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.

Why the Algarve works on a budget

The things people come for cost nothing: the beaches are public, the cliff paths are free, and the sea is warm enough to swim from June to October. Your main costs are a bed, food and getting around. Cut those three and a week here can cost far less than you might expect for a sunny European coast.

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.

September is often the best value of all. The sea is at its warmest, the crowds thin out after the Portuguese school holidays end, and room prices usually drop. Avoid Easter week and bank holidays if you can, as prices rise then too.

Getting there cheaply

Faro airport has plenty of budget flights from around Europe, and buses run from the airport into Faro, where you can pick up trains and regional buses. From Lisbon, coaches run by Rede Expressos and FlixBus are often the cheapest way down if you book early. Trains run from Lisbon to Faro, but for Lagos you still change at Tunes. See Lisbon to the Algarve.

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.

Pick somewhere near a train station or main bus stop so you don’t need a car every day. Lagos, Portimão, Olhão, Tavira and Faro all have stations close to the centre. Albufeira’s station is several kilometres out of town, which adds bus or taxi costs. Booking direct with small guesthouses outside summer can also get you a better rate.

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. See the Seven Hanging Valleys trail.
• 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 usually about €3 for adults, and children under 14 usually go free. See Algarve villages.
• Markets: Loulé on Saturdays and Olhão’s fish market.
• Sagres and Cape St Vincent: the windswept clifftops at Europe’s southwest corner are free to walk, and the sunset costs nothing. See Sagres.

A note on Benagil

Since August 2024 you can’t swim to the Benagil cave or land on its beach, and kayaks may only go in with a licensed guide. The cheapest legal way to see it is a short boat trip, or the free clifftop path above it, where you can look down through the hole in the cave roof. See the Benagil cave guide.

A free day out

From Lagos, walk the clifftop path to Ponta da Piedade in the morning, swim at Praia do Pinhão or Dona Ana, then picnic on the beach. In the evening, watch the sunset from the town walls. The only cost is your lunch. Skip Praia do Camilo for now: its stairs have been closed since storm damage, so enjoy it from the clifftop.

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.

The prato do dia (dish of the day) is usually served at lunch on weekdays, sometimes with bread, a drink and coffee included. Bread, olives and cheese placed on your table are not free: if you eat them, they go on the bill, so send them back if you don’t want them. A coffee at the counter costs less than one at a table, and tap water is safe to drink.

Cheap local favourites include grilled chicken with piri-piri, a bifana (pork sandwich) and fresh fruit from the markets. Eat your main meal at lunchtime, when set menus are better value than the same dishes at dinner.

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.

Since July 2026 the whole Algarve line from Lagos to Vila Real de Santo António has been electric, and many (though not all) trains now run straight through without a change in Faro. Regional buses are run by Vamus Algarve and reach places the train doesn’t, such as Sagres, Albufeira town and many beaches. Services are thinner on Sundays and in winter, so check timetables first. The A22 has been toll-free since 1 January 2025, which makes a hire car better value than before. See getting around the Algarve.

Practical money-saving tips

• Book flights and rooms early for summer, or late for shoulder season when deals appear.
• Check for a tourist tax: several towns, including Albufeira, Portimão, Loulé, Olhão and Faro, charge up to about €2 per adult per night, usually for a limited number of nights. Children are usually exempt.
• Bring a beach umbrella or buy a cheap one, as sunbed hire adds up over a week.
• Pay by card where you can, and avoid airport currency exchanges.
• Avoid fines in Albufeira: its code of conduct can mean fines of about €300 to €1,500 for things like walking the streets in swimwear.

FAQ

What is the cheapest time to visit the Algarve?

Winter is cheapest, but many places close. For good weather at lower prices, go in May, June, September or October.

Can you see Benagil cave for free?

Yes, from above. The clifftop path looks down through the hole in the cave roof. To see inside, you need a boat trip or a guided kayak tour.

Can you get around the Algarve without a car?

Yes. The coastal train links the main towns, and Vamus Algarve buses reach Sagres, Albufeira and many beaches. Some beaches and trailheads are much easier by car.

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

See also: what to eat in the Algarve.

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