Portugal is one of those destinations that looks small on a map, but once you start planning your trip, you quickly realize how spread out the country really is. While cities like Lisbon and Porto have excellent public transportation, many of Portugal’s most memorable experiences sit well beyond train lines and bus routes.
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From hilltop villages in inner Portugal to hidden beaches along the Algarve coast, getting off the main tourist path often requires one thing: a car. Renting a car in Portugal can give you the freedom to explore at your own pace, reach places that public transport simply doesn’t, and turn your trip into a true road adventure.
Compare car rental prices in Portugal –> Discover Cars.com
That said, renting a car here isn’t always as straightforward as it seems. Tolls work differently than in many countries, insurance options can be confusing, and small details, like booking too late or choosing the wrong pickup location, can quickly add unnecessary costs.
In this guide, we’ll break down exactly when renting a car in Portugal makes sense, how much it costs, what you need to know before booking, and the most common mistakes travelers make (so you can avoid them). Whether you’re planning an Algarve road trip or heading deep into the Portuguese countryside, this post will help you decide if renting a car is right for your trip, and how to do it the smart way.
Why You Might Want to Rent a Car in Portugal
While Portugal’s major cities are well connected by trains, metros, and ride-share apps, that convenience fades quickly once you venture beyond Lisbon and Porto. Some of the country’s most rewarding destinations, such as quiet villages, dramatic coastlines, and rural wine regions, are either difficult or time-consuming to reach without your own vehicle.
Renting a car in Portugal makes the most sense if you plan to:
- Explore inner Portugal – Many historic towns, castles, and countryside areas are poorly served by public transport, with limited bus schedules or no connections at all.
- Travel through the Algarve – While trains run between major Algarve towns, many of the region’s most beautiful beaches, cliffs, and viewpoints require a car to reach. Many of the Algarve’s best beaches are nearly impossible to reach without a car.
- Move at your own pace – With a car, you’re not tied to train timetables or tour schedules. You can stop in small towns, pull over for viewpoints, or change plans spontaneously.
- Visit multiple regions on one trip – If your itinerary includes cities, countryside, and coast, a rental car often saves time and simplifies logistics.
For travelers who want flexibility and access to less touristy places, renting a car opens up a very different side of Portugal; one that’s harder to see when relying solely on public transportation.
That said, renting a car isn’t always necessary. In the next section, we’ll look at when you don’t need a car, and when it might actually make your trip more stressful rather than easier.
When You Don’t Need a Car in Portugal
Despite how useful a rental car can be, there are many situations where renting one in Portugal is unnecessary, or even inconvenient. In some cases, relying on public transportation and ride-sharing apps can save you money, stress, and time.
You likely don’t need to rent a car in Portugal if:
- You’re staying only in Lisbon or Porto – Both cities have excellent public transportation systems, including metros, buses, trams, and affordable ride-share options like Uber and Bolt. Parking is limited and expensive, and driving in historic neighborhoods can be stressful.
- Your trip is short and city-focused – For weekend trips or itineraries centered around museums, food, and walking-friendly neighborhoods, a car will mostly sit unused.
- You’re traveling by train between major cities – Portugal’s train network connects Lisbon, Porto, Braga, Coimbra, Faro, and other major hubs efficiently and affordably.
- You’re uncomfortable driving in narrow streets – Many older towns have tight roads, sharp turns, and limited parking, which can be intimidating for some drivers.
In cities, especially, renting a car often adds unnecessary challenges like finding parking, navigating one-way streets, and paying daily parking fees, which can quickly outweigh the benefits. AND parking in Porto and Lisbon is difficult and expensive!!
However, the moment your itinerary includes rural areas, smaller towns, or beach hopping, particularly in the Algarve, a car becomes far more practical. In the next section, we’ll break down how much it actually costs to rent a car in Portugal, and what expenses you should plan for beyond the base rental price.
How Much Does It Cost to Rent a Car in Portugal?
