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Money and costs
What things cost, and what to leave
Portugal is still one of western Europe's cheaper countries, but a few habits (the couvert, card conversion, the tourist tax) quietly add up.
Guess the price
Typical prices
Prices vary a lot between a neighbourhood café and a terrace on a main square. Transport fares are on Getting around.
Tipping
Tipping is never compulsory and service is not added to bills. For good table service, people round up or leave about 5 to 10%. At a café counter, leaving the small change is enough. Taxi drivers do not expect a tip, though rounding up is common.
Source: Portugalist · checked 6 Nov 2026 · unconfirmedVAT and tax-free shopping
VAT is in the price
VAT (IVA) is already included in shop and menu prices: 23% standard on the mainland, 22% in Madeira and 16% in the Azores, with lower rates for food and some services.
Source: Portal das Finanças, CIVA art. 18 (via simula.pt) · checked 6 Nov 2026Tax-free for non-EU visitors
If you live outside the EU, you can reclaim VAT on goods worth at least €50 on one invoice (before VAT) from shops in the e-Taxfree scheme. Ask for the tax-free form when you pay, then validate it at an e-Taxfree kiosk or at customs at your last EU airport (before you check in a bag that holds the goods). The goods must leave the EU by the end of the third month after purchase.
Source: Portal das Finanças e-Taxfree leaflet · checked 6 Nov 2026Cards, cash and conversion
Pay in euros
When a card machine or ATM offers to charge you in your home currency, choose euros. The "convenience" rate is set by the machine's operator and usually costs more than your bank's own rate. Bank-owned cash machines carry the Multibanco logo; standalone tourist ATMs are where conversion offers and fees are most common.
Small places, small change
Cards are accepted almost everywhere in cities, but a small café, market stall or village taxi may prefer cash, and a few set a minimum for cards. Keep a few coins for public toilets, tips and tram tickets bought on board.
Exchange rates today: cambios.pt (in Portuguese).
Don't forget the tourist tax: €1 to €4 per person per night in many towns, often paid on arrival and not always in your booking price.