Spain and Portugal are a perfect pairing for a one-week family adventure: lively plazas, castle views, tiled lanes, and food your kids will remember long after the trip. With just seven days and a very lean budget, this plan zeroes in on two great capitals—Madrid and Lisbon—so you spend time exploring, not unpacking.

Expect a rich mix of art and history—from Velázquez at the Prado to Lisbon’s golden Age of Discovery monuments—balanced with parks, markets, and scenic viewpoints. You’ll hop between cities on a low-cost flight or budget bus, use public transit like a local, and enjoy “menú del día” lunches to keep costs down.

Practical notes: book major sights with skip-the-line options to minimize waits with kids; keep an eye out for pickpockets in busy areas; and consider apartments via VRBO to save on meals. Spanish and Portuguese cuisines are wonderfully family-friendly: croquetas, grilled chicken, bifanas, pastéis de nata, and fresh fruit at markets will keep everyone happy.

Madrid

Madrid hums with energy: elegant boulevards, world-class museums, and tapas bars where families are warmly welcomed. Its historic heart—Puerta del Sol, Plaza Mayor, and the Royal Palace—sits beside green Retiro Park, perfect for a rowboat break.

Fun facts: the Royal Palace is one of Europe’s largest; the Temple of Debod is an authentic Egyptian temple; and churros con chocolate at late‑night San Ginés is a local rite of passage.

• Don’t miss: Prado Museum, Royal Palace, Retiro Park boats, Gran Vía lights, San Miguel/Antón Martín markets.
• Budget eats: La Campana (calamari sandwiches by Plaza Mayor), El Sur (affordable home‑style Spanish), Museo del Jamón (cheap bocadillos), Mercado de Antón Martín (international stalls).
• Coffee & treats: La Mallorquina (napolitanas), Toma Café (flat whites), Chocolatería San Ginés (classic churros).

Stay (budget‑first):

• Room007 Ventura Hostel (private family rooms; walkable to Sol): Check availability
• Hostal Persal (simple, reliable, great location by Plaza Santa Ana): See rates
• Novotel Madrid Center (family rooms, play corner; good transport links): Compare prices
• Browse apartments for kitchen savings: VRBO Madrid | Hotels: Hotels.com Madrid

Getting to Madrid (choose what fits your route and budget):

• Flights within Europe: compare deals on Omio (Flights); many low‑cost carriers fly to MAD.
• Trains in Spain/Europe: check Omio (Trains) for AVE/ALVIA options.
• Buses (often cheapest): browse Omio (Buses) for regional and overnight routes.

Day 1 — Arrive in Madrid (Afternoon arrival)

Afternoon: Check in, then stretch your legs around Puerta del Sol and Plaza Mayor. Pop into La Campana for Madrid’s signature bocadillo de calamares (crispy, kid‑approved, budget‑friendly). Grab pastries from La Mallorquina to enjoy in the square.

Evening: Wander to the illuminated Royal Palace and Almudena Cathedral for golden‑hour photos. If energy allows, enjoy an intimate, acoustic flamenco—appropriate for families—at the Centro Cultural Flamenco (no amplification, small venue). Book here: Centro Cultural Flamenco Madrid Admission Ticket.

Day 2 — Prado, Retiro Park, and City Highlights

Morning: Dive into art the family can recognize: Velázquez’s Las Meninas, Goya’s Majas, Bosch’s fantastical Garden of Earthly Delights. A guide keeps it engaging and efficient—skip the line with: Prado Museum Guided Tour with Skip-the-Line Ticket.

Afternoon: Picnic in Retiro Park (supermarket empanadas, fruit, and yogurts keep costs down), then rent a rowboat on the Estanque. If legs are tired, see the city from up top on the Big Bus Madrid Panoramic City Tour—kids love the open‑top deck.

Evening: Tapas crawl in La Latina: share tortilla, patatas bravas, and croquetas at budget-friendly bars along Cava Baja. Finish with churros at San Ginés.

Day 3 — Royal Madrid, Debod Sunset, and Malasaña Bites

Morning: Explore the opulent rooms and Throne Hall with a historian guide using skip‑the‑line access: Madrid: Royal Palace Guided Tour with Skip the Line Ticket.

Afternoon: Stroll Calle Mayor to the Market of San Miguel (browse the stalls; eat elsewhere to save). For lunch, El Sur offers generous “menú del día.” Let kids run at Plaza de Oriente or the Sabatini Gardens.

Evening: Sunset at the Temple of Debod viewpoint, then casual dinner in Malasaña—try Toma Café for an early treat and grab affordable raciones nearby. Pack for tomorrow’s city hop.

Lisbon

Lisbon is light and tile: seven hills, terracotta rooftops, and the Tagus River glinting below. It’s wonderfully walkable, with historic trams, miradouros (viewpoints), and day trips to fairy‑tale Sintra.