One of the biggest surprises for many travelers is how affordable car rentals in Portugal can be—especially when compared to other Western European countries. That said, prices vary widely depending on timing, location, and how early you book.
Prices can vary widely depending on demand, which is why we always recommend comparing rates across multiple providers before booking. Check Booking.com. We use it often.
Average Car Rental Costs in Portugal
As a general guideline:
- Low season (November–March): Budget cars can cost as little as €10–€20 per day
- Shoulder season (April–May, October): Around €20–€35 per day
- High season (June–September): €35–€70+ per day, especially in the Algarve
Automatic cars typically cost more than manual cars, and prices rise sharply during summer holidays and peak travel weeks.
What Affects the Price of Renting a Car
Several factors influence how much you’ll pay:
- Seasonality – Summer and holiday periods are significantly more expensive
- Pickup location – Airport rentals are often cheaper and have more availability than city-center offices
- Car size – Smaller cars are cheaper and easier to drive on narrow roads
- Transmission type – Automatic cars are limited and priced higher
- Length of rental – Weekly rentals often offer better daily rates
Additional Costs to Budget For
The base rental price isn’t the full story. Be sure to factor in:
- Insurance upgrades – Full coverage or zero-excess insurance adds to the daily cost but can save money and stress later
- Tolls – Portugal uses both traditional and electronic toll roads
- Fuel – Gas and diesel prices fluctuate and are higher than in some non-EU countries
- Extras – GPS, additional drivers, and child seats may come with daily fees
How to Save Money on Your Rental
A few simple strategies can keep costs down:
- Book as early as possible, especially for summer trips
- Compare multiple companies rather than booking directly with the first option
- Choose a smaller car unless you truly need the space
- Avoid unnecessary add-ons
- Double-check fuel and insurance policies before confirming
Overall, renting a car in Portugal can be very budget-friendly if you plan and understand what’s included in the price. In the next section, we’ll cover exactly what you need to rent a car in Portugal, from age requirements to documents, so there are no surprises at the counter.
What You Need to Rent a Car in Portugal
Before heading to the rental counter, it’s important to make sure you meet all the basic requirements. Portugal’s rules are fairly standard, but small details can trip travelers up if they’re unprepared.
| Requirements | Details |
| Valid Drivers license | EU licenses are accepted without issue. Non-EU travelers may need an International Driving Permit (IDP), depending on their country of origin and the rental company– but not in Portugal. US Driver’s licenses are valid. |
| Passport or government-issued ID | Valid driver’s license |
| Credit Card in Main drivers name | Most companies require this for the security deposit. Debit cards are often not accepted. American Express is usually not accepted. |
| experience | Usually 1 year, but sometimes 2 years for higher-end or automatic vehicles |
| Minimum age | The minimum age to rent a car is usually 21. Drivers under 25 often pay a young driver surcharge. Some car categories may require drivers to be 23 or older. |
Having these details sorted in advance can save time and avoid awkward surprises when you arrive.
Picking Up the Car: What to Check Before You Drive Away
This step is crucial and can save you money later. There are many stories out there of car rental places claiming damage to a car and charging your credit card for the damage. Make sure you do these things BEFORE leaving the lot.
Inspect the Vehicle Carefully
Before leaving the rental lot:
- Take photos and videos of the exterior and interior
- Pay close attention to scratches, dents, or nicks in the glass
- Talk to the company about how to pay for tolls. In some cases, you can manually pay the toll at the stops. However, there are places close to Porto and the Algarve that automatically scan the plate for the toll. Be clear on how the tolls will be paid.
Driving in Portugal: What to Expect
Driving in Portugal is generally straightforward, but there are a few local quirks and rules every traveler should know to stay safe and avoid fines.
Roads and Traffic
- Road quality: Highways (autoestradas) and main roads are well-maintained, but rural roads are not as much.
- Roundabouts: Common throughout the country; yield to traffic already inside.
- Village streets: Narrow, cobbled streets with tight turns are common, especially in historic towns.
- Speed limits: 50 km/h in towns, 90 km/h on rural roads, 120 km/h on highways; fines are strict.
