Praça do Comércio (Terreiro do Paco)

One of the loveliest of Lisbon's open spaces, and certainly one of its largest, this huge square is flanked on three sides by shaded arcades; the south side overlooks the River Tagus. The city's Royal Palace stood here for 400 years before the earthquake of 1755. Today, the mustard-hued buildings house government administrative offices and an increasing number of fashionable restaurants whose tables spill out onto the wide concourse. The square, also known as Terreiro do Paço, is overlooked by the landmark triumphal arch and lent character by the bronze statue of King José 1 on horseback trampling on serpents. The arcade on the square's northwest edge leads to Pátio da Galé, a beautiful courtyard that's home to the city's downtown tourist office and where cultural events take place. In the opposite corner stands Lisbon's oldest café, Martinho da Arcada, the favourite watering hole of celebrated poet Fernando Pessoa (1888--1935).