Best ways to spend travel money in Portugal

Whether you’re planning to explore the cobblestone villages, relax on the golden beaches or indulge in the local cuisine, organising your travel money in advance is crucial to a successful trip to Portugal.

Low-cost travel money options for Portugal

Promoted for low fees + sign-up bonus

See deal

£20 welcome bonus

Pay like a local with excellent exchange rates
Send money in 29 currencies
Cashback on hotel bookings

Promoted for no overseas fees card & budgeting

Go to site

Earn interest on your holiday money with a savings pot

Make fee-free cash withdrawals
Spend abroad with no fees
Split costs with friends in seconds

Promoted for low fx fees

Go to site

More than 150 countries

Open an account in minutes
Use in more than 150 countries
2 free cash withdrawals per month

Can I use my debit card in Portugal?

Yes, you can use any Mastercard or Visa debit card in Portugal, though you should be wary of foreign transaction fees. Many debit cards charge non-sterling fees of around 2.75% to 3% of the transaction, which can quickly add up, and the same applies again to cash withdrawals. So be sure to check the fees that your bank charges for overseas transactions and if necessary look for a debit card with low or no overseas fees – many exist, so you could choose one just for your foreign travels.

• Tip: Portuguese multibanco ATMs are fee-free. This means that if you choose a product that doesn’t charge international ATM withdrawal fees or currency conversion fees, you can make withdrawals for a similar cost as you would in the UK.

Compare UK debit cards with low transaction fees

Using prepaid travel cards

The euro is a supported currency on all travel money cards. To get the best value travel money card, compare their fees, which can include charges for ATM withdrawals and for loading and reloading money on to your card. You can lock in a rate when you transfer pounds to euros, which can be handy if you think the value of the pound is going to drop.

Compare prepaid cards for travelling

Using credit cards

A travel-friendly credit card will allow you to make day-to-day payments in Portugal without currency conversion fees. In some cases, they can also supplement your travel budget with perks that would ordinarily be an out of pocket expense, like travel insurance, for example. Credit cards also offer interest-free days on purchases when you pay your statement in full by the due date.

• Tip: Avoid using your credit card for ATM withdrawals. This is a cash advance. Cash advances accrue interest of more than 25% p.a. from the time of the withdrawal, and you’ll pay a cash advance fee. Accruing too many cash advance fees in a short space of time can also negatively impact your credit record.

Compare travel credit cards

Using traveller’s cheques

It will be difficult to cash traveller’s cheques in Portugal. Banks and exchange offices won’t usually accept traveller’s cheques. Use the right credit card, debit card or a travel card instead. These travel money products offer all the advantages of traveller’s cheques and none of the drawbacks.

Taking cash with you

While Portugal has all the facilities to accept card payments you’d expect from a modern economy, it’s best to also take some cash on your trip. Some places won’t take cards if you’re spending less than €10–€20, while other merchants won’t take cards at all. Banking reforms in Europe have made it cheaper than ever to make withdrawals from bank ATMs, and if you pick the right card, there’s no reason why you shouldn’t have euros in your pocket.

If you’ve brought pounds with you to Portugal, you won’t have trouble getting your cash changed to euros on the street. Foreign exchange bureaux are easy to find in bigger cities and touristy areas. The worst rates will be at the airport or inside hotels, while the best will be at independent offices in larger towns and cities. Most banks no longer offer foreign exchange services.

• Tip: VAT in Portugal is quite high, depending on where you are. A standard rate of 23% applies in mainland Portugal, 16% in the Autonomous Region of the Azores and 22% in the Autonomous Region of Madeira.

How many euros do I need to bring to Portugal?

While Portugal is not as cheap as it used to be, visitors will find it much cheaper than destinations in Western and Northern Europe. Accommodation and shopping will be where you spend (or save) your money. If you prefer to stay in hotels your estimated travel expenses will be much higher than someone who stays in hostels. Food, even eating out, and travelling from A to B are quite affordable all over Portugal. You will be able to find budget accommodation, food and activities right through to 5-star treatment.

	Basic costs	Mid-range	A royal experience
	Hostel £13-£40 per night	2-star hotel £60–£70 per night	5-star hotel £150–£350 per night
	Casa de pasto £5–£15 per dish	Restaurant £12–£25 per dish	5-star restaurant £30–£50 per dish
	Free entry to most museums Free sightseeing ancient ruins and castles	Lisbon Oceanarium Around £21 for an adult ticket	Guided 7-day and night bike tour of Portuguese castles and vineyards (expenses included): £6,000+

_{*Prices are approximate and subject to change.}

Exchange rate history

Should it be a travel card, a debit card or a credit card?

The national currency of Portugal is euros. Conveniently, all travel cards let you load and hold euros. Most European countries, including neighbouring Spain and France, also use the same currency, so a travel card can make sense if Portugal is one stop on a European vacation.

If you would prefer to use a credit or debit card, Visa and Mastercard can be used everywhere. Advances in contactless payments now mean you can also use your credit or debit card for small purchases at major Portuguese retailers, which somewhat eliminates the need to make ATM withdrawals.

• Tip: Most Portuguese bank ATMs (multibanco) do not charge a local ATM operator fee, so you should look for a product which doesn’t charge for international ATM withdrawals or currency conversion so that you can save money in Portugal.

A quick summary of travel money options in Portugal

_{This table is a general summary of the travel money products in the market. Features and benefits can vary between cards.}

Buying currency in Britain

You can take as many euros with you to the European Union as you want. You have to declare if you’re carrying more than €10,000 cash. This includes bank notes and traveller’s cheques, gold bullion etc. It’s easy to buy euros in the UK, as you can exchange pounds to euros in almost any high street or online travel shop, as well as in the airport.

Why you’ll need a combination of travel money options

Having a combination of travel money options is the best way to mitigate risk and finance your trip to Portugal. While debit and credit cards are widely accepted and used in Portugal, there are many instances where there will be a minimum transaction amount or times where card won’t be accepted at all – so it’s always a good idea to have some cash on you.

One of the main differences between these travel products is the exchange rate. Visa, Mastercard and American Express branded credit cards and debit cards use the card scheme exchange rate which is highly competitive, but travel cards may add a margin when you exchange funds. That said, travel cards allow you to preload funds and lock in a rate if you think euros are going to get more expensive to buy in the future.

Portugal is truly a beautiful travel destination, so whether you go for the sun, the olives or to explore the ancient cities of the once great imperial power, compare travel money options carefully so that you have peace of mind you won’t be hit with high fees when withdrawing money or making purchases using your cards.

Written by

Matthew Boyle

Publisher

Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio

Matthew's expertise

Matthew has written 221 Finder guides across topics including:

• Helping first-time buyers apply for a mortgage
• Comparing bank accounts and highlighting useful features
• Publishing easy-to-understand guides