Lisbon

Lisbon is one of the most charming and affordable capitals in Western Europe. Built across seven hills above the wide Tagus River, it is a city of pastel-colored buildings, patterned tile facades, steep cobbled lanes and sweeping viewpoints, known as miradouros, where locals gather at sunset. It is one of the oldest cities in Europe, older than Rome by some accounts, and it was the starting point of Portugal's Age of Discovery, when explorers such as Vasco da Gama sailed from its shores. That history is visible in the monumental Manueline architecture of Belém and in the maze of Alfama, the old Moorish quarter that survived the great earthquake of 1755.

The city is easy to love. The food is inventive but unpretentious, from custard tarts and grilled sardines to salted cod cooked in a hundred ways, and the wine is some of the best-value in Europe. The nightlife is lively and informal, with fado music in small taverns in Alfama and street-side bars in Bairro Alto. Day trips are outstanding, with the fairy-tale palaces of Sintra, the beaches of Cascais and the Atlantic coast all within an hour. Prices remain lower than in Spain, France or Italy, which makes Lisbon one of the best-value city breaks on the continent.

Lisbon's hills mean that walking is rewarding but tiring, and public transport helps a great deal. The Metro is simple and covers the main areas, while the iconic yellow trams, particularly Tram 28, climb the old districts, and funiculars and elevators, such as the Santa Justa Lift and the Elevador da Glória, link the lower town with the upper neighborhoods. A rechargeable Viva Viagem card works on the Metro, buses, trams and local trains, and a 24-hour pass is good value if you use transport heavily. Trains from Cais do Sodré run along the river to Belém and Cascais, and trains from Rossio run to Sintra.