17 Things You Should Know Before Renting a Car in Portugal

If you’re planning a trip to Portugal, renting a car is honestly the best way to explore it. It gives you total freedom to go off the beaten path and visit places that would take ages to reach by public transport—if they’re even accessible at all.

On my last trip to Portugal, I rented a car for a whole month and drove from Nazaré down to the Algarve, stopping at charming towns, hidden beaches, and scenic spots along the way. It was the kind of trip that just wouldn’t have been possible without my own set of wheels.

In this guide, I share practical tips for renting a car in Portugal, planning the perfect road trip itinerary, and driving across the country.

Portugal might be small, but it’s incredibly diverse—from vibrant cities and quiet medieval villages to dramatic cliffs and golden beaches. With a car, you can experience it all at your own pace and make the most of your journey.

How to find the best Portugal car rental company

First thing first, you need to rent a car! To find the best Portugal car rental companies, I suggest using Discover Cars. Their website allows you to compare different rental car companies, easily comparing their prices, insurance inclusions, and other details.

Once you find a potential deal, make sure you read the terms and conditions of the car rental you pick, both on the Discover Car platform and on the car rental site. This way, you will make sure you get the best deal. Do not compare only price,s but also the terms and conditions and most of all the security deposit they require from you.

Sometimes you pay a little extra, but the conditions are better. You need to decide what’s the best deal for your needs.

Why drive across Portugal?

First of all, why should you consider renting a car in Portugal for your next trip?

Because the trip itself is worth the time and money, driving through Portugal is like traveling through a fairytale, with its variety of spectacular landscapes, from rugged coastlines to old towns and castles.

From the European Surf Capital Ericeira, through Nazare with its giant waves, the university town of Coimbra, and the pilgrimage center of Fátima, the pretty Óbidos and spectacular Aveiro, Porto and the Algarve coast.

Since the distance between cities is short, the roads are great, and the landscapes are very inviting, driving across Portugal is the cherry on top of the cake of your vacation.

Besides, each city has its charm, culture, touristic points of interest, and cuisine. And you get to experience it all on your terms.

So, renting a car in Portugal is very worthwhile. However, it does require some planning ahead to make the most of it. And that’s why you are reading this post. I am going to help. Also, make sure you read all my other posts about Portugal. I have a lot of great information to help you plan your trip.

Practical tips on renting a car in Portugal

Generally, renting a car in Portugal is a straightforward process. Most cities and major airports have excellent car rental companies where you can pick up your online-booked rental.

The ideal is to plan and make a reservation as soon as possible, so you can guarantee the best rental prices. But not too soon, because special offers may not be out. I would say up to 6 months in advance for the high season (July and August) and 3-4 months for the low season.

So, I suggest you look for car rental deals and discounts and compare prices on sites like DiscoverCars, which compares several car rental companies. Once you find a good deal on the platform, always compare it with the car rental site because sometimes there are better deal. What Discover Cars stands out for is their full coverage, which covers any deductible you have with your car rental.

Regardless of the booking method you choose, I recommend reviewing the terms and conditions to avoid any surprises. Let’s review the essential factors to consider when renting a car in Portugal.

1. Hiring a car in Portugal requirements

What documents are required to drive in Portugal? Most tourists in Portugal do not need an international driver’s license to drive.

The driver’s license from your home country should be sufficient if it’s valid for up to 6 months from the date of arrival in the country, unless it’s written in a different alphabet.

However, to rent a car, you must have a credit card to pick up the vehicle from the rental car company.

It must be an international card (MasterCard, Visa, or American Express) with a limit sufficient to cover the amount that will be retained during the whole period you will have the car (which varies by company).

When you bring the car back, they “return” the retained value, since it was only authorized on the card and not withdrawn, and they keep only the value of the rental itself.

It is advisable to inform your bank that you are going to Portugal so they don’t block your account for unrecognized charges, and also ensure your credit card is valid for international purchases.

