This Beautiful & Cheap Town In Portugal Is One Of Europe’s Top Hidden Gems For 2026

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From a secondary European summer destination, overshadowed by a much larger Spain, to a year-round tourism hotspot loved by Americans, Portugal has never been trendier than it is at the moment.

The westernmost country in mainland Europe now draws in millions of visitors with the promise of wine breaks in picturesque patios, long walks serenaded by fado singers, stunning architectural landmarks, and a beautiful coastline dotted with unruffled sandy beaches.

Beautiful as Portugal may be, it was bound to meet the same tragic fate as its European counterparts: prices are rising out of control, and crowding in major cities, particularly Lisbon and Porto, where the typically friendly Portuguese have started to grow a little weary of visitors.

Luckily, there’s always that one unspoiled town that is yet to be ravaged by mass tourism, and where you can still get some bang for your buck. In Portugal’s case, that’s the unheard-of Óbidos:

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Portugal Without The Crowds

A charming small town in the historical province of Estremadura, an overlooked part of Portugal known for its centuries-old settlements and ancient heritage, Óbidos is nothing short of a postcard town for Medieval Europe:

It has one of the best-preserved townscapes on the continent, with aged-stone, whitewashed houses overlooking cobble-paved alleyways, Baroque church towers rising above red-tiled roofs, and imposing fortifications guarding the entrance to this compact maze.

With a population of only 11,617 and a far more laid-back atmosphere, it exists in a different microcosm altogether than that of a now overly-commercialized Lisbon.

We’re talking no tasteless, rubber-like pastéis de nata that cost $3.50 and above, and no getting bumped into by selfie-obsessed Chinese tour groups while you’re simply trying to admire the beauty of a grand European plaza.

Is Óbidos The Prettiest Small Town In Portugal?

Óbidos is in fact a Latinized name derived from the far older Eburobricio, and as tradition holds it, it was originally a Celtic settlement before being engulfed by the Roman Empire.

The Romans developed a thriving community near the foothills of an advantageous escarpment, and over the centuries that followed, as empires rose into prominence, and fell into oblivion, Óbidos would continue a fortified citadel of key importance to rulers of the time.

The must-see attraction here is the castle and walls of Óbidos, which stand among Portugal’s most impressive. Built by the Moors, invaders from North Africa, it was strengthened in limestone and marble by the Christians in the late Middle Ages.

They added limestone and marble structures, including a now-iconic keep, commissioned in the 14th century under King Ferdinand I.

Today, you can walk along parts of the wall that offer beautiful views of the town on one side, and of the lush countryside outside the fortifications, and the castle itself even houses a Portuguese guesthouse, or pousada.

Overnight rates at the Pousada Castelo de Óbidos start from about $112 for 2 adults.

Is Óbidos Affordable?

Speaking of prices, the town is incredibly budget-friendly still for a country that’s undergoing gentrification at such an unparalleled rate.

In places like Lisbon and the Algarve, digital nomads and expats are to blame for rising living costs, but in the staunch Portuguese enclave of Óbidos, local prices continue to reflect the modest wages of the populace.

A cheap, casual restaurant meal will set you back around €13 (US$15), and there are plenty of inexpensive eateries to pick from.

One of our favorites, Tasca10 serves Portuguese petiscos (their version of tapas), like chouriço assado (grilled sausages), and pica-pau de vazia (beef strips with pickles and bread).

For a more fulfilling meal, we’d recommend you check out the mid-range Alcaide, popular for its grilled octopus—you’re never too far from the Atlantic Ocean in Portugal, after all—and regional desserts.

In the topic of dessert, let’s just say you haven’t really been to Óbidos until you’ve downed their ginja, a sour-cherry liqueur served in an edible chocolate cup. Some restaurants might have them, but your best bet at finding those would be at the well-reputed Bar Ibn Errik Rex.

How Much Do Hotels Cost In Óbidos?

Óbidos is not somewhere you want to just ‘tick off’ of your Portugal itinerary. It’s meant to be savored slowly, with timeless streets and ornate churches that demand lingering looks of admiration, not quick glances and haste.

The good news is, it won’t hurt your wallet to stay here for a night or two:

A night at Casa do Relogio, a guesthouse in the heart of town, will run you up only $89 (as 2 adults), or roughly $44.50 each.

Even more economical, the similarly-rated Casa de S. Thiago de Obidos, close to the train station, will set you back by $67-a-night as a couple of travelers ($33.50 each).

Even getting to Óbidos is cheap and relatively hassle-free: there are 3 direct trains departing from Lisbon, with one-way tickets costing approximately $11.53.

So next time you’re in Europe, and if you’re lucky enough to be in sun-soaked Portugal, you have no excuse but to carve out a little time for Óbidos.

Vinicius Costa

Vini, our senior lead writer at Travel Off Path, has over 60+ countries under his belt (and currently weaving tales from Paris!), and a knack for turning off-the-beaten-path experiences into informative stories that will have you packing your bags.