Portugal moves at its own pace: the Atlantic coast in the Algarve, the wine-growing hills of the Douro, the steep, narrow streets of Porto, and the boulevards of Lisbon. Here’s our practical guide to renting a car in Portugal without any stress: where to pick it up, which model to choose, and what rules to follow once you’re there.
This opinion is completely independent, based on our experiences. We visited the region anonymously, making our own choices and paying our bills in full.
1 – Where to Rent a Car in Portugal: Top Rental Companies
Our preferred platform
Before booking, we always compare offers on DiscoverCars. This platform brings together offers from several car rental companies operating in Portugal, allowing you to compare prices and terms in just a few minutes. We always find good deals there, and the insurance offered is still affordable.
View car rental deals in Portugal
Where to take your car?
Portugal has three major international airports, each serving a distinct region of the country. Your starting point therefore depends mainly on your itinerary:
- Lisbon Airport (LIS)—whether you’re exploring the capital, the Sintra region, or heading down to the Alentejo: see the deals
- Porto Airport (OPO), the ideal starting point for exploring the Douro Valley or traveling to the Minho region: see our offers
- Faro Airport (FAO), the gateway to the Algarve and its beaches: see our offers
If you plan to explore several regions during the same trip, one option is to pick up the car in one city and drop it off in another. However, this option comes at a cost: it is generally more expensive than a round-trip rental to the same destination.
It’s easier to start your road trip right at the airport rather than renting a car downtown, especially in Lisbon or Porto, where traffic and parking make it difficult to get used to driving a car.
It’s time to book!
Compare everything: companies, prices, schedules and availability.
When to rent a car
Portugal is attracting more and more visitors, especially to the Algarve and Lisbon during the summer months. We therefore recommend that you reserve your vehicle as soon as your travel dates are set, so you can choose the model you want and get the best rates. In July and August, availability decreases rapidly, especially in the southern part of the country. As soon as you’ve finalized your itinerary, book the car!
What are the best car rental agencies in Portugal?
At the country’s three major airports, you’ll find most of the international car rental companies, including Sixt, Enterprise, and Budget. In Faro, some highly rated local agencies, such as Autorent and EPI Rent a Car, round out the options, often at more competitive rates.
So far, we’ve had nothing but positive, trouble-free experiences in Portugal. When you read online reviews, keep in mind that the millions of travelers who haven’t had any problems rarely take the time to leave a review…
2 – What kind of rental car should you choose for Portugal?
Our top 3 tips for choosing your car are:
- Not too wide, for driving through villages and historic districts
- An engine that’s powerful enough if you plan to drive in hilly or mountainous areas
- Automatic if possible, given that Portugal is still a country where manual transmissions dominate
What size car?
Portugal’s old neighborhoods were not designed for car traffic. In Lisbon’s Alfama district, in Porto, or in Algarve villages such as Tavira and Silves, the streets remain narrow and the turns are tight. A large SUV or a long sedan will be difficult to maneuver there. The mini, economy, and compact categories remain the best compromise, no matter which region you visit.
If you’re traveling with your family or with a lot of luggage, a mid-range category is still a reasonable choice. The goal remains the same across the country: to keep vehicles from taking up too much space in city centers.
Which engine?
The Portuguese landscape varies greatly from region to region. Along the coast, from the Algarve to Lisbon, the roads are generally flat or only slightly hilly, and an entry-level engine is sufficient. As soon as you approach more rugged terrain, such as the Serra de Monchique in the south or the Douro hills in the north, a slightly more powerful engine provides greater comfort when climbing and passing other vehicles.
Automatic or manual?
As in much of Europe, most of the cars available in Portugal are manual. Of course, the agencies offer automatic models, but they are often more expensive and available in more limited quantities. If an automatic transmission is a must for you, make your reservation early. On Discovercars.com, the “Automatic Transmission” filter on the left makes it easy to refine your search.
3 – Permits, rules and credit cards
Minimum age
The official driving age in Portugal is 18.
However, most car rental companies in Portugal require:
- be over 21 years of age
- have held a driving licence for one year or more
- Additional fees often apply if you are under 25 years old
Do I need an international permit?
To drive in Portugal during a short stay, you can use your home country’s driver’s license if it meets the following criteria:
- He has a license number
- It includes a photograph
- It specifies an expiration date
- it is written in Latin letters
European, U.S., Canadian, and Australian driver’s licenses… are accepted under these conditions. Otherwise, an international driver’s license is required.
Do I need a credit card?
The answer is “maybe”.
If you rent a car without opting for the rental company’s zero-deductible option, the rental company will automatically place a hold on your credit card. Some rental companies refuse to accept debit cards.
If you choose the insurance plan that waives the deductible, you won’t need a credit card.
A LITTLE MORE patience
All the photos, maps, information and addresses you need to make your stay in Portugal a success will soon be available in a single ebook!
4 – Taking out insurance
Compulsory insurance
Unlimited liability insurance is compulsory in Portugal. It is automatically included in the price of all car rentals, regardless of which rental company you choose.
Supplements
The Portuguese road network is generally well-maintained, both along the coast and inland. The risk of damage remains low for those who drive carefully. However, we recommend that you at least insure against damage to the vehicle’s body, especially if your itinerary includes unpaved roads to reach certain beaches or more remote scenic spots.
3 main options:
Option 1
Your personal auto or home insurance policies may sometimes cover rental cars, but be sure to read the fine print: this is rare.
Option 2
Take out insurance on the rental platform.
Advantage: better price than the rental company’s.
