Lisbon is a charming maze of historic winding sidewalks and narrow alleyways nestled into the hilltops, with a laidback feel and a wealth of culture. But in spite of the high number of travelers who hit the city during the sunny summer months, Portugal’s capital is a surprisingly affordable destination.

With its lively cafés, scenic streets and low-cost living, Lisbon is an attractive destination for a budget break in Europe.

Budget Accommodation

Budget travelers will have no trouble finding a cheap place to stay with beds in many Lisbon hostels available for less than $25.

Perched on the Miradouro do Santa Catarina, the Oasis Backpackers Mansion is housed in a beautiful Portuguese Mansion and surrounded by one of the city’s liveliest districts. With very high quality facilities and a stylish décor that belies the price, it’s the perfect base for exploring the city.

Views of the City

Originally built onto seven low hills, Lisbon is full of viewpoints over the charming architecture. From Largo Martim Moniz or Baixa, the famous wooden eléctrico Tram 28 winds its way through the city’s historic neighborhoods to Largo da Graça. From here, a walk along the narrow cobbled streets around the outskirts of the Castelo reveals stunning views.

The former industrial village of Gingal on the opposite side of the Tejo River from the city center also offers an interesting perspective, particularly at night when, lit up, the views make for a wonderfully romantic scene. The ferry from Cais do Sodre to Cacilhas makes the short hop across the water for a small charge.

Free Attractions

Lisbon is home to a wealth of culture and history which - good news for backpackers and budget travelers - is often free to visit.

In the center of Lisbon off Rua Escola Politécnica, lie the botanical gardens which, on a precipitous slope, create a tropical oasis in the bustle of the city.

There’s an impressive collection of international art at the free Centro Cultural Belem and on Sundays the small but priceless collection of masterpieces at the Museu de Fundacao Calouste Gulbenkian also has no admission charge.

One of the few surviving examples of 16th century architecture from the era of King Manuel I, the Jeronimos Monastery is a fascinating mixture of Gothic and Renaissance style. It’s now listed as a UNESCO World Heritage Site and, although there’s a small charge to enter the cloisters, it’s free to enter the church.

Dating back to a more ancient age, Lisbon's Roman amphitheatre sits just uphill from the Cathedral at the Pátio do Aljube. Today, it’s a simple museum showcasing the excavations and is also free to visit.

Cheap Shopping

Selling everything from old fado music sheets and wristwatches to cheap clothes and second-hand vinyl, the Feira da Ladra flea market at the Campo Sta Clare is a proper treasure trove. It’s held every Tuesday and Saturday and makes a great place to bargain hunt or simply explore.

Budget Drinking and Dining

Just like accommodation in Lisbon, restaurants, bars and cafés are reasonably priced and even budget travelers may find they can afford to treat themselves. Local specialties, including Vinho Verde (a light, refreshing wine), seafood, olives and cheese, tend to be both cheap and quality across the city.

Visitors can sample a local bica of coffee from a kiosk in the traditional Portuguese style or buy a copo of wine at a pavement café for as little as €1.

The best spot to find good Portuguese fare is the Rua dos Correeiros, to the east of the main Rua Augusta. Here sardinhas asadas (grilled sardines) can typically be found for less than €5 or a pasteis de nata (Lisbon’s version of the custard tart) for around €1.

Lisbon is also a hotspot for nightlife and the narrow streets of the Bairro Alto are filled with lively bars and nightclubs. Up at Largo da Graça, the European café culture flourishes with a host of venues that are both cheap and popular, and often have the bonus of a view over the attractive city laid out below.