Portugal: 17 Best Places for Your Holiday

I traveled half the world to find that the most amazing place on Earth is in the very south of Europe – Portugal. In this guide I will share with you Portugal: 17 Best Places for Your Holiday. Maybe that’s why I didn’t want to write about it before. It was my piece of paradise that I didn’t want to share.

My husband, our dogs, and I come here every year, always heading to Algarve in the south of the country. What started as a two-week holiday gradually turned into month-long stays, which get longer each year.

For the past few years, we’ve also been looking for our winter home here. Because what’s the best thing about Portugal? That the Algarve is beautiful all year round. When our child was born, we decided to spend our first Christmas here with them. That’s how much we love it here.

So, where to go on holiday in Portugal?

1. Carvoeiro – our Heart’s Desire

Carvoeiro is our absolute love. This is where my husband, our dogs, and now our little one spend every winter.

Every morning, we start with coffee at Levels, a relatively new cafe right by the beach in the town center. They make the best cappuccino around (although, let’s be honest, it’s not the absolute best cappuccino in the world, but compared to other places nearby, Levels clearly wins 😅).

The most beautiful beach nearby? Praia da Marinha, which I think is one of the most beautiful beaches in the world. Over the years, we’ve returned here several times a week during our month-long stays, especially for sunset. We haven’t gotten tired of it yet; we take every visitor there and plan to go again.

And if you’re in the mood for a longer walk, head from Algar Seco (interesting rock formations) along the cliffs to the Alfanzina Lighthouse. We used to walk our dog there almost every evening, and the views of the ocean and the wild coast are incredibly calming.

Accommodation tip: I recommend Quinta Nova Vale Del Rey, which has a beautiful pool and excellent breakfasts. It’s close to Praia da Marinha, so you’re just a short distance from Algarve’s most beautiful beach.

2. Lagos – City of Golden Beaches and Mysterious Caves

Lagos is a city where history meets some of Europe’s most breathtaking beaches. When we first visited, we didn’t really know what to expect, but now we come here regularly.

The most photogenic spot nearby? Ponta da Piedade – towering rock formations emerging from the turquoise sea. I’m a bit notorious for trying to photograph it in different lights to find out when it’s best. I don’t have a clear verdict yet, so I’ll probably keep dragging myself there every visit.

For an unforgettable experience, try kayaking around the cliffs and caves – it’s not possible with a baby right now, but it’s one of our favorite excursions. My husband always says he’d like to do this every day for the rest of his life. We always booked the trip through GetYourGuide.

Accommodation tip: If you want to stay close to the best beaches, try Cozy beach front apartment right on Praia da Rocha beach in Portimão, which is just a short distance from Lagos. In summer, our favorite is Villa Moments – Guest House with a wonderful pool where we can relax after a day of exploring.

3. Olhão – the Fishing Town that Will Surprise You

For years, we passed Olhão thinking it didn’t have much to offer – how wrong we were! In November 2023, we finally visited it with my mom, who came for a week, and now I can’t believe it took us so long. 😅

It’s actually a quieter and cheaper part of the Algarve, so if you want to save money and have a relaxed time, I recommend heading here.

Accommodation tip: Pure Formosa Concept Hotel opened in 2021 and quickly won our hearts with its stylish rooms and all the necessary amenities. The crown jewel is undoubtedly the rooftop terrace, where my husband and I enjoyed endless views of the Ria Formosa lagoon with an evening drink.

4. Aljezur – Surfer’s Paradise with a Historic Soul

Aljezur is a place we regularly return to when we want to escape the tourist crowds. This small town is a dream for every surfing enthusiast and lover of authentic atmosphere.

But what keeps drawing us back? One of the best cafes in the entire Algarve – KOYO. As true coffee lovers, we are absolutely thrilled with their flat white (alternative milk is a given) and they usually have very good cakes too. It’s an ideal place to relax before further exploration.

