Islands, Cities and Countryside: Where to Stay in Picturesque Portugal

With its excellent wine, tasty food and friendly locals, there’s magic to be found in every corner of the country

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Yellow tram on a road in Lisbon, Portugal

It may not be large, but Portugal is incredibly diverse in its rich history, culture, natural landscapes, towns, and cities. From the vineyards of the north to the Moorish architecture in the south and the secluded bays in the west, Portugal offers something for everyone. Our travel experts at Plum Guide know this country well and have collated the top picks on where to stay in Portugal. So whether you’re seeking a seaside getaway or a retreat in nature, read on to learn more about this special country.

Algarve

The Benagil Cave in Algarve, Portugal

The Benagil Cave in Algarve, Portugal

It wouldn’t be a list of where to stay in Portugal without mentioning the Algarve. Located in the southernmost part of the country, the Algarve is a popular holiday destination for those seeking sun, sea and sand. But venture away from its golden beaches, majestic cliffs and quaint fishing villages, you’ll find an idyllic landscape of verdant vineyards, citrus orchards and rugged mountains.

With a coastline stretching for 155 kilometres, you’re spoilt for choice when it comes to beaches. Along the more visited south coast, seaside towns like Albufeira and Lagos are ideal for trying out a range of water sports or exploring natural wonders like the Benagil Caves, a cathedral-like sea cave with sunlight streaming through its roof. Towards the west, the Atlantic beaches are more rugged and wild and are better suited for more adventurous types who want to include a bit of walking into their holiday.

There are countless coastal cliff-top walks to choose from, but if you want to mix things up, head inland to the Serra de Monchique. With jaw-dropping views of the surrounding sea and towns, the mountain range features many trails leading through shady woodland up to Pico da Foia, the highest point in the Algarve at 900 metres. Another scenic part of the Algarve is the Rocha da Pena trail which takes you through lush woodlands filled with colourful wildflowers and fragrant thyme and rosemary.

Gardenias & Palms, Plum Guide home in Algarve, Portugal

Gardenias & Palms, Plum Guide home in Algarve, Portugal

Lisbon

Yellow tram driving through the city on a sunny day, Lisbon, Portugal

Yellow tram driving through the city on a sunny day, Lisbon, Portugal

You didn’t think we’d miss Lisbon, did you? Portugal’s capital city is one of our favourite places to stay in the country, and a must-visit for anyone seeking a memorable city break. Not only is it built on seven hills and offers fantastic views everywhere you look, but it also boasts inspiring architecture, historic landmarks and vibrant nightlife.

There are so many landmarks dotted around the city that it can be hard to know where to start. Torre de Belém is a magnificent tower that has watched over Lisbon quays since the 16th century. Just like it was the starting point for many explorers setting sail into the Atlantic, let it be yours as you take in the city’s sights. If walking up and down all those hills is too much for you, hop on one of the bright yellow trams that connect the city. Tram 28 is one of the most famous routes, as you journey below the hills of Graça to the domes of Estrela Basilica.

When you get hungry, dive into Lisbon’s heavenly offerings at Mercado da Ribeira, the city’s most famous food market. Indulge in everything from the iconic Portuguese bacalhau (salted cod) and the signature bifana sandwich to spicy piri piri chicken and pastel de nata (egg tarts) – Pastéis de Belém has been around since 1837 and is the place to go for these treats. Thirsty? Wash it all down with a few shots of ginjinha, a liquor infused with sour cherries. If wine is more your tipple, perhaps you’d be more tempted by a glass of local vinho down along the waterfront.

The Cobblestone Maze, Plum Guide home in Lisbon, Portugal

The Cobblestone Maze, Plum Guide home in Lisbon, Portugal

Setúbal Peninsula

Sandy beach in Setubal Bay, Portugal

Sandy beach in Setubal Bay, Portugal

Those looking to escape the hustle and bustle of Lisbon should head south to the Setúbal Peninsula. Surrounded by the Atlantic Ocean and the Sado River, this slice of paradise is the perfect spot to relax amongst nature. The Arrabida Natural Park boasts pristine scalloped bays backed by rugged cliffs and is a popular place for hiking, cycling and rock climbing. Meanwhile, the Costa da Caparica’s long sweep of golden sand provides beach cafes and chilly Atlantic waters to surf in. For a good old outdoor exploration, Cabo Espichel is a bleak and wind-swept headland where you can trace the footprints of dinosaurs.

