Portugal – Car Rental

What are the rules and requirements for renting a car in Portugal?

The minimum age to hire a car in Portugal is not fixed across all providers. As a general rule, drivers must be at least 18 years old and hold a valid driving licence and passport, although a number of rental operators set their own threshold at 21. It is essential to check the policy of your chosen company before completing a booking.

With many operators, the threshold for economy-class vehicles sits at 21 years of age with at least one year of driving experience behind you. Once a driver reaches 25 and holds three or more years of experience, a broader range of vehicle categories becomes accessible. This approach is broadly in line with standard hire practice throughout Europe.

Drivers younger than 25 are not excluded from renting in Portugal, but most companies will apply a “young driver” surcharge on top of the base daily rate. This additional charge typically falls in the range of €10–€20 per day (as of 2025). Because not every company levies this fee, it pays to read the rental conditions carefully before committing.

There is no upper age limit written into Portuguese law for car hire. That said, many operators apply supplementary charges for drivers aged over 70, and because policies differ between companies, it is worth comparing options if this applies to you.

In most cases, a driving licence issued in your home country is sufficient to hire and drive in Portugal, so long as it is printed in the Roman alphabet — for example, licences in English, French, or Spanish. If your licence uses a different script, such as Arabic, Chinese, or Cyrillic characters, you will need an International Driving Permit alongside it. The IDP section below sets out the full details.

Seatbelts are compulsory for every person in the vehicle at all times. The legal blood alcohol limit is 0.5 g/l, which drops to 0.2 g/l for drivers with fewer than three years of experience and for professional drivers. Using a handheld mobile phone at the wheel is forbidden; hands-free use is only permissible when no physical handling of the device is involved.

Children younger than 12 years of age, or under 135 cm in height, are not permitted to travel in the front seat and must be secured in an appropriate child restraint. Child seats can generally be hired from rental companies for a small daily supplement — always confirm availability at the time of booking. For the most up-to-date legal requirements, consult the Instituto da Mobilidade e dos Transportes (IMT), Portugal’s transport regulatory authority, before your trip.

Which major car rental companies operate in Portugal, and where can I find them?

Rental desks are present at all significant airports and city locations across mainland Portugal, Madeira, and the Azores. Whether your flight arrives at Lisbon, Porto, or Faro, you will encounter a mix of well-known international brands and local operators each offering their own rates and terms.

The main international chains all maintain a solid footprint across the country. These include:

• Europcar — among the most widely established operators in Portugal, with counters at Lisbon, Porto, and Faro airports as well as city-centre branches. europcar.com
• Hertz — present at major airports and selected city locations throughout the country. hertz.com
• Avis — broadly available at airports and the larger urban centres. avis.com
• Budget — frequently shares premises with Avis and tends to offer competitive pricing. budget.com
• Sixt — maintains convenient locations at Porto Airport and Azores Terceira Airport, among others. sixt.com
• Enterprise — represented at the main airports and in city offices across Portugal. enterprise.com

Beyond the multinationals, a number of well-regarded Portuguese and regional companies are worth considering. Guerin (guerin.pt) is a homegrown brand with competitive rates and counters at major airports. Amoita (amoita.com) serves Lisbon and Faro airports and is noted for clear toll policies. Oporto Car Rental (oportocarrental.com) focuses on northern Portugal. Local companies can sometimes undercut the international chains on base prices and may offer a more personal service, though their fleets are generally smaller.

Collecting a vehicle at an airport typically attracts a location surcharge, pushing the overall cost slightly higher. That said, airport offices usually stock a wider choice of vehicles. If keeping costs down is your priority and your travel plans allow flexibility, picking up from a city-centre location can be a worthwhile saving.

How does car rental pricing work in Portugal, and what should I watch out for?

Hire rates in Portugal fluctuate considerably depending on the company, the location, the vehicle class, and the length of the rental. Prices can range from as little as €10 a day to well over €100 (as of 2025). The figure advertised at the point of booking rarely reflects what you will ultimately pay once extras are factored in.

Summer demand — particularly during July and August — drives prices up sharply. Securing your booking two to four weeks before travel can reduce costs by as much as 30–50% compared with rates available at the counter during peak season. Advance booking is one of the most effective ways to manage the expense.

