8 Coastal Towns in Portugal That Are Cheaper Than the Algarve

Portugal’s Algarve region dazzles with its golden cliffs and sun-soaked beaches, but its popularity comes at a price.
Thankfully, the country’s coastline brims with lesser-known gems that deliver charm, beauty, and affordability in spades.
From quaint fishing villages to vibrant seaside towns, these eight coastal escapes offer a budget-friendly alternative without skimping on the magic.
Ready to explore? Let’s dive into Portugal’s hidden coastal treasures and plan your next adventure with MagicTrips.
1. Nazaré
Known for its monstrous waves that draw surfers worldwide, Nazaré blends adrenaline with old-world allure.
Here, you’ll find affordable guesthouses, fresh seafood at local tavernas, and a laid-back vibe that’s hard to resist.
Customize your itinerary on MagicTrips to include surfing or a relaxing beach day—either way, your wallet will thank you.
2. Peniche
Just an hour from Lisbon, Peniche offers rugged coastlines and a thriving fishing heritage.
Accommodations and dining skew cheaper than the Algarve, with the bonus of world-class surfing at Supertubos Beach.
Craving adventure? Plug Peniche into MagicTrips and tweak your preferences for biking or boating.
3. Ericeira
Ericeira, Europe’s first World Surfing Reserve, marries surf culture with cobblestone charm.
Its affordable rentals and cozy cafés make it a steal compared to Algarve hotspots like Lagos.
Use MagicTrips to craft a romantic getaway or a foodie tour—Ericeira’s seafood is a must-try.
4. Setúbal
Nestled south of Lisbon, Setúbal boasts dolphin-watching in the Sado Estuary and pristine beaches like Praia da Figueirinha.
It’s a fraction of the cost of Algarve resorts, with markets offering cheap, delicious choco frito (fried cuttlefish).
Let MagicTrips design a family-friendly escape with a dash of unique activities.
5. Vila Nova de Milfontes
This Alentejo gem sits where the Mira River meets the Atlantic, delivering unspoiled beaches and serene vibes.
Lodging and meals here outshine Algarve prices, leaving room in your budget for kayaking or hiking.
MagicTrips can tailor your trip for a photography-focused journey along this stunning coast.
6. Costa da Caparica
Just across the Tagus River from Lisbon, Costa da Caparica offers 15 kilometers of sandy shores.
It’s a local favorite with affordable beachside bars and rentals, perfect for a spontaneous getaway.
Generate a nightlife-packed itinerary on MagicTrips and soak in the lively yet budget-friendly scene.
7. Figueira da Foz
With its wide, golden beach and bustling promenade, Figueira da Foz shines as a cheaper alternative to Faro.
Casinos, surf schools, and fresh cod dishes come without the Algarve’s premium price tag.
Try MagicTrips for a custom blend of sightseeing and wine tasting in this coastal charmer.
8. Tavira (The Eastern Exception)
Okay, Tavira’s technically in the Algarve, but its eastern location keeps it quieter and more affordable than its western cousins.
Think whitewashed houses, a Roman bridge, and boat trips to Ilha de Tavira—all at a lower cost.
MagicTrips can whip up a relaxing or adventurous itinerary to suit your vibe.
Portugal’s coast is a treasure trove of affordable escapes, and these towns prove you don’t need to splurge to savor it.
Best of all? You can plan your perfect trip in minutes with MagicTrips’ free, easy-to-use AI itinerary generator.
Head to MagicTrips.ai, input your destination and preferences, and let the adventure begin!