Portugal Lisbon · EUR

Do you need cash in Portugal, or can you pay by card?

Portugal uses the euro (EUR). Cards and contactless payments are widely accepted in supermarkets, chain stores and most restaurants. Portugal has its own national card and cash machine network, used for everything from paying bills to topping up phones, and some small cafés, grocers and market stalls accept only local debit cards or cash, or set a minimum amount for cards.

Carrying a little cash is sensible away from the main shopping streets. At the till you may be asked whether you want your tax number on the receipt; visitors can simply say no.

Where do people in Portugal buy groceries?

Most households shop at supermarkets and hypermarkets, many of them inside shopping centres, alongside discount supermarkets and small neighbourhood grocers. Municipal markets (mercados) sell fresh fish, meat, fruit and vegetables; they are busiest in the morning, and many close after lunch and on Sundays. Bakeries and pastry shops are part of daily life.

Shopping centres and most supermarkets open seven days a week, often until late evening, while some small shops close at lunchtime and on Sundays. Prices in shops are fixed, and bargaining is limited to flea markets.

Is VAT included in prices in Portugal?

Yes. Shelf prices in Portugal include VAT (IVA). On the mainland the standard rate is 23%, with an intermediate 13% rate and a reduced 6% rate that covers many essential foods. Madeira and the Azores apply their own lower rates, so the same product can carry a different tax there.

In 2023 a temporary zero rate applied to a basket of essential foods; it has since ended. Visitors who live outside the EU can reclaim IVA on goods they take home by asking the shop for a tax-free form and validating it at customs when they leave.

How have prices in Portugal changed recently?

Like the rest of the euro area, Portugal saw a sharp rise in prices in 2022 and 2023, led by energy and food. Inflation has slowed since, though food remains noticeably more expensive than before the episode. Strong tourism and demand for housing in Lisbon and Porto push up prices for eating out and services in those cities, and many foods and goods are imported, so transport and energy costs feed into shelf prices. Since prices keep moving, every price on this page shows the date we read it.