For food lovers, we have our favorite Tamrab Thai. Finding a good Thai restaurant in the Algarve is tough, and this one is edible. However, the best restaurant in Aljezur is definitely Arte Bianca, and a nice quick bite is The Hummus Kitchen.

Accommodation tip: Although not directly in the city center, Praia do Canal Nature Retreat is an absolute paradise. The hotel has an amazing atmosphere and beautiful views, making it our favorite choice when visiting this area.

5. Tavira – a Lesser-Known Gem of the Algarve

Tavira won us over instantly, it was love at first sight! It’s another lesser-known place, so it’s peaceful and relaxed, and you’re still in the south of the Algarve, close to beautiful beaches.

In summer, I’m always thrilled with Praia da Ilha de Tavira, a sandy oasis accessible by ferry. Last year, The Guardian even listed it among Europe’s most beautiful beaches!

Accommodation tip: Quinta da Capelinha Agroturismo is a place that all our friends we recommended it to have fallen in love with. If it’s booked, try Hotel Rural Quinta do Marco – Nature & Dining, which also offers an exceptional atmosphere and services.

6. Faro – Gateway to the Algarve

Faro is usually the most common destination if you’re heading to the Algarve, as it has the airport. Perhaps that’s why I put it in 6th place, because it feels a bit overdone to me, but you definitely shouldn’t miss it.

In the historic center, you’ll find the beautiful Sé Catedral de Faro, but what truly captivated us was the Ria Formosa Natural Park. You can observe flamingos and other birds in their natural habitat there.

They sometimes have markets in Jardim Manuel Bívar, where we always bought some local souvenirs or fresh fruit. We haven’t figured out if the markets are regular or if we just get lucky every visit. 🤷‍♀️

Accommodation tip: If you’re flying out of Faro and want to spend your last night near the airport, I recommend the cozy Lemon Tree Stay or the more stylish Casa da Madalena Backpackers Hostel, both located in the city center.

7. Silves – Medieval Pearl of the Algarve

Silves, with its monumental castle, is a town that captivated us so much that we moved there for a whole month in autumn 2023! The atmosphere of medieval Portugal is omnipresent here.

The Castle of Silves is an unmissable landmark that you simply must visit. A walk along its walls always provides us with magnificent views of the surrounding orange groves. Our child was absolutely thrilled with the thick walls and moats – a medieval knight’s paradise!

You’ll find Sé Cathedral right next to the castle, and its Gothic architecture is simply impressive. It’s pleasantly cool inside, which you’ll probably appreciate more in summer than we did in autumn.

Don’t miss dinner at Café Inglés, which is our favorite restaurant (mainly for the atmosphere), where they often have live music.

Accommodation tip: We recommend staying right in the center of Silves – for example, at Mosaiko 5 Suites – from where all the sights are within easy reach.

8. Madeira – Island of Eternal Spring

Madeira is a place I had planned to return to for almost eight years, and when we finally made it, the island once again confirmed that it is among the most beautiful in the world.

The most beautiful experience? Definitely the sunrise at Pico do Arieiro. If you want to know what paradise might look like, you have to go to this third highest peak in Madeira, right at sunrise. The views of the mountains alternating with soft clouds are simply incredible.

Another place that absolutely enchanted us was Fanal Forest. If you arrive early in the morning, the mist shrouding the ancient laurel trees creates a fairytale atmosphere. Be patient, the fog almost always comes eventually.

For lovers of water activities, I recommend the natural pools in Porto Moniz. They are formed by natural lava formations, and swimming in them with views of the wild Atlantic is an unforgettable experience!

Accommodation tip: In the capital Funchal, try Inn & Art Madeira – a romantic, albeit older, hotel without air conditioning, where you can dine with cliff views at sunset and get free wine with your stay. In Porto Moniz, we recommend Hotel Salgueiro, which is close to the natural pools.