Renting a car in Portugal with a U.S. license

It is possible to rent a car in Portugal with a US driving license, but the minimum age requirement for some car rentals ranges from 18 to 30 years old. Some car rentals allow you to rent a car with a lower minimum age but at an extra cost. If you are within that age range, make sure you ask.

2. Choosing the car

There is more to choosing a rental car than the price. Pay attention to the type and size of the car.

For example, if you are traveling in the city with little luggage, choose a compact and small car. For the road, choose a sedan. If you are traveling with four people, for example, invest in the wagon category upwards.

There is nothing worse than traveling with a suitcase in the middle of the passengers in the back. After all, we want cheap, but we also want comfort!

Remember that you will choose a group of cars, not a specific vehicle, because the rental company will give you whatever is available. If, by any chance, they don’t have the class of car you chose, they will likely offer you a complimentary upgrade.

But also beware of that. When I rented my car in Lisbon, I realized it was not the car group I chose. I was expecting a Fiat Panda with 5 doors, and I received a 500, which is fancy, ok, but with only 3 doors and a very small trunk. When I asked, they told me I was upgraded because they didn’t have any more Panda.

It didn’t look like an upgrade to me, even though 500 is apparently trendy, but the car was very uncomfortable. It was only when I started driving uphill that I realized that. it was indeed an upgrade. The engine was much more powerful, and also, when I had to find parking, it was much easier with such a tiny car.

My big bag alone fit in the trunk, but if you had two bags, you would have to leave them in the back seat. This is not convenient if you leave the car unattended with your bags in it. Portugal is a safe country, but thieves are everywhere.

Also, keep in mind that the lower the category of your car (and the lower the damage waiver), the lower the rental price will be. But this is not the ideal combination. You can save on the type of car and avoid a lot of headaches by investing in full, no-deductible insurance for your vehicle.

How to find a cheap car rental in Portugal

To find cheap car rentals in Portugal, I recommend using the Discover Cars platform as they give you the options to compare prices among different car rental companies so that you can choose the most convenient for you. They also offer the option to buy full insurance with them for your peace of mind!

3. Picking up the car

Depending on the city and your choice, you can pick up the vehicle directly at the rental offices or the airport.

You will do a quick registration and need to sign a checklist with the vehicle’s current state.

Most people arrive tired after hours of flying and just want to get in their car and head to their destination. However, it is often worth leaving the airport by taxi or other means of transportation before picking up the car rental.

Why? Because, like in many other countries, airport rentals are usually more expensive than the rental offices in town.

Please note that due to high airport demand, lines and waiting times are longer for the release of rented cars.

Therefore, conduct this research beforehand to determine if the savings are worthwhile.

It is worth noting that the service hours of car rental companies outside the airport are more limited.

4. Scratches, tools, and spare tire

Before leaving the car rental company, check the vehicle’s condition very carefully.

Follow the inspection with the report they provide, and all the problems that should appear on the inspection form.

Keep an eye on every scratch and mark on the car. See if the spare tire, jack, and wheel wrenches are in the rental car. Verify that the tank is full, the radio is functioning, and the manual is located in the glove compartment.

Don’t forget to take a copy of the inspection with you.

I always recommend taking photos and videos at the time of pickup. If you notice any damage or scratches, it is essential to inform the rental car company so that you are not charged for them at the time of return.

5. Free or controlled mileage?

Before deciding whether to rent a car on your next vacation, it is good to know whether you will drive a lot or a little.

Some rental companies offer a choice between free and limited mileage. The limit is usually around 62 miles per day.

Sometimes, the discount is worth it. This rule may seem unusual, but it is actually quite common in Europe.

So, be careful, because sometimes you buy a car rental promotion and do not see between the lines that the mileage is controlled.

When you return the car, you are surprised by the high charge for the exceeding distance.

6. Full-full or full-empty?

Many car rental companies offer both options when renting a car: returning the car with an empty or a full tank.

The best choice is to receive the car with a full tank and return it the same way. It is challenging to use the entire tank and still make an exact calculation to deliver the vehicle without a drop of gasoline.