The most common additional charges to be aware of include:

• Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW): The excess — sometimes called the “franchise” — is the sum the company may retain if the vehicle is damaged. This typically ranges from €600 to €2,000 (as of 2025) and is pre-authorised on your credit card as a security hold when you collect the car.
• Toll transponder: Portugal has a substantial network of toll roads. Depending on the operator, you may be offered a Via Verde transponder device at roughly €2 per day. Some companies apply the charge to all rentals but reverse it if the device goes unused.
• Additional driver: Registering a second driver generally costs around €5 per day. Always declare any additional drivers formally at the desk — if an undeclared driver is involved in an incident, your insurance cover may be invalidated.
• Young driver surcharge: As outlined above, drivers under 25 typically face a supplement of €10–€20 per day (as of 2025).
• One-way fees: Returning a vehicle to a different location from where you collected it is often possible, but comes at a premium. Factor in this fee alongside tolls and fuel when assessing the true cost.
• Fuel policy: The most straightforward arrangement is full-to-full — the car is handed over with a full tank and you return it full. Some operators have been known to issue vehicles with less than a full tank, so check the gauge carefully at collection and note any discrepancy on the paperwork.
• Fines and administrative fees: Penalties for speeding, improper parking, or toll road violations are sent initially to the rental company and then passed on to you. Operators typically add an administrative handling charge of around €25–€50 (as of 2025) for processing each fine.

Unlike in some countries where the advertised price closely mirrors the final total, car hire in Portugal frequently involves multiple layers of optional extras promoted at the collection desk. Reading the rental agreement thoroughly before you sign is not optional — it is essential. Should you find yourself in a dispute over charges after returning the vehicle, Portugal’s consumer complaints portal, Livro de Reclamações, accepts official complaints, and Turismo de Portugal publishes guidance for visitors who encounter service problems.

Do I need an International Driving Permit (IDP) to rent a car in Portugal?

The IDP question is among the most commonly raised — and most misunderstood — by people planning to hire a car in Portugal, partly because the guidance available from different sources can appear contradictory. The summary below reflects the best available information as of 2025, but you should always verify current requirements with the IMT or your rental company before travelling.

EU/EEA licence holders: A driving licence issued by any EU or EEA member state is fully recognised across Portugal under EU mutual recognition rules, and no IDP is necessary.

Non-EU licence holders: The position is less straightforward. Holders of a valid US licence, for instance, are not legally obliged to carry an IDP when driving a hire car in Portugal for stays of under six months. Even so, carrying an IDP alongside your domestic licence is a sensible precaution should you be stopped by police or involved in an accident.

An IDP functions as an official translation of your national licence, enabling you to drive abroad. It must always accompany your national licence — it cannot be used as a substitute for it.

Certain rental companies may ask to see an IDP depending on where your licence was issued or the alphabet in which it is printed. If your licence uses a non-Roman script, an IDP is strongly advisable and may be a firm requirement of the operator even where Portuguese law does not mandate one. Confirm the position with your rental company at the time of booking.

An IDP must be obtained in the same country that issued your domestic licence — you cannot apply for one once you have arrived in Portugal. For holders of a Portuguese licence who need an IDP for travel elsewhere, applications are handled at an IMT service desk. The IMT charges €30 for an IDP, which is valid for one year from issue (as of 2024 — check the gov.pt page for the current fee).

If your plans include crossing into Spain, bear in mind that the requirements there may differ from those in Portugal. A separate check of Spain’s rules is advisable before you set off on any cross-border journey.

What types of roads and driving conditions should I be prepared for in Portugal?

Traffic in Portugal travels on the right-hand side of the road, with overtaking carried out on the left. All road users are governed by the national Highway Code (Código da Estrada). Signage follows the standard European convention, which will be familiar to anyone who has driven elsewhere on the continent.

The speed limit in built-up areas is 50 km/h, rising to 90 km/h on rural roads and 120 km/h on motorways. A growing number of city zones now carry 30 km/h limits, and restricted traffic areas are increasingly common — always observe posted signs, which take priority over general rules.

Major roads across the country are well maintained, but the historic centres of many towns feature narrow streets and uneven surfaces. When visiting cities such as Lisbon, Porto, or Coimbra, it is advisable to use park-and-ride facilities and explore the centre on foot or by public transport. Choosing a smaller vehicle is generally wise in Portugal — tight village roads, historic quarters, and busy summer resorts all favour compact cars, which are also cheaper to run and easier to park.

Toll roads: A portion of Portugal’s motorway network operates exclusively via electronic tolling, with no physical booths. These stretches are signposted as “Electronic Toll Only” or “Portagem Electronica.” Other routes combine conventional booths — where you collect a ticket and pay on exit — with electronic lanes. On roads with electronic-only tolling, you will need a Via Verde transponder, typically available to hire from your rental company at around €2 per day (as of 2025), or you will need to plan an alternative route.

