Cash, Card, ATMs & Tipping in Lisbon

You land in Lisbon, buy a pastel de nata with a €5 note, and the cashier stares at you like you just offered Monopoly money. Portugal runs on Multibanco, the national debit network, and while the country has embraced card payments faster than most of Southern Europe, you still need cash for the small stuff — and you need to know when to refuse a bread basket you didn’t order. Here’s how money actually works in Lisbon, from ATM tactics to the restaurant charge most tourists pay for nothing.

Currency & Card Acceptance

Portugal uses the euro (€). That’s the simple part. The less simple part: while Visa and Mastercard are accepted at virtually every restaurant, shop, taxi, and transit machine in central Lisbon, the underlying infrastructure is Multibanco — Portugal’s own debit system. You’ll see MB stickers on terminals. Your foreign card will work on them, but always insert and enter a PIN. Contactless is common, but if the machine asks for a PIN, don’t try a signature — that’s not a thing here.

American Express is only taken at chain hotels, upscale restaurants, and large stores like El Corte Inglés. Don’t rely on it at a tasca or a market stall. Apple Pay and Google Pay work wherever contactless is accepted, which is most places — but again, you’ll need a PIN-backed card loaded.

The one place you’ll need cash: local market stalls (Mercado da Ribeira, Feira da Ladra), ginjinha kiosks (€1–2 a shot, cash only), and those tiny pastelarias in Alfama or Graça that don’t display a terminal. Also, the guy selling roasted chestnuts outside Martim Moniz won’t have a card reader.

Multibanco – What You Actually See

When you withdraw cash, you’ll use one of the four big bank networks: CGD (Caixa Geral de Depósitos), Millennium BCP, Santander Totta, or Novo Banco. These are safe. BPI also works. Avoid any stand-alone ATM that looks generic and is branded “Euronet” — they charge high fees and poor exchange rates. Same goes for “Travelex” machines in tourist zones (Rossio, Baixa). Stick to bank ATMs inside branches or attached to bank walls.

Always decline Dynamic Currency Conversion (DCC) when it offers to show the charge in your home currency. The rate is always worse than what your bank gives. Choose “continue in euros” (or similar phrase) — the machine will show the DCC screen before the transaction. This is universal advice, but in Portugal the DCC prompts are especially aggressive at the airport and in touristy ATMs.

ATMs & Fees

Your home bank’s foreign withdrawal fee applies, but Portuguese banks generally do not add an extra ATM fee for foreign cards (unlike some other EU countries). International cards (Visa/Mastercard) work in the Multibanco network with a chip and PIN. However, some ATMs may ask if you want a “Multibanco withdrawal” vs “Visa” — choose Visa. If you insert your card and it doesn’t recognize it, look for an ATM with a “Visa” logo (most bank ATMs have it).

Maximum withdrawal per transaction is usually €200–400 depending on the machine. You can do multiple withdrawals, but the bank may charge twice. For a week-long trip, pulling out around €150–200 cash is plenty — you’ll use card most of the time.

Tipping – When, How Much & Who Gets It

Portugal is not a tip-heavy culture, but service workers in central Lisbon have grown to expect a little extra from tourists. Here’s the breakdown:

Sit-down restaurant with table service: 5–10% if service was genuinely good. Not mandatory. Check your bill: if a serviço incluído line appears, that’s the cover/service charge (see below) — never double‑tip on that. Leave 5% if you’re happy, round up to the nearest €5 if you’re neutral. Locals rarely tip more than a few coins.
Café or pastelaria (standing at counter): Round up. Coffee costs €1; leave €1.10 or €1.20. No obligation.
Bar (ginjinha, beer): Round up. Same as café.
Taxi / Uber: Round up to the next euro. Don’t tip a percentage. If the ride is €8.50, give €9 or €10 if they helped with luggage.
Hotel porters / housekeeping: €1–2 per bag, €1–2 per night for housekeeping, same as everywhere.
Tour guides: €5–10 per person for a full-day walking tour, but not expected for free tours.

You don’t need to tip grocery store clerks, metro workers, or pharmacists.

