Trip savvier: 7 days in Portugal on a budget

Lisbon & the Algarve

Portugal wasn’t originally at the top of my list—in fact, I didn’t even really know where it was. But after hearing from a few friends and colleagues who had travelled there and absolutely loved it, I decided to look into it. It ended up being one of the most affordable and memorable trips I’ve ever taken. Between the coastal views, incredible food, and surprisingly low costs, it completely exceeded my expectations. Here’s exactly why I chose it—and what it’s really like to travel there.


Portugal at a glance

First things first—Portugal is a small country across the Atlantic from North America, bordered by Spain and facing the Atlantic Ocean (not the Mediterranean). It has about 800 km of coastline, including the famous cliffs and beaches of the Algarve in the south. Its capital city is Lisbon, and another famous city is Porto.

Lisbon/Sintra

We flew into Lisbon on a red eye, as most transatlantic flights are, and hit the ground running right away (the benefit of flying carry on). We picked up our rental car and headed to the small village of Sintra, about 45 minutes away. Finding street parking once we arrived was a little challenging because of all the narrow winding roads but we eventually found something near the town centre, however we made the mistake of not looking around better for signage and ended up getting a parking ticket (oops!). We headed on foot to the Quinta Da Regaleira Palace, a whimsical place which features expansive grounds, cool architecture, and the famed Initiation Well, a circular staircase descending into the abyss (or so it seems). The idea is that you descend from the light into darkness, representing a spiritual rebirth. You eventually emerge in cavelike tunnels, with waterfalls and walking paths through the garden complex. It was a really cool place to spend a couple of hours. We then wandered the streets of the village, having lunch and our very first Portuguese pastry before heading south towards the Algarve, our home for the week. Note that many also visit Pena Palace in Sintra, but unfortunately due to heavy rains, the roads to the palace were washed out while we were there. It would have probably made for a really heavy day as well, so we opted to skip it.

Albufeira

Footsteps along a beach in Albufeira, Portugal at sunset

We opted to drive along the country roads to head to our home base for the week, Albufeira. There’s a toll highway that you can use, but we wanted to save ourselves the 22€ (~$35 CAD) toll and didn’t mind it taking a little longer to get to our destination (2.5 hours instead of 1.5). We made our way to the Airbnb we booked in the old town, which conveniently included free parking close by. I love staying in the old towns where cars aren’t allowed – it makes for a more relaxed strolling experience. We settled in and then roamed around the old town, checking out the shops and beach (wow) before deciding on a cute little italian spot for dinner which had a patio (with blankets to fight off the chill) and good vibes.

Lagos

For our first full day in the Algarve, we made our way to the quaint little town of Lagos and hiked along the bluffs to Praia dos Estudantes, Praia da Batata, Praia de Dona Ana, Praia do Camilo, and Ponta da Piedade. Each beach (praia) had its own wow factor, whether it be stone bridges, hidden coves and grottos, rock formations, colourful cliffs and connecting tunnels through rocks. It is by far one of the most scenic areas of the Algarve. We rewarded ourselves for our 26,000 steps with sangria happy hour, some shopping in the cute little shops and a tasty dinner in the charming town before heading back to our home base in Albufeira. Lagos ended up being my favourite town on this trip.

Faro

Another day, more stunning views. This day took us to Faro to poke around the old town and then unexpectedly to a beach with these amazing red sandstone cliffs. We walked all the way out to shark fin point (in sandals oops), but boy was it worth it! Capped off the night at the strip in Albufeira, where a couple happy hour drinks led to a night of fun and some of the craziest bars we’ve ever been to.

