Renting a Car in Portugal: What You Need to Know Before You Book

Renting a car in Portugal can completely change the kind of trip you have. It gives you the freedom to explore vineyard roads in the Douro Valley, small towns in the north, quiet beaches, and small villages that are hard to reach by train or bus. At the same time, booking a rental car here can come with a few surprises, including things like deposits, insurance, and highway tolls.

We are a family of four that has lived in Porto since 2024. We don’t own a car, relying on walking and public transport for our daily lives. When we want to explore deeper into Portugal, we rent a car. In this article, we’re sharing what we’ve learned from renting many cars here, including how to book, what you need, which extra fees to watch for, and which ones are necessary.

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Is Renting a Car in Portugal Worth It?

Renting a car in Portugal is a great way to see the country outside of its major cities. Much of Portugal is not accessible by train, so cars or buses are your only option. If you are only visiting for a short time and staying in Porto, Lisbon, or another reasonably large city, you can usually get around just fine without a car.

If your itinerary includes smaller towns, rural stays, or places you want to explore at your own pace, renting a car can make a big difference. In the Algarve, Azores, and Madeira, having a car is the easiest way to get around.

The alternative to renting your own car for a day trip is to hire a driver for the day or book a guided tour, which can work well for certain destinations, like the Douro Valley.

We highly recommend considering these options, especially if you plan to visit wineries and plan to drink. Portugal’s laws are very strict about drinking and driving, as it is an ongoing problem.

Check out our full article on driving in Portugal for the rules and regulations you need to know.

What You Need to Rent a Car in Portugal

Renting a car in Portugal is usually pretty simple, but rental companies can be strict about the documents, so sort out the details before you ever get to the counter.

In general, you should expect to show your driver’s license, your passport or ID, and a payment card in the main driver’s name. Rental companies in Portugal also commonly require that you have held your license for at least a year and be at least 21 years of age, with some exceptions, depending on the company.

License Requirements and International Driving Permits

For U.S. visitors, a valid U.S. driver’s license is typically accepted, and you do not need an International Driving Permit. The same applies to travelers with licenses from Canada, Switzerland, or the EU or EFTA countries. For all other licenses, an International Driving Permit is required.

Credit Card Requirements and Deposits

Most rental companies in Portugal require a physical credit card in the main driver’s name for the security deposit (do not expect to be able to pay with a card saved on your phone), even if the rental itself has already been prepaid. Some accept debit cards in limited situations, but many do not, especially for the deposit hold.

The deposit is usually not a charge, but a temporary hold placed on your card when you pick up the car. That amount can vary a lot depending on the company, the type of car, and whether you buy extra insurance.

In some cases, choosing additional coverage lowers the deposit. If there isn’t enough available credit or if the card does not meet the company’s policy, they will refuse to release the car. We often have a 1500€ deposit when renting a car. This is one of the most important parts of the booking terms to read carefully.

Where to Rent a Car in Portugal

Where you pick up your rental car can make a bigger difference than you might expect. The price, car selection, and the convenience can all change depending on whether you rent near the airport or closer to a city center.

Airport Pickup

In our experience, renting from near the airport is almost always the least expensive option. Most cars are rented on arrival, so the airports have more rental companies, a wider selection of cars, and greater availability. We have found that it makes more sense to take an 8-10€ Uber to the airport rental area than to pay the higher price of picking up a car closer to downtown.

City center pickup can look more convenient at first, but it is usually more expensive. Unless you really need the car delivered close to where you are staying, we think the airport area is the better value.

So how do we choose a company? We use Discover Cars and choose based on the quoted price and the available cars. We have tried many different pickup locations around both major airports and have had a decent experience with all of them.

Check Car Rental Options: Discover Cars

The Cost to Rent a Car in Portugal

The cost to rent a car in Portugal can vary greatly depending on the season, the type of car, and when you book. You can often find very low daily rates online, especially in the off-season.

Daily Rental Rates

If you are traveling in the slower months, you can often find small manual cars for under 5€ per day. We have rented cars for as low as 2€ per day in both Lisbon and Porto, while summer prices may rise to 15€ per day or higher.

Fueling Up

Expect gas to be the biggest expense of your rental. Gas in Portugal runs around 2€ per liter, which is over 8 USD per gallon. We often spend far more filling up the tank than on rental fees, insurance, or parking when renting a car.

If your tank is close to empty, expect to spend about 60€ to fill up a small car.

