The Algarve on a Budget

The Algarve can be expensive in August, but with a little planning it’s easy to enjoy its beaches, cliffs and villages on a budget. Most of the best things to do, from the Seven Hanging Valleys trail to the island beaches, are free or cheap. Here’s how.

Quick answer: travel in May, June, September or October, stay in Lagos, Olhão or Portimão rather than the luxury resorts, use the coastal train (electrified in 2026), take the cheap Benagil boats from Portimão (from about €15), and enjoy the free beaches, cliff walks and villages. The A22 motorway is now toll-free if you drive.

When to go

July and August are the most expensive months. May, June, September and October bring great weather and much lower prices; winter is cheapest but many things close. See the Algarve in winter.

Where to stay

• Lagos: hostels and guesthouses, and lively but affordable. See the best hotels in Lagos.
• Olhão: an authentic fishing town with cheap island ferries. See the eastern Algarve.
• Portimão and Armação de Pêra: good-value apartments.
• Self-catering apartments save a lot on food.

Free and cheap things to do

• Beaches: all free. See the best Algarve beaches.
• The Seven Hanging Valleys trail and Ponta da Piedade’s clifftop paths: free.
• Island ferries from Olhão and Tavira: just a few euros.
• Benagil: boats from Portimão are often €15–30. See Algarve boat trips.
• Villages and castles: Silves castle is about €2.80. See Algarve villages.
• Markets: Loulé on Saturdays and Olhão’s fish market.

Eat and drink

• Prato do dia at local restaurants away from the seafront.
• Grilled sardines in summer, sold cheaply in Portimão.
• Supermarket picnics on the beach.
• Ask the price of fish by the kilo before ordering. See Portuguese seafood.

Get around

• The coastal train links Lagos, Portimão, Faro and Tavira, now with direct electric trains.
• Buses link the towns and beaches.
• Car hire is cheapest outside summer; the A22 is free. See driving in Portugal.

More: Portugal on a budget and where to stay in the Algarve.

Prices and details change, so please double-check before you travel. Spotted something out of date? Tell us in the groups.