Lisbon, Portugal

Lisbon is one of Europe's most atmospheric and best-value capitals — a hilly, sun-drenched city tumbling down to the wide Tagus estuary, where pastel façades clad in azulejo tiles, mosaic pavements, miradouro viewpoints and rattling vintage trams give every walk a cinematic quality. The oldest and most enchanting quarter is the Alfama, the Moorish-rooted maze of stepped lanes, laundry-strung balconies and tiny squares that survived the great 1755 earthquake, crowned by the ramparts of São Jorge Castle and alive at night with the melancholy song of fado in its little taverns. Below, the rebuilt Baixa lays out an elegant grid from the riverfront Praça do Comércio up to the squares of Rossio, while the bohemian heights of Bairro Alto and chic Chiado hold the bookshops, boutiques, restaurants and late-night bars. West along the river, the monumental district of Belém recalls the era when Portuguese caravels set out to map the world — the dazzling Manueline Jerónimos Monastery and the riverside Belém Tower are both UNESCO World Heritage Sites, the Monument to the Discoveries lines the water, and the original pastéis de Belém custard tarts are eaten warm from the famous bakery. Lisbon's pleasures are everyday: riding Tram 28 across the hills, pausing at the viewpoints for a glass of wine at sunset, eating grilled sardines and bacalhau, browsing the Time Out Market food hall, and exploring the creative LX Factory and the modern riverside of Parque das Nações with its great Oceanário aquarium. And the city is the gateway to two of Portugal's loveliest escapes: the romantic palaces and forested hills of Sintra, a UNESCO wonderland half an hour away, and the Atlantic beaches and resort towns of Cascais and Estoril along the coast. Mild, bright and affordable, Lisbon is a year-round destination, glorious in spring and autumn and warm and lively through the long summer.