Extra Fees

This is where the total can start to look very different from the price you first saw. Common add-ons include insurance, an extra driver, navigation, child seats, one-way drop-off fees, and automatic toll devices.

Manual transmissions are the norm in Europe. There is not the same demand for automatic cars here. They are considered a luxury, so there are fewer available, and they are typically more expensive. If you only drive automatic, try to book as early as possible.

If you plan to drive across the border to Spain, make sure your rental company is aware of this. There may be extra fees to ensure the car is legal in both countries.

Insurance Options

Rental car insurance is one of the most confusing parts of booking a rental car. The base rental includes third-party liability plus some level of collision or theft coverage, but that does not mean you are fully covered. Here’s what we recommend.

Basic Coverage

Basic coverage is included with your rental. It usually includes third-party liability, and possibly collision damage waiver and theft protection. However, if the car is significantly damaged or stolen, you may still be on the hook for a significant amount.

Extra Coverage

You will need extra coverage for your rental. There are three places to get this: the car rental company, Discover Cars (the car rental broker), or, in some cases, the credit card you use to book the rental may cover rental car insurance.

Many US credit cards include rental insurance. We have used this coverage, and while it eventually did cover our damage, it took several months and relentless emails to process.

We prefer to use Discover Cars’ added rental insurance. It is cheaper than what the car rental companies charge, and getting damages covered and deposits reimbursed has been much easier and faster.

Whichever option you choose, it’s a relief to know that you are completely covered- whether that’s for an accident, a flat tire, a busted window, or damage from trying to squeeze into a narrow garage.

Fuel Policies and Rental Terms to Check

Before you confirm the rental, it is worth checking the fuel policy, mileage rules, and a few small details in the terms. None of it is complicated, but it is much better to know ahead of time than to be surprised later.

Full-to-Full vs Prepaid Fuel

Whenever possible, we prefer a full-to-full fuel policy. That means you pick up the car with a full tank and return it full, which is usually the simplest and fairest option. Sometimes we pick up a car with half a tank of fuel and are only to return it the same way. I find this more of a pain as I do not necessarily know how big the car’s tank is or when it is half full when refilling.

Make sure you know which type of gas to use. The Portuguese words for “gas/petrol” and “diesel” are very similar. Check out our full section on getting fuel in our article on driving in Portugal.

Prepaid fuel can sound convenient, but it costs more, and it’s generally easy to find gas stations close to the return center.

Mileage Limits

Most rentals in Portugal include unlimited mileage, but double-check this. A mileage cap may not matter for a short rental, but it can add up quickly if you are covering a lot of ground, and you should know whether you need to factor this in.

Fine Print to Check

There are a few more things to check in the terms of your contract.

-Check the pickup and drop-off times. Can you drop the car off after hours, or will you have to wait until the next day?

-How are late returns handled? Often, being an hour late means you are charged for an additional day. But there may also be an additional penalty.

-Fees for an additional driver (always add in advance)

– What happens if your flight is delayed and your pick-up time changes?

-What is the cancellation policy? Some of the best rates are the least flexible.

Tolls in Portugal

Many major highways in Portugal are toll roads. If you are covering longer distances, those charges can add up quickly.

Most rental companies offer a toll device that links to your car so tolls can be charged automatically and then billed to you later. The device comes with a small fee, and an estimated toll deposit is taken based on the number of days you rent.

This is usually the easiest option, especially if you plan to use highways more than once or do not want to think about how to pay the toll. This allows you to use the Via Verde toll lane and go through toll plazas without stopping.

If you skip the toll device, make sure you understand how your rental company expects tolls to be handled. Portugal has a mix of traditional toll booths and electronic toll roads, so it is not always as simple as paying cash as you go.

Road Safety

In Portugal, rental cars include basic required safety items. These items include a reflective vest and a warning triangle. Make sure both are actually in the car before you leave, and that you know where they are stored.

If you get in an accident or need roadside assistance, put on the vest, place the warning triangle 30 meters behind the car, and call the rental car company for next steps.

The rental car roadside assistance number is usually on a sticker on the windshield, and also on the paperwork you signed before driving off.

There is also roaming roadside assistance on Portuguese highways, so don’t be surprised if a van stops to help you. There is no charge for this service. There is an official accident report form in the globe box, should you need it.

For more details on what to do in an accident or when receiving a moving violation or parking fine, check out our article on all the rules of the road in Portugal.