So when you leave the rental place, check if there is a petrol station nearby because you will need it when you return.

Otherwise, if you return the car with an empty tank, you will likely have to pay a significantly higher price for the fuel that will be replenished.

7. Car rental with free cancellation

Try to book your car rental sometime before your trip and preferably use reservations with no cancellation fees, like the ones offered by DiscoverCars and many car rentals as well.

If you have time, it’s a good idea to redo the search every 15 days with the same dates and pickup location.

Often, the values decrease. Then you just need to make a new reservation and cancel the previous one.

8. Car Insurance

As the saying goes… Always better safe than sorry!

Always rent a car with full insurance coverage (meaning 0r deductible).

And be careful when making the reservation to check for accidents, theft, crash & third-party coverage. The latter typically incurs an additional fee.

I always prefer to pay a little extra and rent a car with full insurance for peace of mind, knowing that whatever happens, I will be covered.

Usually, you have the collision damage waiver (CDW) included by default in the basic insurance, but if you want to upgrade to full coverage, you will need to pay an extra 20 to 30 USD per day, depending on the company and the type of car.

9. Renting a car with credit card insurance

Many travelers forget that some credit cards offer insurance for rental cars. This coverage applies to all major countries worldwide, including Portugal.

Yet, some car models may not be covered. Check the regulations of your credit card company before using this service.

Towing costs, charges for loss of use, and administrative fees may be covered if they result directly from a covered loss.

It sounds impressive, huh?! Well, the only issue is that you must decline the rental company’s offer of any partial or full collision coverage. This includes any similar damage and loss (CDW/LDW) insurance offered by the car rental company.

In this case, what the rental company might do is raise the bond value they block on your credit card to cover possible problems and the deductible.

The negative side to this is that when using credit card insurance, you will have to pay the damage first and then ask for a reimbursement.

However, as I mentioned before, in some countries, the rental companies include the CDW in the rate, and it cannot be deducted.

So make sure you check that in advance. Although we always hope that nothing happens and trust that we are careful, you never know. The negligence of other drivers can cause mishaps, and we may simply be in the wrong place at the wrong time.

Hence, full insurance will do. However, that also applies to travel insurance, which I always recommend, allowing you to travel with peace of mind. And yes, I always hope I don’t need it.

10. Additional driver

Are you traveling with friends or family? Will the routes be very long, and will you have to share the driving task?

Please note that rental car companies charge an additional fee if someone other than the primary driver is listed on the rental agreement and you need to add an additional driver while signing the contract.

If you don’t do that and you have an accident while the driver is not included in the contract, the insurance won’t cover it.

11. Driver’s minimum age

This detail matters a lot when you want to rent a car. Just as when you hire insurance for your car, the driver’s age is factored into the final rental price.

You might be a 22-year-old driver with an exemplary driving record, but this means nothing to the rental car companies.

Most companies charge a “minor driver” fee, which can be as high as 35 euros per rental day. Additionally, there may be a minimum age requirement to rent a car.

12. Should you pay extra for GPS?

Most rental companies offer additional services and accessories for an extra fee. And GPS is the most common one out there. After all, no one wants to get lost and waste time and gasoline, right?!

But nowadays, your phone is more than enough for that.

Besides helping us find ourselves, you can use Google Maps to research places and Spotify to guarantee the soundtrack, of course.

For this, nothing is better than an international SIM card and a functioning cellphone. Or, even better, you could get a local SIM card to have a smaller bill for your international data. I never travel without a local SIM. You never know what can happen.

If you are not sure what SIM Card to purchase, I recommend Airalo sSIM, which you can install on your phone. You can check their plans and see if they fulfill your needs.

13. Filling up the tank

Always confirm with the rental company which fuel to put in the car. If possible, opt for Diesel: the trip will be much cheaper because the price difference for other fuel types is big.

Remember that gasoline is called “Gasolina” and diesel is called “gasóleo” in Portuguese. Both words are pretty similar, and you don’t want to put the wrong fuel in your car.

