Best Places to Spend the Holidays in Portugal

Best Places to Spend the Holidays

Looking for the perfect destination to spend Christmas and New Year’s Eve? Portugal is one of Europe’s most magical holiday getaways, offering mild weather, charming traditions, festive lights, award-winning wines, and celebrations that blend authenticity with a warm, welcoming atmosphere.

Portugal: Where to Go This Season

From Christmas markets to spectacular New Year’s fireworks in Lisbon, Porto, and Madeira Island, here are the best places to enjoy the holidays in Portugal and the top wine & cultural tours to make the experience unforgettable.

Festive and Traditional

Lisbon

Portugal’s capital transforms during the holiday season. Expect sparkling Christmas lights along Avenida da Liberdade, festive markets like the Wonderland Lisboa fair, traditional treats such as “bolo-rei,” and one of Europe’s largest New Year’s Eve concerts at Terreiro do Paço, complete with fireworks over the Tagus River.

Four Seasons Ritz Hotel Lisbon

Ring in the New Year at Praça do Comércio, Terreiro do Paço, one of Portugal’s most iconic celebrations, with live music and a vibrant crowd.

5-Day Lisbon Premium Tour

Lisbon blends cosmopolitan energy with deep tradition, creating a one-of-a-kind atmosphere during the holiday season. This tour is crafted for visitors seeking to discover Lisbon’s rich cultural heritage, iconic landmarks, and close connection to the art of winemaking.

Embark on a journey through Sintra, Cascais, and Óbidos, each providing a unique charm, from fairy-tale palaces to medieval streets. Discover Lisbon’s architectural splendor and visit some of the region’s most prestigious wine estates.

High-end Experiences:

• Accommodation at one of the finest 5-star hotels in Lisbon
• Private guided tours with wine tasting at renowned wineries

Porto

Porto is breathtaking during the holidays. Expect traditional markets, nativity scenes, Port Wine tastings in Vila Nova de Gaia, and stunning holiday lights throughout the UNESCO-listed historic center.

Watch the New Year’s fireworks from the Ribeira riverfront or cross to Gaia’s waterfront for the best panoramic view over Porto’s skyline.

3-Day Premium Tour in Porto

The ideal program for travelers with limited time to explore Porto during the holidays. Explore the city’s historic center with a certified private guide, visit emblematic Port Wine cellars, and enjoy an intimate Michelin-star dining experience.

What Makes It Special:

• Accommodation at one of Porto’s finest 5-star hotels
• Private guided tour of the UNESCO Historic Center
• Michelin-star experience at Pedro Lemos

Warm and Sunny

Algarve

Looking for a warmer holiday escape? The Algarve offers sunshine, dramatic cliffs, golden beaches, and a relaxed Christmas atmosphere. Towns like Albufeira, Faro, Lagos, and Silves host family-friendly festivities, outdoor concerts, and New Year’s Eve firework shows by the sea.

Victoria Golf Resort and Spa Managed

Albufeira hosts one of Portugal’s biggest New Year’s Eve beach parties, with fireworks over Praia dos Pescadores.

3-Day Premium Tour in the Algarve

This tour highlights the Algarve’s renowned beaches, Mediterranean-inspired cuisine, and distinctive wines. Perfect for travelers with limited time who still want a meaningful cultural and gastronomic experience.

Top Moments:

• Heritage visit to Silves
• Cooking workshop at Quinta do Morgado do Quintão
• Stunning coastal landscapes

Madeira Island

Madeira is one of the world’s most sought-after destinations for New Year’s Eve; its fireworks show in Funchal has been recognized internationally and lights up the entire bay in a breathtaking display. The island offers a warm climate, lush mountains, beautiful gardens, and holiday festivities rooted in local tradition.

Secure a spot at Funchal’s marina or book a private boat for the best view of Madeira’s iconic firework show.

5-Day Tour in Madeira

Welcome to a journey that blends culture, nature, gastronomy, and signature Madeira experiences. From the luxurious Savoy Palace Hotel to levada walks, jeep adventures, and private coastal cruises, this tour captures the island’s spirit.

Unmissable Experiences:

• Private cruise with dolphin sightings
• Guided levada hike through the Laurissilva Forest
• Wine tasting and traditional lunch at Quinta do Barbusano

Extra Tip

10-Day Tour in Mainland Portugal & Madeira

A 10-day journey combining cities, wine regions, coastal landscapes, and Madeira’s lush scenery. From Lisbon’s monuments to the Douro Valley’s terraces and Madeira’s natural wonders, this itinerary brings together culture, nature, and memorable experiences

• Discover Porto and enjoy a Port wine tasting
• Experience the Douro Valley with private cruises and estate visits
• Taste Portugal’s finest cuisine and wines
• Immerse yourself in local traditions & authentic culture

The Yeatman Hotel

For those looking to elevate their seasonal getaway, Wine Tourism in Portugal offers carefully crafted tours that highlight the best of each region, from private experiences and cultural discoveries to exceptional wine tastings and unforgettable moments.

This holiday season, discover Portugal at its most magical. Your next journey begins here.