Summer 2021 is almost here, and many Europeans, in spite of the fact that holidays may be affected by the coronavirus in some cases, are starting to pack their suitcases in preparation for a holiday in Portugal this summer 2021. The good news is that Portugal is one of the cheapest holiday options in the EU and is a great option for those on a budget this summer 2021, whether you're searching for a city break or an all inclusive holiday. But where are the cheapest places in Portugal to holiday? We have the answer, with the help of the UK's Post Office Travel Money service.
If you're looking for the cheapest place to go on holiday in Portugal in 2021, then look no further. According to the Holiday Money Report 2021, put together by Post Office Travel Money, a summer holiday in Portugal certainly doesn't have to cost a fortune. The report focuses on 8 different price categories, including the cost of a bottle of water, a coffee, a soft drink, a pint of beer, dinner for two with a bottle of wine, a glass of wine, insect repellent and sun cream, while national and regional tourist boards were also contacted for their input.
With all of this in mind, the report concludes that the cheapest place to go on holiday in Portugal is the Algarve. The ranking is topped with Sunny Beach in Bulgaria, where the sum of the 8 categories studied is £27.71 (32 euros). In the case of the Algarve, which comes in third place behind Marmaris in Turkey, the same pack costs £44.13 (51 euros). Another cheap Portuguese destination makes the list, with Funchal on the island of Madeira coming next. Funchal is therefore the second cheapest holiday destination in Portugal and the sixth in Europe, according to the report. Check out the full ranking below:
Best holiday destinations for winter sun in Portugal: mild days and coastal trips
Getting some winter sun in Portugal comes down to picking the right pocket of coast and timing your day around the light. The Atlantic can whip through, yet you still get calm afternoons for coffee on a terrace, sheltered coves out of the wind, and heated pools for a dip when the sea’s a bit nippy. Off-season perks are real: better value, fewer queues, citrus on the trees and clear hiking paths.
Arrábida recognised as a UNESCO Biosphere Reserve
Portugal's Serra da Arrábida, with its stunning landscape between the sea and the mountains, has officially been recognised by UNESCO as a Biosphere Reserve. This distinction, announced in September 2025 during the World Congress of Biosphere Reserves in Hangzhou, China, places Arrábida among 785 territories worldwide with this prestigious status.
Areas to avoid in Lisbon: tips for staying safe
Lisbon is friendly and largely low‑risk, thanks to it being the capital of one of the safest countries in the world. However, it still pays to understand where and when petty crime tends to happen in the city, so that your experience of Lisboa is stress and drama-free.
Portugal in the world’s top 10 for clean electricity
Portugal has climbed into the world’s top ten for clean electricity. Recognition from international energy bodies reflects what’s visible on the ground: turbines along the Atlantic, solar parks across the Alentejo, and hydro smoothing the peaks and dips.
Most beautiful villages in Portugal to visit this winter
A quieter season suits Portugal’s smaller places: medieval walls without tour groups, fog lifting over terraced vineyards, and cosy taverns serving bowls of caldo verde. Expect shorter days, some early-week closures and cooler interiors in stone houses, with prices that don’t sting so much.
Portugal's best forests to explore in autumn
Autumn is one of the most magical times to discover Portugal’s natural beauty. As the warmth of summer fades and the air becomes crisp, Portugal’s forests transform into stunning landscapes of red, gold, and orange. With fewer tourists and more affordable travel options, autumn is perfect for exploring the country’s woodlands and national parks.
Step into Portugal’s most isolated ghost village
Nestled in the heart of the Serra da Freita, in the municipality of Arouca, the village of Drave is a true ghost town. Abandoned for nearly two decades, it has no accessible roads, electricity, or basic services—reaching it requires a walk along rugged mountain trails.