Car Hire in Portugal: A Complete Guide for Tourists (Without the Surprises)

Just a few hours separate the north and south of Portugal. Beaches, mountains, vineyards, historic villages and cities worth every detour. Portugal may be small on the map, but it has so much to offer when you have a car and the freedom to stop along the way. And there's no better way to explore it than by hiring a car in Portugal.

But between arriving at the airport, finding out where to collect your car, knowing which documents to bring and avoiding unexpected costs, there are plenty of questions to consider.

In this guide, you'll find everything you need to make hiring a car simple, quick and hassle-free.

Just Arrived in Portugal? What You Need to Know Before Hiring a Car

Before heading to the rental desk, there are four essential things to check. They only take a moment to verify and can help you avoid most common problems.

If you've just arrived at the airport and want to get everything sorted without delays, this checklist will help. Your driving licence, credit card, minimum age and insurance are the four things you should check in advance.

Quick Checklist Before Hiring a Car in Portugal

• Valid driving licence: EU citizens can use their European driving licence. In other words, if your licence was issued in an EU country, you can drive in Portugal. If your licence was issued outside the EU, check in advance whether you need an International Driving Permit (IDP). Requirements vary depending on your country of origin. To learn more about your consumer rights when hiring a car in Europe, visit theEuropean Commission's Your Europe portal.
• Credit card in the main driver's name: Required for the security deposit. Most car hire companies do not accept debit cards.
• Minimum age: Most companies require drivers to be at least 21 years old. Younger drivers may still be able to hire a car but are usually subject to an additional fee. Always check before booking.
• Insurance included: Third-party liability insurance is included in the basic rental price by law. Check the insurance excess and whether you need additional protection.

Where to Hire a Car in Portugal: Airport or City Centre?

You can collect your hire car at the airport or from a rental location in the city. Both options have advantages. The best choice depends on your arrival plans, budget and type of trip.

Airport Pick-up

If you've just arrived at Lisbon or Porto Airport and want to get on the road straight away, collecting your car at the airport is the most convenient option. Rental desks are located in the arrivals area, there's a wide selection of vehicles, and the process is usually quick.

However, there's another option worth considering: car hire companies located near Portugal's main airports, including Lisbon, Porto, Faro and Funchal. Companies such as Drivalia operate in these locations and often offer more competitive prices, free shuttle transfers to their rental offices and the opportunity to avoid queues at the desks inside the terminal.

City Centre Pick-up

If you don't need a car on your first day or want to explore the city before heading out on the road, collecting your car from a city centre location may be more convenient and affordable.

Fewer queues, more time to sort everything out at your own pace… and then you're ready to go.

Popular Car Hire Locations

• Faro and the Algarve: A favourite starting point for visitors spending their holidays in southern Portugal. With a car, some of the most beautiful beaches along the Algarve and Alentejo coasts are just a short drive away.
• Lisbon and surrounding areas: Ideal for exploring the capital and discovering Sintra, Cascais or even taking a road trip across the country.
• Porto and northern Portugal: The perfect starting point for exploring the Douro Valley, Minho and Trás-os-Montes. The roads are excellent, and the scenery makes every kilometre worthwhile.

How Much Does It Cost to Hire a Car in Portugal and How Can You Avoid Paying More?

Car hire prices in Portugal can vary considerably. During the low season, an economy car may cost less than €20 per day. In summer, prices tend to rise.

However, the final cost depends on much more than the daily rental rate.

What Affects Car Hire Prices?

• Time of year: July and August are the most expensive months. November and March generally offer more affordable rates.
• How far in advance you book: Booking several weeks ahead is usually cheaper than making a last-minute reservation.
• Type of car: A small city car costs less than an SUV. Automatic cars, for example, are usually more expensive than manual models.
• Insurance cover: Basic cover is included, but additional protection for windows, tyres or excess reduction comes at an extra cost.

Checklist to Avoid Hidden Costs

• Fuel policy: Check whether you need to collect and return the car with a full tank (full-to-full) or whether a different policy applies.
• Insurance excess: This is the amount you may have to pay if the vehicle is damaged. You can reduce or eliminate it with additional protection. Find out how car hire excess works and how much you may have to pay.
• Airport surcharge: Some companies charge an additional fee for airport pick-up. Check before booking.
• Additional driver: If someone else will be driving, they must be included in the rental agreement. Most car hire companies charge an additional fee for this.

Is Hiring a Car in Portugal Worth It?

The answer is: it depends.

For some destinations and types of holidays, a car is essential. For others, it may not be the most practical option.

Public transport in Portugal works well in major cities, but services are more limited outside urban areas. If your plans include remote beaches, inland villages or simply the freedom to stop wherever you like, hiring a car is often the best choice.

Here are a few examples of when hiring a car in Portugal is particularly worthwhile.

When Hiring a Car Makes Sense

• If you're visiting the Algarve: Many of the region's most beautiful beaches are outside areas served by public transport. Having a car is almost essential.
• Road trips: Portugal is made for exploring by car. Between Lisbon and Porto, for example, there are countless places worth a detour: the medieval town of Óbidos, Nazaré's giant waves, Coimbra and its centuries-old university, or Aveiro with its canals. And that's just one route. Alentejo, the Douro Valley, Serra da Estrela and the inland Algarve all have their own pace and surprises to discover.
• Families with children: Comfort, flexible schedules and enough luggage space can make all the difference.

When Hiring a Car May Not Be Worth It

• Lisbon: The historic centre has narrow streets, parking is expensive and difficult to find, and public transport is efficient.
• Porto: Like Lisbon, Porto has a compact city centre where walking is often more practical. The metro connects the city's main areas.
• Short city breaks: If you're only staying in one city for two or three days, hiring a car may not be worthwhile.

Quick Guide to Choosing the Right Car

If you're travelling as a couple, a small city car is usually enough and easier to park.

If you're travelling with your family, an SUV or a 7-seater offers the space you need for passengers and luggage without compromising comfort on longer journeys.

For larger groups, 9-seater vehicles are ideal for sharing costs and travelling together.

And if you're mainly visiting cities, choose a compact car. Parking a small vehicle in Lisbon or Porto is much easier than parking a larger one.

What Should You Know About Driving a Hire Car in Portugal?

Portugal has a few road rules and driving conditions worth knowing before you set off. Nothing too complicated, but understanding them can help you avoid fines and confusion.

Driving on the Right and Using Roundabouts

In Portugal, vehicles drive on the right-hand side of the road, as in most European countries.

Roundabouts are very common. Vehicles already on the roundabout have priority over those entering. This differs from the rules in some countries and can cause confusion.

We recommend paying particular attention when approaching larger roundabouts.

Electronic Tolls

Many motorways in Portugal have tolls. Some have both traditional toll booths and electronic payment systems, while others use electronic toll collection only, with no payment booths.

If you don't have a Via Verde electronic toll device, check with your car hire company how toll payments work.

Some companies provide a device, while others record the toll charges and bill you afterwards, sometimes with an additional administration fee.

A useful tip: Before leaving the rental office, always ask which toll payment system is included with your vehicle and how charges are collected. This will help you avoid surprises on your final bill.

Paid Parking in Cities

In major cities, parking in central areas is almost always paid, and finding a space can be difficult.

Covered car parks are often the most convenient option. In smaller towns and rural areas, parking is generally easier and free of charge.

Planning to Hire a Car in Portugal? Book with Drivalia

Drivalia has 34 Mobility Stores across Portugal, with a fully online booking process, transparent pricing and roadside assistance included.

Whether you've just arrived in Portugal or are planning your next trip, book your car in minutes and enjoy everything this country has to offer at your own pace.