If you’re planning a trip to Portugal and want to make the most of your time here, renting a car is often the most cost-effective way to explore this beautiful country at your own pace, unlocking both freedom and flexibility.
We’ve been road tripping across Europe for years, using both our own campervan and hired cars, so trust us when we say this guide will help you avoid the usual pitfalls and ensure you’re fully prepared for a hassle-free and enjoyable road trip in Portugal.
Whether you’re a first-time visitor or a seasoned traveller, our insider tips will help you navigate the best rental car options, hidden fees, driving regulations, and how to snag the best deals. Let’s dive in!
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Why Rent A Car in Portugal?
Unless you’re visiting for a weekend city break and plan to stick around one area, renting a car in Portugal will dramatically change the quality of your trip.
We’ve seen the differences first hand and while Portugal’s public transport system is decent, it can only get you so far compared to having your own car.
Without a car, you’d miss out on exploring the country’s more remote but absolutely stunning gems like Monsanto, Evora, and the Douro Valley.
A great example from our own road trip around Portugal: we drove to the Estrella Mountain Range, a place that would’ve been hard to reach without our own vehicle. Along the way, we stopped at villages and hidden viewpoints, without worrying about tour groups or taxis.
It’s freedom that you can’t get when you’re relying on others to get you from A to B.
What Do You Need To Hire A Car In Portugal
Renting a car in Portugal is similar to most EU or English-speaking countries. Here’s what you’ll typically need:
- Driver’s licence from your home country
- Passport
- Credit card (in your name)
- International Driver’s Permit (recommended, especially if you’re not from an EU country)
Here’s where our personal experience might help: we’ve been travelling for over seven years without a credit card, and we’ve still been able to hire cars using our standard bank card or, occasionally, our Wise card.
But, it’s always a good idea to call the rental company first to confirm they’ll accept your form of payment to avoid any nasty surprises at pick-up.
Additionally, although an International Driver’s Permit (IDL) isn’t mandatory for most EU visitors, it’s a good idea if you plan on crossing into Spain or other countries.
We recommend you get one, especially if you’re in the UK – IDLs are only £10 and can be done at your local post office.
Fun fact: the legal driving age in is 18, but you’ll need to be 21 to rent a car in Portugal, and if you’re under 25, expect an additional young driver fee.
All named drivers need to be present at the collection to show their documents, so plan accordingly.
How Much Does a Rental Car Cost in Portugal?
Car rental prices can vary widely depending on the time of year and what type of car you’re after. We’ve rented cars in both peak and off-peak seasons, and here’s what we’ve experienced:
- Low season (Oct-May): You can snag a car for as little as €5-10 per day.
- Peak season (June-Sept): Be prepared to pay €50-100+ per day, with prices going even higher during holidays or festivals.
In our experience, booking early can save you a lot of money. Last summer, we saw rental prices soar to over €100 per day, so booking ahead is crucial if you’re traveling in the high season.
Hidden Fees & Extra Costs
These are the sneaky fees that caught us off guard the first few times. But now, we know exactly what to look out for:
- Kilometres: Always check that your rental includes unlimited kilometres – some companies still limit it and charge you extra if you go over.
- Tolls: Portugal has quite a few toll roads, and depending on the rental company, you might be offered a toll device for around €2/day. We’ve found that some companies charge for the toll device on all rentals, but refund it if you don’t use it. Still, be prepared for tolls to be charged to your card later.
- Fuel: The best tip we can give is to always choose a full-to-full fuel policy and check the fuel level at pickup. We’ve had companies try to rent us cars with less than a full tank in the past, and they weren’t exactly transparent about it.
- Damage: Always do a thorough damage inspection. Trust us, the last thing you want is to be charged hundreds for something you didn’t cause. We recommend taking photos or even a video of the car at pick-up to avoid any disputes later
- Late Return Fees: When organising your drop off time, be mindful that some companies will charge you for another full day if you want to drop off later than you collected it – even if it’s just an hour’s difference. You can save a lot of money by collecting and dropping off at the same time whenever possible.
| Company | Deposit | Pros | Cons |
|---|---|---|---|
| EuropCar | €300 | Low deposit, reliable service | Limited car selection |
| Sixt | €800+ | Premium cars, good insurance | Higher deposit, Pricey in peak season |
| Hertz | €1000 | Large selection | High deposit, can be more expensive |
| Rent-a-car A Júlio | €200-300 | Affordable, good local reputation | Limited collection points, limited availability in peak seasons |
| DiscoverCars | Varies | Best for price comparison | Prices can vary based on Comparison sites |
What Car Should You Get?
