Praca do Comercio, Lisbon: History, Arch and Tips

Praça do Comércio is the huge arcaded square where Lisbon’s Baixa meets the Tagus. Most visitors cross it on the way somewhere else, but it repays a slower look: a lost royal palace, a statue with an elephant on its base, an arch you can climb and the oldest café in Lisbon still open. Here’s what to see, how to get there and when to go.

Quick answer: the square is free. Climb the Arco da Rua Augusta for the view (€5 in 2026, free with the Lisboa Card, daily 10am to 7pm), walk round the statue of King José I, then sit on the Cais das Colunas steps by the river. Take the metro to Terreiro do Paço (blue line) or trams 15E and 25E.

Why the square matters

For about 250 years this was the Terreiro do Paço, the yard in front of the Paço da Ribeira, the royal palace on the riverbank. Many locals still use the old name.

On 1 November 1755 the earthquake sent tsunami waves up the river, and the palace was among the buildings worst hit. People who ran to the open square for safety were caught by the water. For the rebuilding, the Marquês de Pombal chose the plan of Eugénio dos Santos and Carlos Mardel, and the square became the front door of the new city. Its new name, “Commerce Square”, praised the merchants tied to the reconstruction.

The old palace still shapes the design. The square keeps the outline of the old yard, the east and west arcades recall the arcaded streets where merchants met, and the two towers echo the palace tower designed by Filippo Terzi. In 1908 King Carlos I and his heir, Prince Luís Filipe, were assassinated here.

What to see

The Arco da Rua Augusta

The stone arch wasn’t completed until the 1860s and 1870s, to a design by Veríssimo José da Costa. On top, Célestin Anatole Calmels’s group shows Glory crowning Genius and Valour. Below stand Vítor Bastos’s statues of Viriato, Vasco da Gama, Pombal and Nuno Álvares Pereira.

• The viewpoint: open to the public only since 9 August 2013, with a 360-degree view over the Baixa grid, the river and the castle. The Clock Room (Sala do Relógio) on the way up has a small exhibition on the arch.
• Tickets: €5 in 2026, and free with the Lisboa Card.
• Hours: daily from 10am to 7pm. Visit Lisboa gives last entry as 6:30pm, but a 2026 notice said 5:45pm, so arrive before then.
• Who runs it: the Lisbon Story Centre, an interactive exhibition on the city’s history under the arcades.

The statue of King José I

The bronze rider is José I, king at the time of the earthquake, on his horse Gentil. Joaquim Machado de Castro designed it and Bartolomeu da Costa, an army engineer, cast it. It was unveiled on the king’s birthday, 6 June 1775, when only half the square was built.

Walk round the base. One side shows Triumph leading a horse, the other an elephant, for the overseas empire, led by Fame. The river side has a medallion of Pombal, and the opposite side shows Lisbon raised from the ruins. The horse tramples snakes, which some say keep the pigeons away.

Cais das Colunas

The stepped quay between two columns at the river’s edge is made of about 3,000 blocks of lioz limestone and was part of the post-earthquake plan. For centuries this was Lisbon’s main entrance from the sea, where kings, presidents and heads of state were welcomed. Today it’s a place to sit and look across to Cacilhas and Almada. The lower steps run into the water, so watch children.

Martinho da Arcada

Under the arcades, Martinho da Arcada was founded in 1782 by Julião Pereira de Castro, chief ice supplier to the royal household, and an old sign called it the Casa da Neve (snow house). It’s the oldest Lisbon café still trading. Bocage and Eça de Queirós drank here, but the regular everyone remembers is the poet Fernando Pessoa.

Events in the square

• New Year’s Eve: Lisbon’s free city party is held here. For 2025 to 2026 it ran from 9:30pm with DJs and a concert by Plutónio, ten minutes of fireworks over the Tagus at midnight with 250 drones, and music until 1am. See New Year’s Eve in Portugal.
• Getting in on 31 December: last time the square closed at 6pm for security checks and reopened at 7:30pm, with bag searches at the entrances. Glass bottles and umbrellas were banned, and Terreiro do Paço metro shut at 5pm, so use Cais do Sodré or Baixa-Chiado.
• Christmas: in 2025 a 30-metre tree stood in the square, and the city’s lights were switched on beside it on 22 November. They were on from 5:30pm to 11pm, and until midnight on Fridays and Saturdays.

How to get there

• Metro: Terreiro do Paço station, on the blue line, comes up by the river next to the ferry terminal. It has a lift and opens from 6:30am to 1am.
• Tram 15E: runs from Praça da Figueira across the square and along the river to Belém and Algés.
• Tram 25E: runs from Praça da Figueira via Praça do Comércio, Santos and the Estrela Basilica to Campo de Ourique (Prazeres). See our trams guide.
• Ferry: the river station beside the metro has boats to Barreiro. Ferries to Cacilhas, Seixal and Montijo leave from Cais do Sodré, a short walk west.

Best times to go

• Early morning: the square is at its emptiest, best for photos of the arch.
• Late afternoon and sunset: the Cais das Colunas steps fill up as the light drops over the river. In winter the sun sets early enough to watch it from the top of the arch.

Staying safe in the crowds

• Fake “drugs”: men muttering “hashish?” work the Baixa. What they sell is usually pressed bay leaves (louro prensado), talc or plaster. Police say the trade has gone on for more than 20 years, and in August 2026 they called for it to be made a crime. Say no and keep walking.
• Pickpockets: keep bags zipped and in front of you at the tram stop, on the arch’s roof and in any crowd. See is Lisbon safe?
• Big events: agree a meeting point with children. At the New Year party, police ask lost people to go to an officer.

What’s nearby

• Rua Augusta and the Baixa: walk through the arch for the pedestrian high street and the grid behind it. See the Baixa and Rossio.
• Casa dos Bicos: a few minutes east at Campo das Cebolas, the pointed-stone house built for Brás de Albuquerque in 1523 has an exhibition on José Saramago and Roman-era remains, including a fish-salting works.
• Alfama: carry on east and uphill past the cathedral. See our Alfama guide.
• Cais do Sodré and the Time Out Market: follow the river west. See Cais do Sodré and the Time Out Market.

FAQ

Why is Praça do Comércio also called Terreiro do Paço?

Because the royal palace, the Paço da Ribeira, stood here for about 250 years until the 1755 earthquake. The old name means “palace yard”, and locals still use it.

How much does it cost to go up the Rua Augusta Arch?

€5 in 2026, or free with the Lisboa Card. It’s open daily from 10am to 7pm, but arrive by 5:45pm to be safe.

What is the nearest metro station to Praça do Comércio?

Terreiro do Paço, on the blue line, right by the river. Baixa-Chiado is a short walk up the Baixa.

Are there fireworks in Praça do Comércio on New Year’s Eve?

Yes. The free city party has fireworks over the Tagus at midnight, and in 2025 to 2026 there were also 250 drones and music until 1am.

More: things to do in Lisbon, the best Lisbon viewpoints and free things to do in Lisbon.

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