A notable recent development: the Algarve’s main highway, the A22 (Via de Infante), ceased to charge tolls from 1 January 2025. Always verify the current toll status of your planned route with the rental company or via the Via Verde website before departing.

Be alert to “Zona Histórica” signage or no-entry symbols, which commonly mark old-town areas accessible only to residents — Évora is a well-known example. Entering such zones without authorisation can lead to a fine.

In the event of a breakdown or if you are required to stop on the carriageway, activate your hazard lights immediately, put on a reflective vest before stepping out of the vehicle, and position the warning triangle behind the car. If an accident occurs, dial 112 — the universal emergency number covering police, fire, and ambulance — and follow the operator’s instructions.

What insurance do I need when renting a car in Portugal?

Every rental vehicle in Portugal must by law carry the minimum insurance required to use public roads. You are under no legal obligation to purchase any cover beyond what is already bundled into the hire price. However, the standard minimum — third-party liability — leaves you personally responsible for any damage caused to the rental vehicle itself.

As a rule, Loss Damage Waiver (LDW) and Third Party Liability are incorporated into quoted rental rates. Additional protection can be added, which will adjust the total price accordingly. It is important to understand precisely what “included” means in practice, since LDW often still carries a significant excess — the portion of any claim you remain liable for before the waiver activates.

The principal insurance options typically presented at the rental desk are:

• Third-Party Liability (TPL): Mandatory and always included. Covers injury or damage sustained by other parties as a result of an accident you cause.
• Collision Damage Waiver (CDW): Limits — though does not always eliminate — your financial exposure for damage to the hire vehicle. The excess generally falls between €600 and €2,000 (as of 2025), pre-authorised on your credit card at collection.
• Super CDW / Full Protection: Eliminates or substantially reduces the excess, but raises the daily rental rate noticeably. Standard cover may involve a deposit of over €1,000; upgrading to full protection lowers this figure but increases your overall spend.
• Theft Protection: Covers the vehicle in the event of theft; check whether this is bundled in or optional with your chosen company.
• Tyre, windscreen, and underbody cover: Frequently excluded from standard CDW. Some operators have levied retrospective charges for these items, so scrutinise the full contract at the desk to understand what is and is not covered.

Certain credit cards include rental excess insurance among their travel benefits. However, the scope of this coverage varies considerably between providers, and factors such as vehicle category, whether the booking was charged to that card, and cross-border use can all affect whether a claim will be honoured. Always obtain written confirmation of exactly what your card covers for rentals in Portugal before declining the operator’s own insurance. General marketing language is not a substitute for specific written confirmation.

When collecting the vehicle, photograph and video the car thoroughly — covering all sides, the roof, and the underside — in the presence of a staff member. Do not drive away until every pre-existing mark is recorded on the check-out form. This documentation is your strongest defence against disputed damage charges when you return the vehicle.

Are there any specific rules for expats or long-term residents renting cars in Portugal?

The licensing rules that govern short-stay visitors and those who have made Portugal their home diverge in ways that matter directly to expats considering hiring a car.

While in Portugal as a tourist — that is, before establishing formal residency — you may drive using a foreign licence for a period of up to 185 days from your date of entry. Once you register as a resident, different rules come into play.

If you are living in Portugal on a long-term basis, even if you continue to hold a valid licence from your country of origin, you are subject to local licensing legislation. Portugal — like many countries — requires residents who are employed and/or formally registered to obtain a local licence within a defined timeframe.

For those who hold an EU or EEA driving licence, the good news is that it remains valid throughout your residency in Portugal and does not need to be exchanged unless it expires or requires amendment — for example, following a medical assessment. For non-EU licence holders, the exchange obligation generally comes into effect once formal residency is established; the 185-day window described above applies to the period before you register.

To qualify for a Portuguese driving licence, you must be at least 18 years old, have lived in Portugal for a minimum of 185 days, and not be subject to any driving disqualification. Once you hold a Portuguese licence, you cannot concurrently hold a driving licence issued by another EU country.

Residents who have already swapped their foreign licence for a Portuguese one face no complications when renting — a valid Portuguese licence is universally accepted. Those still driving on a foreign licence after formally registering as residents should seek up-to-date guidance from the IMT (Instituto da Mobilidade e dos Transportes), as the applicable rules and timescales depend on your country of origin and any bilateral agreements Portugal has concluded. Always verify your individual position directly with the IMT rather than relying on general information.

How do I rent a car in Portugal step by step?