Every 25 miles, more or less, there are gas stations with convenience stores and signs indicating the distance to the nearest ones and the prices.

In Portugal, these stations are known as “service areas.”

When you arrive at the gas station, you will need to fill up your car, as there are no employees available to do this. Go to the convenience store’s cashier to pay for the full tank.

14. Returning the rental car

In Portugal, like in other parts of the world, you may rent a car in one city and return it to another, instead of returning it to the same city.

This one-way rental typically incurs an additional cost, known as a “return tax” fee.

This fee covers the costs of driving the car back to its original location. The rental company determines the amount, which is often included in the rental fee.

You’ll see that the car rental prices skyrocket when we simulate returning the car to a place other than its origin.

But, is it worth it? It all depends on how many days you have and how you plan your Portugal itinerary.

Also, when choosing drop-off locations, try to return the car a bit earlier than the appointed date and time to avoid paying an extra daily charge.

Sometimes they offer a 1-hour grace period, but it’s best to stick to what’s written in the contract.

Driving in Portugal

We would also like to share some practical tips about driving in Portugal to make your experience easier!

✅ Parking in Portugal

One of the most annoying aspects of renting a car is where to park it when you don’t need it.

In Portugal, a parking fee is applicable in almost all public places. If you find a parking space on the street, look for parking meters. They are very easy to use: Simply insert coins and indicate how long you will stay. Some of them require you to insert the plate number, others don’t.

Generally, you must pay to use the meter between 8 am and 7 pm. It goes without saying but remember to place the ticket somewhere visible on your dashboard, facing up!

Be aware that some areas have a maximum duration of 2 hour-tickets. After finishing these 2 hours, you need to pay for a new ticket

If you don’t pay or renew your parking fee, you will get a ticket, and you have 24 hours to pay for it. If you let the time pass, you will have to pay a fine. Paying online is very easy, and you will get the instructions in the ticket.

In major cities, there is usually a good supply of underground parking, where you only pay at the end, based on the time you stay. And in shopping malls and supermarkets, parking is usually free.

Also, keep in mind that depending on where you stay, it may be difficult to get a parking place, so if possible, choose an accommodation that includes parking.

✅ Is driving in Portugal safe?

Since the majority of cities in Portugal are incredibly safe, it is generally safe to leave your car on the street at night.

Just don’t leave your belongings on display, and take extra precautions if you’re in a big city like Lisbon or Porto.

✅ Traffic fines in Portugal

No one wants this, but you may receive a fine for speeding, improper parking, or other traffic infractions. What should you do then?

If you have received a traffic or parking ticket and see a notice on your car’s windshield, it is best to pay it as soon as possible.

You can easily pay the fine at a post office (CTT) on the same day or within 5 days.

For speeding cases, you can be notified by letter through the rental car company for up to 3 months.

Remember that the rental company has your data: address, cell phone number, and credit card. So, there is no getting out of it.

Pay attention to the road signs in Portugal, and you should be fine.

✅ How are the roads in Portugal?

Besides the beautiful scenery, renting a car in Portugal is great because the roads are excellent! Well-maintained and relatively free from traffic, the roads in Portugal are categorized into freeways, national roads, main routes, and secondary routes.

Freeways

For those who want to save time and don’t mind paying tolls, the indicated roads are the freeways, “AE”. The maximum speed on them reaches 75 miles per hour, and the asphalt is impeccable.

However, there is always an alternative to paying tolls: simply choose the secondary roads.

These, in general, require a little more time to reach your destination, as most of the time they pass through a city (or very close to one), and the authorized speed is lower.

But… if you are just driving around, this probably won’t be an issue, will it?

National and local roads

The main and complementary routes are roads that better distribute the flow of cars on the roads, and also have stretches that enter cities and help in the flow of daily traffic.

Also known as two-way roads, national roads are the old roads that cut Portugal from North to South and were replaced by freeways.

The speed limits on national roads vary significantly since they often pass through cities. Pay attention to the signs. These are the roads indicated by an “N.”

