Purpose Statement
This guide identifies mandatory fees, service charges, and financial regulations in Portugal that frequently result in unexpected costs for international travelers. It is intended for tourists planning trips to Portugal who want to budget accurately and avoid common financial surprises related to accommodations, transportation, banking, and municipal requirements.
Quick Overview: Unexpected Costs in Portugal
| Cost Category | Typical Amount | When Applied | Avoidability |
|---|---|---|---|
| Municipal Tourist Tax | €1–€4 per person/night | First 7–14 nights at accommodations | Mandatory |
| ATM Dynamic Currency Conversion | 3–7% markup | When withdrawing cash | Avoidable (decline conversion) |
| Foreign Transaction Fees | 1–3% per transaction | Card payments in euros | Depends on your bank |
| Train Reservation Fees | €1.50–€10 | Intercity and international routes | Sometimes mandatory |
| Baggage Fees (Budget Airlines) | €25–€60 per bag | Check-in or oversized cabin bags | Avoidable with hand luggage only |
| Restaurant Cover Charge (Couvert) | €1–€5 per person | Most sit-down restaurants | Avoidable (can refuse items) |
| Toll Road Fees | €2–€25 depending on distance | Electronic-only toll roads | Unavoidable when using certain highways |
Municipal Tourist Taxes (Taxa Turística)
What is the tourist tax?
Municipal tourist taxes are overnight accommodation fees charged by local governments in Portugal. According to official regulations implemented across Portuguese municipalities, these taxes apply to paid accommodations including hotels, hostels, vacation rentals, and guesthouses.
Which cities charge tourist tax?
As of current regulations, major tourist destinations charging overnight taxes include:
- Lisbon: €2 per person per night (maximum 7 nights)
- Porto: €2 per person per night (maximum 7 nights)
- Faro and Algarve municipalities: €1–€2 per person per night (varies by municipality, maximum 7 nights)
- Braga: €1.50 per person per night
- Coimbra: €1 per person per night
- Cascais: €2 per person per night (maximum 7 nights)
- Sintra: €2 per person per night (maximum 7 nights)
Who is exempt?
According to municipal regulations, exemptions typically include:
- Children under 13 years old (age varies by municipality)
- Residents of the municipality
- Travelers staying for work-related purposes in some jurisdictions
- Travelers with documented medical treatment purposes
When is the tax collected?
The tax is collected at check-out or during the booking process if paid online. It is not included in the advertised nightly rate on most booking platforms. Travelers should verify whether their accommodation includes the tax in the total price.
ATM and Banking Charges
Dynamic Currency Conversion at ATMs
When withdrawing cash from Portuguese ATMs, travelers are offered the option to convert the transaction to their home currency. According to financial consumer reports, accepting this conversion results in exchange rates 3–7% worse than the standard interbank rate.
What happens: The ATM displays two options—withdraw in euros or withdraw in your home currency with the conversion rate shown on screen.
Financial impact: On a €200 withdrawal, dynamic currency conversion can cost an additional €6–€14 compared to letting your home bank handle the conversion.
How to avoid: Always select “proceed without conversion” or “decline conversion” when prompted.
ATM Operator Fees
Some Portuguese ATM operators charge fixed fees for cash withdrawals by foreign cardholders:
- Euronet ATMs: €3–€5 per transaction
- Bank-operated ATMs: Usually no operator fee for international cards
- Independent operators (often in tourist areas): €2–€6 per transaction
Foreign Transaction Fees from Your Bank
According to banking regulations in most countries, banks charge foreign transaction fees on:
- ATM withdrawals abroad: 1–3% of the transaction amount
- Card payments in foreign currencies: 1–3% of the purchase amount
- Out-of-network ATM fees: $3–$5 per withdrawal
These fees are charged by the traveler’s home bank, not by Portuguese financial institutions.
Portuguese Train System Fees
Mandatory Reservation Fees
According to Comboios de Portugal (CP), the national rail operator, certain train services require advance seat reservations with associated fees:
| Train Type | Reservation Fee | When Required |
|---|---|---|
| Alfa Pendular (high-speed) | Included in ticket price | Always mandatory |
| Intercidades (intercity) | Included in ticket price | Always mandatory |
| Regional trains | No reservation | Not required |
| International trains (to Spain) | €4–€10 | Always mandatory |
| Urban/suburban trains | No reservation | Not required |
What travelers misunderstand
Rail pass holders (Interrail, Eurail) must pay reservation fees separately even though their pass covers the base fare. These fees range from €1.50 for domestic regional services to €10 for high-speed international routes.
Booking Fee Surcharges
When purchasing tickets through third-party platforms or travel agencies, additional booking fees of €2–€5 per ticket may apply. Purchasing directly through the CP website or at train stations avoids these surcharges.
Baggage Fees for Budget Airlines
Standard Policies for Portugal-Based Carriers
Budget airlines operating frequent routes to and from Portugal enforce strict baggage policies with fees:
TAP Air Portugal Express/Regional:
- Cabin bag (10kg): Included
- Checked bag (23kg): €15–€40 depending on route and timing
- Second checked bag: €50–€100
Ryanair:
- Small personal item (40x20x25cm): Free
- Priority + cabin bag (10kg): €6–€36 depending on route
- Checked bag (20kg): €25.99–€59.99 depending on route and booking time
EasyJet:
- Small cabin bag: Free
- Large cabin bag: £7.99–£32.99 (approximately €9–€38)
- Checked bag (23kg): €9.49–€48.99
Excess Baggage Charges at Airport
According to airline policies, bags exceeding weight limits incur charges at check-in:
- 1–3kg over limit: €10–€15 per kg
- Oversized cabin bags: €25–€69 at gate
- Undeclared checked bags: €40–€70 at gate
Restaurant Cover Charges (Couvert)
What is couvert?