1. Check your licence eligibility: Establish whether your driving licence is accepted in Portugal and whether an IDP is legally required or expected by your rental company. If your licence uses a non-Roman script, arrange an IDP through the relevant authority in your home country before you travel.
2. Compare and book online in advance: Reserving your vehicle two to four weeks ahead can cut costs by up to 30–50% compared with rates at the desk during peak periods. Use operators’ official websites or a reputable comparison platform, ensuring you review the full quoted price including all compulsory fees.
3. Choose the right vehicle: Portugal’s narrow roads — particularly in rural and mountainous regions — make a compact car the most sensible and economical choice. Manual transmission is standard across most of the country’s fleet; if you need an automatic, search specifically for that option, bearing in mind that automatics generally carry a higher price.
4. Understand insurance options: Before you arrive, settle on your approach to insurance — whether that is the operator’s full protection package, excess cover provided by your credit card, or a standalone third-party excess policy. Have any external cover confirmed in writing and ready to present at the desk.
5. Prepare your documents: Assemble your valid driving licence, passport or national identity card, the credit card registered to the primary driver, and your booking confirmation. If relevant, include your IDP.
6. Inspect the vehicle at pick-up: Examine the car in detail and take timestamped photographs of the exterior and interior. Record any existing marks, scratches, or dents on the check-out form and confirm the fuel level and the applicable fuel policy before driving away.
7. Clarify the toll transponder arrangement: At collection, establish whether the car is fitted with a Via Verde transponder and how toll charges will be applied. Check whether a daily device fee is included and how the final toll balance will be settled.
8. Return the car on time and with the correct fuel level: Some operators will charge a full additional day for returns even an hour past the agreed time. Photograph the returned vehicle and the fuel gauge with a date-and-time stamp to protect yourself in the event of any subsequent dispute.

Frequently asked questions about renting a car in Portugal

Can I rent a car in Portugal if I am under 25?

Yes, drivers under 25 can hire a car in Portugal, though most operators will apply a “young driver” surcharge on top of the standard rate. This typically amounts to around €10–€20 per day (as of 2025). Not all companies levy this fee, so scrutinise the rental conditions carefully before you sign anything.

What happens if I am involved in an accident in my rental car?

Do not attempt to settle an accident informally — always contact the authorities by calling 112 (covering police, fire, and ambulance) and follow their guidance. Photograph the scene, any damage, registration plates, and the other party’s insurance documents. Contact your rental company as promptly as possible using the emergency number listed in your rental agreement.

Can I take a rental car from Portugal into Spain or another country?

If you intend to drive your hire car across the border, you must notify the rental company in advance. Travelling to another country without doing so can leave you significantly exposed financially if a problem arises, such as a breakdown or fine. Cross-border surcharges are more likely to be levied by smaller local operators than by major international brands. Always obtain cross-border authorisation in writing before crossing any border.

What if I return the car with less fuel than when I collected it?

Under a full-to-full fuel policy, any shortfall in the fuel level will be charged to you at the company’s own rate, which typically exceeds pump prices. Always return the vehicle with the same amount of fuel as it held at collection, and hold onto your last fuel receipt as evidence of refuelling near the point of return.

Are Portugal’s motorways all subject to tolls?

Portugal operates an automated toll system across its motorway network, and hire cars usually come equipped with an electronic transponder that records charges as you travel. Certain motorways run entirely on electronic tolling with no physical booths — these are indicated by signs reading “Electronic Toll Only” or “Portagem Electronica.” As of 1 January 2025, the Algarve’s A22 motorway is no longer subject to tolls.

Do I need to exchange my foreign driving licence if I move to Portugal long-term?

You may drive in Portugal on a foreign licence for 185 days after entry and prior to registering as a resident. Once you establish formal residency, the requirements depend on where your licence was issued. EU and EEA licence holders generally retain their licence without exchange, while non-EU holders are typically required to obtain a Portuguese licence. Contact the IMT to confirm the current requirements for your specific circumstances, as bilateral agreements between Portugal and individual countries affect the rules.

Is my credit card’s travel insurance enough to cover rental car damage in Portugal?

Some credit cards incorporate rental excess cover as a travel perk, but the terms differ substantially between providers. Elements such as card tier, the vehicle category hired, whether the booking was charged to that specific card, and any cross-border travel can all determine whether a claim is valid. Before declining the operator’s insurance, contact your card provider and obtain written confirmation of what is and is not covered for rentals in Portugal. Never rely solely on assumptions or promotional descriptions.

What documents do I need to collect a rental car in Portugal?

You will need a full, valid driving licence, a passport or identity card, the credit card in the primary driver’s name to cover the security deposit, and your booking confirmation. If your licence is not printed in the Roman alphabet, or if your rental company requires it, also bring your International Driving Permit. Keep all these documents with you throughout the duration of the rental.