Money in Portugal (or lack of it!) is one of the main factors that people worry about when they are planning a trip or when they are already on the road. But before you worry about travel prices and cost containment, there are a number of questions that must be answered, such as which currency is in circulation, how to make payments, and how to withdraw money in local currency.
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Money in Portugal – What’s the currency
Portugal is a member of the European Union and the Eurogroup, and was one of the countries that joined the project of a common European currency, the euro, right from the beginning. Thus, on 1 January 2002, the initial transition to a common European currency took place, and euro banknotes and coins entered circulation in 12 countries, including Portugal, changing forever the concept of money in Portugal. The euro has been the Portuguese currency since then, replacing the old Portuguese currency called escudo, adopted when the Republic was proclaimed (1910).
To convert euros into other currencies, or vice versa, you can access here.
Money in Portugal – Use of bank cards
Portugal is integrated into the international banking system, so using debit or credit cards will not be a problem in handling money in Portugal. In Portugal, ATMs are widely available, the national network being called Multibanco. With your debit or credit card, you can withdraw euros in ATMs and make payments at any store or commercial establishment. You can also find international networks of ATMs, but be careful with the conversion and transaction fees that are applied.
When we travel abroad, we use the Wise debit Mastercard®. The borderless Wise account comes with a debit card and allows you to spend anywhere in the world at the real exchange rate. You will receive low conversion rates, free ATM withdrawals of up to £ 200 per month and zero transaction fees. You can create your Wise multi-currency account here and get your Wise debit card.
Money in Portugal – How much you pay
In Portugal, the cost of living is lower than in most Western and Central European countries. However, there are areas where prices have gone up a lot in Portugal in recent years, such as the rental of houses. Still, if you know how to control your expenses, traveling in Portugal can be much cheaper than in most Western and Central European countries, and you will get great value from your money in Portugal.
Prices at restaurants
Although there are restaurants in Portugal nearly as expensive as top restaurants in London, Paris or Rome, the truth is that most restaurants in Portugal have very affordable prices, excluding the ones in the most touristic areas of major cities such as Lisbon, Porto and Sintra. In local restaurants, not aimed at tourists, it is possible to have lunch or dinner for around 10 – 20 € / person.
Prices of accommodation
The price of accommodation in Portugal varies a lot, depending on the region of the country, as well as the type of accommodation. The cheapest accommodation option is the hostel, or a Portuguese version called pensão (pension). The average price of a double room in a hostel in Lisbon or Porto is around 60 €, but it is possible to get it cheaper if you’re willing to stay in dormitories (around 20 € / person).
Price of fuel in Portugal
Fuel is one of the most expensive items in Portugal, and recently has gone really up there, with the price of gasoline above 2.00 € / liter. Portuguese have difficulty affording this, and you should take this in consideration when putting the value to your money in Portugal, for example if you’re thinking about renting a car. However, public transport (buses, trains, metro) are accessible. For example, the cost of a bus journey between Lisbon and Porto (300 km or 186 miles, 3 hours) is around 20 € / person and the price for a trip on the Lisbon metro is 1.50 €.
Cost of self-catering in Portugal
One way to reduce travel expenses is, whenever possible, to cook in your accommodation, saving money in Portugal. The costs of shopping in supermarkets in Portugal are affordable, and a Portuguese couple, without children, spends between € 200 and € 300 per month on supermarket purchases. The major supermarket chains in Portugal are Continente, Pingo Doce, Lidl, Auchan and Minipreço. The prices are very similar and the difference is in the promotions and weekly brochures. Another excellent option for sel-catering is buying at traditional markets, like fish markets.
Cost of communications in Portugal
If you belong to a European Union country, you can use your mobile phone while roaming in Portugal and be processed according to the tariff you have in your country. If you are coming from outside the European Union, the best option is to get a SIM card for mobile and / or internet communications, as you will be saving money in Portugal. The main mobile operators in Portugal are Vodafone, NOS and MEO.