Currency and Tipping

Practical Info

Portugal uses the euro as its currency, making financial transactions straightforward for visitors from other eurozone countries. For visitors from non-euro countries, understanding the practical aspects of currency exchange, card payments and tipping customs will help avoid unnecessary costs and confusion.

The euro is divided into 100 cents. Coins in circulation are 1, 2, 5, 10, 20 and 50 cent pieces, and 1 and 2 euro coins. Banknotes come in denominations of 5, 10, 20, 50, 100, 200 and 500 euros, though the 200 and 500 euro notes are rarely seen in everyday transactions and some businesses may refuse them.

Card payments are widely accepted across the Algarve. Most restaurants, shops, supermarkets, hotels and petrol stations accept Visa, Mastercard and contactless payments. The Multibanco system, Portugal's national ATM and electronic payment network, is one of the most efficient in Europe. However, some smaller businesses, market stalls, rural cafes and beach vendors may only accept cash, so it is advisable to carry some euros at all times.

ATMs (multibancos) are found throughout the Algarve, in town centres, shopping centres, airport terminals and near tourist attractions. They offer instructions in multiple languages including English. Most international debit and credit cards work in Portuguese ATMs, though your bank may charge a foreign transaction fee. Withdrawing larger amounts less frequently can help minimise per-transaction charges.

Currency exchange offices (cambios) operate at Faro airport, in the larger resort towns and in some banks. Exchange rates at airport cambios are typically less favourable than in town. Banks offer currency exchange during normal business hours, and some post offices also provide the service. Using your debit card at an ATM generally offers a better exchange rate than a cambio.

Tipping in Portugal is not obligatory but is appreciated for good service. In restaurants, a tip of 5 to 10 percent of the bill is customary when you are happy with the service, though many Portuguese leave only small change or round up the bill. Service charges are not typically included in restaurant bills. In cafes and bars, it is common to leave small change. Hotel porters, housekeeping staff and tour guides appreciate tips of 1 to 2 euros per service. Taxi drivers are usually tipped by rounding up the fare.

Portugal's cost of living is lower than most of northern Europe, and the Algarve, while the most expensive region of Portugal, remains good value compared to equivalent coastal destinations in Spain, France or Italy.