💰 Quick Context: Euros, Multibanco and Portugal's Lowest VAT
The Azores use the euro and the same Multibanco machines as mainland Portugal. The islands sit inside the EU VAT area, but Portugal lets them set the lowest rates in the country: a standard rate of 16 percent, against 23 on the mainland and 22 in Madeira. Ponta Delgada and the main towns are card-friendly. Budget for the entry fees at Furnas and the hot springs, a hire car, and inter-island travel, and carry cash for village cafes and the smaller islands.
🎧 Order Euros Before You Fly
Direct flights from Boston and Newark land early. Arrive with euros. Insured delivery, 2–5 days.
Order EUR → CEI Currency ExchangeThe Lowest VAT in Portugal, and Still No Duty-Free
The Azores are not a tax haven. The nine islands form a self-governing Portuguese region that belongs to the EU and sits within its common VAT system, which puts them with Madeira rather than with the Spanish Canaries. There is no special island tax in place of VAT and no duty-free shopping.
But the rates are Portugal's lowest. Portuguese law lets the autonomous regions set VAT below the mainland, and the Azores go furthest: the standard rate is 16 percent, against 23 percent on the mainland and 22 in Madeira, with lower intermediate and reduced rates on restaurant bills and food. The saving is already in every price. It shows up most in groceries, local wine and restaurant meals, which are noticeably cheaper than in Lisbon.
What is expensive is supply. The islands have a limited number of hire cars, hotel rooms and seats on inter-island flights, and in July and August all three are priced accordingly. Book them early. Non-EU shoppers keep the right to a tax-free refund at shops in the scheme, though at 16 percent there is less to get back.
Furnas, the Hot Springs and the Cozido Cooked in the Ground
Paid entry at the thermal pools. São Miguel's volcanic valley at Furnas is the Azores' most visited spot. Terra Nostra Park, a historic garden around a large, warm, iron-brown thermal pool, charges an entry fee of around €10 to €15. Poça da Dona Beija, a set of smaller hot pools under the trees, charges less and stays open into the evening. Both take cards. The water stains light swimwear orange, so bring an old swimsuit and a towel; lockers and towel hire cost extra at some pools. On the coast, Ponta da Ferraria is a natural hot spring in the sea, reached by a steep road, with a small car park.
The cozido das Furnas. In the mornings, restaurant cooks lower pots of meat, sausage and vegetables into holes in the hot ground beside the Furnas lake, collect them six or so hours later, and serve the cozido at lunch. A portion at a Furnas restaurant costs around €15 to €25 and is usually enough for two light eaters. Watching the pots come out is free; parking by the fumaroles is sometimes charged.
The lakes. The crater lakes at Sete Cidades and Lagoa do Fogo are free to visit, although the most popular viewpoints have limited parking, and road access to some areas is controlled in peak season. Bring coins for car parks and the snack vans at the viewpoints.
Whale Watching and the Tea Plantations
Whale watching. The Azores are one of the world's best places to see sperm whales, and in spring blue and fin whales pass through. Three-hour trips from Ponta Delgada, Vila Franca do Campo and the island of Pico typically cost €55 to €75 for an adult, paid by card when you book. Operators use clifftop lookouts, the old whalers' vigias, to direct the boats, and most offer a second trip free if you see nothing.
Tea. On São Miguel's north coast, Gorreana and Porto Formoso are Europe's only commercial tea plantations. Both are free to visit and walk around, and sell tea by card in the shop.
Pineapples and liqueurs. The glasshouse pineapple farms on the edge of Ponta Delgada, such as Arruda, are free to walk through, and sell pineapple liqueur and jam. The island's queijadas of Vila Franca, small sweet cheese tarts, are sold by the box from bakeries that may prefer cash.
Cash vs. Card in the Azores
Ponta Delgada is as card-friendly as mainland Portugal. Tap-to-pay works in its hotels, supermarkets, restaurants around the Portas da Cidade, the hire-car desks and the whale-watching offices on the marina. Amex gets a patchier welcome. The cash machines are the same Multibanco network Portugal uses everywhere.
Cash helps outside the towns. Village cafes and snack bars, some of the hot pools' lockers, car parks at popular viewpoints, market stalls in Ponta Delgada's Mercado da Graça, bakeries, and small shops on the less-visited islands are easier with cash. On Flores and Corvo, the far-western islands, there are only a few machines, and on Corvo, the smallest, a single village.
How much to carry. €50 to €100 in small notes covers several days on São Miguel. Take more before a trip to the smaller islands, and withdraw in a town before driving a long loop of the coast.
How to Get Euros for Your Azores Trip
The Azores use the euro and the Multibanco network, so the cheapest cash comes from a bank machine. The planning point is the smaller islands, where machines are few.
Bring euros from home for a dawn arrival
Direct flights from Boston and Newark land in Ponta Delgada early in the morning, often before hire-car desks are busy and cafes are open. Ordering from CEI Currency Exchange before you leave, with insured delivery to a US address within a week, means the first coffee, parking meter and village snack bar are covered before any bank opens.
Withdraw from a Multibanco machine
Portuguese machines add no charge of their own for foreign cards, which is why the Portugal money guide ranks them among the cheapest in Europe. On São Miguel they are concentrated in Ponta Delgada, Ribeira Grande, Lagoa, Vila Franca do Campo and Furnas. Terceira's Angra do Heroísmo and Praia da Vitória, Faial's Horta and Pico's Madalena all have several. Your own bank's fees are the only variable; the ATM fee calculator works them out.
Exchange counters and the dollar prompt
The islands have few independent cash machines, which is good news. The risk is at exchange counters, which build their margin into the rate, and at card terminals and machines that offer to charge a US card in dollars. Walk to a bank machine and choose euros.