As you can imagine, the local roads (or urban roads) are the older roads that go through villages.

The speed limit is also variable, so be sure to watch the signs. These are the roads indicated by “IP” and “IC”.

✅ Tolls and Via Verde

Portugal, like many other nations, has some roads with tolls (called “portage” in Portuguese).

These toll roads are charged by section, which means that you get a ticket every time you enter a highway and only pay when you leave.

The system calculates the amount you need to pay based on the distance traveled.

A great piece of advice for travelers driving in Portugal is to rent a Via Verde to avoid tolls.

You can avoid any hassle with tolls by passing right through the toll booths and having your credit card charged.

The benefit of having the Via Verde is that you don’t have to go to a PayShop network (or CTT Post Office) to pay the SCUTS after.

SCUTS is a toll-collecting method that cannot be paid in cash. The highway cameras take a photo of your license plate. Remember to pay within five days, and your days.

However, with Via Verde, everything is charged directly to your credit card, and you don’t have to worry about tolls at all.

To give you an idea, the total toll from Lisbon to Porto is somewhat more than €20 one way.

There is the option of taking toll-free routes if you do not mind making a more extended trip but saving more money.

Toll roads are typically shorter and more convenient, but you may opt for national roads instead. These are more popular amongst truck drivers and people who do not want to pay tolls.

When I rented a car with Centauro Car Rental, the cost was included in the rental, and they would deduct the amount charged from the deposit.

✅ Speed limits in Portugal

Highways: 120 km/h (75 miles per hour)

Two-way roads: 90 km/h (56 miles per hour)

Urban roads: 50 km/h (31 miles per hour)

✅ Distances across Portugal

Generally, when planning their Portugal itinerary, people start in the capital. So here are some examples of distances from Lisbon, to give you an idea:

Lisbon to Porto – 314 km / 195 miles

Lisbon to Coimbra – 204 km / 127 mi

Lisbon to Faro – 278 km / 173 mi

Lisbon to Fátima – 128 km / 80 mi

Lisbon to Óbidos – 85 km / 53 mi

Lisbon to Évora – 134 km / 83 mi

Best time to go on a road trip in Portugal

Located in southern Europe, Portugal is one of the sunniest countries on the continent and so can be visited at any time of year.

Of course, better seasons depend on what you want to see. The giant waves of Nazaré, for example, occur throughout the winter.

The grape harvest, on the other hand, occurs in the autumn. And if you want to prolong your stay and explore the beaches of the Algarve, spring or summer are the best times to do it.

Aside from that, it’s worth noting that July and August (summer for the northern hemisphere), as well as the time between Christmas and New Year’s, are regarded as high seasons in Portugal. As a result, everything is more crowded and expensive.

So, in general, I would suggest that the best time to visit Portugal and make the most of your trip are spring (from March to early June) and fall (best between September and October).

Prices are lower, the attractions are less crowded, and the weather remains pleasant during those months.

Portugal road trip itineraries

With a breathtaking Atlantic coast, mainland Portugal offers trip itineraries to suit all tastes and budgets. You can drive through the most beautiful coastal towns and explore the most famous landmarks in Portugal. Just take your pick!

Driving across Portugal

Many people decide to visit Portugal from north to south since the country is so small. You can start the trip in the north and go down, or start in the south and go up, stopping along the way, of course!

However, since most flights arrive in Lisbon, I recommend starting in the capital. After arriving, stay for at least two days in Lisbon to explore the city’s interesting areas.

Then you can opt for an Algarve itinerary, in the far south, and see all the beaches in the region.

North of Portugal

If you prefer the North, go from Lisbon to Sintra, Óbidos, Fátima, Aveiro, and Coimbra and my absolute favorite, Nazare. They are very popular cities and very touristy.

When you leave Coimbra, head towards the Douro, the Port Wine region. Drive through several small towns before hitting the road again to Guimarães, a charming city considered a UNESCO World Heritage site.

