What Currency Does Portugal Use?

What Currency Does Portugal Use? (UK Traveller’s Guide)

Heading to Portugal from the UK? Whether you’re off to the Algarve, Lisbon, or Porto, understanding which currency is used will help you manage your spending and avoid unnecessary fees. Portugal is a member of the European Union and a fully integrated Eurozone country. This guide explains what currency Portugal uses, how payments work, and what UK travellers need to know to spend wisely abroad.

What Is the Official Currency of Portugal?

The official currency of Portugal is the euro (EUR).

• Currency name: Euro

• Currency symbol: €

• ISO code: EUR

• Subunit: 1 euro = 100 cents

Portugal joined the Eurozone in 1999 and introduced physical euro notes and coins in 2002, replacing the Portuguese escudo.

Who Uses the Euro in Portugal?

All businesses, residents, and institutions across mainland Portugal and its autonomous regions (Madeira and the Azores) use the euro. It is the only legal tender, and all goods and services are priced in EUR.

Unlike some destinations, British pounds are not accepted, and prices must be paid in euros either by cash or card.

How Does the Currency Work in Practice?

• Card payments are accepted almost everywhere, including contactless and mobile wallets

• Cash (euros) is still widely used, particularly in rural areas or small shops

• ATMs are common, reliable and dispense cash in EUR

• UK travellers can use Visa, Mastercard and other major cards, though fees may apply

Benefits and Considerations for UK Travellers

Benefits:

• The euro is stable, widely used and easy to exchange

• Familiar pricing for those who have travelled in Europe

• No need for niche or hard-to-obtain currencies

Considerations:

• Avoid paying in GBP if offered (e.g. on a card terminal), as this often results in dynamic currency conversion (DCC) and a worse exchange rate

• Some UK bank cards add foreign transaction fees—check before using

Tips for Spending in Portugal

• Use a fee-free travel card such as Monzo, Starling, Chase or Wise to get better exchange rates and avoid added fees

• Pay in euros, not pounds, when given the option at checkout

• Use ATMs in towns or bank branches, not airport kiosks, for better cash rates

• Keep some cash on hand for tips, taxis, or local markets

FAQs

Can I use pounds in Portugal?
No. Only euros are accepted. Always convert or use a card that supports euro transactions.

Do I need cash in Portugal?
Not necessarily, but having a small amount is helpful. While cards are accepted widely, some local or rural businesses may still prefer cash.

Is tipping done in euros?
Yes. Tipping is common in euros—rounding up or giving 5–10% is appreciated in restaurants or taxis.