Known locally as “Terreiro do Paço,” Lisbon’s Commerce Square is a bustling plaza right in front of the Tagus River.
Historically, it’s served as the gateway to the city, and on any given day of the week, you’ll find the Praça do Comércio alive with groups of walking tours, street performers, and often great musicians near the waterfront.
While it’s no longer the “entrance” to the city in the way it once was, it’s a central point of Lisbon that serves as a great starting base for exploring nearly every other neighborhood in the lower part of the city.
The History of Praça do Comércio
Built after the devastating earthquake of 1755 on top of the ruins of the older Terreiro do Paço, the square spills out onto the banks of the Tagus River and serves as a reminder of the resilience Lisbon residents had post-tragedy.
It was designed by the architect Eugénio dos Santos in a neoclassical style and was originally home to the Royal Palace, a beacon of the Portuguese monarchy.
However, the winds of change swept through in 1910 with the revolution that ushered in the Republic, leading to the palace’s demolition. This pivotal event turned the square into a symbol of liberation.
The Rua Augusta Arch that straddles the square’s entrance is a reminder of those transformative times.
The statue of José I that stands at the center of the square is suppossedly mocking the once king. He abandoed the Portuguese people in the wake of the earthquake and tsunami and local guides have told us that those building the statue made the king disproportionately small atop what appears to be a pony as a way to show their disapproval.
The Rua Augusta Arch Viewpoint
Looking at the Arch of Rua Augusta from the Praça do Comércio is impressive — everybody who visits Lisbon usually has at least one photo of the archway. However, few seem to know that you can access a pretty great viewpoint if you climb up.
From the top of the arch, you get a panoramic view of the Tagus River, the Ponte 25 de Abril bridge, and the rest of the city. It also means you’ll be close enough to enjoy viewing the details of Renaissance-inspired architecture.
Atop the arch stand sculptures by Célestin Anatole Calmels, depicting Glory crowning Genius and Valour. Additional statues by Victor Bastos represent significant figures in Portuguese history —Marquis of Pombal, Vasco da Gama, Viriato, and Nuno Álvares Pereira.
Visit the Clock Room exhibitions if you’re a real history buff and want to learn more about the significance of each statue.
Lisbon’s Commerce Square — A Key Place
Without a doubt, Commerce Square is one of the most emblematic places in Lisbon, both for locals and tourists, for several reasons:
| Architecture | The square boasts an 18th-century neoclassical Pombaline architectural style and is the result of the reconstruction after the earthquake of 1755. |
| Strategic Location | It’s hard to beat the plaza’s waterfront location, especially for tourists looking to be in the middle of it all. Its proximity to the water makes it easy to access water activities and boat trips from the nearby Cais das Colunas. |
| Access to Points of Interest | From Commerce Square, you can easily access several places of interest in Lisbon, such as the Rua Augusta Arch, the Lisbon Cathedral, the Santa Justa Elevator, Rossio Square, the Mercado da Baixa, and the Alfama neighborhood, among others. |
| Local Life and Events | Walk just north of the Praça do Comércio, and you’ll encounter local artists, the sounds of a soothing guitar, and tons of small vendors selling large carved-out pineapples full of (strong) piña coladas. |
| Restaurants and Cafes | You’ll find numerous restaurants and cafes offering various dining options all around the square. Walk 5 minutes in any direction, and you’ll likely find something good. |
| Central Transportation | From the square, you can easily access various forms of transportation, such as trams, buses, a metro stop, and ferries that connect the city with other areas. Most notably, the iconic 28 and E15 trams pass by the Praça do Comércio. |
| Views | On a sunny day, this is one of the best spots to get a sunset photo of the famous 25 de Abril bridge. |
What to See in Lisbon’s Commerce Square
What’s not to see here is the better question! Here are a few things to consider if you’re traveling to Lisbon and are starting (or ending) your day at the Praça do Comércio.
Location
Lisbon’s Commerce Square is strategically located in the riverside area of Lisbon near the mouth of the Tagus River. Its location close to the Cais do Sodré train station, proximity to the Terreiro do Paço metro stop on the blue line, and the emblematic Alfama neighborhood make it a central and accessible point of the city.
Access to the Tagus River
One of our favorite things to do when heading down to the Praça do Comércio is to walk along the river, especially at sunset.
Or, if you don’t mind getting in the water (not in in, just in a boat), we highly suggest taking a two-hour sunset cruise to not only see the city sparkle from the water but to enjoy golden hour views of other nearby sights like the Belem Tower.
