Renting a car in Portugal is one of the best ways to explore the country at your own pace. The roads are generally in good condition, distances are short, and many places are simply not easy to reach by public transportation.
Before making a reservation, there are a few important things you should know to avoid surprises and make the most of your trip. Below, we’ll cover everything you need to know about renting a car in Portugal.
Is it worth renting a car in Portugal?
Portugal is a small country, but incredibly diverse. In just a few hours, you can go from beautiful beaches to mountains or medieval villages. Having a car gives you total freedom to take detours, explore lesser-known places, and stop whenever you want — something that’s difficult to do with public transportation.
Renting a car is especially useful if you plan to explore regions like Alentejo, the Douro Valley, Serra da Estrela, Peneda-Gerês National Park, or even inland Algarve, where public transportation options are limited.
On the other hand, in large cities like Lisbon and Porto, having a car can be more of a hassle and an extra expense. Traffic can be heavy, parking is often difficult, and public transportation works well.
So, whether it’s worth renting a car in Portugal really depends on your itinerary. If your trip is more urban and focused mainly on Lisbon, Porto, Coimbra, Braga, and coastal Algarve, you don’t need a car — it will probably just get in the way. In major cities, you’ll always have access to public transportation and Uber, and if you want to take a day trip to iconic places like the Douro Valley, you can easily join an organized tour.
Can I rent a car in Portugal?
In general, yes. Car rental and driving rules in Portugal are quite similar to those in other developed countries.
The minimum age to rent a car is usually 21, but this can vary by rental company. Many agencies also require the driver to have held a license for at least one year, and drivers under 25 may have to pay a young driver surcharge. This is fairly standard in most countries.
As in many other destinations, to rent a car in Portugal, you’ll need:
- A valid driver’s license with at least one year of driving experience. Licenses issued outside the EU may require an International Driving Permit (IDP).
- A valid passport or identification document.
- A credit card in the main driver’s name for the security deposit.
Where to rent a car
The most common places to rent a car in Portugal are Lisbon, Porto, and Faro airports, as they host all the major international rental companies. You’ll also find smaller local agencies, which sometimes offer more competitive prices, especially in cities and tourist areas.
In Portugal, it’s definitely worth comparing prices on platforms like DiscoverCars, Rentalcars, or Auto Europe, as they bring together multiple companies and insurance policies in one place. We usually recommend DiscoverCars, as that’s where we find most of the best deals and we’ve never had any issues.
Prices and average costs
As you’d expect, prices vary significantly depending on the time of year, the type of car, and the pickup location.
- Low season (November to March): prices can be extremely low. On DiscoverCars, we’ve found rentals for under €5 per day (with basic insurance only). More realistically, expect to pay around €20-€30 per day.
- High season (June to September): usually between €40 and €80 per day.
On the islands, price variations are even greater, and if you don’t book in advance, there’s a serious risk of not finding a car at all. If you’re planning to visit the Azores or Madeira, book your rental car as early as possible.
Keep in mind that tolls are never included in the rental price. Renting the Via Verde toll device is an extra service and usually costs between €1 and €2 per day. GPS navigation systems, baby car seats (up to 1 year old), and cross-border fees are also charged separately.
Tolls and Via Verde
Many Portuguese highways are tolled, and on some of them, payment is electronic only.
If your rental car has Via Verde, tolls are automatically charged to the card linked to the rental company. At the end of your rental, the company will bill you for these charges. This is the most convenient option.
Other alternatives include:
- EasyToll: links your credit card to the car (ideal if you’re entering Portugal by road).
- TollCard: a prepaid card that can be topped up online.
If you drive without paying, fines can reach €100 or more, so make sure you have an active toll payment system before hitting the road. It’s not worth the risk, as you’re almost guaranteed to be caught.
Deposit, Security Hold, and Credit Card
It’s the same as in most countries. When you pick up your rental car, most companies will place a hold on your credit card as a security deposit — usually between €800 and €2,000, depending on the vehicle category and the insurance chosen.
This amount is released a few days after returning the car, provided there are no damage.
Some companies accept debit cards, but this is less common. Without a credit card, you may be required to purchase more expensive insurance. Don’t forget to bring your credit card.
Car Insurance and Coverage
Basic insurance is always included by law, but it comes with a deductible — the amount you are responsible for paying in case of an accident or damage.
The most common options are:
- CDW (Collision Damage Waiver): covers bodywork damage, with a deductible.
- SCDW (Super CDW): reduces or eliminates the deductible.
- TP (Theft Protection): covers car theft.
Always read the terms carefully — tires, windows, and the undercarriage are rarely included.
Alternatively, you can purchase independent excess insurance through specialized websites, which is often cheaper.
Some Driving Rules in Portugal
- Drive on the right-hand side of the road.
- Seat belts are mandatory for all passengers.
- Using a mobile phone while driving is prohibited (even when the car is stopped).
- Speed limits:
- 50 km/h in towns and villages
- 90 km/h on secondary roads
- 120 km/h on highways
- The maximum legal blood alcohol limit is 0.5 g/L.
Portugal has many fixed and mobile speed cameras, so it’s important to respect the limits — fines can be high. There are even some average-speed cameras on certain highways. Following the speed limits is crucial for both safety and avoiding fines.
Parking
In cities, free parking is becoming increasingly rare, especially in larger cities. Apps like Parqki let you pay for and extend your parking time without returning to your car.
In small towns and rural areas, parking is usually free and relatively easy.
Practical Tips and Mistakes to Avoid
- Check the car carefully before driving off — take photos of any scratches or damage.
- Most rental cars in Portugal have manual transmissions. If you need an automatic, book in advance, as they are more expensive and limited in number.
- A smaller car is recommended to make driving and parking easier, especially in cities.
- Confirm the correct fuel type: petrol or diesel. Cars usually have a sticker near the fuel cap with this information.
- Most companies operate on a full-to-full policy: you receive the car with a full tank and must return it full.
- Always keep your fuel receipt if you need to return the car with a full tank.
- Avoid parking in yellow zones or reserved spaces.
- Many companies allow one-way rentals, meaning you can pick up a car in one city and drop it off in another. It may be slightly more expensive, but it’s worth it when you consider tolls, fuel, and time — especially on road trips across the country.
- Return the car on time, as many companies charge for an extra day even for small delays.
Conclusion
Renting a car in Portugal is, without a doubt, one of the most practical and enjoyable ways to explore the country. The roads are in good condition, the signage is clear, and there are stunning landscapes in nearly every direction.
With some preparation and attention to details — insurance, tolls, and parking — you’ll be able to travel stress-free and make the most of what Portugal has to offer.
Most of the rules and tips for renting a car in Portugal are similar to those in other developed countries. The toll system is perhaps the most unique aspect, so we recommend not ignoring it.
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