On the highways, stay to the right when cruising. The left lanes are for passing only, and drivers will let you know quickly that you need to move. You can also get a ticket for cruising in the wrong lane!
Parking spaces are very small and sometimes nonexistent. You will find that the Portuguese sometimes make their own parking, but be careful: if you park where you shouldn’t, you could very easily get a ticket (which we found out the hard way).
Check with your accommodation to make sure there is parking available. And be very aware of where it is; Beth once lost the car in Porto because the garage was underground and there were multiple entrances!
Driving Tips
- Always carry your license, ID/passport, and rental agreement.
- Use low beams in tunnels and at night.
- Avoid aggressive driving; locals tend to be patient, but rules are enforced.
- GPS or offline maps are essential in rural areas, and be very careful of GOOGLE MAPS. We have more than once found our way down a dirt road by taking a “shorter route.” Rural roads are not maintained as well either.
Fuel Costs & Gas Stations in Portugal
Understanding fuel costs and where to fill up is an important part of planning a car trip in Portugal. Prices are higher than in some non-EU countries, and knowing the system can help you budget and avoid surprises. On average, it takes about €75 to fill our car up!
Fuel Prices
- Petrol (Gasoline): €1.80–€2.00 per liter on average
- Diesel: Slightly cheaper, around €1.70–€1.90 per liter
- Prices fluctuate, so check local rates before your trip
Filling Up
- Most gas stations are self-service and operate 24/7 on main roads.
- Major chains include Galp, Repsol, and BP.
- Some rural stations may only accept cash or Portuguese cards, so keep some change handy.
- Always close the car doors and turn off the engine. They will not turn on the pumps until you do so.
Tips for Travelers
- Use a full-to-full fuel policy: pick up a full tank and return full to avoid extra charges.
- Plan fuel stops for long drives in rural areas; small villages may have limited stations.
- Diesel cars are widely available and can be more economical for long trips.
Should You Rent a Car in Portugal? Final Decision Guide
Deciding whether to rent a car in Portugal comes down to your itinerary, travel style, and comfort level. Here’s a quick guide to help you make the right choice.
Rent a Car If:
- You plan to explore inner Portugal, rural villages, or the countryside.
- You’re visiting the Algarve or other coastal areas with limited public transport.
- You want flexibility to stop spontaneously at viewpoints, wineries, or small towns.
- Your itinerary includes multiple regions in a short time.
Skip Renting a Car If:
- Your trip is city-focused (Lisbon, Porto) and you’re comfortable with trains, trams, or ride-sharing apps.
- You’re traveling on a tight budget and want to avoid extra costs like tolls, insurance, and fuel.
- You’re uncomfortable driving in narrow streets or dealing with parking in historic centers.
Quick Tips for a Stress-Free Rental
- Book early to secure the best price and car availability.
- Understand insurance, fuel, and toll policies before confirming.
- Inspect the car carefully at pickup, take photos, and note any existing damage.
- Choose a smaller, manual car unless you specifically need more space or an automatic transmission.
Renting a car in Portugal can unlock experiences that public transportation simply can’t reach. By planning ahead, knowing the costs, and following these practical tips, you can enjoy the freedom of the road without unnecessary stress.
Links for renting cars
Most everywhere we go, we rent our cars either through Booking.com or Expedia.com They offer the best deals and are trustworthy sites. Discover Cars offers a place to find, compare, and rent cars around the world.
Want to know more about our adventures and guides? Check out our Podcast! We have episodes about those lovely places outside of Porto and Lisbon !
Shelley is a full-time traveler, writer, and podcaster based in Portugal, where she lives with her wife and their beloved bulldog, Scoot. Originally from Winston-Salem, North Carolina, Shelley is a former history teacher who swapped the classroom for cobblestone streets and passport stamps. These days, she explores Portugal and Europe in search of fascinating stories, unforgettable sights, and local flavor—then shares it all through her blog and podcast, Wandering Works for Us, where curiosity meets adventure (and sometimes wine).