Portugal in December — Christmas Markets, Madeira NYE, and Winter Quiet

December in Portugal is divided into two distinct periods. The first three weeks are genuinely low season — quiet, cheap, and well-suited to city sightseeing. Christmas week through New Year brings a spike in prices and visitors, with Madeira’s New Year fireworks drawing crowds from across Europe. The Algarve stays mild throughout; Porto and the north are cold and wet.

Weather in December

Lisbon averages 8–14°C in December with 11–13 rainy days. It is not bitterly cold — wool layers and a waterproof jacket are adequate — but it is definitively winter. Porto is colder at 6–12°C and receives significantly more rain than Lisbon. Evenings in Porto can feel raw. The Algarve is the mainland’s mild option: 12–17°C with perhaps 9 rainy days, and the region retains a good proportion of its December sunshine hours. Madeira stays at 16–20°C — noticeably warmer than the mainland and with more reliable sunshine.

The north’s mountain regions (Serra da Estrela, Gerês) can see snow from December onwards. The Serra da Estrela ski resort typically opens in late December or January.

Christmas in Portugal

Portugal’s Christmas celebrations are centred on the home and family rather than large public events. That said, several cities put on notable decorations and markets.

Lisbon Christmas Lights

Lisbon’s commercial districts — Rua Augusta, Avenida da Liberdade, and Rua do Ouro in Chiado — are lit from late November through early January. The Avenida da Liberdade Christmas tree and light installations have become increasingly elaborate in recent years. The Parque Eduardo VII hosts a Christmas market with craft stalls and food vendors, running through December.

Porto Christmas

Porto’s Rua de Santa Catarina and waterfront Ribeira are decorated. The Bom Jesus do Monte sanctuary above Braga (90 minutes from Porto) is particularly atmospheric in December, with candlelit staircases and pilgrimage traditions around Christmas.

Óbidos Christmas Village

The medieval walled town of Óbidos, 90km north of Lisbon, hosts Portugal’s most elaborately themed Christmas market: the Aldeia Natal. Inside the walls:

• Craft and artisan stalls selling ceramics, textiles, leather goods, and preserved foods
• A temporary ice rink in the main square
• Nativity scenes (presépios) in the churches
• Evening light displays through the medieval lanes
• Street food including ginjinha (cherry liqueur served in chocolate cups — Óbidos is famous for it)

The market runs through December, typically from the first weekend through the 31st. Weekends are crowded — visit on a Tuesday or Wednesday for space. Trains from Lisbon to Caldas da Rainha take 1 hour 10 minutes (€9), from where Óbidos is 5km by taxi or local bus.

Madeira New Year’s Eve

Madeira’s Festa de Fim de Ano is listed in the Guinness Book of Records as the world’s largest fireworks display. The fireworks are launched simultaneously from hundreds of positions across the hillsides above Funchal, creating a panoramic display visible from anywhere in the harbour bay.

Watching is free from the Funchal seafront. Hotels with bay-facing terraces command significant premiums for New Year’s Eve packages. Cruise ships anchor in the bay specifically for the display.

The aftermath of the fireworks is followed by dancing, music, and street parties in Funchal’s old town until dawn.

Practical notes for Madeira New Year:

• Book flights 3–4 months ahead — Madeira is a popular destination year-round and fills completely for New Year
• Accommodation in Funchal is essentially fully booked by October for December 31st
• The fireworks are launched at midnight local time (same as Lisbon, UTC+0 in winter)
• Madeira’s December weather is mild (16–20°C) and largely dry — a jacket is needed in the evening

Winter Sightseeing in Lisbon and Porto

Both cities are at their most accessible in December. Queues at Belém, Sintra, and the Museu do Azulejo are non-existent on weekday mornings. Sintra’s Pena Palace is open year-round and is dramatically atmospheric on clear winter days, with low cloud sometimes sitting below the hilltop palaces.

Porto’s port wine lodges in Vila Nova de Gaia run full tasting programmes through December. December is also when the new LBV (Late Bottled Vintage) port releases appear — a significant event for port wine enthusiasts.

Surf in December

December is an active month for big wave surfing at Nazaré. North Atlantic storms generate consistent swell, and the Praia do Norte canyon produces waves comparable to November’s best events. The Ericeira and Peniche lineups are also good, with consistent 2–4 metre swells and relatively uncrowded lineups (many surfers follow the warmer water, not those chasing performance conditions).

Prices in December

• December 1–21: near annual low prices. Lisbon and Porto hotels comparable to January. Good flight availability.
• December 22 – January 2: prices spike sharply, particularly for Madeira (New Year) and Lisbon/Porto (Christmas). Book well ahead.

For budget travellers, the first three weeks of December are among the best-value windows in the entire Portuguese tourism calendar.