Then visit Braga, Portugal’s third-largest city, where history, religion, and culture coexist alongside university life and the country’s thriving technological industry—finally, head to Porto, which deserves more time to explore.

Algarve trip

You can also embark on a road trip that focuses on Portugal’s southernmost region. The Algarve has a wealth of attractions to offer, including its stunning beaches, spectacular caverns, dramatic rock formations, and rich historical heritage sites.

An Algarve itinerary can start in Faro, and within 5 days, you can explore the region.

Lisbon to Porto

When driving from Lisbon to Porto on any chosen route, it is possible to include some cities without going off the path. Some cities between the two destinations are Peniche, Óbidos, Batalha, Alcobaça, Fatima, Tomar, Coimbra, and Aveiro.

Route of the convents

One idea is to visit the convents of Alcobaça, Batalha, and Tomar on the same day. A special tip is that you can buy combined tickets for these attractions and get a nice discount.

Palaces Route

Another “thematic” route can be the Palaces route. You can make a circle, leave Lisbon, spend the morning in Queluz, and the afternoon in Mafra, and go to Sintra at night to enjoy a weekend exploring the Sintra castles. From there, return to Lisbon and you close the circle.

Douro Region

From Porto, you can explore the entire Douro River Valley region, including cities such as Lamego and Amarante.

Historic Circle

When using Porto as your base, head towards Braga, with a one-day stop in Guimarães. On the way back, stop in Barcelos to buy one of the best souvenirs from Portugal. Or you can go a little further north to visit Viana do Castelo.

Coimbra to Porto

Between these two cities, a good stop, especially in the summer, is the beautiful Aveiro.

Évora

From Lisbon, you can go to Évora and take advantage of the car to visit the vineyards of the region.

Renting a car in Portugal FAQ

Is it worthwhile to rent a car in Portugal?

The short answer is: “It depends”.

Before booking a car for your trip to Portugal, I highly recommend considering your priorities.

If the goal is to stay only at one destination, driving doesn’t make sense. Many streets have restricted traffic, parking will be difficult, and public transportation is super cheap.

Also, Uber and Bolt are the popular four-wheeled urban commuting apps in Portugal, and they’re also bargains.

But if you want to explore the Algarve beaches, go for it! If you want to start in Lisbon and stop in smaller towns until you get to Porto, have no doubts.

The car is also a handy way to travel from the Portuguese capital on some day trips.

Do you need an international driver’s license to rent a car in Portugal?

No, to rent a car in Portugal, you don’t need an international driving license. Short-term visitors staying less than six months can drive their rental with a valid US license.

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

It really depends on many factors, including the time of the year, the booking window, the car rental company, and the insurance you want to include.

Below, I am sharing a few examples of the cheapest car rental that I found by searching on July 21st for a week starting August 1st.

As you can see in the picture below, from 1 to 7 August (6 days) is 350 Euro

Click on the images to get a free quote for your travel period:

The same number of days (6) in October is less than half the price of the course because it’s low season and there is a 2-month booking window!

If you book for a month in October it’s even cheaper:

If you book in July 2022 for February 2023 for 30 days is even cheaper!

As you can see, there are many variables, but the sooner you book, the cheaper the car you’ll find, especially if it’s low season. August is peak season, which is why the rate is higher.

Click on the images to get a free quote for your travel period!

What is the cheapest rental car agency in Portugal?

It depends on many other factors as well. I’m not familiar with the cheapest one, but if you use Discover Car, you’ll find out.

What do they speak in Portugal?

In Portugal, Portuguese is the official language, but in most touristy towns, people will also understand and speak English.

Renting a car in Portugal: final thoughts!

If you’re still unsure about renting a car in Portugal, we hope we’ve helped clear your mind and provided some valuable tips on how and where to rent a car.

Renting a car in Portugal is a straightforward process. Just make sure to book in advance, pack your driver’s license, purchase travel insurance and full car rental insurance, buy a local SIM card, and download Google Maps. You’re all set to go!

Enjoy Portugal!