Fun facts: cod (bacalhau) has hundreds of recipes; Lisbon’s 25 de Abril Bridge was built by the company behind San Francisco’s Bay Bridge; and pastéis de nata are a 19th‑century monastery invention.

• Don’t miss: Alfama lanes, Baixa squares, Belém Tower & Jerónimos, LX Factory, Miradouro da Senhora do Monte.
• Budget eats: Time Out Market (many options under one roof), As Bifanas do Afonso (pork sandwiches), O Trevo (bifanas), Zé da Mouraria (hearty, local lunches).
• Coffee & sweets: Manteigaria (fresh natas all day), Fábrica Coffee Roasters, Hello, Kristof.

Stay (budget‑first):

• Lisbon Destination Hostel (family rooms set inside Rossio Station; fun for kids): See availability
• Martinhal Lisbon Chiado Family Suites (kitchenettes, kids’ club—great if you find a deal): Check rates
• Search more apartments and hotels: VRBO Lisbon | Hotels.com Lisbon

Madrid → Lisbon transport (morning of Day 4):

• Flight: 1h15 nonstop; fares often €25–80 when booked early. Compare on Omio (Flights). Total door‑to‑door ~3–4 hours.
• Bus: 8–9 hours; overnight options can save a hotel night and budget (from ~€20–40). Check Omio (Buses).
• Train: no fast direct service at present; daytime combos via Badajoz/Entroncamento take ~9–10 hours; see Omio (Trains).

Day 4 — Travel to Lisbon + Old Town Orientation

Morning: Travel to Lisbon (see options above). On arrival, load a Viva Viagem transit card (24‑hour passes are great for families).

Afternoon: Settle in, then get a fun overview without hill fatigue on a private eco‑tuk‑tuk tour. You’ll hit Alfama, Baixa, Chiado, and key miradouros while a local points out kid‑friendly snack spots. Book: Welcome Tour to Lisbon in Private Eco Tuk Tuk.

Evening: Dinner at Time Out Market (split a grilled piri‑piri chicken, cod fritters, and salads; many stalls are under €10–12 per dish). Sunset at Miradouro de Santa Catarina.

Day 5 — Belém by the River, LX Factory, and River Cruise

Morning: Glide along the riverfront to Belém on an easy e‑bike tour that keeps hills minimal and history lively. You’ll see MAAT’s curves, the Discoveries Monument, and Jerónimos Monastery. Reserve: Belém E-Bike Guided Tour Explore Lisbon by the river.

Afternoon: Pastéis de nata taste‑test: Manteigaria vs. Pastéis de Belém (share boxes to keep costs down). Browse LX Factory’s bookshop Ler Devagar and casual food stalls for a low‑cost lunch.

Evening: See Lisbon from the Tagus on a traditional wooden boat—calm, scenic, and family friendly. Book: Lisbon Daytime & Sunset Traditional Boat Tour Sightseeing Cruise.

Day 6 — Full‑Day Sintra Castles (Guided)

Make this your one big day trip: fairytale palaces, lush gardens, and ocean cliffs. A guided small‑group tour simplifies tickets and transit, visiting Pena Palace and Quinta da Regaleira (often with Cabo da Roca/Cascais viewpoints). Book: Sintra, Pena Palace and Quinta da Regaleira from Lisbon.

Budget tip: pack sandwiches and fruit for a picnic in Sintra’s gardens; save dessert for an after‑tour pastel de nata back in Lisbon.

Day 7 — Tiles, Alfama, and Departure (Afternoon)

Morning: Easy start with coffee at Fábrica Coffee Roasters and warm natas at Manteigaria. Explore Alfama’s lanes to a viewpoint (Portas do Sol) and let kids spot azulejos (tiles). If time allows, visit the National Tile Museum for hands‑on context.

Afternoon: Grab quick bifanas at O Trevo or As Bifanas do Afonso before your flight. Use the metro/aerobus or pre‑book a transfer if you prefer: Lisbon Hotel to Airport Premium transfer.

Optional Add‑Ons (if you find extra time or another day)

• Madrid: Family bike tour through parks and plazas: Madrid Highlights Bike Tour.
• Lisbon: E‑bike the hills of Alfama and Mouraria: Lisbon E-Bike Tour.

Money‑Saving Tips for Families

• Prioritize “menú del día” (weekday lunch specials) and markets for budget meals.
• Choose apartments with kitchens for breakfasts and a few simple dinners.
• In Madrid, kids under 7 ride free with an adult on public transit; in Lisbon, a 24‑hour pass often pays for itself after 3–4 rides.
• Carry a reusable bottle; both cities have safe tap water and fountains in parks.

With two capitals, short hops, and lots of free or low‑cost activities, this week balances art, castles, river views, and delectable bites—without straining your wallet. It’s a kid‑approved, adult‑satisfying spin through the Iberian Peninsula that still leaves you hungry for a return trip.