Couvert refers to bread, butter, olives, cheese, pâté, or other small items brought to the table before ordering in Portuguese restaurants. According to Portuguese consumer protection guidelines, these items are optional and chargeable.
Legal requirements
Restaurants must clearly indicate couvert prices on menus. Diners have the right to refuse these items, and if untouched, should not be charged. However, once consumed, the charge is mandatory.
Typical costs
- Bread and butter: €0.50–€1.50 per person
- Bread with olives and spreads: €1–€3 per person
- Full couvert selection: €3–€5 per person
Common misunderstanding
Many tourists assume couvert is complimentary like bread service in other countries. The items are brought automatically but are chargeable unless explicitly declined.
Electronic Toll Roads
How Portugal’s toll system works
Portugal operates several electronic-only toll highways with no cash payment option. According to Infraestruturas de Portugal, the national infrastructure authority, specific toll roads require either:
- Pre-registered electronic toll device
- Temporary toll service for rental cars
- Post-payment within 48 hours through authorized payment locations
Which roads are electronic-only
Major electronic toll routes include:
- A22 (Via do Infante) in the Algarve
- A23 (Beira Interior)
- A24 (Interior Norte)
- A25 (Beiras Litoral e Alta)
- A28 (Norte Litoral)
Rental car toll fees
Rental car companies charge for toll services through:
- Pre-paid toll plans: €2–€5 per day plus actual toll costs
- Toll transponder rental: €8–€15 per rental period plus toll costs
- Administrative processing fee: €25–€50 if tolls are processed after rental return
Cost of non-payment
Failure to pay electronic tolls within the required timeframe results in fines starting at €25 per unpaid toll, increasing to €100+ for repeat violations.
Practical Cost-Avoidance Checklist
Before Booking Accommodations:
- [ ] Verify if tourist tax is included in the total price
- [ ] Calculate tourist tax for your stay duration (usually capped at 7 nights)
- [ ] Check accommodation cancellation policies for any fees
Before Using Banking Services:
- [ ] Confirm your bank’s foreign transaction fees
- [ ] Identify bank-operated ATMs rather than independent operators
- [ ] Always decline dynamic currency conversion at ATMs and payment terminals
- [ ] Withdraw larger amounts less frequently to minimize per-transaction fees
Before Booking Transportation:
- [ ] Check if train tickets require separate reservation fees
- [ ] Purchase train tickets directly through CP website when possible
- [ ] Review airline baggage policies before booking
- [ ] Weigh luggage at home to avoid excess baggage fees
- [ ] If renting a car, clarify toll payment method and associated fees
When Dining:
- [ ] Review menu for couvert pricing
- [ ] Decline couvert items if not wanted
- [ ] Verify bill includes only consumed items
Common Traveler Issues and Misunderstandings
Issue: Unexpected Bill Increase from Tourist Tax
Problem: Final accommodation bill is 10–15% higher than expected due to tourist tax not displayed clearly during booking.
Prevention: Manually calculate tourist tax using municipality rates and add to booking total during budget planning.
Issue: Multiple ATM Fees on Single Withdrawal
Problem: Travelers incur both operator fee (from Portuguese ATM) and foreign transaction fee (from home bank) on the same withdrawal.
Prevention: Use bank-operated ATMs to avoid operator fees, and select accounts with no foreign transaction fees when possible.
Issue: Airline Gate Charges for Baggage
Problem: Bags meeting size requirements at home exceed airline-specific dimensions, resulting in €50+ gate fees.
Prevention: Check specific airline baggage sizers online (dimensions vary by carrier), measure bags with all items packed.
Issue: Rental Car Toll Violations
Problem: Electronic toll charges processed after car return result in €25–€50 administrative fees per toll.
Prevention: Purchase rental company’s toll service upfront, or use CTT (Portuguese postal service) pre-paid toll card available at post offices.
Issue: Train Reservation Confusion
Problem: Rail pass holders arrive at platform unaware that high-speed trains require advance paid reservations, resulting in missed trains or on-the-spot higher fares.
Prevention: Book all Alfa Pendular and Intercidades reservations when activating rail pass, even for regional pass coverage.
Issue: Charged for Untouched Couvert
Problem: Restaurant bills include couvert charges despite not consuming the items.
Prevention: Immediately notify server to remove couvert items upon arrival if not wanted. Keep items visibly untouched if disputing charges.
Official References and Information Sources
Portuguese Government Agencies:
- Turismo de Portugal (National Tourism Authority)
- Autoridade Tributária e Aduaneira (Tax and Customs Authority)
- Infraestruturas de Portugal (Infrastructure management)
Transportation Operators:
- Comboios de Portugal (CP) – National rail operator
- Metropolitano de Lisboa
- Metro do Porto
Municipal Tourism Offices:
- Câmara Municipal de Lisboa (Lisbon City Council)
- Câmara Municipal do Porto (Porto City Council)
- Região de Turismo do Algarve
Consumer Protection:
- DECO Proteste (Portuguese Consumer Protection Association)
- Portal do Consumidor (Consumer Portal – Government)
Banking and Financial Services:
- Banco de Portugal (Central Bank)
- European Consumer Centre Portugal
