Once the gateway to the New World for European sailors, Portugal—perched on the western edge of the Iberian Peninsula—invites American travelers to a land where the Atlantic, the Mediterranean, Europe, and Africa meet.

Here you’ll find historic explorers, maritime delicacies, sumptuous wines, and Europe’s sunniest capital city. And if these weren’t reasons enough to pack your bags, Portugal is also one of the Continent’s most affordable destinations, offering Western European elegance at Eastern European prices.

Beyond the old-world charm of Lisbon—with its wooden trams and baroque facades—terraced hills descend to rocky beaches along the serene coast. Modern explorers will delight in the fairytale palaces of nearby Sintra, Evora, and Arraiolos. And history buffs still make pilgrimage to Fátima, famed for its alleged sighting of the Virgin Mary.

If you’re a wine enthusiast, venture north to the enchanted vineyards of the Douro Valley (about a four-hour drive from Lisbon) and Porto, Portugal’s second city, known for the centuries-old fortified wine that bears its name.

Insider Tip: 850 miles west of mainland Portugal (just a 2.5-hour flight from Lisbon) lie the Azores, a chain of volcanic mountain islands whose wild, hidden allure is well worth the trip.

Fun fact: With the continuous rolling swell of the Atlantic Ocean, Portugal is one of Europe’s best (and least crowded) surfing destinations.