The peninsula is also a favourite destination for foodies, with some of the best seafood in Portugal. In the main fishing port of Setúbal, swing by the Mercado do Livramento, where you can pick up any kind of fresh seafood you can think of – cod, squid, sole, sea bass, gilt-head sea bream, sardines, barnacles, oysters and even black scabbardfish. Setúbal Bay is also home to orcas and dolphins, so while you’re here, you may as well take a cruise to see them closer. Alternatively, stay on dry land and explore the peninsula’s rich history, reflected in its architecture and monuments, such as the medieval castle of Castelo de Palmela or the 16th-century Igreja de Jesus, which features stunning Renaissance architecture.

Mighty Pine, Plum Guide home in Porto, Portugal

Mighty Pine, Plum Guide home in Porto, Portugal

Porto

Douro river in Porto, Portugal

Douro river in Porto, Portugal

If you’ve been to Lisbon and are looking for another Portuguese city, head north to the wonderful Porto. Situated on the banks of the Douro River, the city’s World Heritage historic centre is a labyrinth of narrow streets, colourful houses and historic buildings like the Sao Bento train station with its beautiful tiled walls.

Porto is a particularly popular destination for oenophiles who come to taste the city’s famous sweet port wine. Produced in the Douro Valley, the port is aged in cellars along the river in Vila Nova de Gaia – one of the most famous is Graham’s Port Lodge, where you can learn about the winemaking process and sample the goods. Another good place to visit is the World Of Wine. Set within the former port warehouses, WOW certainly lives up to its acronym. Dive headfirst into a wine-fuelled journey at the six museums (including one about wine), wine school, restaurants, bars and multiple exhibition spaces.

Late afternoons in Porto call for strolls along the picturesque riverfront promenade, Cais da Ribeira. Grab a seat at one of the cafes to enjoy the sunset before heading to Taberna dos Mercadores for traditional fare. The best way to end the night is with the wistful notes of Portuguese fado music at Ideal Clube de Fado.

Mighty Pine, Plum Guide home in Porto, Portugal

Mighty Pine, Plum Guide home in Porto, Portugal

West Coast

View over the garden and the cloister of D. Dinis in the monastery of Alcobaça in Portugal

View over the garden and the cloister of D. Dinis in the monastery of Alcobaça in Portugal

Also known as the Silver Coast, Portugal’s West Coast stretches from Porto in the north to Lisbon in the south. It’s an ideal spot for a beach holiday, with long expanses of sandy beaches and dramatic coastal views. Some of the most popular beaches include Praia da Nazaré, Praia de São Pedro de Moel, and Praia do Baleal, all offering surf opportunities.

When you’re not down on the beach, take the time to roam through the many historic towns and villages like Obidos, Alcobaca and Batalha. Wander the quaint streets, dine on traditional dishes at local tavernas (grilled sardines and octopus salad are a must-try) and visit historical monuments such as the Obidos Castle and the Alcobaca Monastery. There are even several natural parks and reserves where you can stretch your legs and breathe in the fresh air – the Serra da Estrela Natural Park is the highest mountain range in Portugal and offers spectacular hiking routes. Meanwhile, the Berlengas Nature Reserve is a small archipelago where you can spend the day swimming and snorkelling in azure waters.

Madeira

Monte palace tropical gardens with view of Funchal town, Madeira

Monte palace tropical gardens with view of Funchal town, Madeira

Wondering where to stay in Portugal for an island escape? With its warm, subtropical climate and breathtaking volcanic landscapes, Madeira is an amazing holiday destination. Start your trip to the capital of Funchal. At its heart is the charming Old Town, a maze of historic streets lined with colourful houses, shops and wine bars serving traditional Madeira wine. The city is famous for its botanical gardens, where you can walk amongst various exotic plants and flowers. One of the best is the Monte Palace Tropical Garden – take a cable car ride up here for far-reaching views of the island.

Madeira was made for outdoor adventures, and there are countless places to get out and about in nature. Known for its levadas or irrigation channels, these narrow waterways run throughout the island’s mountains and valleys. Take the many hiking routes along the levadas and up the hills for unbeatable views. Those who fancy a challenge can even hike up Pico do Arieiro, Madeira’s third-highest peak at 1,818 metres above sea level (don’t worry, you can also drive up here).

If the heat gets too much, the island’s beautiful beaches are the perfect spot to chill out and relax. Some of our top picks include Praia do Porto do Seixal Beach, Calheta Beach and Machico Bay Beach. The natural swimming pools in Doca do Cavacas and Porto Moniz are also ideal with their refreshing, clear waters.

Marine Dreams, Plum Guide home in Madeira, Portugal

Marine Dreams, Plum Guide home in Madeira, Portugal

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