Currency in the Algarve
Planning a trip to the Algarve? Whether you’re paying for dinner or withdrawing cash, it’s useful to know how currency in the Algarve works. This guide explains the euro, using cards, finding ATMs, and exchanging currency during your stay.
Understanding euro notes and coins
Portugal, like the rest of the Eurozone, uses the euro (€) as its official currency. One euro is divided into 100 cents, and you will find seven types of banknotes in circulation: €5, €10, €20, €50, €100, €200, and €500. There are also eight euro coins: 1, 2, 5, 10, 20, and 50 cents, along with €1 and €2 coins.
While one side of each coin is common across Europe, the other side varies by country. In Portugal, the national side features the royal seal of Dom Afonso Henriques, a symbol of the country’s historic roots. Though larger denominations like €200 and €500 are legal tender, they are rarely used in everyday purchases.
How to pay in shops and restaurants
Most shops, restaurants, and cafés in the Algarve accept debit and credit cards, including Visa, MasterCard, and often American Express. However, it is not uncommon for smaller, family-run businesses, especially in rural areas or local markets, to accept cash only. You may also encounter a minimum spending amount for card payments. For this reason, it is a good idea to always carry a small amount of cash with you, especially if you are dining at traditional restaurants, shopping in local artisan stalls, or using taxis. Having cash on hand ensures smooth payments where card machines may be unavailable or unreliable.
Withdrawing money from ATMs
ATM tips:
- Look for ATMs with the MB (Multibanco) symbol
- Major banks include Santander and Caixa Geral de Depósitos
- Most machines support multiple languages
- Expect withdrawal limits and possible foreign card fees
- Fees are shown before you confirm your transaction
Pro tip: When withdrawing cash or paying by card, always choose to be charged in euros rather than your home currency. This avoids poor exchange rates caused by automatic conversion.
You will find plenty of ATMs across the Algarve, operated by both international banks like Santander and local Portuguese banks such as Caixa Geral de Depósitos. Many ATMs display the MB symbol, which stands for Multibanco, Portugal’s nationwide banking network. These machines allow you to withdraw cash using debit or credit cards, and they often support multiple languages, making them user-friendly for visitors.
Keep in mind that withdrawal limits may apply, depending on your bank’s policies or your card type. There may also be fees for foreign card usage, including a percentage-based charge or a flat fee. These charges vary by bank, but the ATM will always display any fees before you confirm the transaction, giving you a chance to cancel if needed. It is also worth noting that Multibanco ATMs offer more than just cash withdrawals. Locals often use them to pay bills, buy tickets, and top up phones.
For convenience and to avoid high fees, consider making fewer, larger withdrawals, and check with your bank about partner institutions in Portugal that may offer fee-free access.
Where to exchange currency
If you need to exchange your home currency for euros, or vice versa, you will find several options in the Algarve. Currency exchange services are available at Faro Airport, which is convenient if you want to sort it out on arrival. You can also visit dedicated exchange shops like Unicâmbio, which has locations in popular towns such as Albufeira, Portimão, Faro, Lagos, Quarteira, Olhão and Carvoeiro. While exchange rates are generally fair, it is still a good idea to compare rates and check for service fees before making a transaction.
Live exchange rates
Below you can find the latest euro exchange rates compared to other major currencies.
Need to convert a specific amount?
You can also use the currency converter tool to calculate how much your money is worth in euros.