No matter where you are going in Portugal you will need money.
From the beautiful beaches of the Algarve to vibrant Porto travelers need to pay for what they eat and drink. Unfortunately as nice and friendly as the Portuguese are, they still need to earn a living.
Read on to find out all you need to know about money in Portugal as a traveler.
Currency in Portugal
The currency in Portugal is the Euro. Portugal adopted the Euro from the start in 2002.
Represented by the symbol € or the word Euro, the Euro is commonly placed before the amount.
If you have any Euro coins or notes from countries like Spain or the France, they are completely acceptable for use in Portugal.
While the design of Euro notes is uniform across the Eurozone, Portuguese coins have, like other countries, a Portuguese design. They use old historic seals on the back.
Remember, Euro coins are interchangeable across all participating European countries.
Using Cash in Portugal
In Portugal, cash is still widely used, especially for smaller transactions. As a traveler, you may find you’ll need cash for city taxes at accommodations. Some hotels prefer these fees to be settled separately and locals collect them in cash to avoid mixups.
A visit to a Portuguese café for a coffee or a pastel de nata is usually inexpensive, often around 1€. A small amount of cash and coins is handy while out wandering.
At major museums or other tourist sites, credit cards are commonly accepted. In some smaller cities, some places like the cathedrals might not accept cards, but the entrance is usually only a couple of Euros
One of the highlights of visiting Portugal is its delicious fresh produce. Check out the farmers’ markets and get a feel for the local flavors. Grab some fruit as a snack or get some local cheese for a picnic, but be ready to pay with cash, as market stalls are not normally equipped for card transactions.
When it comes to public transport in Portugal, things are a bit different – buses and trams sometimes accept cash for tickets, but it’s more economical and convenient to buy an advance ticket from vending machines. In some cities, Lisbon included you need to use a prepaid card or buy tickets at a kiosk. This is becoming the norm across the country so one should expect this and find a ticket machine in advance.
In Lisbon, you can just tap and go with a regular bank card. However, use your card NOT your wallet! Take the card out to make sure that your second bank card isn’t charged as well by accident.
Using Credit Cards in Portugal
Credit and Debit Cards are widely used in Portugal. In general, they are accepted in most hotels and restaurants across the country.
As mentioned above on bigger city bus networks you can just pay your ticket with a bank card.
Portuguese restaurants typically accept cards, and even street food vendors often take cards, though it’s always good practice to confirm beforehand. Street food stalls accepting cards is more common in Lisbon, Porto and the Algarve than elsewhere.
Some smaller and older cafes might not be set up for taking cards though. Carry a few coins with you just in case.
Swiping Credit Cards in Portugal
Portugal, much like the rest of Europe, uses NFC systems for tap-and-go payments.
Cards use the chip-and-pin system for credit and debit cards. The insecure magnetic strip hasn’t been widely used in Europe for over two decades, although many card readers still have the capability to swipe if necessary, particularly for American cards that still operate this way.
Some cards do have a tap-and-go limit meaning you might be obligated to swipe or insert the card if you are making large payments like a few nights accommodation.
Paying in Dollars on Credit Card
In Portugal, many card readers will detect that your card is issued from a foreign bank, especially in tourist oriented places.
If you hold a card from the US, you’ll often be given the option to settle the bill in US dollars. This can give you an instant idea of the amount being spent in your home currency.
However, keep in mind a significant drawback: merchants generally add a big commission when converting currency, inflating the exchange rate. ALWAYS PAY IN LOCAL CURRENCY to secure the best possible exchange rate. Trust your card issuer at home to handle any currency conversion.
In my experience, I’ve yet to encounter a better exchange rate from a merchant than the one my bank would provide me.
Apple Pay and Google Pay in Portugal
Apple Pay and Google Pay are both widely available in Portugal. Most card machines are equipped with NFC to read the data from a phone instead of the card.
Make sure you carry the original card with you. When traveling you often run out of battery on your phone more often than you do at home.
Exchanging Dollars in Portugal
If you’re traveling from America, Australia, or another non-Eurozone country, you’ll need to swap your currency for Euros when visiting Portugal. It’s important to note that exchanging cash in Portugal, like in other European countries, might not give you the best rates.
