for its Espumante, a Portuguese sparkling wine—pair it with local delicacies like presunto (cured ham) for an authentic taste of the region.

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.

Explore Costa Nova’s Striped Houses: Just a short trip from Aveiro, Costa Nova’s iconic candy-striped houses along the beachfront make for a fantastic photo spot and a relaxing seaside escape.
Ovos Moles: Try ovos moles, Aveiro’s signature dessert. A small box typically costs around €5–€8 ($5.47 to 8.76). For authentic flavors, I recommend buying them at the historic Confeitaria Peixinho—arguably the city’s best spot for this iconic treat. Learn more about them here.

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.

Seafood Dining: For an authentic dining experience, try arroz de marisco or caldeirada at local restaurants like Tasquinha da Linda, known for fresh, reasonably-priced seafood, around €15–20 ($16.42 to 21.89). Pair your meal with vinho verde, typically costing around €3–5 ($3.28 to 5.47) per glass.
Visit During the Feasts of Nossa Senhora da Agonia: If traveling in August, experience this vibrant festival featuring parades, folk music, and traditional Minho costumes decorated with gold filigree jewelry.

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.

Visit Forte de Santa Luzia: Entry to this historic fort costs around €3 ($3.28) and includes access to underground tunnels, barracks, and cannons. Learn how Elvas defended itself during military sieges while enjoying panoramic views of the city and its walls. More info here.
Don’t Miss the Amoreira Aqueduct: This striking 16th-century aqueduct is also free to visit. It features over 800 arches and stretches for about 4.3 miles, showcasing Elvas’s impressive engineering heritage. Perfect for photography enthusiasts.

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.

Visit Ponte de São Gonçalo and Igreja de São Gonçalo: Both landmarks are free to explore. Walk across the Ponte de São Gonçalo for stunning views of the Támega River, then step inside the Igreja de São Gonçalo to admire its striking baroque architecture and intricate wood carvings.
Confeitaria da Ponte: This iconic bakery near the Ponte de São Gonçalo serves delicious pão de ló and doces conventuais for an authentic and affordable taste of Amarante’s sweet traditions. A coffee and pastry combo costs around €3–5 ($3.28 to 5.47). More info here.

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.

Cliffside Strolls: Enjoy an evening walk along the cliffside paths for free. This is the best way to take in breathtaking views of the Atlantic and end your day in the serene ambiance of Cacela Velha’s natural beauty.
Dine Affordably: For local, budget-friendly dining, consider Casa de Pasto Fernanda e Campinas, a nearby family-run restaurant known for classic dishes like grilled sardines, cataplana (seafood stew), or tender black pork. Meals are hearty and affordable, costing €10–15 ($10.95 to 16.42) per person. Located near Sítio da Fábrica, it’s a great dining spot after your beach visit.