The Couvert Trap (See Also: Scams in Lisbon)

When you sit down at a restaurant, the waiter will often place a plate of bread, olives, cheese, or pâté on your table — without asking. This is the couvert. It is not free. The charge can range from €1.50 to €5 per person. If you touch it, you pay. If you don’t want it, say “não obrigado” (male) / “não obrigada” (female) before they set it down, or push it away immediately. Some restaurants include this in the automatic serviço incluído charge. Always check the bill. This is a common tourist trap — you can refuse with no social awkwardness.

Friendly warning: don’t confuse the couvert with bread you actually ordered. If you ask for bread, you get it. But if bread just appears, it’s an upsell.

Tap Water at Restaurants

Ask for “água da torneira” (tap water) — it’s free. Many waiters will push bottled water (still or sparkling, €2–4). You have the right to free tap water; Portugal’s tap water is safe and tastes fine. If you order bottled, that’s your choice. The law says restaurants must provide free tap water if asked, though some might try to say they don’t have it. Insist politely. Your bill should show €0 for water.

Tourist Tax – The €2/Night Charge

Lisbon introduced a tourist tax of €2 per person per night in central Lisbon (increased from €1 in 2023). It applies to hotels, hostels, Airbnbs, and other paid accommodations in the city’s historic parishes (Santa Maria Maior, Misericórdia, São Vicente, most of the center). It’s capped at 7 nights — so max €14 per person. Children under 13 are exempt. The accommodation provider collects it at check-in or via your booking. You won’t pay at a separate counter; it’s just added to your total. Don’t be surprised when your Airbnb asks for cash on arrival — that’s legal. Ask for a receipt.

VAT & Tax Refunds for Tourists

Portugal’s value-added tax (IVA) is 23% on most goods, 13% on some food and drink, 6% on essential items. Prices displayed are always inclusive of VAT — what you see is what you pay (except in some business-to-business scenarios, irrelevant for you).

Non-EU residents can claim a VAT refund on purchases over €50.08 (before tax) from a single store. You need to ask the shop for a tax-free form (Digital Tax Free or DigiTax) — most medium/large stores use the digital system. The form is electronic; you get a QR code. At the airport (Lisbon Portela, Terminal 1), go to the DigiTax machine or the customs desk before check-in. You’ll need your passport, boarding pass (or flight details), and the goods in hand (customs may ask to see them). The refund goes directly to your card or in cash. The process is smooth at Lisbon airport — just arrive at least 3 hours early if you plan to do this during peak season.

Counterfeit Notes & Bargaining

Counterfeit euro notes are rare in Portugal. Banks are honest; the Multibanco network is secure. The only place you might see a fake is a street dealer or a dodgy ATM (that’s why you avoid Euronet). In practice, you don’t need to be paranoid. Still, check the main Lisbon guide for general safety.

Bargaining is not done in shops or malls. Price tags are fixed. The one exception is flea markets — especially the Feira da Ladra (Tuesday and Saturday, Campo de Santa Clara). At Feira da Ladra, haggling is expected. Offer 30–40% lower than the asking price and settle around 50–70%. Don’t bargain in antique shops inside the market that have fixed prices. At touristy souvenir stalls, you might try but they’ll rarely budge more than a couple of euros.

Do not bargain in bakeries, grocery stores, or taxis.

Black Market Money – Doesn’t Exist Here

Portugal has no meaningful black market for currency exchange. Bank branches and official exchange offices (câmbios) are the norm. You’ll see “câmbio” signs in Baixa and on Rua Augusta; their rates are slightly worse than bank ATMs but not scam-level. Just use an ATM — it’s cheaper. If someone on the street offers to exchange money for you, that’s likely a pickpocket’s distraction or a con involving counterfeit notes. Ignore them. Stick to bank transactions.

Need More Local Know-How?

If you’re staying out late or need to find a 24-hour pharmacy or the nearest all-night supermarket, head over to Lisbon 24-Hours guide for where to get cash, food, or help at 3 AM.

And for a breakdown of the touts, cocky waiters, and fake charity collectors waiting around Rossio and the tram stops, see Lisbon Scams – What to Avoid.