Car rental Portugal: Tips, costs & what to expect on the road

Do you know the best way to travel in Portugal like a local? It is by hiring a self-drive vehicle and exploring the country beyond tourist spots. This comprehensive guide covers everything you need to know, right from the per-day prices of different car categories to no-deposit options and long term deals. We have highlighted everything to help you get the best car rental Portugal experience.

Why renting a car in Portugal is totally worth it

Portugal is one of those countries where the best destinations are often off the main transport routes or if public trains are available, they operate at specific timings, which keeps you time-bound. Having a car means you can:

• Pull over at random viewpoints (you’ll want to, trust us!)
• Explore places like the Algarve beyond crowded tourist hotspots
• Take spontaneous detours without worrying about schedules

If you're starting in Lisbon or Porto, a self-drive car turns your trip into an actual adventure rather than a fixed itinerary to catch public transport.

Picking up your Portugal rental car: Airport vs city vs neighborhood locations

One of the first decisions you have to make while booking your car is choosing a pickup location. It might seem like a small thing, but it can seriously impact your overall experience in terms of cost and convenience.

Let’s break it down in a practical way so you can choose what really suits you the best for your journey.

Airport pickups: The easiest option for most tourists

The simplest way to pick up your rental car is at the airport if you are flying in from a different country.

Here are the most popular airport locations:

• Lisbon Airport (LIS)
• Porto Airport (OPO)
• Faro Airport (FAO)

These pickup spots are most preferred because you can grab your car immediately after landing, which eliminates the stress of finding a different transportation & additional cost.

Rental desks are easy to locate inside/near the terminals and many of them operate for longer hours (some even 24/7).

Here, you’ll find a bigger selection of cars and competitive pricing from multiple suppliers like Avis, Green Motion, Alamo & Auto Europe.

Portugal car rental airport locations work best for first-time visitors, tourists planning to travel across regions and if you are arriving late at night or with lots of luggage.

City pickups: Better for a slower start

If you are already in the city and planning to spend a few days exploring the city first, picking up your car later from a downtown location can be a smarter move.

For example, in Lisbon, you can pick up your vehicle from these areas: Baixa (city center), some hotels in Avenida da Liberdade and the Oriente train station.

Similarly, you’ll easily find rental offices around the Porto downtown locations like Ribeira district, the Boavista area and Campanha (near the train station).

Selecting a city pickup helps you to avoid driving in busy urban areas right away and skip parking hassles during your city stay. Sometimes you can even get lower prices compared to airports.

We recommend keeping such pickup spots if you are comfortable with navigating public transport initially. And particularly if you want to start your road trip after city sightseeing.

Local & neighborhood rentals: Great for residents or long stays

If you are a resident of the country or living temporarily for several months, neighborhood rental spots can be a hidden gem. You’ll find smaller rental offices in:

Residential districts outside city centers

Around Lisbon, you can pick your vehicle from locations like Alvalade, Campo de Ourique and Benfica.

Around Porto, you can opt for a pickup location at Paranhos, Ramalde and Bonfim.

Suburban areas around Lisbon and Porto

Suburban pickups are ideal if you want to avoid tight streets and start your drive smoothly. Near Lisbon, you can go to places like Oeiras, Amadora and Loures. Likewise, near Porto choose Vila Nova de Gaia, Matosinhos or Maia.

Local commercial zones

These areas often have clusters of rental offices, especially near shopping centers or business hubs. You get various options in and around Lisbon like Parque das Nacoes (Oriente), Amoreiras and Sete Rios.

If you want to pick up your vehicle around Porto, go to the Boavista Avenue, Campanha and Industrial zones in Gaia.

Locals prefer these locations as they are not crowded like city centers or airports. The pickup process is also quick & it gives a perfect balance between accessibility and availability. Here, you will also find better options for extended or monthly rentals.

Such locations work best for locals, expats or digital nomads and anyone looking for Portugal long term car rental deals.

How much is the Portugal car rental price per day?

Now let’s talk about numbers because most people still believe that renting a personal vehicle is always expensive. In reality, prices depend on factors like season, duration of your booking, pickup & drop off locations, extra add-ons and vehicle category.

Summer, starting from July and August, can be expensive, while spring and autumn are much more reasonable.

Moreover, if you are renting a car for a longer period, many suppliers offer better deals for extended bookings. For example, a monthly car rental deal often works out significantly cheaper per day compared to short-term hires.

It might interest you: Why car rental prices change after you search once

Here is an estimate for a weekly Portugal car hire from Lisbon Airport (LIS).

