Portugal is a beautiful country for backpackers to explore. The country offers an amazing cultural heritage that is begging to be explored.

Temperatures are comfortable throughout most of the year. As a whole, it’s the cheapest country in Western Europe to explore, and delicious food is found everywhere at price points that backpackers can afford.

You will discover codfish prepared in many unique ways. You may want to sample the red and white wines produced by small wineries across the country. When you are ready to party, you will find many lively clubs available. Be sure to bring your camera as the country’s scenery is breathtaking. 

There are many wonderful beaches where you can work on your tan. Snorkeling, scuba diving, swimming, and other water activities can be done in many places. You will find hiking paths for all ability levels. There are also numerous places to rent a bike. Boating is a popular way to enjoy the beautiful weather. ATV tours allow you to get off the beaten path to explore this country’s rugged beauty.

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After a full day of adventure, you will want to head to one of the country’s hostels to get a great night’s rest. 

BEST HOSTELS IN LISBON

Sunset Destination Hostel

destination hostels - best hostels in portugal Book on Hostelworld Book on Booking.com from $24 / 10-dorm 4.4/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Rooftop bar and pool 
  • Weekly DJ parties 
  • Organized daily activities 
  • Art Deco-style rooms 

Lisbon is loved by tourists and it’s booming with new hostels almost every week! It’s also considered as one of the most top 10 fun cities in Europe, so you should definitely consider if you like to party!

Located upstairs in the Cais do Sodré Train Station, Sunset Destination Hostel is a leisurely stroll from Lisbon’s party scene and undoubtedly one of the best hostels in Portugal. Relax in the pool before joining the fun at the rooftop bar during happy hour. Try to plan your stay to include the weekly DJ-hosted party.

This hostel’s name is very apt because the rooftop is the perfect paradise to enjoy the sunset over the Tagus River. Start your next day with a free breakfast before renting one of the hostel’s bikes to explore the city. Alternatively, join the fun of one of this hostel’s organized daily tours. 

Once inside, you will find a variety of rooms decorated in the Art Deco style. Wooden floors help provide a rustic vibe. Electronic locking lockers are available for guests to use. 

Home Lisbon Hostel

Book on Hostelworld Book on Booking.com from $28 / 8-dorm 4.4/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Home-cooked meals 
  • Bar in main room 
  • Outdoor patio 
  • Internet 

Located within the historic center of Lisbon, Home Lisbon Hostel has some of the best home cooking in Lisbon. You can dine around a table with the owners in the evening while eating fabulous meals. Start each morning with the delicious homemade breakfast buffet.

Enjoy drinks from the bar located in the main room of this 200-year-old family classic Pombaline home. Relax on the outside patio or in the library where a large flat-screen TV is located. 

Each dorm-style room either has large windows, a balcony or is air-conditioned. A computer is available for everyone to use and there is free internet throughout the hostel. Like the rest of this hostel, rooms feature substantial wooden furniture. Underbed storage lockers are available, and lower bunks have privacy curtains. Electronic wristbands allow easy access to the rooms. 

BEST HOSTELS IN PORTO

Porto is becoming a popular digital nomad city because of its affordable cost, laid back lifestyle but also attractive TAX system that Portugal deployed on self-employment. The city has amazing hostels and most of them could be listed here as the best hostels in Portugal!

Cats Hostel

Book on Hostelworld Book on Booking.com from $20 / 10-dorm 4.4/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Located near the World Heritage site 
  • Air conditioning 
  • Shared kitchen 
  • Rooftop Lounge 

Enjoy a beer on the rooftop terrace at this hostel located very near the historic Liberdade Square. You will find many activities, including walking tours, wine tours, and pub crawls. If a barbecue is planned while you are there, you should make it a mandatory activity during your Portugal vacation.

This hostel is spread across three historic buildings. Many guests enjoy playing board games or working on puzzles. 

Each room comes with its own bathroom and big storage lockers. Large windows let in plenty of light, and each room is air-conditioned. A shared kitchen is available where guests can prepare their own meals while snack-type food is available at the bar. 

