Last updated: April 2026
Driving in Portugal: What You Need to Know
Before you rent a car in Portugal, here are the essential driving facts:
| Drive Side | Right |
|---|---|
| International Driving Permit | Recommended |
| Speed Limit (Motorway) | 120 km/h |
| Average Fuel Price | €1.65/L |
| Minimum Rental Age | 21+ |
Sources: Visit Portugal — Driving · ANSR (Portuguese Road Safety Authority)
💡 Insider Tip
Many rental agencies in the Algarve have lower rates than at Lisbon airport.
Best Cities for Car Hire in Portugal
Portuguese rental markets split between the urban Lisbon and Porto hubs and the resort-focused Faro and Funchal operations. Each city below targets different traveller types.
Lisbon's position at the mouth of the Tagus makes it an excellent base for coastal road trips. Drive...
Car hire in Lisbon →Faro airport is the gateway to the Algarve, Portugal's sun-drenched southern coast. A rental car is ...
Car hire in Faro →Porto is the starting point for exploring northern Portugal's Douro Valley wine region, one of Europ...
Car hire in Porto →Madeira's mountainous terrain and dramatic coastal roads make renting a car essential for exploring ...
Car hire in Funchal (Madeira) →Best Time to Rent a Car in Portugal
Portuguese rental prices peak during July and August along the entire Algarve coast, the Christmas–New Year window, and Easter. Lisbon and Porto see year-round demand but spike during major football matches and the Web Summit in November. The cheapest months are January through March (excluding the Algarve which sees winter sun visitors from northern Europe), and mid-October through November. Rates can drop to €15–20 per day for a compact car in shoulder season. Madeira operates on a slightly different cycle — winter is actually peak season due to mild temperatures attracting European retirees, while August is comparatively quieter. Booking 3–4 weeks ahead is generally sufficient outside July–August on the Algarve, when 6+ weeks lead time becomes essential.
Common Rental Mistakes to Avoid in Portugal
The Algarve's A22 'Via do Infante' motorway uses electronic-only tolling with no physical booths — rental cars need an active transponder, and missing this detail leads to fines arriving weeks after return. Always confirm transponder activation at pickup if you'll be driving in southern Portugal. Second, Portuguese fuel stations along the autoestradas charge significantly more than urban stations — fill up before joining the motorway. Third, Lisbon's tram-track cobbled streets in Alfama and Bairro Alto are essentially undriveable — don't trust GPS routing through these areas. Finally, rental contracts often exclude tyre and wheel damage entirely from CDW coverage — Portugal's older cobbled streets and curb-heavy parking situations make these the most common claim type, and you'll be billed for both the part and the labour.