The most memorable Lisbon experiences can be absolutely free: strolling beneath freshly laundered linen strung over the alleyways of the old Moorish neighborhoods; June days when jacaranda trees splash the avenues with blue; the scent of cinnamon sprinkled over hot custard tarts; the ocean breeze on sultry summer evenings or fragments of fado tunes seeping from lace-veiled windows.

Start with Tram 28. The best tour of Lisbon costs a mere $1.90 (euro1.40). Hop on the No. 28 streetcar, settle into the leather seats and watch the city ride by. The little yellow trams have rattled though Lisbon's historic heart for 90 years. Like a fun fair ghost train they swing round corners to reveal jaw-dropping views over river and rooftops, then dive back into a shady maze of medieval alleys. The No. 28 slips past delicate Baroque churches and the fortified cathedral built when Christians and Muslims battled for control of what would become Portugal.

CULTURE AND BEAUTY ABOUND IN ONE OF EUROPE'S CHEAPEST CAPITALS

Belem, Lisbon's riverside neighborhood, was the launch pad for Portugal's epic voyages of exploration to Africa, Asia and Brazil. The pristine Torre de Belem was built at the water's edge to welcome explorers home and is now the city's most famous symbol. The Jeronimos monastery was built in 1502 to commemorate Vasco da Gama's voyage to the East Indies; his tomb is there. The tower and the monastery cost $11 (euro8) to visit but, like most museums, are free on Sundays up to 2 p.m., www.mosteirojeronimos .pt.

There are modern monuments too. Built around a grassy waterfront plaza, the monumental Centro Cultural de Belem arts center offers opera, jazz, ballet and a 20th century art museum, www.ccb.pt. The soaring Padrao dos Descobrimentos was built in the 1960s to celebrate the glories of the discoveries.

SMELL THE COFFEE

Centuries of trade with Brazil and Africa have left Portugal with a taste for great coffee and Lisbon is home to some Europe's most charming old cafes. A Brasileira in the Chiado district opened in 1905 as a haunt for poets and artists. The Antiga Confeitaria de Belem is lined with 17th century ceramics, but is best known for its custard tarts — pasteis de nata — served here since the 1830s, www.pasteisdebelem.pt.

In Rossio square at the heart of downtown Lisbon, two venerable cafes face off across the plaza, the Nicola and the Suica. Round the corner in Praca de Figueira, the Confeitaria Nacional has been renowned for its pastries since 1829, www.confeitarianacional.com. Travelers on a shoestring should sip their bicas (espresso coffee) standing at the bar where prices are lower than sitting at the table.

TAKE A STROLL

Strolling the city's old districts is one of Lisbon's great pleasures. Start up at the Castelo Sao Jorge fortress overlooking the city, then lose yourself in Alfama, the oldest part of the city, a warren of narrow lanes and tiny squares, where the pastel painted facades are hung with laundry and the whiff of grilled sardines wafts up from curbside braziers. Admire the views from the Portas do Sol and Santa Luzia squares, then hit the shops in Baixa and Chiado districts rebuilt after the great earthquake of 1755 before finishing up for a long night among the bars and restaurants of the Bairro Alto, www.atl-turismolisboa.pt.

CULTURE OF EXPLORING

The Museu Nacional de Arte Antiga, better known as the "green windows museum," is a spectacular palace overlooking the river with great views from the garden cafe. It's filled with European old masters and a unique collection of Japanese screens and African ivory work dating back to the Age of Exploration, www.mnarteantiga-ipmuseus.pt.

The Calouste Gulbenkian Museum houses one of Europe's greatest private art collections, amassed by an Armenian oil tycoon. In this eclectic mix of East and West you can marvel at masterpieces by Rembrandt, Renoir and Monet alongside Islamic, Chinese and Armenian artifacts, www.museu.gulbenkian.pt.

For insights into Portuguese culture, check out the Museu Nacional do Azulejo, www.mnazulejo-ipmuseus.pt, which showcases traditional ceramics in a restored 16th century convent; the Museu Nacional dos Coches, with its collection of Cinderella-style royal carriages — www.museudoscoches-ipmuseus.pt — or the Fado Museum focusing on the haunting urban blues that form the essential soundtrack for a Lisbon trip, www.museudofado.egeac.pt.

Parque das Nacoes, the former industrial wasteland on the eastern edge of the city, emerged from the 1998 World Fair as a riverside park filled with avant garde architecture housing theaters, exhibition halls, a vast shopping mall, restaurants, gardens, fountains and a fabulous aquarium — the Oceanario — www.oceanario.pt — the best place in Europe to come eye to eye with sharks, rays and cuttlefish.

SIDE TRIPS

Take a cruise: Dozens of ferry boats shuttle commuters across the Tagus, which is 14 miles broad at its widest stretch. Ticket prices start from just $1.15 (euro0.85). The boats offer great views of the city skyline and can take you to out of the way places like the bullfighting town of Montijo or the popular beaches at Costa da Caparica, www.transtejo.pt.

Mountain hideaway: Sintra has been a retreat from the capital since the Middle Ages. Hidden in the cool hillside forest between the city and the sea, the whole town is a World Heritage site complete with fairy tale castles and romantic mansions. The 40-minute train trip from downtown Lisbon costs $2.30 (euro1.70).

Hit the beach: West from Lisbon stretches a chain of beach suburbs easily reached by the train that hugs the coast up to the posh Atlantic resort towns of Estoril and Cascais. Joggers, cyclists and skaters now compete for space along a promenade linking the popular sandy beaches at Oeiras and Caracavelas. The train from Lisbon to Cascais takes 40 minutes and costs $2.30 (euro1.70).