Nice Way Porto

Book on Hostelworld Book on Booking.com from $22 / 12-dorm 4.3/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Bar 
  • Complimentary breakfast 
  • Coffee shop 
  • Free internet and computers 
  • Security box at reception 

Located a 3-minute walk from the São Bento Train Station, the Nice Way is a chain of hostels in Portugal that features private, double, and dorm-style rooms. Start each day with a complimentary breakfast. End the day with a meal prepared in the shared kitchen and a cocktail or glass of Porto wine in the lounge. Take advantage of the security box at reception and the in-room storage lockers. 

After a great night’s rest at this hostel and starting your day at their coffee shop, rent the hostel’s bicycles to explore the city. Tours and travel information is available at the reception desk. Free internet is available throughout while guests can also use the hostel’s laptops. 

BEST HOSTELS IN FARO

Casa D’Alogoa

best hostels in portugal

Book on Hostelworld Book on Booking.com from $15 / 12-dorm 4.5/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Garden 
  • Microwave and barbecue grills 
  • Hosted barbecues 
  • Near many attractions 

At the centrally located Casa D’Alogoa, guests find a friendly staff working inside a historic hostel facing a beautiful garden. Try to attend one of their barbecues. While a bus stop is located at this hostel, it is easy to walk to Old Town and other nearby attractions. Designated smoking areas are available, and you can use the business center’s computers. 

Enjoy looking out the windows in the private or shared rooms that each have a high ceiling. You can enjoy time spent on the terrace attached to many of the rooms.

Minimalistic décor is found throughout this beautiful historical hostel. A microwave and barbecue grills are available for guest use. Start each day with a complimentary breakfast.

BEST HOSTELS IN PENICHE

33 Hostel – One of the Best hostels in Portugal

Book on Hostelworld Book on Booking.com from $17 / 9-dorm 4.7/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Restaurant 
  • Pillow menu 
  • Complimentary breakfast 
  • Free newspapers 
  • Television in lobby 

If you’re into surfing, kite surfing or windsurfing you should definitely check out Peniche, it’s one of the best surf spots in Europe!

Located very near the beaches that make Peniche famous, 33 Hostel offers a family atmosphere with a family-hosted dinner occurring nightly. Double and dorm-style rooms are available. Get a great night’s sleep by choosing your furnished pillows from a pillow menu. Each room is soundproof and features blackout curtains. 

You can enjoy tea and coffee in the lounge or choose to dine at the restaurant. Each room is accessed through an exterior hallway. Those staying at this hostel will find wooden furniture, and a shower is attached to each room.

The guest rooms are cleaned daily. Start your day with a free breakfast. You can also use this hostel’s complimentary internet. Catch up on the news by reading the free newspaper in the lobby or watch the television in the lobby. 

BEST HOSTELS IN LAGOS

Rising Cock Party House

Book on Hostelworld Book on Booking.com from $17 / 9-dorm 4.3/5 Map

**Prices are shown for weekdays in High-season (July)

Highlights 

  • Party scene 
  • Private rooms 
  • Complimentary Breakfast 
  • Shared kitchen 

Centrally located in the historical district of Lagos, Rising Cock Party House offers free pub crawls daily. Enjoy complimentary breakfast daily. Hang out on the terrace until it is time to go party or use the computers in the computer room. There are also large televisions that you can watch. This hostel is spread across five unique buildings. Guests are asked to contribute to a fund that sends mosquito nets to Africa. Solar panels warm the hot water at this hostel. 

Each room comes with its own theme and a private bath. Key cards make it easy to access your room. The toilets in this hostel use less water to lower the impact that the hostel has on the environment. A fully equipped kitchen is available to guests, along with coupons to local restaurants and pubs. 


There are many reasons that you will want to plan a trip to Portugal very soon. Make that trip happen very more quickly by choosing to stay at one of these fabulous hostels. Each has its unique vibe that you will enjoy sharing with guests from around the world.

Some have a fabulous family vibe while others offer a party atmosphere. Most are conveniently located near the mountains or the beach. Start finalizing your plans today so that you can stay at these hostels in Portugal while enjoying all this country has to offer visitors, like historic sites, surfing and pubs. You will definitely enjoy your time in Portugal.