New Year’s Eve in Portugal: TOP 5 parties to celebrate with a rental car
Share with friends
Updated on September 20, 2025
Want to start the new year on the right foot? New Year’s Eve in Portugal is celebrated with music, traditions and fireworks that light up cities from north to south. To make the most of it, rent a car, travel at your own pace, and celebrate wherever you choose.
Keep reading to discover our top suggestions for ringing in the new year!
- Lisbon
- Porto
- Figueira da Foz
- Algarve (Faro and Albufeira)
- Funchal (Madeira)
Book your New Year’s Eve car rental with Drivalia now and get ready to create unforgettable memories.
Why rent a car in Portugal for New Year’s Eve?
Renting a car in Portugal for New Year’s Eve gives you total freedom: choose your destination, travel at your own pace, and arrive at the celebrations comfortably and safely.
With a variety of models available — from low-cost rentals to 7- or 9-seater vans — you can gather family and friends without relying on public transport.
Learn more about car rental in Portugal and public transport options in this article.
Quick tips for renting a car at New Year
Book in advance, check opening hours, and bring the right documents — simple steps to ensure a smooth trip over New Year.
- Book early: demand is high and prices rise quickly.
- Check times and locations: make sure the pick-up/drop-off station is open when you need it.
- Required documents: valid driving licence (minimum 1 year), ID, and credit card.
- Safety first: according to the GNR's 2024/2025 Christmas and New Year Road Safety Operation, there were 20 fatalities, 87 serious injuries and 972 minor injuries in 3,234 road accidents — though the number of accidents dropped compared to the previous year. Drive responsibly and celebrate safely.
TOP 5 New Year’s Eve parties in Portugal
Still not sure what to do this New Year’s Eve? Check out our suggestions and discover the best places to celebrate in style across Portugal.
New Year’s Eve parties take place all over the country — from north to south. Lisbon, Porto, Figueira da Foz, the Algarve and Funchal welcome thousands of people with live concerts and spectacular fireworks.
1. Where to spend New Year’s Eve in Lisbon
Every year, the Portuguese capital hosts a New Year’s celebration with all the bells and whistles.
Praça do Comércio is the heart of the party, featuring free concerts and fireworks at midnight. The fun continues late into the night in the city’s bars and clubs.
TIP: With a rental car, you can visit Cascais or Sintra during the day and return to Lisbon for the big celebration.
During New Year’s Eve, the capital lights up with joy to welcome everyone who comes to celebrate
2. Where to spend New Year’s Eve in Porto
In Porto, the party is always on! Avenida dos Aliados is the heart of the celebrations, with live music and a warm, festive atmosphere.
At midnight, the long-awaited fireworks light up the sky, and everyone toasts the New Year with a glass of Port wine. The streets of Ribeira and Sé stay lively until morning.
TIP: If you’re flying into the city, find out how to rent a car at Porto Airport in this article.
Porto is a mix of charm, tradition and modernity — always accompanied by the iconic Douro River
3. New Year’s Eve in Figueira da Foz
Home to one of the largest urban beaches in Europe, Figueira da Foz offers a unique setting for New Year’s Eve — perfect for those already missing the beach.
The city welcomes thousands of people on Avenida 25 de Abril with concerts, DJs and fireworks over the sea.
TIP: If you rent a car and have more time, take the opportunity to visit Coimbra and explore its rich historical heritage.
The wide stretch of beach in Figueira da Foz welcomes thousands of tourists and locals to enjoy the spectacular light show
4. New Year’s Eve celebrations in the Algarve (Faro and Albufeira)
Faro offers a cosy atmosphere and outdoor celebrations, while other towns like Albufeira provide a livelier vibe, with street entertainment and parties that last until dawn.
TIP: Rent a car in Faro and explore other Algarve cities like Lagos or Vilamoura.
Praia dos Pescadores in Albufeira is the heart of the celebrations, with its stunning fireworks show over the sea
5. New Year’s Eve in Funchal, Madeira
Recognised by the Guinness World Records, the fireworks display over Funchal Bay attracts visitors from all over the world.
The celebration starts early with concerts, parades and a magical countdown that makes this destination truly unforgettable.
TIP: Rent a car in Funchal and visit places like Cabo Girão and Mercado dos Lavradores before the party begins.
The natural amphitheatre of Funchal offers breathtaking views over the illuminated bay
FAQs about New Year’s Eve in Portugal and car rentals
Where should I spend New Year’s Eve in Portugal?
Lisbon, Porto, Figueira da Foz, the Algarve and Funchal are among the most popular destinations to ring in the New Year.
Is it worth renting a car in Portugal for New Year’s Eve?
Yes. It allows you to travel without relying on public transport, visit multiple cities, and enjoy the celebrations at your own pace.
Is it safe to drive on New Year’s Eve in Portugal?
Yes, as long as you drive responsibly. It’s strongly recommended to avoid drinking and driving, and to plan your trip in advance. The GNR increases roadside checks during this period to ensure greater road safety.
Do I need to book a car rental in advance for New Year’s?
Yes. Demand is very high at this time of year, and booking early ensures better prices and vehicle availability.
Where to rent a car in Portugal for New Year’s Eve?
With 33 rental stations across the country — including Lisbon, Porto, Faro and Funchal — Drivalia offers convenient mobility to match your New Year’s plans in Portugal.
Book online in just a few minutes, choose the ideal vehicle, and start the year with freedom on four wheels.
