Driving in Portugal: Rules, Roundabouts, Tolls and Tips

A car is the best way to see the Algarve, the Douro, the Alentejo and the little villages in between. Portuguese roads are generally excellent, but there are a few rules and quirks that surprise visitors: roundabouts, tolls, narrow old towns and some very confident local drivers! Here’s everything you need to know before you pick up the keys.

Quick answer: drive on the right. Speed limits are 50 in towns, 90 on other roads and 120 km/h on motorways. The alcohol limit is 0.5 g/l (0.2 for drivers in their first 3 years). Carry a reflective vest and warning triangle. Get a car with a Via Verde toll transponder. Don’t drive in Lisbon or Porto if you can avoid it.

Do you need a car?

• No: for Lisbon, Porto, Sintra and Cascais. Public transport, trains and Uber or Bolt are easier and parking is a pain.
• Yes: for the Algarve (beyond the main towns), the Douro Valley, the Alentejo, the Silver Coast and road trips. Madeira and the Azores too.
• Best of both: explore the cities without a car, then pick one up as you leave. See our 10-day Portugal itinerary.

Licences and documents

• EU licences are valid as normal.
• UK, US, Canadian and Australian licences are recognised for visitors. An International Driving Permit is only officially needed if your licence isn’t in English or Portuguese, but some rental companies ask for one anyway, so check your booking terms.
• Always carry your licence, passport or ID, and the car’s rental papers and insurance. Police can ask to see them.
• Age: most rental firms need you to be 21 or over (sometimes 25 for bigger cars) and charge a young-driver fee.

The key rules

• Speed limits: 50 km/h in towns, 90 on rural roads, 100 on dual carriageways and 120 on motorways (with a 50 minimum). Speed cameras are common, and fines arrive at your rental company, which passes them on with an admin fee.
• Alcohol: 0.5 g/l, or 0.2 for new drivers (under 3 years) and professional drivers. Portugal takes drink-driving seriously. If you’re wine tasting, have a designated driver.
• Phones: no handheld use at all, including at red lights. Fines start around €120.
• Seatbelts for everyone, front and back.
• Children: under 135cm must use a suitable child seat, and under-12s should sit in the back. Book seats with your rental car, or bring your own.
• Kit: a reflective vest (keep it inside the car, not the boot) and a warning triangle. Rental cars should have both, so check before you drive off.
• Headlights on in tunnels and in poor visibility.

Roundabouts

Portugal has a lot of roundabouts (rotundas), and they confuse everyone at first.

• Traffic on the roundabout has priority. Give way to cars coming from your left.
• Taking the first exit? Use the outside (right) lane.
• Going further round? Use the inside lane, then signal and move out before your exit.
• Expect locals to do it differently. Drive defensively and watch for cars cutting across.

Tolls

Most motorways are tolled, and some only have electronic tolls with no booths. The easy fix: rent a car with a Via Verde transponder, which pays every toll automatically for a small daily fee. Good news: since 2025, several former electronic-toll motorways, including the A22 across the Algarve, are now free. Full details in Portugal tolls explained.

Fuel

• Prices (September 2026): around €2.10–2.20 per litre for petrol (gasolina) and similar or a little more for diesel (gasóleo). Motorway service stations charge more than supermarket stations.
• Double-check the pump: diesel is gasóleo, petrol is gasolina 95 or 98. Putting the wrong fuel in a rental is an expensive mistake.
• Many stations are self-service. Some need you to pay inside first.
• Electric cars: chargers are common in the cities and the Algarve, but sparser inland.

Parking

• Lisbon: on-street parking is run by EMEL and paid by meter or app. Spaces are scarce in the centre, so use a car park or leave the car outside the city.
• Porto: similar. Hotel parking is worth paying for.
• Historic towns (Sintra, Óbidos, Évora, Lagos old town): park outside the walls or centre and walk in. Many old streets are residents-only or far too narrow.
• Never leave valuables in the car, especially at beach and viewpoint car parks.

Low emission zones

Lisbon has a low emission zone (ZER) around Avenida da Liberdade and Baixa, with camera enforcement. Modern rental cars meet the rules, but it’s another reason not to drive in central Lisbon.

Driving culture

• Tailgating is common on motorways. Move over and let them pass.
• Stay out of the left lane except to overtake.
• Country roads can be narrow and winding, often with no shoulder. Take your time, especially in the Douro and the hills.
• Watch for zebra crossings: pedestrians have priority and expect you to stop.

If something goes wrong

• Emergency: call 112.
• Breakdown: put on your vest before getting out, place the triangle behind the car, and call the rental company’s assistance number.
• Accident: fill in the European accident report form (in the glovebox) with the other driver, take photos and call your rental company.

Renting a car

Compare prices early, especially for summer and automatics, which are much rarer and pricier than manuals. Check the fuel policy (full-to-full is best) and the excess. We compare deals on Discover Cars. See our full Portugal car rental guide.

Road trip ideas: Lisbon to the Algarve, the Douro Valley by car and Évora and the Alentejo.

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