Food shopping and eating out
Food shopping in Portugal is dominated by two home-grown chains, with discounters and a Spanish newcomer close behind, and every city has markets for fresh food. Eating out runs on a midday rhythm: a set lunch on weekdays and dinner from about 8pm.
In 30 seconds
- Continente and Pingo Doce together had half of grocery spending in early 2026; Lidl, Mercadona and Auchan are the main alternatives
- Basic foods such as bread, milk, eggs, fish, meat, fruit, vegetables and olive oil carry 6% IVA; restaurant meals 13%; alcohol and soft drinks 23%. The 0% “IVA Zero” basket ended in January 2024
- Tipping is voluntary, you can refuse starters you didn’t order, tap water must be free for customers, and nobody under 18 can be sold alcohol
The main shops
| Shop | What it’s like | Closest UK feel |
|---|---|---|
| Continente (Sonae) | The market leader, with 27.6% of grocery spending in the first half of 2026. Hypermarkets, supermarkets and smaller neighbourhood shops | Tesco |
| Pingo Doce (Jerónimo Martins) | 22.3% of the market and closing the gap on Continente, helped by loyal shoppers visiting more often | Sainsbury’s |
| Lidl | Discounter in third place, with 13.8% | Lidl UK |
| Mercadona | The Spanish chain has 7.4%. 55.6% of households shopped there in early 2026, but its short range limits how much they spend | A mix of Tesco and Aldi |
| Auchan and others | Auchan, which also gained share in 2025, and other national and regional chains | Asda |
| Markets | Every city has municipal markets for fresh fish, fruit and vegetables, such as the historic Mercado do Bolhão in Porto | Local markets |
The market shares come from Worldpanel by Numerator, which tracks real purchases by a panel of 4,000 households. It finds that people in Portugal often split their shopping across several chains and value promotions and branded goods. For a full budget, use the cost of living calculator and How much does it cost to live in Portugal?
IVA (VAT) on food
| Rate (mainland) | What it covers |
|---|---|
| 6% | List I of the VAT Code: cereals, rice, flour, pasta and bread; fresh or frozen meat; most fish and seafood, and tinned fish over 50% fish; milk, cheese, yoghurt, butter and eggs; olive oil; fresh fruit and vegetables and pulses; honey; salt; fruit and vegetable juices; mains water; baby food and gluten-free products for people with coeliac disease |
| 13% | Food and drink served in restaurants and cafés (List II, item 3.1), except alcoholic drinks and soft drinks |
| 23% | Everything else, including alcohol, soft drinks and other food and drink not on the reduced-rate lists |
Madeira and the Azores can set lower rates for sales on the islands, so prices there can differ.
What happened to “IVA Zero”?
From 18 April 2023 to 4 January 2024, a basket of 46 categories of essential foods was sold with 0% IVA to soften inflation. It was not renewed, and the 6% rate came back on 5 January 2024. In September 2026 opposition parties again proposed IVA Zero on food, and the finance minister warned it would cause a budget deficit. It is not in force; check the news around the 2027 Budget.
Meal times and the prato do dia
Cafés (pastelarias) open from about 8am for coffee and a pastry. Lunch is usually between 12pm and 2pm, though some restaurants serve until 3pm, and many workers have an hour. A lot of people eat a fixed weekday lunch menu: typically soup, the prato do dia (dish of the day), dessert and a coffee, at a price well below the evening menu. An afternoon snack (lanche) around 4pm is common. Dinner is usually from 8pm to 9pm; restaurants that open at 7pm are often empty at that time.
Your rights when eating out
The consumer association DECO sets out the rules:
- The price list must say that no dish or drink, including the couvert (bread, olives and other starters put on the table), can be charged if you didn’t ask for it or didn’t touch it. If you eat it, you pay for it, so send it back straight away if you don’t want it
- Restaurants, cafés and bars must offer free tap water and clean, reusable glasses to customers eating or drinking there
- Price lists must be in Portuguese (other languages are allowed too), at the entrance and inside, with full prices including IVA
- Ice, lemon and other extras, or fees for sharing a dish, can be charged only if they are on the price list
- If you think your rights weren’t respected, you can make a formal complaint, including online
Tipping
DECO says tipping is not compulsory in Portugal: it is your decision, for example if you liked the food and the service. It also says adding a suggested tip to the receipt or the price list is not good practice, and you can refuse to pay one. Leaving some coins or rounding up is common but not expected.
Alcohol
- It is illegal to sell, serve or give alcohol to anyone under 18 in public places and places open to the public, or to anyone who is visibly drunk
- Under the 2013 rules, shops can’t sell alcohol between midnight and 8am. Restaurants, bars, nightlife venues and airport and port shops for passengers are exempt
- The FCDO warns that drinks served in bars in Portugal are often stronger than in the UK. See What rules catch Brits out in Portugal?
Tap water
The water regulator ERSAR found that 98.84% of tap water was safe in 2025, the 11th year in a row at about 99%. In 225 municipalities (81%) the figure was 99% or more. Problems were mostly in small supply systems and some public fountains. Taste varies by area; your local water company publishes test results.
What to do next
- Compare a week’s shop at Continente or Pingo Doce and at Lidl near you
- Download the app of the chains you use to compare promotions
- Find your nearest municipal market and try a weekday prato do dia
Keep going
- ECO News: Pingo Doce gains on Continente as Lidl widens gap to Mercadona (Worldpanel by Numerator, first half of 2026; Aug 2026)
- Mercado do Bolhão, Porto’s historic market
- Portal das Finanças: VAT Code, article 18 (rates)
- Portal das Finanças: VAT Code, List I (goods at the reduced rate)
- Ordem dos Contabilistas Certificados: VAT on tonic water, quoting List II item 3.1 after the 2024 Budget (Feb 2024)
- Renascença: IVA Zero comes to an end (4 Jan 2024)
- Dinheiro Vivo: IVA Zero news, including the September 2026 debate
- Devour Tours: What time do people eat in Portugal? (updated Dec 2025)
- DECO PROteste: Restaurants, rules for charging for starters, ice and glasses of water
- Decreto-Lei 106/2015 on alcohol and minors (Diário da República, via the Directorate-General for Education, PDF)
- GOV.UK: Portugal travel advice: safety and security
- RTP: Tap water quality almost 100%, ERSAR annual report on 2025 (2026)