I’ll be honest, renting a car in Portugal isn’t complicated, but there are a handful of things I wish someone had told me before our first trip. Some of it will save you money. Some of it will save you a headache at a toll gate. All of it will make the driving part of your Portugal trip feel like less of a chore and more of a highlight. So in this article you’ll find all the tips on renting a car in Portugal based on everything I learned.
Expect Good Roads, But Budget for Tolls
Portugal’s road network is genuinely good. The motorways (the ones marked A on signs) are smooth, well maintained and a pleasure to drive. Especially compared with some of Portugal’s southern European neighbours. The catch is that most of them are toll roads, and the toll system trips up a fair few visitors.
The non-toll alternatives, usually marked N or IC, aren’t bad by any means. They’re just a notch down: a bit slower, a bit more traffic through towns, occasionally a pothole or two. For short hops they’re often fine. For longer stretches, especially if you’re short on time, the toll roads are worth the cost.
Install Google Maps Before You Land
Have Google Maps installed on your phone before you land, and don’t rely on offline maps alone. For live traffic, rerouting around roadworks or accidents, and genuinely useful alternative routes, you need an active data connection, not just a downloaded map. An eSIM like Saily is an easy way to sort this before you even board the flight. This way you land with data ready to go rather than hunting for a SIM card.
Roadworks, accidents and diversions happen, and having a couple of live route options on hand rather than one fixed path makes a real difference when something unexpected pops up. I’d rate this above the rental car itself in terms of what made our Portugal road trip run smoothly.
Make Sure Your Rental Car Has a Toll Transponder
Portugal has both traditional toll booths and motorways where tolls are collected electronically. When you collect your rental car, ask whether it has an electronic toll transponder and exactly how the rental company charges you for using it.
Many Portuguese rental cars already have a device installed. Once activated, it records your toll-road journeys and the rental company charges the tolls afterwards, usually alongside a small rental or administration fee. It made our road trip much easier because we didn’t have to think about how to pay each toll as we travelled.
Don’t simply assume it’s included, though. Ask at the desk how the device works, what it costs and when the toll charges will appear on your card.
Tip: If you’re driving your own car into Portugal, then make sure you have Easytoll activated. With this system you can link your car to your credit card for hassle free payment of toll.
Skip the Car in Lisbon and Porto
As tempting as it is to have a car for your whole trip, don’t. Lisbon and Porto are busy cities with centres full of narrow streets and one-way roads, and patchy on-street parking. They also have a public transport network (plus the ever-present Uber or Bolt) that will get you around more easily than a car ever could.
Rent a car for these cities and it’ll mostly just sit parked somewhere. Often at a daily rate that stings, while you still pay for the privilege of not using it. Instead leave the car out of your Portugal city days entirely. Read my guide to what to do in Lisbon and my Porto city guide for how to get around both without four wheels.
For Lisbon day trips to Sintra or Cascais, or from Porto to the Douro Valley you won’t need a car either. Just take the train, or book a tour through GetYourGuide for example. Your car would just be in the way.
Rent a Car to Explore Beyond Porto and Lisbon
Where renting a car in Portugal earns its keep is in between. The Algarve and the Alentejo especially reward having your own wheels. Quiet coastal roads, whitewashed hilltop towns, and day trips that simply don’t work on a bus timetable. Think Monsaraz, the Seven Hanging Valleys walk, or Cabo São Vicente at the very edge of the country.
Plan your route with these two cities as bookends and the car does its real job in the stretch between them, rather than sitting in a Lisbon car park. It’s worth spending a bit of time comparing rental options before you commit, since prices and included extras vary more than you’d expect between providers.
Tip: A comparison site like DiscoverCars that pulls quotes from several local and international rental firms at once is a great place to start.
Consider a One-Way Rental When Renting a Car in Portugal
If your route runs from one city to the other rather than in a loop, a one-way rental is worth looking at. Pick the car up in, say, Porto on day one of your road trip. And drop it off in Lisbon on your last day (or the reverse). You avoid backtracking just to return the car where you collected it.
There’s usually a one-way fee attached, and it can vary a lot by provider, but for a route that’s naturally point to point, it often works out both cheaper and far less hassle than looping back.
Check the Minimum Age Before You Book
Renting a car in Portugal generally requires drivers to be at least 21–25 years old, depending on the provider and vehicle category. A young driver surcharge often applies for under 25. Always check this against the specific company and car class before you book, not after, since it’s one of the few things that can derail a booking entirely if it doesn’t match up.
Find Out If You Need an International Driving Permit (IDP)
If you’re driving on an EU or EEA licence, you’re fine as is. If you’re coming from outside the EU, Portugal generally accepts a valid foreign licence for short stays, but it depends heavily on your home country and whether it’s recognised under Portuguese rules.
It’s really worth checking this properly before you fly rather than assuming, since the rules do shift. Check whether or not you need an International Driving Permit (IDP) with your local Automobile Club if you’re at all unsure. Especially if you’re travelling from outside Europe.
Bring a Credit Card in the Main Driver’s Name
A credit card in the main driver’s name is still the safest option when renting a car in Portugal. Some companies might accept debit cards, but conditions and deposit requirements vary considerably.
The credit card is what covers the deposit hold, and rental desks are usually strict about it. A card belonging to a travel companion or partner won’t be accepted, even if you’re paying for everything together.
If you’re renting cars reasonably often, it’s worth looking at a premium credit card that bundles in car rental insurance as one of its perks. If you’re a resident of the Netherlands and travel often this American Express card is one I’d point to. The card includes coverage as well as travel insurance and plenty of other perks.