Before You Drive Away

Before you leave the rental lot, take a few minutes to check the car carefully. We always do a quick walk-around, take photos and video, and make sure any existing damage is noted before we drive off.

This is also the time to check the inside of the car, not just the outside. Look at the wheels, windshield, mirrors, bumpers, and interior, and make sure nothing is missing or damaged.

Then review the paperwork one more time to confirm which fuel policy you agreed to, which fuel to fill up with, whether a toll device is included, and the return instructions.

If you are dropping the car off after hours, make sure you understand exactly what the company expects. Some have a key drop box and a clear process, while others have more specific instructions.

Make sure to take photos and video of the car at drop-off, especially if no staff member is there to check it in with you.

Common Mistakes to Avoid

A lot of the stress around renting a car in Portugal comes from things that are easy to miss when you book. Usually, it is not one huge mistake, just a few small ones that add cost or make pickup more frustrating than it needs to be.

Booking based only on the lowest price.

The cheapest daily rate is often just the starting point. Once you add insurance, tolls, an extra driver, child seats, or one-way return fees, the total can look very different.

Not checking the credit card rules

Most companies require a physical credit card in the main driver’s name, with room for a hefty deposit. If you do not have it, they may not release the car.

Waiting too long to book an automatic.

Automatic cars are less common and usually more expensive, so they tend to get snapped up first. If you only drive automatic, booking late can leave you with fewer options and a higher price.

Picking up the car too early in your trip.

If you are starting with time in Porto or Lisbon, renting right away often means paying for parking and extra rental days you do not need. Driving in the cities can be slow and frustrating. Wait until you actually need the car to pick up your rental.

Not Expecting Tolls

Tolls in Portugal are easy to underestimate, especially with electronic toll roads and admin fees from the rental company. Know in advance whether your rental includes a toll device and how charges will be billed. Expect to pay over 20€ in tolls for a one-way trip from Lisbon to Porto.

Factor in the cost of gas

Fuel can add more to your budget than you expect, especially on longer day trips or road trips. Prices fluctuate around 2€ a liter, which translates to over $8 per gallon.

Not reading the fuel policy carefully

Full-to-full is usually the simplest option. Prepaid fuel can cost more, and using the wrong fuel can be a very expensive mistake. Using the wrong fuel can ruin your trip and incur a cleaning charge of over 500€.

Not checking the return terms

Late return rules and after-hours drop-off policies can cost you if you assume they are flexible. Additional charges may apply in 24-hour blocks, so make sure you leave enough time to make your allotted return window.

Give yourself enough time

If you are heading straight to the airport after returning your car, be sure to give yourself extra time. You don’t want to miss a flight or cause undue stress because there was a line of people returning their cars ahead of you, or you ran into traffic on your way to return your rental.

You may also have to wait for the shuttle to take you from the rental company to the airport terminal. Better to have extra time and relax at the airport once you are through security than to end your trip on a stressful note.

Tips for Renting a Car in Portugal

Once you have the basics down, a few simple choices can make the whole experience easier.

Rent from near the airport

In our experience, this is usually the cheapest option, and the airports are close enough to city centers to make this practical.

Get a small car

Smaller cars are easier to park, easier to drive on narrow streets, use less gas, and are usually cheaper. Book the smallest car that will work for your plans. Don’t let the rental car company give you “a free upgrade” to a larger vehicle. You’ll end up spending more on gas and having a harder time parking and navigating.

Choose from Discover Cars

We use this booking portal because it allows easy comparison of all the offers. Beyond the big international brands, there are tons of smaller companies renting in Portugal. We’ve had great experiences with most of them.

FAQ

Here are some of the top questions we get asked about renting a car in Portugal.

There You Have It

Renting a car in Portugal can be incredibly worth it, but only for the right kind of trip. If you are heading into the Douro Valley, exploring small towns, or planning day trips that are hard to do by train or bus, having your own car gives you so much more flexibility.

The biggest things to get right are the credit card deposit, insurance, toll setup, and the car size.

We recommend booking through Discover Cars so you can compare all the options in one place, and we also prefer their insurance coverage since we have actually used it ourselves. Once you know what to look for, renting a car here is not hard, and it can open up some of the best parts of Portugal.

Don’t miss our complete guide to driving in Portugal for details on car seat rules, what road signs mean, toll plazas, and more.

Interested in 3 days in Porto? How about our favorite day trips from Porto?

Not sure when to visit? Check our our guide to visiting in each season, and which festivals and events you may want to plan around!