Christmas Markets in Portugal: 7 top destinations to discover by car
Updated on September 18, 2025
Christmas in Portugal is all about twinkling lights, festive music, the smell of roasted chestnuts, and quality time with family. If you want to experience it all without missing a thing, the best way is to rent a car and explore the most charming Christmas markets in Portugal, from north to south.
From Lisbon to Porto, passing through Óbidos, Guimarães, the Alentejo and even Madeira, each market brings its own kind of magic. We’ve prepared a festive road trip featuring the most enchanting destinations so you can choose the ones that suit you best.
Let’s discover the 7 Christmas markets to visit by car!
What are the 7 best Christmas markets in Portugal to visit by car?
Visiting Christmas markets is a perfect idea for a romantic getaway
From north to south, Portugal’s Christmas markets turn cities and towns into magical settings — with sparkling lights, the smell of roasted chestnuts and mulled wine, and traditions that warm the heart.
Here are our top suggestions.
1. Lisbon Christmas Market – Rossio Christmas Market
Located in Rossio Square, this market offers a mix of artisan stalls, traditional food, and open-air Christmas shows.
But there’s more to Lisbon at Christmas: enjoy the ice rink at the popular Wonderland in Eduardo VII Park, festive events at Campo Pequeno, and traditional neighbourhood markets in areas like Alvalade and Carnide.
2. Óbidos Christmas Market
The town of Óbidos is one of Portugal’s most popular destinations during the festive season, thanks to its famous Vila Natal (Christmas Village). Decorated streets, music, shows, and Santa’s village turn this medieval town into a magical place.
Image source: Óbidos Vila Natal - the most anticipated Christmas event of the year
Inside the venue, you’ll find food stalls and local craft shops where you can enjoy regional sweets and pick up those last missing gifts from your list.
TIP: If you choose to rent a van for your Christmas trip, you can take family and friends to Leiria in under 40 minutes.
3. Porto Christmas Market – Urban Market Christmas Edition
Held at the Ateneu Comercial do Porto, this Christmas market is the perfect place to find those special last-minute gifts!
A wide range of Portuguese products awaits you — from jewellery, interior design and illustration to fashion, wellness items and personalised hampers.
But that’s not all: the city is full of festive events, including the Christmas market at Praça da Batalha and WOW, it’s Christmas in Vila Nova de Gaia, featuring a 13-metre Christmas tree, trampolines and carousels that kids will love.
4. Santa Maria da Feira Christmas Market – Perlim
The city of Santa Maria da Feira transforms into Perlim, a fantasy world that recreates Lapland — Santa Claus’s homeland.
More than just a market, it’s a full-on Christmas theme park, with magical decorations, live shows, and fun activities for children.
Make the most of the children’s Christmas holidays to create new family memories
TIP: For large families, renting a 7- or 9-seater van makes the trip more practical and enjoyable.
5. Guimarães Christmas Market
Guimarães becomes a magical city during the festive season, with its medieval streets lit up and its charming Christmas market.
The main market takes place at Largo Condessa do Juncal, also known as the Feira do Pão (Bread Fair). There, you’ll find a wide variety of handicrafts, clothing, and festive treats — perfect for gift-giving and enjoying the flavours of Christmas.
6. Christmas markets in the Alentejo
In the Alentejo, Estremoz is well worth a visit — famous for its traditional market, which becomes even more special at Christmas, with local crafts, regional delicacies and typical products like Alentejo bread and cured meats.
In Évora, the Christmas market brings a mix of culture and tradition to the heart of the city. Meanwhile, Elvas transforms into Elvas Cidade Natal (Christmas City), with a festive market, entertainment, and events for the whole family — making it a must-visit destination this time of year.
7. Christmas Market in Madeira
Image source – TopViagens: Visiting Funchal at Christmas is always a memorable experience
Did you know that Funchal’s Christmas Market is one of the brightest in Europe? The city centre lights up with spectacular decorations.
In some spots, like Largo do Chafariz, visitors can even change the colours of the lights using a QR code.
This market offers an irresistible mix of handmade crafts and traditional Madeiran treats. And after Christmas Day, it’s customary to delight visitors with a special concert by the Funchal Jazz Orchestra.
Planning to visit Funchal? Discover how to rent a car in Madeira, in this article.
Which of these Christmas markets in Portugal will you visit this year?
Each market has its own unique atmosphere — from the smell of roasted chestnuts to twinkling lights and the charm of local traditions. Plan your route, pick the ones that suit you best, and get ready for an unforgettable experience.
Now that you’ve discovered some of the best Christmas markets in Portugal, all that’s left is to choose your route and get your trip ready.
For even more inspiration, check out our special article on spending Christmas in Portugal with a rental car.
FAQs about Christmas Markets in Portugal and car rentals
Is it easy to park near Christmas markets in Portugal?
Some markets, such as those in Lisbon or Óbidos, can get quite crowded. If you choose to rent a car, check for nearby car parks or opt for areas with good accessibility to make your visit easier.
Is it better to rent a car in Funchal to visit Madeira’s Christmas market?
Yes. Renting a car in Funchal is the best way to visit the Christmas Market and also explore other tourist attractions on the island with total freedom.
How much time do I need to visit several Christmas markets on one trip?
It depends on your chosen route. For example, in two days you can visit Óbidos, Leiria, and Lisbon. With a longer rental, you can include Porto, Guimarães, or even the Alentejo in your itinerary.
Count on Drivalia for your Christmas car rental
With Drivalia, renting a car for Christmas is simple and convenient. We guarantee comfort, flexibility, and mobility across the country — from north to south, and even in Madeira. If you’re looking for flexibility, you can rent a car in Portugal in just a few clicks and start planning your festive road trip today.
Discover the most magical destinations with us, travel at your own pace, and turn every moment of your journey into an unforgettable memory.