Get Extra Excess Cover Before You Drive Off
The excess (sometimes called the deposit or the damage waiver) is the amount you’re liable for if anything happens to the car. And it can run into four figures on the standard rental agreement. Standalone excess insurance, bought separately from the rental company, brings that liability down to a much smaller amount for a few euros a day.
Car rental comparison websites also often offer excess insurance for a much better rate. Worth noting is that while this is often cheaper, you may still have to pay the rental company first. And then claim reimbursement from your insurer. While excess cover is not compulsory, for peace of mind I wouldn’t rent a car in Portugal, or anywhere else, without it.
Pro Tip for Renting a Car in Portugal: Know Your Petrol from Your Diesel
A small but genuinely useful tip when renting a car in Portugal: in Portuguese, petrol is gasolina and diesel is gasóleo. They look and sound close enough that it’s an easy mix-up at the pump. So don’t make the expensive mistake of filling a rental car with the wrong fuel. Double-check before you fill up, not after.
Hide Your Luggage When You Park
Keep bags and valuables in the boot, out of sight, whenever you park and walk away from the car, even for a few minutes. A car that looks empty is a far less appealing target than one with a jacket or a camera bag visible on the back seat. This matters a little more in car parks near popular viewpoints and beaches than it does out in the countryside, but it’s a good habit everywhere.
Learn the Speed Limits and Watch for Cameras
Standard limits are 50 km/h in towns, 90 km/h on regular roads, 100 on roads reserved for motor vehicles and 120 km/h on motorways, unless signs indicate otherwise. So keep an eye on the signage rather than assuming.
Speed cameras are common, including average-speed checks on some motorway sections, and roundabouts follow the usual give-way-to-traffic-already-on-it rule, much the same as most of Europe.
Tip: It’s also worth knowing of the drink-driving limit which is 0.5 g/l.
Check Before You Cross into Spain
Fancy a detour into Spain? Check with your rental company before you cross the border, not after. Some companies apply an extra daily charge for cross-border driving, and a few require advance notice.
A quick email or phone call before you set off saves any awkward surprises if something goes wrong on the Spanish side of the border. Or simply tick the box ‘cross border allowed’ in the filter options on the DiscoverCars website.
How We Did It: Our Portugal Road Trip Route
We spent about 2.5 weeks on our most recent trip to Portugal. We started with a few days in Porto and finished in Lisbon. So these were our bookend destinations so to speak. We picked up our car on the final evening in Porto (and parked for free next to our hotel) and departed the next morning. We returned our car at the end of our arrival day in Lisbon close to our hotel in Anjos.
Renting a car in Portugal proved to be the perfect choice to explore the country beyond the two largest cities. And I wouldn’t have done it any other way. Read all about our road trip in my Portugal itinerary article. Or check out my Portugal travel guide with all the destinations we visited, each including tips on where to park your rental car.
What Does Renting a Car in Portugal Cost?
Prices swing a fair bit depending on a few factors. High season versus low season, airport pickup versus a city-centre location, and of course the size and category of car. As a rough steer, expect the lowest rates for a small manual car outside of peak summer, rising sharply for anything automatic, larger, or booked during July and August.
Airport pickup is nearly always more convenient but often carries a small premium over picking up in town. It’s worth comparing a few options rather than booking the first one you see.
DiscoverCars.com is a solid place to start, since it lines up quotes from multiple providers side by side so you can see where the real savings are before you commit.
Practical Tips on Renting a Car in Portugal Before You Drive Off
A short checklist worth running through every time you’re renting a car in Portugal, or anywhere else:
- Photograph the car before you drive off, including the wheels and the windscreen, not just the obvious panels
- Check any existing damage against what’s noted on the contract before you sign
- Check the fuel policy (full to full is the fairest, avoid pre-paid fuel deals if you can, since they’re never in your favour)
- Understand the excess and what, if anything, you’ve covered separately
- Ask how tolls are handled and if your rental car doesn’t have a toll transponder installed
- Don’t automatically go for a bigger car than you need. Portugal’s older town centres and country lanes reward something compact. That said we loved the comfort of our compact SUV
- Avoid city-centre pickup or drop-off if it’s not genuinely convenient. Airport locations are often simpler, but usually cost a premium
- Make sure your driving licence has been valid for at least a year, sometimes two depending on the company
- Allow extra time when returning the car, especially at airport locations during peak hours
- Keep your rental documents somewhere handy, in case you’re stopped or need them at a toll
- Research where you want to park at your destination and set it up in Google Maps before you start driving
It’s really worth it to compare excess cover and total price across a couple of providers before you book. I’ve used car rental comparison sites for this on more than one trip and it’s saved me from a few of the pricier default options at the rental desk.
Final Thoughts on Renting a Car in Portugal
Renting a car was one of the best decisions we made on our Portugal road trip. It gave us the freedom to reach places like Monsaraz and Mértola, explore the Algarve and stop whenever somewhere caught our attention.
That said, Portugal isn’t a country where you need a rental car everywhere. In Porto and Lisbon, a car is more hassle than help, while trains and public transport work perfectly well for many journeys between the larger cities.
My advice is simple: rent a car for the parts of Portugal where it genuinely adds something. Combining public transport with a road trip gave us the best of both worlds. And plenty of freedom once we left the cities behind.
Planning your own Portugal road trip? Read my Portugal itinerary for our complete route from Porto through the Alentejo and Algarve to Lisbon. You can also browse my Portugal Travel Guide for more destination guides and practical tips to help plan your trip.
Have any questions or been to Portugal already? Then leave a comment in the section below, or reach out to me on Instagram. And sign-up for my newsletter to get regular updates and travel tips in your mailbox.
