Renting a Car in Portugal: Everything You Need to Know (2026)

A rental car is the best way to see Portugal beyond Lisbon and Porto. The Algarve’s coves, the Alentejo’s hill towns, the Douro’s wine estates and the wild west coast are all far easier with your own wheels. We live in Portugal and have rented cars here many times, with different companies, so here’s what you need to know before you book.

Quick answer: compare prices on Discover Cars, which searches international and local firms at once, and book early if you need an automatic. Bring your licence, your passport and a credit card in the driver’s name. Most motorways are tolled, some electronically only, so ask for a toll transponder. Skip the car in Lisbon and Porto, where public transport is easier.

Our pick: Discover Cars

When we book a car in Portugal online, we use and recommend Discover Cars. It shows deals from international and local companies in one search. Compare car rental prices.

Portugal is one of the most varied countries we know, from whitewashed villages and medieval towns to rivers, rolling hills and rugged coastline, and there’s no better way to explore it than by car. You can stop whenever you like and take the quieter roads.

Renting can be expensive, and if you’ve never been before it’s hard to know which company to choose. Here are the questions we’re asked most.

Renting a car in Portugal: common questions

Should I rent a car in Portugal?

There is no better way to explore Portugal than with a car rental. Portugal is full of hidden gems that are hard to access by public transport. Of course, you can easily explore the city of Lisbon or Porto without four wheels, but if you want to venture outside the main towns, you will need a car. Many amazing places I have been to are inaccessible via public transport.

The freedom of travel makes renting a car in Portugal worth it. There is no need to be afraid to drive the roads here. You might have seen many pictures of narrow cobblestone streets, but these can be easily avoided.

Portugal has a well-developed road network, with many highways connecting major cities and towns. Within about 3 hours of Lisbon, you can be in Porto or on the beautiful Algarve coast, and the Douro Valley is about 3.5 hours away.

How old do you have to be to rent a car in Portugal?

It depends on the company. A few rent to drivers from 18 or 19, but most require you to be at least 21, and many charge a young-driver fee if you are under about 25. Most also ask that you have held your licence for at least a year.

Renting an automatic car in Portugal

Automatic cars are much more expensive than manual ones and can be hard to secure due to high demand. Most companies have only a few automatic cars available in their fleet, which get booked quickly. I normally find the best available cars on Discover Cars.

Renting a car in Portugal with U.S. Licence

You can rent a car in Portugal with a US driving licence.

When renting a car, make sure to have the following:

• Your driver’s license from your home country
• Your ID (passport)
• Credit Card in your name

A US licence is valid for visitors for up to 185 days. Some rental desks also ask for an International Driving Permit, so check your booking terms, or get one before you travel to be safe.

Can I drive a hire car in Portugal with a UK licence?

Yes, you can legally drive in Portugal with your UK-issued photocard driving licence. You do not need an International Driving Permit for Portugal with a photocard licence, though an old paper licence may need one.

What’s the cheapest car rental company in Portugal?

I recommend and use Discover Cars. It compares local, national and international companies, so you get the best rates.

The best part? Their full coverage insurance is usually much cheaper than buying extra cover at the rental desk.

Oftentimes, I have found the cheapest Portugal car rental companies to be Sixt and Enterprise, both of which you’ll find on Discover Cars.

Remember to always check ratings, and never go with a low-rated company.

What is the best car rental in Portugal?

All the big-name car rental companies also have offices in Portugal: Hertz, Sixt, Alamo, Budget, Europcar, Enterprise and Avis.

Discover Cars searches for all the best deals with the best car rental companies in Portugal.

Wherever you choose to rent cars in Portugal, read reviews about the company and that particular location.

How much does it cost to rent a car in Portugal?

I rented a car in Portugal for as little as €12 per day. On average, expect to pay €45-60 per day in the high season. There are, however, a lot of great deals out there, and depending on the car model, pickup location and time of the day, you can find very affordable car rentals in Lisbon or Porto.

Finding cheap car rental in Portugal

Consider all the costs associated with renting a car when comparing car rental prices.

In addition to the daily rental rate, you will also need to pay for insurance. Keep in mind that most rental companies also charge additional fees for extra drivers or child seats.

To get the cheapest car rental in Portugal, I usually went with the basic model and often got an upgrade upon pickup. This is, however, never guaranteed, so if you want to make sure you get the model you want, secure it at the time of booking.