Drawback: You’ll need to leave a security deposit when you pick up the car and pay the amount upfront in case of damage. Ever since we started using Discovercars in Portugal, we’ve always purchased their insurance. We filed a claim with them twice after sustaining damage, and in both cases, the reimbursement was processed without any issues within 7 days.
Option 3
Take the complementary car rental. It’s more expensive, but you won’t have to pay anything out of pocket or fill out any paperwork in the event of damage.
5 – Access to rental cars
At the airports in Lisbon, Porto, and Faro, it’s usually easy to find car rental agencies. The major airlines’ check-in counters are located right in the arrivals hall, and cars are parked in designated parking lots, which are just a few minutes’ walk away or accessible by shuttle.
Some smaller agencies are located outside the airport grounds and therefore offer a free shuttle service. Be sure to check this detail when you make your reservation to avoid any unpleasant surprises upon arrival.
6 – Check your vehicle on pick-up
Checking the car
If you purchased the rental company’s supplemental insurance to waive the deductible, there is no need to inspect the condition of the car. Just make sure you have all the essential equipment.
Otherwise, for your own peace of mind, we recommend that you walk around the car, take photos of any existing damage, and notify the rental agency if it hasn’t already been noted on the rental agreement.
Pay attention:
- fuel level and mileage, that they correspond to the file
- all over the outside of the car, to check for dents and scratches
- the roof—we often forget about it, but we might check it when you get back
- below the bumpers
- rearview mirrors
- inside
- tire condition
- the condition of the wing (mud wing above the wheels)
- the spare tire, if applicable, since fewer and fewer cars come equipped with one
Mandatory in-car equipment
In Portugal, the following equipment must be available in the car:
- Warning triangle (mandatory)
- Reflective vest (mandatory)
- Spare set of lights (mandatory)
- First-aid kit (recommended)
- Fire extinguisher (recommended)
Find out more about toll management
The Portuguese highway network has numerous tolls, particularly on the routes connecting Lisbon to Porto and on the A22 highway, which crosses the Algarve from east to west. Part of this network operates as a fully electronic system: there are no physical barriers, as passage is detected automatically.
You can pay these tolls using an electronic tag provided by some rental companies—usually as a paid option—or retroactively at the kiosks available at gas stations and supermarkets.
Check with your agency about the available options before hitting the road: failing to pay a toll may result in a fine.
Find out about border crossings
From Portugal, you might want to travel to Spain—for example, from the Algarve to Sevilla or Andalucia. In this case, beware: border crossings are not always authorized by rental companies. Check with your insurance agency and review the policy terms before crossing the border.
7 – Preparing to Drive in Portugal
Driving in Portugal isn’t particularly difficult, but it does require caution depending on the region: heavy traffic in Lisbon and Porto, winding coastal roads in the Algarve, and narrow streets in historic city centers.
See our full article on driving in Portugal.
General rules
- Drive on the right side of the road
- Respect speed limits:
- In town: 50km/h, often less in historic centers
- Outside built-up areas: 90km/h
- Freeways: 120km/h
- BAC limit: 0.05%.
- Seatbelts compulsory for all passengers
- No phone use while driving
- Headlights must be on in tunnels
Main hazards
The main hazards on Portuguese roads are:
- Excessive speed, especially on lightly traveled stretches of freeway
- The winding and sometimes unprotected coastal roads, especially in the Algarve
- The unpaved roads leading to certain secluded beaches are unsuitable for low-clearance vehicles
- Heavy traffic in major cities such as Lisbon and Porto, and along the coast during the summer season
- The narrow streets of historic city centers, such as Tavira or Silves in the Algarve
What to do in the event of an accident
If people are injured or there is a conflict, the emergency number in Portugal is 112. The best order of action is as follows:
- contact the emergency services
- contact the police
- contact your rental provider
Frequently asked questions
Should you rent a car in Portugal?
We strongly recommend that you rent a car. Public transportation provides good coverage of major cities and the routes connecting them, but it won’t take you to the secluded beaches, inland villages, or the most remote scenic spots. A car gives you the freedom to plan your trip at your own pace, region by region.
Is it worth having a 4×4?
In the vast majority of cases, no. Portugal’s main and secondary roads are well paved, even in hilly areas. A standard vehicle is more than enough to visit the most famous sites, no matter which region you’re in.
On the other hand, if you want to reach certain secluded beaches along the Costa Vicentina or explore trails in the hinterland, a vehicle with higher ground clearance can come in handy. A compact SUV is still a reasonable alternative, without going as far as a full-time 4×4.
What to do if you are fined
You are responsible for any fines incurred during the rental period.
It can take up to 3 months before a fine is reported to the rental company. In that case, she will send you proof of payment, bill you for it, and will likely add an administrative fee.
What to do if there’s a problem with the car?
Don’t lose your rental agreement.
This document outlines the steps to take if you have a problem with your car.
Most agencies offer a breakdown assistance service, and the phone number is listed in the contract.
You can then contact the rental company to see how to replace the vehicle.
What is the budget required?
Prices range from 20 to 100 EUR per day, depending on the region, the season, the type of vehicle, and the insurance coverage selected. In the summer, prices rise significantly, particularly in the Algarve and Lisbon, during the months of July and August. Outside of peak season, you can still find much better deals by booking in advance.
PLAN YOUR TRIP TO Portugal
- Best of
Best destinations
Best attractions in Portugal
The most beautiful landscapes
Most Beautiful Cities
Most beautiful villages
Portugal’s Most Beautiful Beaches
- Practical advice
When to go?
How to rent a car in Portugal
Driving tips
How many days
