Portugal has a reputation as Western Europe’s budget option. It largely holds up, but the details matter more than the headline.
Accommodation
Guesthouses (“alojamento local”) outside Lisbon’s historic center run considerably cheaper than hotels, often with better character — exposed tile work, small courtyards, genuine hospitality.
Food
A “prato do dia” (dish of the day) at a local tasca is the best value in the country — often a full meal with wine for a fraction of tourist-menu prices nearby.
Transport
Trains between major cities are efficient and cheap when booked a few weeks ahead. Renting a car only pays off if you are exploring the Douro Valley or the Algarve coastline in depth.