3. Lisbon, Portugal
Lisbon is one of the cheapest capital cities in Western Europe, provided you avoid the more obvious tourist hotspots. The ancient coastal city has undergone something of a revival in recent years, and it offers plenty to see and do. Visitors will be able to gorge on fine wine and excellent seafood without spending a fortune. Be sure to take the old Tram 28 around the city center. Important sites include the Jeronimos Monastery complex, the Belem Tower and Commerce Square. Backpacking travelers will have no trouble finding good value hostels here, but even hotels are reasonably priced.
