Portugal uses the euro. The country adopted the currency on January 1, 1999 as one of the initial eurozone members, with physical euro coins and banknotes entering circulation on January 1, 2002. The previous currency was the Portuguese escudo, which had been in use since 1911. Portugal's euro coins feature three distinct designs across denominations: the 1, 2, and 5 cent coins show the first royal seal of 1134, the 10, 20, and 50 cent coins display the royal seal of 1142, and the 1 and 2 euro coins bear the 1144 royal seal with the country name and year of minting. All Portuguese euro coins were designed by Vitor Manuel Fernandes dos Santos.
ATMs in Portugal are called Multibanco machines. The network includes approximately 13,000 terminals across the country as of 2024, operated by SIBS (Sociedade Interbancária de Serviços). Multibanco machines accept Visa, Mastercard, Maestro, and Cirrus cards. Withdrawal limits typically range from 200 to 400 euros per transaction, though this varies by bank and card type. Foreign cardholders face fees that combine their home bank's international withdrawal charge with a currency conversion fee, typically totaling 3 to 5 percent of the withdrawal amount. Multibanco machines also function as payment terminals for utility bills, mobile phone top-ups, tax payments, event tickets, and transit cards. The machines provide service in Portuguese, English, French, and Spanish. Most terminals operate 24 hours, though some inside bank branches follow branch hours.
Portuguese banks generally open Monday through Friday from 8:30 AM to 3:00 PM. Major banks include Caixa Geral de Depósitos (state-owned), Millennium BCP, Novo Banco, Santander Totta, and BPI. Currency exchange services inside banks require identification such as a passport. Exchange rates at banks typically offer better terms than airport or tourist-area exchange offices, with margins of 2 to 4 percent versus 5 to 10 percent. Larger bank branches in Lisbon and Porto sometimes maintain extended hours until 6:00 PM or open on Saturday mornings, but this remains uncommon outside major cities.
Credit and debit cards see widespread acceptance in Portugal's urban areas and tourist zones. Visa and Mastercard function at most establishments, while American Express acceptance remains limited to larger hotels, rental car agencies, and upscale restaurants. Contactless payment has expanded rapidly since 2018, with terminals in Lisbon and Porto accepting tap payments up to 50 euros without PIN entry as of 2024. Smaller towns, family-run restaurants, local markets, and rural areas still operate primarily on cash. Merchants in Portugal cannot legally impose minimum purchase amounts for card payments under EU payment services regulations, though some smaller establishments request cash for purchases under 5 to 10 euros despite this.
Tipping practices in Portugal differ from North American norms. Restaurant bills include service charges, making tips optional rather than expected. Locals round up the bill or leave 5 to 10 percent for exceptional service at sit-down restaurants. Café bills are typically settled at the counter without additional gratuity, though customers sometimes leave small coins. Taxi drivers do not expect tips but passengers often round fares up to the nearest euro or add 1 to 2 euros for luggage assistance. Hotel porters receive 1 to 2 euros per bag. Tour guides receive 5 to 10 euros per person for half-day tours and 10 to 20 euros for full-day excursions, though these amounts vary by tour price and group size.
The cost of meals in Portugal varies by location and establishment type. A basic Portuguese breakfast of coffee and a pastel de nata at a local café costs 2 to 4 euros. A prato do dia (dish of the day) lunch special at a neighborhood tasca typically runs 6 to 10 euros including soup, main course, drink, and coffee. Dinner at a mid-range restaurant in Lisbon or Porto averages 15 to 25 euros per person without wine. A bottle of house wine at a restaurant costs 8 to 15 euros. Tourist-area restaurants charge 20 to 40 percent more than equivalent establishments in residential neighborhoods. A dinner for two at an upscale restaurant ranges from 80 to 150 euros. Supermarket prices for basic items include bread at 0.80 to 1.50 euros per loaf, local cheese at 8 to 15 euros per kilogram, and bottled water at 0.30 to 0.60 euros per 1.5-liter bottle.
Accommodation costs span wide ranges depending on season and location. Hostel dormitory beds in Lisbon cost 15 to 30 euros per night in low season (November through March excluding holidays) and 25 to 45 euros in high season (June through September). Budget hotels and guesthouses in secondary cities like Coimbra or Braga charge 40 to 70 euros for a double room. Mid-range hotels in Lisbon and Porto typically cost 80 to 150 euros per night for a standard double room. The Algarve region experiences dramatic seasonal variation, with resort hotels charging 60 to 100 euros in winter and 150 to 300 euros in summer for comparable rooms. Airbnb entire apartments in Lisbon average 60 to 120 euros per night depending on neighborhood and season. Rural tourism accommodations (turismo rural) in Alentejo or Minho regions cost 50 to 100 euros per night.