For a side-by-side comparison of every method, see our complete Getting Currency guide →.
Best ATMs to Use in the Azores
On the islands, as on the mainland, a machine outside any bank branch is a safe choice, because they all run on Multibanco. What matters more is which banks reach the smaller islands. There is no Bank of America Global ATM Alliance partner anywhere in Portugal, so BoA cardholders pay their usual fees.
Caixa Geral de Depósitos (CGD)
The state bank reaches further than any other, with a branch in the main town of every inhabited island, including the small ones, which makes it the safest default before a trip to Flores, São Jorge or Graciosa. Full Caixa Geral de Depósitos guide →
Top Pick
Millennium BCP
Branches in Ponta Delgada, Angra do Heroísmo and Horta, and machines at the larger supermarkets. No charge at the machine. Full Millennium BCP guide →
Recommended
Novo Banco dos Açores
Novo Banco's Azores bank, with a strong local network on São Miguel and Terceira. Works like any other Multibanco machine for a foreign card.
Recommended
Santander
Present in Ponta Delgada and Angra. Handy for Santander customers, and otherwise one more Multibanco option in town.
Recommended⚠️ Choose Euros, Not Dollars
With so many visitors arriving on direct flights from the United States and Canada, some hotel and restaurant terminals in Ponta Delgada offer to charge a North American card in its home currency. Decline, every time, and pay in euros. Our dynamic currency conversion explainer shows what the offer costs.
Hire Cars, Island Flights and Ferries
Hire a car. Buses on São Miguel exist but are infrequent, and the lakes, hot springs and tea plantations are spread across the island. The island's expressways are free to use. Hire desks at the airport take a credit card for the deposit, and summer demand is high: book months ahead for July and August, and check what the insurance excludes, because many lake viewpoints are reached on unsurfaced roads. Our Ponta Delgada Airport guide covers arriving and collecting a car.
Flights between the islands. SATA Air Açores links all nine islands with small turboprop aircraft. Fares are reasonable when booked early and rise steeply in summer. Pay by card online. Fog and wind cancel flights regularly, especially to Flores, Corvo and Pico, so avoid planning an island hop the day before a flight home.
Ferries. Atlanticoline runs short, year-round ferries between Faial, Pico and São Jorge, the "triangle", and longer inter-island routes in summer. Tickets are sold by card online and at the port offices.
Taxis. Metered in town, with posted fares for longer journeys and island tours. Many drivers take cards, but confirm first, and carry cash for rural trips.
Tipping in the Azores
Portuguese norms, a little quieter. The Portugal guide covers them. Bills carry no service charge and terminals rarely offer a tip line; rounding up, or 5 to 10 percent in coins for good table service, is generous. The plate of bread, butter and São Jorge cheese that arrives unasked is the couvert: eat it and it goes on the bill, send it back and it does not. Whale-watching skippers and island tour drivers appreciate a few euros.
Frequently Asked Questions
Is the Azores cheaper than mainland Portugal?
For taxes, yes. The Azores have Portugal's lowest VAT rates, with a standard rate of 16 percent against 23 on the mainland, and the difference is built into every price. Food, coffee and local wine are cheap. Hire cars, inter-island flights and summer hotels are not, because supply on the islands is limited.
Is shopping in the Azores duty-free?
No. Unlike the Canary Islands, the Azores belong to the EU's VAT system as a region of Portugal. There is no duty-free shopping. Visitors from outside the EU can reclaim VAT on eligible purchases in the usual way, at the lower Azorean rate.
How much does it cost to visit the hot springs in Furnas?
Terra Nostra Park, with its iron-rich thermal pool and botanical garden, charges an entry fee of around 10 to 15 euros, and Poca da Dona Beija, a set of smaller hot pools, charges less. Both take cards. Evening sessions and towels cost extra at some pools; bring your own and an old swimsuit, because the water stains.
Do I need cash in the Azores?
Some. Ponta Delgada, hotels, restaurants, car hire and whale-watching companies take cards. Carry 50 to 100 euros for village cafes, parking at some viewpoints and pools, small shops, and the less-visited islands, where machines are few. Withdraw at a Multibanco machine in a town before driving out.
Does Bank of America have an ATM partner in the Azores?
No. There is no Global ATM Alliance bank in Portugal or on the islands. The good news is that Azorean machines add no charge of their own, so a card without foreign fees gets the network rate.
How do I travel between the Azores islands?
By air on SATA Air Acores, which links all nine islands, or by ferry. Atlanticoline runs longer routes in summer, and short ferries link Faial, Pico and Sao Jorge all year. Book flights early in summer and pay by card. Weather cancellations are common, so leave slack in your plans.
How much is whale watching in the Azores?
A three-hour boat trip from Ponta Delgada, Lagoa or Pico typically costs around 55 to 75 euros for an adult, paid by card when you book. Operators use land-based lookouts to find whales and dolphins, and most offer a free second trip if you see none.
Azores money toolkit
Deep-dive guides for specific banks, airports, and traveler nationalities in Azores. Each one builds on this overview with card-by-card fee math, exact ATM locations, or terminal-by-terminal directions.
Go deeper: the Azores and Portugal
The Portugal guide explains the mainland rules that apply here too. Madeira is the Azores' closest comparison, with a higher VAT rate and fees on its hiking trails. The Canaries are the Atlantic islands that genuinely are outside the EU VAT system.
Hero photo: the city gates (Portas da Cidade), Ponta Delgada, São Miguel, by Ravi Sarma, CC BY 2.0, via Wikimedia Commons.