Portugal’s narrow roads – especially in rural or mountainous areas – make a small car the most practical choice. If you’re looking to save money and squeeze into tight spots, a compact car is your best bet.
Manual vs. Automatic: Manual cars are the default here, so if you’re used to driving automatic, be sure to filter your search for an automatic vehicle. But fair warning: they’re typically more expensive!
Do I Need Rental Car Insurance in Portugal?
Yes, third-party insurance is a must, and most rental companies include it in the rental price.
However, this typically comes with a high deposit, often over €1000. You can reduce the deposit by opting for full coverage, but this will increase your rental cost.
We usually rent with Europcar or Rent-a-car A Júlio because their deposit is relatively low at €300 – a much more manageable amount compared to other companies.
Top tip: Make sure to always have the rental agreement and your passport handy when driving. If you’re pulled over for any reason you will need to show ID & proof of a rental agreement.
Where Can I Rent a Car in Portugal?
You can rent a car at all major airports and cities in Portugal, but here’s a tip from our own experience: don’t rush to rent a car the moment you arrive!
Take a few days to explore the city on foot or use public transport, and then rent a car when you’re ready to head out on your road trip. This will help you avoid hefty parking fees in busy areas.
If you want to avoid the crowds, try looking for rental locations outside airports or city centres. We’ve found that Discovercars.com is great for comparing prices across locations and finding the best deals.
One way rentals within Portugal are really easy to organise too, which means your road trip doesn’t have to be in a loop.
You can collect your rental car in Lisbon, and drop it off in Porto or elsewhere. This usually adds to your rental cost but if it fits in with your plans, it’s usually better in the long run.
Can I Take My Portugal Rental Car Out Of Portugal
Depending on the rental company, yes, it’s usually fine to take your car abroad. However, this is usually limited to mainland Europe. You typically can’t take your rental car from Portugal to the UK or other Islands even if the company is active there too.
Most rental car companies in Portugal require you to notify them at collection of any border crossings that you have planned. They’ll also recommend adding extra recovery insurance, it isn’t essential but it’s worth doing to reduce any nasty surprise costs in the event of a breakdown. It’s usually only an extra couple of €’s a day.
What’s Driving Like in Portugal?
Driving in Portugal is a relatively straightforward experience – just remember that they drive on the right side of the road!
We had a few close calls when we first arrived from New Zealand, but once you get the hang of it, it’s pretty smooth sailing.
- Traffic: Outside of Lisbon, Porto, and the Algarve, traffic isn’t too bad. We’ve driven through small towns without sitting in traffic for more than 5-10 minutes, even during the summer.
- Parking: City parking can be tricky, so we recommend using underground parking or parking on the outskirts and walking in.
Narrow Roads: If you’re heading into rural or mountain areas, be aware that roads can get very narrow. In places like Serra da Estrela, we’ve had to park on the outskirts and walk in, especially when renting a larger vehicle.
Top tip: Although rare, if travelling to the mountains in winter you might need snow chains. So remember to ask about them when you collect the car!
Hiring A Car In Portugal With A Dog
We have never had an issue renting a car in Portugal since having Lilly but we’ve heard that other’s have faced additional costs and/or a bad attitudes from staff once they realised a dog had been in the vehicle.
The key here is to return the car as you received it – even if this means getting it thoroughly vacuumed on the day of drop off.
You can also use a complete car seat cover to minimise how much fur and drool gets on the seats.
Quick Overview For Renting a Car in Portugal:
- Book early, especially if you’re traveling in peak season
- Opt for a small car – it’ll save you money and headaches
- Always choose unlimited kilometres
- Check for hidden fees (tolls, fuel, damage)
- Do a thorough damage inspection and take photos/videos
- Return the car full of fuel
Ready to hit the road in Portugal? If you’ve got any more questions about the best way to rent a car in Portugal, feel free to join the Road Tripping Europe Facebook group and ask us there! We’re here to help you get the most out of your road trip adventure.
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