Public transportation in Portugal operates at modest cost. Lisbon's metro system charges 1.50 euros for a single ride with a reloadable Viva Viagem card, which costs 0.50 euros to purchase. A 24-hour unlimited Lisbon transit pass covering metro, trams, buses, and funiculars costs 6.40 euros. Porto's Andante system charges zones-based fares starting at 1.20 euros for a single zone with a 0.60 euro card fee. Intercity trains operated by Comboios de Portugal range from 15 to 30 euros for Lisbon to Porto on regional trains and 25 to 40 euros on the faster Alfa Pendular service, with prices varying by advance purchase. Rede Expressos buses connecting major cities typically cost 15 to 25 percent less than equivalent train routes. Local buses in smaller cities charge flat fares of 1.50 to 2.00 euros per ride.
Car rental in Portugal starts around 15 to 25 euros per day for a basic economy vehicle booked in advance during low season, rising to 40 to 70 euros per day in summer months. These rates exclude insurance beyond basic third-party coverage, which adds 10 to 20 euros per day for comprehensive protection. Tolls on Portugal's highways (autoestradas) operate electronically. The A1 from Lisbon to Porto costs approximately 20 euros in total tolls. Some coastal routes including sections of the A22 in the Algarve use electronic-only toll collection with no toll booths, requiring rental companies to provide a toll device or charging administrative fees of 20 to 40 euros for toll billing services. Gasoline prices in Portugal as of 2024 average 1.70 to 1.90 euros per liter for unleaded 95 octane.
Museum and attraction entry fees remain relatively low compared to other Western European countries. The Jerónimos Monastery in Lisbon charges 10 euros for adults. The Tower of Belém costs 6 euros. Combined tickets for both monuments sell for 12 euros. The Pena Palace in Sintra charges 14 euros for palace and park access or 7.50 euros for park-only entry. Porto's Livraria Lello bookshop charges 5 euros entry fee, redeemable against book purchases. Many national museums offer free entry on Sunday mornings until 2:00 PM. The Lisboa Card provides free or reduced entry to 39 museums and monuments plus unlimited public transport, costing 21 euros for 24 hours, 35 euros for 48 hours, or 44 euros for 72 hours. Senior visitors over 65 receive 50 percent discounts at most state-run museums and monuments upon showing identification.
Portugal introduced a legal requirement in 2013 that all businesses issue receipts for transactions and that customers request them. The law aimed to reduce tax evasion. Shoppers who do not receive receipts can report the business to tax authorities via a mobile app or website. While primarily a tax enforcement mechanism, the system means visitors consistently receive proper documentation for purchases. VAT (Value Added Tax) in Portugal applies at three rates as of 2024: 23 percent standard rate on most goods and services, 13 percent intermediate rate on certain foods and restaurant meals, and 6 percent reduced rate on essential goods including bread, milk, books, newspapers, and pharmaceutical products. The Azores and Madeira apply lower VAT rates due to their autonomous region status: 16, 9, and 4 percent respectively.
Non-EU visitors can reclaim VAT on purchases exceeding 61.50 euros from a single retailer on a single day when goods are exported from the EU within three months. The refund process requires obtaining a Tax Free Form at the point of purchase, having purchases and the form validated by customs officers at the departure airport before checking bags, and then processing the refund through the tax refund company indicated on the form. Refund processing companies including Global Blue and Planet charge service fees of 20 to 30 percent of the VAT amount. Refunds can be issued as cash at airport refund desks, credited to credit cards, or mailed as checks. The cash option typically incurs higher service fees. Customs validation requires presenting unused goods, receipts, passport, and boarding pass.
Currency exchange offices concentrate in tourist areas of Lisbon, Porto, and Algarve coastal towns. The exchange rate boards display two rates: compra (buy) and venda (sell). The sell rate (what customers receive when exchanging foreign currency for euros) typically runs 5 to 10 percent worse than interbank rates at tourist-area exchange offices. Airport exchange counters offer the least favorable rates, often 8 to 12 percent below mid-market rates. Banks provide better exchange rates but require more time and may not serve non-customers. ATM withdrawal using a debit card linked to a bank account with low foreign transaction fees typically provides the most favorable effective exchange rate for visitors, usually within 1 to 3 percent of interbank rates when combining withdrawal fees and currency conversion charges.
Travelers checks have become essentially obsolete in Portugal. Most banks no longer cash them, and the few that do charge fees of 5 to 10 euros per transaction plus unfavorable exchange rates. The Caixa Geral de Depósitos still accepts travelers checks at major branches but discourages their use. Hotels that accept travelers checks are now rare and apply poor exchange rates.
Credit card fraud protections in Portugal follow EU payment services directive standards. EMV chip-and-PIN technology is standard at Portuguese payment terminals. US-issued chip-and-signature cards function but occasionally require explanation to merchants unfamiliar with signature verification. Contactless fraud liability limits cap customer liability at 50 euros for unauthorized transactions reported promptly. Card skimming incidents have decreased since the chip transition but remain possible at poorly maintained ATMs. Visitors should inspect ATMs for unusual attachments before use and shield PIN entry.