Restaurants
Want to try traditional dishes such as cod and cream cakes? This is a decent place to do so. Here are a few suggestions:
| Lisboa Tu e Eu 2 | Located just northeast of the square, this restaurant serves traditional Portuguese cuisine with a varied menu that includes everything from fresh sardines with potatoes to “Codfish a bras.” Instagram |
| Can the Can | With a unique and modern decoration, this restaurant specializes in high-quality Portuguese canned fish and a unique perspective on local culinary tradition. Website |
| Rib Beef & Wine | Although it is located on Rua dos Sapateiros, near but not in the square, this restaurant is known for its high-quality meat offerings and elegant atmosphere. Instagram |
Cafes
Need a pick-me-up after devouring delicious food nearby? Here are a few great suggestions for local cafes near Praça do Comércio.
| Cafe Martinho da Arcada | Located on one side of the square, Café Martinho da Arcada is one of the oldest places in Lisbon, with more than 200 years of history. This cafe has been a meeting point for writers, intellectuals, and artists over the years. Website |
| Casa Brasileira Pastry Shop | A short walking distance from the square, this iconic pastry shop is famous for its pastels de nata and coffees. It’s a cozy place to enjoy a sweet rest (literally). |
| Cafe No Chiado | Although it’s located in the Chiado district (just north of the square), this cafe is known for its elegance and popular pastries. Sit out on the terrace to enjoy a coffee and watch the iconic yellow trams pass by. Website |
Triumphal Arch of Rua Augusta
Located north of Praça do Comércio on Rua Augusta, this monument serves as the gateway to the city’s commercial and business area (Baixa), full of shops and restaurants.
Built between 1862 and 1873 by architect Santos de Carvalho, the arch commemorates the reconstruction of Lisbon after the earthquake in the 18th century. As mentioned, allegorical statues at the top represent Glory, Courage, Victory, and Freedom, while reliefs at their base illustrate key moments in Portuguese history.
The Latin inscription “Virtvtibvs Maiorvm” that is engraved on the Arch of Rua Augusta, means “To the Virtues of the greatest,” paying tribute to the fundamental values of the nation, particularly after the 1910 revolution.
How to Get to Lisbon’s Commerce Square
Accessing the Commerce Square in Lisbon is extremely simple, thanks to the various transportation alternatives nearby.
The metro is usually the most convenient option, with nearby stations such as Terreiro do Paço and Baixa/Chiado. Likewise, there are tourist bus and tram alternatives that can take you directly to the square, especially the 28E tram that winds through the narrow streets of Lisbon nearby.
Once there, you can also take a local bus (tons pass by) or hop in one of the characteristic tuk-tuks offering personalized tours. Likewise, there are ferries departing nearby if you want to cross the river and explore Almada.
You can also rent electric scooters nearby. However, we don’t recommend riding a scooter around the neighborhood, as it’s difficult to drive through the crowds and nearby traffic. Instead, enjoy the views and follow the Tagus River up north towards Belem!
Things to do close to Praça do Comércio
Once you finish exploring Commerce Square (there’s not much to do here, just a lot of great things to see), you can wander further out towards some of the other interesting things to see nearby.
Map of Lisbon Commerce Square and Places of Interest
| Lisbon Museum | If you’re passionate about history, the Lisbon Museum in the nearby Pimenta Palace is great for a quick cultural dive. Through interactive exhibits, you can learn about the fascinating evolution of the city from the Middle Ages to the present day. |
| Alfama neighborhood | For a more relaxed experience, head to Alfama, Lisbon’s oldest neighborhood, just east of the Plaza. Its narrow cobblestone streets and colorful houses exude a unique and authentic Portuguese essence. |
| Ribeira & Time Out Market | The Mercado da Ribeira, west of the Plaza, offers a delicious variety of local dishes and fresh produce, while the Time Out Market is, well, the famous Time Out Market! We recommend the Pad Thai or Francesinha. |
| Colunas Falls | To the south of the square, along the Tagus River, is the Cais das Colunas, an emblematic pier with two imposing columns that submerge into the waters. It’s also the starting point for quiet walks or exciting river excursions (and one of our favorite spots to take sunset photos in Lisbon). |
| Cafe Martinho da Arcada | For those who love literature, the Café Martinho da Arcada is located a few steps from Commerce Square. It was frequented by renowned writers such as Fernando Pessoa. |
| Santa Justa Elevator | If you head northwest, you’ll discover the Elevador de Santa Justa, a Victorian metal structure that connects the sectors of Baixa with Bairro Alto. Go to the top for panoramic views of the city. |
| Church of São Nicolau | To the east of the Square is the Church of São Nicolau, a Catholic church built in the 12th century with an impressive façade and an interior decorated with traditional Portuguese tiles. |
| Cafe A Brasileira | Wander over to Chiado, the elegant shopping district to the west of the Plaza, and stop in for a coffee at Café A Brasileira. This iconic café has been a literary meeting point since the 19th century and holds a lot of history within its walls. |
| Santa Luzia Viewpoint | Located up in Alfama, this viewpoint offers spectacular postcard views of the iconic Lisbon rooftops and the Tagus River. It’s the perfect place to enjoy the traditional architecture and charming atmosphere of Lisbon (especially at dusk). |
| National Pantheon | Also located in the picturesque neighborhood of Alfama, the National Pantheon houses tombs of illustrious figures in Portuguese history. Its majestic dome and intriguing history make it a must-see. |
This is only a small sample of some of our favorite places near Plaza del Comercio in Lisbon. If you head to each one on the list above, especially if you do so on foot, you’ll naturally pass by a lot of unique buildings and local restaurants you can visit, too.
As is the case when exploring any area of Lisbon, our best tip is to keep your eyes open and take it slow. There’s something magical around every corner here.