In Portugal, there’s little demand for other currencies, such as US dollars, so exchange services cater mainly to tourists, often offering unfavorable rates.
You will find currency exchanges in airports or in larger city centers, such as Lisbon and Porto, but these cash exchanges offer rates that are up to 10-15% worse than the interbank rate, particularly those in airports.
The best approach is to use an ATM to withdraw Euros directly. This typically results in a more favorable exchange rate. Before you travel, check with your bank regarding any fees for international withdrawals.
Some banks charge a flat fee per transaction, while others may take a percentage. Make sure you know what your bank does.
ATMs in Portugal
ATMs in Portugal, known as caixas automáticos, are easily found throughout cities, towns, and rural areas. They are part of the Multibanco network, which is highly reliable and widespread.
Most ATMs accept major credit and debit cards such as Visa, MasterCard, and Maestro, but it’s a good idea to check with your bank for any international fees that might apply.
Portugal is largely cash-friendly, particularly in smaller towns or family-owned businesses, so having some cash on hand is advisable.
Stick to ATMs connected to banks to avoid higher fees often charged by independent machines. Tourist areas have a lot of independent machines, often next to ticket offices or souvenir shops.
As with anywhere, be aware of common ATM-related risks, such as card skimming, and always shield your PIN when withdrawing money. For added security, notify your bank of your travel plans to ensure access to your money while in Portugal.
Tipping in Portugal
In Portugal, tipping is appreciated but not mandatory
When enjoying a drink at a café or bar, it isn’t normal to tip. If you are spending a bit more, or having a few drinks then leaving small change or rounding up your bill is typical. Given the small values in Portugal often rounding up is to the nearest Euro, not the nearest 5 or 10.
Taxi drivers generally expect a small tip; rounding the fare up or adding a euro or two is appreciated. In hotels, it’s courteous to tip porters around €1 per bag and leave a few coins for housekeeping.
While tipping is welcomed, it should reflect your satisfaction with the service rather than feeling obligatory. Do what feels right to you given the local circumstances.
In Lisbon tipping has become more common. Similarly in the Algarve’s tourist areas. This is not just because of the large numbers of tourists and digital nomads, but because the wages aren’t as good as they used to be as the cost of housing has soared.
Tipping in Restaurants in Portugal
In Portuguese restaurants tipping isn’t standard but it’s common to leave 5% to 10% of the total bill if the service exceeds your expectations.
Many restaurants offer a small bread and butter service, or olives which are charged for as a cover charge. This is not a service charge like the coperta in Italy and generally doesn’t go to the waiters.
Tipping isn’t mandatory, rounding up your bill to include a tip is a common practice. For example, if your meal costs €26, leaving €30 would be offen seen as a generous gesture in Portugal.
Tipping Guides and Drivers in Portugal
Saying thank you, or obrigado in Portuguese, is of course good manners. As a tourist it is ok to give a couple of euros to a guide or driver as a tip.
While tips aren’t a part of the regular portuguese culture, they are a necessary part of the tourism industry as many workers can only work seasonally.
Your guides often work only seven to eight months a year, so tips help them stay in the industry as professional guides. I recommend tipping your guide if they were good (yes I was a guide before). This means the better guides can keep being a guide from season to season instead of leaving the industry for a year round job, just to pay their rent in winter.
Tipping in Bars in Portugal
Generally tipping is not a thing in bars in Portugal. Similarly to what I said about guides though, if it is a seasonal venue like the beaches of the Algarve, some tips will help along way in keeping the good staff in the job as a profession.
Summary
The Currency in Portugal is the Euro and if you are spending cash you will need to get some. ATMs are normally the best for this. Cash is needed in small amounts in Portugal as most places take cards.
Paying with plastic or phones can often be a cost effective way of minimizing international exchange fees. Most places in Portugal accept cards.
Tipping isn’t obligatory, nor part of the Portuguese culture. However in tourist heavy places where rents are excessive and work can only be done seasonally, I believe you should tip a small amount to augment the wages of good workers.