Sending money from Portugal internationally operates through bank wire transfers, money transfer services, and online platforms. Bank wire transfers through Portuguese banks cost 15 to 35 euros for SEPA (Single Euro Payments Area) transfers and 25 to 50 euros for non-SEPA international transfers, plus currency conversion fees of 2 to 4 percent when applicable. Western Union and MoneyGram maintain locations in major cities and tourist areas with transfer fees varying by amount and destination but typically ranging from 5 to 15 euros for transfers under 1,000 euros. Online services including Wise (formerly TransferWise) and Revolut offer lower fees and better exchange rates but require internet access and bank account details.
Mobile payment adoption in Portugal has grown substantially since 2020. MB WAY, the domestic mobile payment system operated by SIBS, allows users to link Portuguese bank accounts to mobile phone numbers for instant transfers and in-store payments. Foreign visitors cannot access MB WAY without a Portuguese bank account. Apple Pay and Google Pay acceptance has expanded to most chain stores, supermarkets, and restaurants in cities but remains limited in rural areas and small independent businesses. Samsung Pay functions similarly. These international mobile wallets work with foreign credit and debit cards linked to the apps.
Portugal maintains banking secrecy laws but participates in EU information exchange agreements and OECD Common Reporting Standard protocols. Portuguese banks must verify customer identity through passport or national ID card presentation. Non-resident account opening requires proof of address, tax identification number from home country, and documentation of income source. Some Portuguese banks decline to open accounts for non-residents who do not have Portuguese tax residency. Banks that do serve non-residents include Caixa Geral de Depósitos, Millennium BCP, and Novo Banco, though account opening has become more restrictive since 2015 due to anti-money laundering regulations.
Portugal's fiscal year follows the calendar year from January 1 to December 31. Value-added tax applies to nearly all goods and services at the point of sale with prices displayed including tax. Restaurants include IVA (the Portuguese term for VAT) in menu prices. Fuel prices shown at gas stations include all taxes. This contrasts with some countries where sales taxes are added at checkout. The IVA-inclusive pricing means displayed prices represent the actual amount paid.
Duty-free shopping opportunities exist at Portuguese airports for travelers departing to non-EU destinations. Lisbon Portela Airport and Porto Francisco Sá Carneiro Airport both maintain duty-free zones after security. Common duty-free items include Portuguese wine and port starting around 8 to 15 euros per bottle, Portuguese spirits including gin and ginjinha from 15 to 40 euros, and local products including canned fish from 3 to 8 euros per tin. Tobacco and alcohol quantity limits apply based on destination country regulations. EU travelers do not benefit from duty-free shopping when traveling between EU countries but face no quantity limits on goods purchased for personal use with tax already paid.
Portuguese coins remain useful for several purposes despite increasing card acceptance. Public restrooms in some locations charge 0.50 to 1.00 euro coin-operated entry fees. Traditional parking meters in smaller cities accept only coins, typically requiring 0.50 to 2.00 euros per hour. Church donation boxes for candle lighting operate on coin-only basis. Some outdoor markets and street vendors deal exclusively in cash with limited ability to provide change for large notes. Carrying coins in denominations of 0.50, 1.00, and 2.00 euros plus 5, 10, and 20 euro notes provides practical flexibility.
Counterfeit euro notes appear occasionally in Portugal. The European Central Bank maintains security features including watermarks, security threads, holograms, color-shifting ink, and raised printing detectable by touch. The Bank of Portugal recommends the "feel, look, tilt" verification method: feeling the raised print, looking for the watermark and security thread against light, and tilting to see color-shifting ink and hologram effects. Retailers sometimes refuse 100, 200, and 500 euro notes, particularly from unknown customers, due to counterfeiting concerns. The 500 euro note ceased production in 2019 though remaining notes retain legal tender status.
Seasonal price fluctuations affect Portugal significantly. Accommodation in coastal Algarve towns costs two to three times more in July and August versus November through March. Lisbon hotel prices increase 30 to 60 percent during high season from June through September and during major events including Saint Anthony's Festival in June and Web Summit in November. Flight prices to Portugal from North American and northern European origins increase substantially for summer travel. Restaurant prices in tourist areas sometimes include different pricing for terrace versus interior seating, with terrace seats commanding 10 to 20 percent premiums.
Portugal does not require tipping for most services, but cash facilitates small transactions and gestures. Housekeeping staff at hotels receive 1 to 2 euros per day left in the room. Spa therapists at hotel spas receive 5 to 10 euros for treatments. Tour guides for winery visits in the Douro Valley typically receive 5 to 10 euros per person. Delivery service drivers receive 1 to 3 euros for food delivery. Bathroom attendants at upscale venues receive 0.50 to 1.00 euro. These amounts represent norms among locals rather than requirements.
Budget accommodation exists throughout Portugal beyond standard hostels. Residenciais are basic guesthouses offering rooms with shared bathrooms for 25 to 45 euros per night in cities including Coimbra, Braga, and Faro. Pensões operate similarly to residenciais with slightly more amenities at 35 to 55 euros per night. These establishments target Portuguese travelers and business people rather than international tourists, resulting in basic but clean accommodation at below-hotel prices. Many lack English-speaking staff and online booking capabilities, requiring phone or in-person reservation.