Lisbon is built on seven hills, so be prepared to walk uphill. A lot. The Alfama district is the old Moorish quarter with narrow streets, fado music (traditional Portuguese music), and the São Jorge Castle on top of the hill with views over the city. Tram 28 is the iconic yellow tram that climbs through the hills and neighborhoods. It's packed with tourists but still charming. Belém (just outside the city center) has the Jerónimos Monastery and the Belém Tower (both UNESCO sites) and the famous pastel de nata (custard tart) bakery. The LX Factory is a hip area with street art, cafés, and shops in old industrial buildings.

Lisbon is affordable. Hostels run $15-25/night. A meal at a restaurant is $8-12. A pastel de nata is $1-2.

Porto in the north is smaller, more charming, and less touristy than Lisbon. The Ribeira district along the Douro River is colorful and lively. Cross the Dom Luís I Bridge (a double-decker iron bridge) for views over the city. Porto is the birthplace of port wine. Port wine cellars line the river in Vila Nova de Gaia (across the river from Porto). Take a tour, taste the wine, and learn how it's made. The Livraria Lello is one of the most beautiful bookstores in the world (JK Rowling lived in Porto and supposedly used it as inspiration for Harry Potter). It's crowded and charges an entrance fee, but it's stunning.

The Algarve in southern Portugal is beaches, cliffs, and sunshine. It's the warmest part of Portugal and popular with European tourists. Lagos is the main town with beaches, caves you can explore by boat, and a lively nightlife scene. The coastline has dramatic rock formations and hidden beaches. The Algarve is more touristy and expensive than the rest of Portugal, but it's still affordable compared to the rest of Europe.

The Douro Valley between Porto and the Spanish border is wine country. Vineyards cover the hillsides. You can take a river cruise or drive through the valley. It's beautiful, peaceful, and less touristy.

Sintra (just outside Lisbon) is a UNESCO town with palaces, castles, and gardens. The Pena Palace is colorful and sits on top of a hill. It looks like a fairy tale castle. Sintra gets packed with day-trippers from Lisbon, so go early.

Portuguese food is fresh, simple, and seafood-focused. Bacalhau (salted cod) is the national dish. There are supposedly 365 ways to prepare it (one for each day of the year). Grilled sardines are everywhere, especially in summer. Pastel de nata (custard tart) is a must. Francesinha (a Porto specialty) is a sandwich with meat, cheese, and a beer-based sauce. It's heavy and delicious. Portuguese wine is cheap and good. A bottle of wine costs $3-5 at a supermarket.

Portuguese people are warm, laid-back, and welcoming. They're less loud and expressive than Italians or Spanish, but they're friendly and helpful. English is widely spoken in cities and tourist areas, less so in the countryside.

Getting around is easy. Trains connect Lisbon, Porto, and other major cities. Buses go everywhere trains don't. If you want to explore the Algarve or Douro Valley, rent a car.
Portugal is one of the most affordable countries in Western Europe. Hostels run $15-25/night. A meal at a restaurant is $8-12. A beer is $1-2. Even Lisbon (the most expensive city) is cheaper than most Western European capitals.

When to go: Spring (April-May) and fall (September-October) are perfect. The weather is warm, crowds are manageable, and prices are low. Summer (June-August) is hot (especially in the Algarve) and crowded. Winter (November-March) is mild but rainy. Lisbon and Porto are still pleasant in winter.

Portugal is sunshine, beaches, and culture at prices that won't wreck your budget. If you want Western Europe without the crowds or costs, go here.