• An economy/compact car can cost anywhere from USD 3.61 per day
• Mid-range vehicles start from USD 19.8 per day
• SUVs start from USD 4.36 per day
• Premium cars can easily cost around per day USD 38.80 per day
• Convertibles start from USD 11.88 per day

Requirements to hire a car rental in Portugal (For foreigners & locals)

• You must have a full & valid driving license from your home country.
• You need to show your booking confirmation voucher at the rental counter.
• Some rental suppliers may require an International Driving Permit (IDP), especially if your license is not in the Roman alphabet.
• Your passport or any government ID is required for identity verification.
• Residents of the country can show a Portuguese Citizen Card and some suppliers may ask for a residence permit (for expats).
• A credit card in the main driver's name is required to hold a refundable security deposit.
• Some suppliers require drivers to be at least 19 years old (sometimes 21-25, depending on your selected provider’s policy & car category).
• It is important to have at least 1 year of driving experience and 2 to 3 years for some premium cars.

Driving a rental car in Portugal: What to expect

You get a pleasant experience while driving in the country but there are a few things that you must consider:

• If you’re driving in cities like Lisbon or Porto, expect narrow streets, steep hills and limited parking in busy areas.
• For Lisbon areas like Alfama or Bairro Alto, we recommend booking an economy/compact car rental like Renault Clio or Dacia Sandero due to tight turns.
• You will have one of the best driving experiences on Portugal’s highways, also called autoestradas. The roads are well maintained with speed limits usually around 120 km/h.
• Some highways in the country use electronic tolls, so do verify with your provider about the Via Verde device (many suppliers have this device fixed on their cars for toll charges).
• If you are going on a road trip from Lisbon to the Algarve, consider hiring an SUV, as it is a long-distance travel and you would want more space for luggage & comfort.
• A convertible works best for driving near Lagos or Albufeira. Here, you enjoy the ocean views, curvy roads & countless scenic spots to relax & click pictures.
• You will find single-lane roads in regions like the Douro Valley & Alentejo region. These countryside locations are great for a relaxed road trip with very little traffic. For such plans, we advise going for any standard/intermediate car.
• Roundabouts are very common in Portugal and drivers drive on the right side of the road.

One way car rental in Portugal: When it’s worth it

Go for a Portugal one way car rental option if your itinerary involves a road trip across various regions of the country, your arrival and departure cities are different or you want to avoid driving back to the same city again.

Suppliers like Green Motion, AutoUnion, SurPrice, Tangerine and many more provide great offers at competitive rates. Thereby, you can easily pick up your vehicle from your preferred city & return it to another.

Popular one way routes in Portugal

• Lisbon to Porto: it is famous among travellers as a classic Northbound trip. It takes about 3 hours 15 minutes to finish the road trip via A1 highway. Along the way, you can explore Sintra (which has palaces & mountains) and Coimbra, a popular historic university town.
• Porto to Douro Valley: you will surely enjoy driving into the world’s oldest wine region, which is also a UNESCO World Heritage site. Return your vehicle at Vila Real or any other nearby towns.
• Lisbon to Algarve: a great road trip option for beach lovers. You can end your trip in cities like Lagos, Albufeira or Faro. This route is also ideal if you want to avoid driving back north.
• Faro to Lisbon: although it is a reverse coastal journey, it is the best option if your flights are cheaper from Lisbon. You can easily end your trip in the capital city.

Can you take your Portugal rental car to a different country?

Yes, it is possible to take a rental car from Portugal to a different country. Many popular suppliers like Avis, Sixt, Europcar & Hertz allow cross-border travel, especially into Spain. But it is important to take prior permission from your provider. Make sure that an authorised cross-border permit is added to your rental agreement.

Give it a read: Car rental cross-border requirements

Popular cross-border road trip routes from Portugal

Here are some great road trip plans travellers often take:

• Lisbon to Seville: you can start your journey from Lisbon and drive east towards Spain. It is a great way to experience both Portuguese & Spanish culture in one trip.
• Porto to Santiago de Compostela: Begin your trip from Porto and head north into Spain. This plan is perfect for beautiful scenic drives.
• Algarve to Southern Spain Coast: you can start from Faro Airport and drive into Andalusia. It is an ideal vacation plan for beach admirers.

People want to know

• What is included in the best all-inclusive car rental Portugal deal?

  Basic waivers (like Collision Damage Waiver, Theft Waiver), taxes, unlimited mileage and road assistance are typically covered in the all-inclusive car rental Portugal deal. Some deals also offer free cancellation and easy modifications.

• Can I hire a monthly car rental in Portugal?

  Yes, you can hire a monthly car rental in Portugal. Various global & local suppliers like Avis, Green Motion, Sixth, Hertz, Alamo & Auto Europe provide various offers at competitive rates.

• Can I rent a car in Portugal without a deposit?

  Yes, some suppliers in Portugal do offer car rental deals without a deposit. To make the search easier, you can always apply filters based on zero security deposit to only see the suppliers with the same.

• Can I rent a car in Portugal using a debit card?

  Some suppliers do accept debit cards with additional conditions applied for car rentals in Portugal. Read the rental terms carefully, particularly in the sections such as accepted payment methods for both the refundable security deposit and rental cost payment at the desk (in case of partial payment made online). Some suppliers prefer credit cards to hold the deposit and accept international debit cards for the rental car payment at the desk.