Lisbon on a Budget: A Backpacker’s Guide

Lisbon offers a dreamy mix of sun, history, music, and food — and it’s entirely possible to enjoy it on a backpacker’s budget. In 2025, Portugal’s capital remains one of the most affordable cities in Western Europe.

Here’s your essential guide to eating, sleeping, and exploring Lisbon without burning through your savings.

Where to Stay: Budget-Friendly Hostels & Guesthouses

1. Home Lisbon Hostel

Location: Baixa
Why stay: Voted among the best hostels in Europe. Free walking tours, communal dinners, and an unbeatable vibe.
Dorms from: €18/night
Website: homelisbonhostel.com

2. Yes! Lisbon Hostel

Location: Downtown
Why stay: Modern, social, and right near major attractions. Great for solo travellers.
Dorms from: €20/night
Website: yeshostels.com

3. Selina Secret Garden

Location: Cais do Sodré
Why stay: Stylish with a co-working area, rooftop pool, and wellness classes.
Dorms from: €24/night
Website: selina.pt

How to Get Around

Metro: Get a Viva Viagem card for unlimited rides (€6.60/day).
Walking: Many of Lisbon’s best neighbourhoods are walkable.
Tram 28: Ride through Alfama, Baixa, and Graça for just €1.80 (or included with daily metro card).
Ferries: Cross the Tagus River to Almada for epic sunset views.

Free & Cheap Things to Do

1. Miradouros (Viewpoints)

Miradouro da Senhora do Monte and Miradouro de Santa Catarina offer panoramic views — totally free.

2. Explore Alfama’s Maze

Wander the cobbled lanes, tiled façades, and hidden stairways of Lisbon’s oldest neighbourhood.

3. Free Walking Tours

Multiple companies offer pay-what-you-wish tours daily from Praça Luís de Camões or Rossio Square.

4. Museums on Free Days

Many museums like MAAT, National Tile Museum, and the Berardo Collection offer free entry on the first Sunday of each month.

5. Beach Day in Cascais

Take the train from Cais do Sodré to Cascais for under €3. Perfect for sun, surf, or a picnic.

Cheap Eats & Drinks

Tascas: Local taverns offer set lunch menus (“Prato do Dia”) for €7–€10.
Mercado de Campo de Ourique: Smaller and less touristy than Time Out Market.
Frangasqueira Nacional: Legendary takeaway grilled chicken from €6.
Pastéis de nata: Just €1 each. Try Manteigaria or Pastelaria Aloma.
Super Bock & Sagres beer: Found in mini markets for under €1.

Budget Travel Tips

Lisboa Card: From €21, includes free public transport and over 30 museum entries.
Tap water: Safe to drink, so bring a refillable bottle.
Avoid taxis: Uber and Bolt are usually cheaper.
Shoulder season: Visit in March–May or September–November for fewer crowds and lower prices.

Handy Phrases for Budget Travellers

“Quanto custa?” – How much does it cost?
“Tem desconto para estudantes?” – Do you have a student discount?
“Água da torneira é potável?” – Is the tap water drinkable?

Budget Supermarkets & Meal Prep Spots

Cooking your own meals? Lisbon has several budget supermarket chains ideal for self-catering:

Pingo Doce – Found throughout the city with solid ready meals and low-cost groceries.
Continente Bom Dia – Larger stores with cheaper bulk options and meal deals.
Mini Preço – Discount chain with rock-bottom prices on basics like pasta, bread, and eggs.

Many hostels (like Home Lisbon Hostel or Selina) offer guest kitchens, so it’s easy to cook your own meals and save.

Extra-Saving Cards & Apps

Student or Youth? Flash your card at museums, attractions, and even transport counters — many offer 20–50% off.

Apps to download:

Too Good To Go – Grab end-of-day meals from bakeries and restaurants from €2–€4.
Bolt – Often cheaper than Uber, especially late at night.
Revolut or Wise – Avoid ATM and exchange fees when paying or withdrawing abroad.