In this article we are going to discuss must-know facts before renting a car in Portugal. Well, if one is confident in driving in a different country, there is nothing better than that. Renting a car offers flexibility and can make your tour more cost-effective compared to packaged tours. However, if it were that simple, everyone would opt for this choice. Unfortunately, there are many other aspects that need attention. Let us discuss these aspects before you rent a car for a Portugal tour.

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Some Important stats to understand statistics of car rentals in Portugal

Year/PeriodNumber of Tourists/Car Rentals
Dec 20, 2022 – Jan 7, 20234,220 car rental pickups in Lisbon; it was 1,782 in 2019 for the same period in comparison
Dec 20, 2022 – Jan 7, 20231,985 car rental pickups in Porto
March 20177,319 new vehicles added to rental fleets
Some important statistics about car rentals in Portugal

Requirements for renting a car in Portugal

RequirementDetails
Minimum AgeTypically 21 years old. Drivers under 25 may incur an additional “young driver fee.” Drivers over 75 may face restrictions.
Driver’s LicenseA valid driver’s license held for at least 1-2 years. International drivers may need an International Driving Permit (IDP), especially if not from the EU.
Passport/IDA passport or valid national ID (for EU citizens).
Credit CardA credit card in the name of the primary driver for the deposit. Debit cards are generally not accepted for deposits.
InsuranceBasic insurance is mandatory. You can opt for extra coverage (collision damage, theft protection) for added security.
Age RestrictionsDrivers must be between 21 and 75 years old, though some rental companies may allow younger or older drivers with restrictions or fees.
Proof of AddressSometimes required, especially if renting for an extended period.
Driving ExperienceA minimum of 1-2 years of driving experience.
Requirements for renting a car in Portugal

Risk in Renting a car in Portugal

RiskDetails
Traffic in CitiesLisbon and Porto can have heavy traffic, narrow streets, and limited parking, making driving stressful and time-consuming.
Parking CostsParking fees in major cities can be expensive, and finding parking spaces may be challenging, especially in popular tourist areas.
Toll RoadsPortugal has many toll roads, and unfamiliarity with the toll system can lead to unexpected charges.
Road Condition in Rural AreasWhile most roads are well-maintained, rural and mountainous areas may have narrow, winding, or poorly lit roads, posing a challenge to less experienced drivers.
Road Signs in PortugueseRoad signs and rental agreements are mostly in Portuguese, which could be difficult for non-Portuguese speakers to understand.
Driving EtiquettePortugal has strict traffic laws, and failure to follow rules (e.g., speed limits, seatbelt use) can result in fines or accidents.
Insurance CoverageBasic insurance may not cover everything, leaving you liable for damage or theft unless you purchase extra coverage, leading to higher costs.
Weather ConditionsRain and fog, especially in winter, can make driving dangerous, particularly on rural roads or in the mountainous regions of Portugal.
Fuel AvailabilityGas stations may be sparse in remote areas, and some stations close early, so it’s important to plan refueling stops in advance.
Risks of Renting a car in Portugal

Locations you should avoid with your rented car

Here are some routes and locations to avoid when renting a car in Portugal:

  • Lisbon City Center: Narrow, congested streets, difficult parking, and heavy traffic make it challenging for rental car drivers.Better you park your car somewhere parking is available, be it far.
  • Porto City Center: Steep hills, tight streets, and limited parking create difficulties for navigating by car.
  • Alfama District (Lisbon): Historic neighborhood with narrow, winding roads and limited parking spaces, making it hard to drive around.
  • Sintra: Narrow and winding roads, limited parking in popular areas like Pena Palace, and high tourist traffic make driving in this region tricky.
  • Algarve Coastal Roads in Peak Season: Heavy traffic and crowded roads, especially in beach towns like Albufeira, during the summer months.
  • Avenida da Liberdade (Lisbon): A busy shopping and tourist area with traffic jams and expensive or hard-to-find parking.
  • Mountains and Rural Areas in Winter: Snow and ice in certain mountainous regions during winter can make driving dangerous, especially on winding roads.
  • Lisbon’s Ponte 25 de Abril (Bridge): Overwhelming traffic congestion on this bridge, which can add significant time to your journey.
  • Coimbra’s Historic Center: Narrow streets, limited access for cars, and heavy pedestrian traffic make it difficult to navigate.
  • Madeira (Mountains and Remote Roads): Steep terrain and challenging roads may not be suitable for inexperienced drivers, making driving in the region difficult.

Benefits of Renting a car for Portugal exploration

BenefitDetails
FlexibilityRenting a car allows you to explore Portugal at your own pace, stopping wherever you like, without being bound by tour schedules.
ConvenienceWith a rental car, you can easily access remote destinations and avoid the hassle of public transport.
Cost-EffectiveFor groups or families, renting a car can be more economical than buying multiple tickets for public transport.
Access to Scenic RoutesPortugal has beautiful scenic drives (e.g., along the Algarve coast or through the Douro Valley) that are best enjoyed by car.
ComfortYou have the freedom to travel in a comfortable vehicle with your belongings close by, especially for long distances.
Time-SavingRenting a car saves time compared to waiting for public transportation, especially when traveling to smaller towns or rural areas.
Exploring Hidden GemsA rental car makes it easier to discover off-the-beaten-path destinations that may be difficult to reach by public transport.
Easy Luggage HandlingTraveling with luggage is more convenient as you have space to store it without worrying about limited luggage allowances on buses or trains.
Suitable for Groups/FamiliesA rental car is perfect for families or groups, providing a more comfortable and affordable travel experience.
IndependenceYou are not dependent on public transport schedules or routes, giving you complete control over your itinerary.
Benefits of Renting a car for Portugal exploration

Companies offering car rental services in Portugal:

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Company NameDescriptionPopular Locations
EuropcarA leading car rental company with a wide range of vehicles and flexible rental options.Lisbon, Porto, Faro, Madeira, Algarve
HertzWell-known global brand offering reliable car rental services with various vehicle categories.Lisbon, Porto, Faro, Madeira, Lisbon Airport
AvisOffers a large fleet of vehicles, including luxury cars, SUVs, and compact cars for all types of trips.Lisbon, Porto, Faro, Madeira, Algarve
SixtProvides premium car rentals with options for city cars, SUVs, and more.Lisbon, Porto, Faro, Lisbon Airport
BudgetOffers affordable car rental options for travelers looking for budget-friendly options.Lisbon, Porto, Faro, Madeira, Algarve
GoldcarPopular for competitive prices and a wide variety of rental cars, often chosen by international tourists.Lisbon, Porto, Faro, Algarve
Enterprise Rent-A-CarKnown for its excellent customer service and a wide selection of vehicles, from compact to luxury cars.Lisbon, Porto, Faro, Madeira, Algarve
National Car RentalA major provider offering a broad range of vehicles for both business and leisure travel.Lisbon, Porto, Faro, Algarve
ThriftyOffers affordable and well-maintained vehicles for budget-conscious travelers.Lisbon, Porto, Faro, Madeira
RentAutoA local car rental service providing competitive rates and a variety of vehicle choices.Lisbon, Porto, Faro, Algarve, Madeira



To wrap it up, renting a car in Portugal is a great idea if you want the freedom to explore at your own pace, enjoy the scenic beauty, and go beyond the usual tourist spots. It’s super handy, especially for those who like to go off the beaten path. But keep in mind that some places, like busy city centers and hilly areas, can be tricky to drive in with narrow streets, traffic jams, or no place to park. So, if you plan your routes wisely and stay aware of these challenges, you’ll have a smooth and enjoyable ride through Portugal!