Summer months are the most crowded and expensive in the coastal areas. Beach towns (such as Nazaré and along the Algarve) are packed with vacationers in July and especially in August — when rates go sky-high and it can be tough to find a room.
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With schools closed, many locals leave the city to vacation on the beaches of the Algarve, and it's not uncommon for more traditional restaurants, cafes and shops to shut their doors for at least half of August. However, Lisbon landmarks and museums are open for business as usual and often have extended opening hours.
Like many places in Europe, July and August are the peak tourist season in Portugal. August, in particular, is very busy due to the fact that it's Portugal's holiday month, so Portuguese travelers join the throngs of international tourists.
In July and August – the Algarve's hottest months – the average temperature is around 28°C (82°F), though some days can get as hot as 40°C (104°F). With cool ocean breezes, evening temperatures hover around 22°C (72°F) – perfect for comfortable outdoor dining.
Low season months of November to March are a cheaper time to visit. If you want to escape the crowds and enjoy rock-bottom prices on accommodations, plan your trip for the low season. Many museums and other attractions keep shorter hours, though you'll still find a full lineup of performances in cities and bigger towns ...
The cost of living in Portugal is generally considered about 46 percent cheaper than in the United States. This, coupled with the country's excellent quality of life, beautiful beaches, stunning mountain ranges, reliable public transport, and rich history and culture, make it very easy to fall in love with Portugal.
The hottest place is Portugal in August is the historic city of Évora (30ºC), capital of the beautiful and uncrowded Alentejo region. You'll find hot temperatures in Faro (29ºC) on the Algarve and in the capital Lisbon (28ºC). The island of Madeira (26°C) will also feel warm.