If you are planning on pick-up and drop-off at different locations, be aware of the one-way fee.

To save money, compare the prices of car rental pick up at the airport vs the nearby town as the price may vary. Also, I found that when renting a car for a longer period, many companies offered us additional discounts on weekly or monthly rentals.

When I am renting a car in Portugal, I always use Discover Cars, and add their full coverage insurance. You can book with Discover Cars here.

Tolls in Portugal

Most Portuguese motorways are subject to toll fees. Some of them, such as the A2 between Lisbon and the Algarve, have toll booths where you can simply pay as you go.

Others only have electronic tolls, with no booth to stop at. Most car rental companies offer an electronic toll device (Via Verde) for a small fee. You can use the motorways as normal and the tolls are charged to your card at the end of the rental.

Good news for the Algarve: since 1 January 2025 the A22 (Via do Infante) and several other former “SCUT” motorways no longer charge tolls, so driving along the south coast is now toll-free.

If you skip the toll device, you will have to pay electronic tolls yourself at a CTT post office or Payshop. The charges usually show up about 48 hours after you pass, and you then have 15 working days to pay. Unpaid tolls come back as a fine, usually via your rental company, weeks or months later.

Renting a car in Portugal: a city-by-city guide

Renting a car in Lisbon

Lisbon is a top Portugal travel destination, and renting a car in Lisbon is very easy and straightforward. It’s easier to just rent the car at Lisbon Airport and drive to your desired destination. If you are looking to rent a car at Lisbon airport, you will find all the major companies within the terminal. I always find cheap car rental options in Lisbon with Discover Cars.

What is the most popular rental car in Lisbon?

When it comes to cars, the Mini is the most popular rental car in Lisbon as it’s small and easy to get around with. If you are planning to stay in Lisbon city centre, there is no need for a car rental. For day trips from Lisbon to Cascais, Ericeira, Peniche, Óbidos or Sintra, car rental can be very useful.

Renting a car in Porto

I found some of the best car rentals in Porto with Discover Cars. Renting a car at the Porto airport is easy, as you will find the best rental agencies here. It is also the most convenient place since you can go straight from your flight right to your rental car. There is no better way to explore Douro Valley than with a car.

Should I rent a car in Porto?

Unless you’re planning for a few Porto day trips, there is no need to rent a car to stay in Porto. You can get around Porto by Uber or by using public transportation.

Renting a car at Faro airport

Faro is the best airport to arrive at to explore the Algarve. Faro has some of the best car rentals, like Sixt, Guerin and Drive on Holidays. At Faro Airport, I also found the cheapest car rental options. Faro and the Algarve region are best to be explored by car. There are many stunning beaches and whitewashed villages that are otherwise hardly accessible without a car. You can easily explore Lagos, Albufeira, Olhao, and many other beautiful spots with a car.

What do I need to rent a car in Algarve?

The general requirement is to provide a driver’s license, credit card and a passport or national ID card. The minimum age depends on the company: a few rent from 18 or 19, but most require you to be at least 21.

Final thoughts on renting a car in Portugal

A Portugal road trip is one of the best ways to see the country, especially places like the Algarve and places like the Nazare, Peniche or Douro Valley. Even if you’re not doing a full road trip, the easiest way to explore Portugal’s hidden gems is by car.

Driving in Portugal is generally easy, and renting a car in Portugal is normally a simple, hassle-free process.

One of the most important things to keep in mind for a Portugal car rental is to rent with a reputable company like Discover Cars.

FAQ

Do I need a credit card to rent a car in Portugal?

Usually, yes. Most rental companies want a credit card in the main driver’s name to hold the deposit. Some accept debit cards, usually with extra conditions, so check the terms before you book.

Can I take a rental car from Portugal to Spain?

Most companies allow it for an extra fee, but you must tell them when you book. Dropping the car off in Spain usually means a large one-way fee. See our guide to driving in Portugal for the road rules.

Do I need a child seat in a rental car?

Yes. Children under 12 who are shorter than 135cm must travel in the back in an approved child seat or booster. Book seats with the car, or bring your own.

Is a Via Verde toll device worth it?

For most trips, yes. It costs a small daily fee and pays every toll automatically, including on electronic-only motorways, so you don’t have to visit a post office or risk a fine passed on by the rental company.

Top photo: Walterpeitz, CC BY-SA 4.0, via Wikimedia Commons

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