Portugal remains one of Europe’s best-value travel destinations — and in 2025, you can still find charming, affordable places to stay without compromising comfort or location. From coastal guesthouses to countryside retreats and small family-run hotels, here’s a curated guide to the best budget-friendly stays across the country.
- Lisbon — budget stays with character
- Porto — charming and affordable stays
- Algarve — affordable coastal escapes
- Madeira — ocean views without luxury prices
- Azores — the best affordable stays in volcanic paradise
- Out of the Blue Eco Living Hostel (Ponta Delgada)
- Azores Green Guesthouse
- Vista do Vale Apartments (Furnas)
- Alentejo and countryside retreats — calm and budget-friendly
- How to choose an affordable place to stay in Portugal
While Portugal offers plenty of luxury resorts and boutique hotels, many travelers and digital nomads prefer authentic, affordable accommodations that reflect local culture. Whether you’re planning a beach holiday, a city escape, or a road trip across Portugal, these options will help you save money while enjoying high-quality stays with warm Portuguese hospitality.
Lisbon — budget stays with character
Dear Lisbon Charming House
This guesthouse blends Portuguese tradition with stylish simplicity. Located near Bairro Alto, it offers spacious rooms, homemade breakfasts, and romantic views without the typical city-center price tag.
Lisbon Story Guesthouse
Just steps from Rossio Square, this cozy guesthouse is ideal for budget-conscious travelers who want to stay in the heart of the action. Rooms are simple but beautifully decorated, and the shared lounge creates a welcoming atmosphere.
My Charm Lisbon Suites
For travelers looking for modern comfort at an affordable rate, this guesthouse offers minimalist rooms with private bathrooms, strong Wi-Fi, and easy access to metro lines.
Porto — charming and affordable stays
Gallery Hostel Porto
This award-winning hostel feels more like a boutique hotel. Located in the arts district, it features stylish rooms, excellent breakfast options, and an on-site art gallery showcasing local creatives.
Moov Hotel Porto Centro
Set inside a renovated Art Deco cinema, Moov Hotel offers clean, elegant, and budget-friendly rooms in the heart of Porto. The location is unbeatable for exploring the city on foot.
Oporto Loft
A small guesthouse full of personality. Each room is uniquely designed, and the garden area provides a peaceful retreat from the busy city center.
Algarve — affordable coastal escapes
Casa Paula (Lagos)
This small guesthouse offers comfortable rooms just steps from the old town and beaches. A rooftop terrace overlooking the marina makes it perfect for sunset drinks.
Hotel Mar Azul (Lagos)
A family-run option offering clean rooms, exceptional service, and a prime location for those who want to explore the western Algarve on a budget.
Tavira Guesthouse
Tavira is one of the Algarve’s most charming towns, and this guesthouse provides excellent value. Expect bright rooms, a friendly host, and quick access to ferries heading to quiet island beaches.
Madeira — ocean views without luxury prices
Hotel Alto Lido (Funchal)
This renovated hotel offers beautiful sea views, a large pool, and modern rooms at surprisingly accessible prices. A great choice for families or couples.
Vitorina Corte Guesthouse
Located in the Old Town of Funchal, this local-run stay combines authenticity, comfort, and excellent value. Breakfasts are homemade, and the hosts are known for their warm hospitality.
Surfers Lodge Punta do Sol
For digital nomads and surfers, this relaxed lodge offers co-working-friendly spaces, community events, and a laid-back island vibe.
Azores — the best affordable stays in volcanic paradise
Out of the Blue Eco Living Hostel (Ponta Delgada)
One of São Miguel’s most popular hostels, featuring bohemian design, garden hammocks, and a delicious communal breakfast. Ideal for backpackers and social travelers.
Azores Green Guesthouse
A sustainable, budget-friendly option with ocean views, modern rooms, and a peaceful location perfect for exploring the island’s hot springs and lakes.
Vista do Vale Apartments (Furnas)
Comfortable apartments with kitchenettes, perfect for families or long-term stays near the famous hot springs of Furnas.
Alentejo and countryside retreats — calm and budget-friendly
Monte da Galega (Moura)
A traditional Alentejo farmhouse turned into a rural guesthouse. Expect serenity, olive trees, and homemade breakfasts featuring local products.
Alojamento Local Verde e Mar (Porto Covo)
Just minutes from the stunning Costa Vicentina beaches, this guesthouse offers simple, clean rooms and unbeatable access to hiking trails and surf spots.
Casa do Adro (Odemira)
A restored 18th-century house offering charming decor, friendly hosts, and excellent value, ideal for exploring Portugal’s rural coast.
How to choose an affordable place to stay in Portugal
To find the best value for money, consider the following tips:
- Book early: Prices rise quickly during summer and holiday seasons.
- Compare towns: Staying just outside Lisbon or Porto can reduce costs by 20–30%.
- Prefer guesthouses: Family-run stays often include breakfast and personalized recommendations.
- Travel off-season: September–May offers the best balance of price and weather.
- Check transport access: Staying near a train or bus line can reduce car rental costs.
Portugal offers incredible value at every price point. Whether you stay in a coastal guesthouse, a countryside retreat, or a city-center budget hotel, you’ll enjoy warm hospitality, beautiful landscapes, and the relaxed lifestyle the country is famous for. Affordable doesn’t mean sacrificing comfort — and Portugal proves it in every region.
Last updated: November 2025.