7 Hanging Valleys Trail

I’ve done a lot of incredible hikes in my life (east coast, the Rockies, the Yukon, the Balkans), but this was the BEST ONE YET! The 7 hanging valleys trail was 5.7km of magic. The moment you exit the parking lot at the Praia de Marinha trailhead you’re hit with incredible beauty. Cliffs, sinkholes, secret beaches, powerful waves, wildflowers, it had it all! We walked the trail in one direction, stopping along the way to eat the picnic lunch we packed in the most epic spot, and having ice cream at Benagil Beach. We were also able to look down into the famous Benagil Cave from above, and on good sea days, it’s possible to kayak from this beach into the cave. We also descended steps into the tunnel to access Praia Carvalho. Think small, intimate beach, secret tunnel entrance, rock formations. We eventually reached our final destination, Praia de Vale Centianes and ordered an Uber to take us back to the starting point for about 8€ (~$12 CAD). There’s a restaurant there where you can call a taxi as well, but it’s a little more expensive (approx. 12€/~$19 CAD)). 

During our final days, we visited the Algar Seco caves – a spectacular group of tunnels, passages, and caves carved in yellow limestone cliffs in Carvoeiro. We also had a dolphin and Benagil cave boat tour booked from Albufeira, but unfortunately the seas were very rough the entire week we were there and it was not possible to take part in that.

Couple sharing a drink with 2 straws

We also made our way to the famous Strip in Albufeira, a raucous promenade lined with bars, restaurants and beach clubs. Our original idea of going for happy hour and having a nice dinner nearby was sidelined by the shenanigans of the strip (iykyn). We certainly had no regrets.   

We had some wonderful dinners at Clay Oven (Indian food), Os Arcos (classic Portuguese) and Alfredo (Italian) in Albufeira, all of which we highly recommend.

Lisbon

On our final full day in Portugal, we took the toll highway back to Lisbon to save some time and parked at the marina where we were spending the night on a docked sailboat (booked through Airbnb). We then hopped a city bus into town to explore Lisbon’s top spots, including the Elevador de Bica, Green street, Arco de Rua Augusta and Pink Street. After a hectic lunch at the Time Out Market, we consumed way too many pastel de nata’s, shopped for some final souvenirs and eventually made our way back to the marina for dinner and a cozy night on our sailboat. My motto is… why spend a night at a boring airport hotel when you can spend it somewhere memorable instead?!? I’m just lucky my husband goes along with my madness.


Trip cost breakdown

Flights: $1,257 CAD
Accommodations: $608 CAD
Car rental: $75 CAD (really pays off to drive a standard!!)
Fuel, tolls, parking: ~$200 CAD
Activities: $45 CAD (note that the weather forced us to cancel our dolphin and cave boat tour, which would have been an extra $100 CAD)
Food & drink: ~$800 CAD
Total (for 2 adults): ~$2,985 CAD ($1,500 per person)

For a one-week trip to Europe, this is incredibly reasonable—especially considering flights alone can often cost close to this much. At under $1,500 per person all-in, Portugal stands out as one of the more affordable ways to experience Europe without feeling like you’re sacrificing much.

My overall impression of Lisbon and the Algarve

I don’t say this lightly. This might be the best place I’ve ever visited. I wish I had had more time… 6 nights just wasn’t enough. I fully plan on spending a complete winter here in the early years of my retirement.  It was just that good.  Albufeira was the perfect base to explore from (very central) and the Algarve was definitely more my jam than Lisbon, but I tend to favour nature over cityscapes any day. 

Why you should go

  • Beauty: the views here are unmatched. I’ve travelled extensively and have never been more wowed by the gorgeous red cliffs, endless beaches, stone formations in the ocean. It’s a feast for the eyes at every turn, and you don’t have to be a hiker to experience all that beauty. 
  • Beaches: there were 17 beaches in our home base of Albufeira alone. There seems to be a beach for every taste here. 
  • Cost: it’s still relatively inexpensive to visit. There are often cheap flights from North America to Lisbon. Nature is free, and there’s tons of it to explore. Restaurants were reasonably priced and the food quality did not disappoint. Overall just very affordable.
  • Infrastructure: the roads and highways are well kept and easy to navigate, as long as you don’t have a fear of roundabouts (they’re everywhere!!). Using google maps we easily explored everywhere, and never worried.
  • No language barrier: almost everyone we encountered spoke at least a bit of English, and if you speak French fluently, it’s easy enough to understand Portuguese signage (the languages resemble each other)

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