9. Sintra – a Fairytale Kingdom within Reach of Lisbon

Sintra is like something out of a fairytale book. When you first see the colorful Pena Palace towering over the town, you won’t believe your eyes – such a place can’t be real!

My absolute favorite is Quinta da Regaleira – a mysterious complex where you can spend hours exploring underground passages, caves, and secret gardens.

Palácio Nacional de Pena looks like something out of a Disney movie – all those colorful facades, battlements, and turrets! The views from its terraces are absolutely breathtaking. Just be careful, arrive early in the morning, otherwise you’ll be queuing for quite a long time.

The town itself is charming, full of picturesque streets, cafes, and souvenir shops. Try Café Saudade, for example, where they make excellent traditional Portuguese desserts.

Accommodation tip: Villa Bela Vista was our choice and we didn’t regret it! A beautiful house with an old-world atmosphere but all modern comforts. If you prefer a hotel-type accommodation, try Sintra Bliss Hotel or the charm of the family guesthouse Rosegarden House.

10. São Miguel (Azores) – Volcanic Paradise in the Middle of the Atlantic

The Azores look like something out of another world. For example, head to São Miguel, a volcanic paradise in the middle of the Atlantic.

The most magical place? Definitely Sete Cidades – two crater lakes (one blue, one green) surrounded by lush vegetation.

Caldeira Velha is a place where you’ll feel like you’re in Jurassic Park. These thermal springs amidst lush vegetation are ideal for relaxing after a day of exploring the island. The iron-rich water has an orange color, creating an incredible contrast with the surrounding greenery. For waterfall lovers, we also recommend heading to Salto do Prego.

Accommodation tip: On the eastern part of the island, we recommend Casa Pavão, which offers an authentic and peaceful experience. In the capital Ponta Delgada, you have several options – from the more affordable Pés Verdes hostel to the more luxurious Ilha Hostel & Suites.

11. Aveiro – the Portuguese Venice

I visited Aveiro because I wanted to see one specific thing – the colorful striped houses on the Costa Nova coast. And it was worth it! These iconic houses, originally used by fishermen as warehouses, now form one of the most photographed locations in Portugal.

The city of Aveiro itself is charming with its canals, which you can cruise on traditional boats called moliceiros. These colorful boats were originally used to collect seaweed, but today they transport enthusiastic tourists. The ride takes about 45 minutes and you’ll see the best of the city from a water perspective.

Accommodation tip: Instead of staying directly in Aveiro, I recommend staying on Costa Nova, where you’ll find those cute striped houses. Try Costa Nova Hotel or the more luxurious Villa Rafa for an unforgettable experience.

12. Sagres – a Place for Surfers

Sagres lies on the westernmost tip of the Algarve and has a completely different atmosphere than the rest of the southern coast. It’s a wild place with mighty cliffs and a turbulent sea, attracting mainly surfers and nature lovers.

The most beautiful place? Definitely Cabo de São Vicente – the westernmost cape of the continent. The lighthouse towering over the mighty cliffs creates a dramatic scenery, especially at sunset, when the entire sky turns red and purple.

Accommodation tip: Stay near Praia da Luz, for example at Casa Rosa Montes or Vila Luz. These are beautiful places with ocean views and good access to the most interesting attractions in the area.

13. Loulé – Authentic Portugal

We had been looking forward to Loulé for a long time, but when we first arrived during carnival, it was so busy that we couldn’t even find a parking spot and had to give up. The second time, in autumn, we finally made it!

The heart of the city is the traditional market Os Mercados, where you’ll find everything from fresh fish to fruit and local handicrafts. On Saturday mornings, the market is especially lively and full of locals who come here to shop and socialize – this is the real, non-touristy Portugal!

Accommodation tip: Loulé Jardim Hotel is our choice whenever we decide to stay in this area. It’s in the center and provides convenient access to all attractions.

14. Flores (Azores) – Island of Waterfalls

Flores is one of the most remote islands of the Azores archipelago, but the journey there is definitely worth it. You’ll feel like you’re in Hawaii – lush vegetation, waterfalls, and dramatic cliffs plunging into the ocean everywhere.

What you absolutely must experience? A trek along the GR 01 trail, which circles most of the island. Some sections are absolutely breathtaking, others a bit more mundane, but overall, it was one of the most beautiful treks we’ve ever done.

Poço da Ribeira do Ferreiro is, in my opinion, the most beautiful place not only on Flores but perhaps in the entire Azores. Imagine a basin surrounded by hundreds of waterfalls of all sizes – a true paradise on Earth. I was lucky enough to be there alone at sunset, and the experience was absolutely unforgettable.

Accommodation tip: On Flores, be sure to try Aldeia da Cuada – a beautiful stone cottage that offers an authentic experience and a peaceful environment. It’s like a trip back in time to old Portugal!

15. Lamego – Gateway to the Douro Valley

Lamego charmed us with its monumental staircase and rich history. The Sanctuary of Nossa Senhora dos Remédios, which stands on a hill above the city, is accessible by a magnificent staircase with over 600 steps. The climb is challenging, but the reward is stunning views of the city and surrounding vineyards.

The Sé Cathedral in the city center is a Gothic gem worth visiting. Its interior is richly decorated, creating a sense of majesty and tranquility. Our child was fascinated by the colorful stained-glass windows through which the sunlight shone.

Lamego is also an excellent starting point for exploring the Douro River Valley, one of the most beautiful wine regions in the world. Be sure not to miss tasting the local wines. I have to come back here when I’m not breastfeeding.

Accommodation tip: Try O Cantinho do Colégio – Dourocollege or the more luxurious Lamego Hotel & Life. Both offer comfortable accommodation and are a good base for exploring the city and its surroundings.

16. Porto (for an Extended Weekend)

Porto was the first city in Portugal I wanted to visit. I was drawn to the blue and white tiles and all those beautiful entrances (I’m a bit obsessed with gates and such), but I never thought it would be a lifelong love. Portugal’s second-largest city will simply amaze you with everything.

Admire the blue and white tiles at São Bento station, marvel at the breathtaking interior of Livraria Lello bookstore, and enjoy a glass of Port wine in one of the cellars on the opposite bank of the Douro River in the Vila Nova de Gaia district.

From the two-story Dom Luís I Bridge, you’ll get a panoramic view that you’ll remember for a lifetime. Compared to Lisbon, Porto has a more relaxed pace, a more intimate atmosphere, and fewer tourists, making it a perfect destination for those who want to discover Portuguese charm in its purest form.

Don’t forget to taste local specialties at Mercado de Bolhão and take your time for a sunset in the Jardins do Palácio Cristal – even if you only plan a few days in Porto, its charm will entice you to return.

And where to stay? Right in the center, you’ll find the classic Ibis Porto Centro, which, like other Accor hotels, offers excellent breakfasts and allows pets. If you want to stay in Porto for a longer period, I recommend the apartments Vitoria’s Terrace Apartments or Cozy Studio Apartment.

17) Lisbon

I saved the capital for last, mainly because everyone thinks of going to Lisbon. But it can’t be left out.

When you arrive in Lisbon, don’t expect a perfectly manicured city – here, every peeling facade has a story, and every steep alleyway leads you to some small treasure. Taste the local cherry liqueur, ginjinha, served in a chocolate cup while observing life around you, or get lost in the bohemian Bairro Alto district, where nightlife pulsates until morning.

And if you have time, take a trip to the already mentioned fairytale Sintra with its colorful palaces or to the westernmost point of Europe, Cabo da Roca, where you can feel like old Portuguese navigators gazing into the endless ocean for a moment.

If you book accommodation well in advance, you might be able to find accommodation in a TOP location, such as LR Guest House or Memmo Príncipe Real. If you are looking for The Gateway – Lisbon Eco Hostel.

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