Car Rental in Portugal: Your Guide to Freedom on the Roads

Portugal is a stunning country, where ancient towns neighbor modern cities, Atlantic beaches meet cliffs, and everything is accessible within a few hours. Many travelers and residents find themselves in places where public transport is limited, yet the richness of the surroundings calls for exploration. Especially if you want to explore the interior of Alentejo, Serra da Estrela, or the Algarve coast without being tied to tourist bus schedules.

That’s why renting a car becomes more than just a convenient option for trips. It’s often the only way to comfortably explore the country, move between towns, or travel for work, especially if you don’t live in Lisbon, Porto, or other major cities.

Regardless of whether you’re traveling for a few days or planning to live in Portugal long-term, renting a car gives you flexibility, comfort, and independence. At the same time, many foreigners are confused by the rental process: insurance nuances, contract conditions, deposits, road rules, toll payments — there are many details to consider in advance.

In this article, you will learn:

• what stages the car rental process includes — from choosing a company to returning the vehicle;
  
• the most common pitfalls and tips for safe travel on Portuguese roads;
  
• how to save money without sacrificing comfort, avoid fines, choose the right car, not get lost in road signs or on the highway, and much more.

Advantages of Car Rental in Portugal

If you truly want to experience the benefits of living in Portugal, a rental car offers you a completely new level of freedom and mobility. Unlike public transportation or guided tours, having your own vehicle allows you to explore the country at your own pace, make spontaneous stops in charming places, and find hidden gems that aren’t listed in guidebooks.

Freedom of movement and comfort

With a rented car, you:

• are not dependent on bus and train schedules;
  
• avoid transfers and overcrowding;
  
• can go wherever public transport does not reach — from the cliffs of Cabo da Roca to the peaks of Serra da Estrela, from quiet villages in Alentejo to the wild beaches of the Algarve coast.
  

This is especially relevant:

• for families with children;
  
• for travel with pets;
  
• for those who value privacy and comfort.
  

Opportunities to explore the country beyond cities

Outside of Lisbon, Porto, and a few other metropolises, real Portugal is small towns and rural areas, where traditional transport rarely goes. If you want to experience authentic Portuguese life, a car is essential.

With a car, it’s easier to:

• visit monasteries, castles, and secluded areas in the center of the country;
  
• explore wineries and cheese farms in the Alentejo and Dão regions without relying on tours;
  
• hike along trails in tourist-free areas (for example, Serra da Arrábida);
  
• get to scenic mountain villages like Monsanto or Piódão.

Comparison with other types of transport

If your goal is to explore remote regions, flexible routing, and save on transport — renting a car in Portugal is an excellent choice. Especially for group trips or families: the cost per person is significantly lower than for trains or buses.

Choosing a car rental company in Portugal

When it comes to renting a car, the first thing you encounter is the variety. This market includes global corporations and small local companies. At first glance, prices may seem attractive, but in detail — additional fees for insurance and options often increase the total cost.

To avoid overpayments and unpleasant surprises, it is important to carefully compare different offers and companies, as this greatly affects the final result.

International and local companies: what’s the difference

Major international companies

• Europcar — https://www.europcar.pt
  
• Sixt — https://www.sixt.pt
  
• Avis — https://www.avis.pt
  
• Hertz — https://www.hertz.pt
  
• Enterprise Rent-a-Car — https://www.enterpriseclick.pt
  

They often offer a high level of service, especially if you rent in Europe or the USA, offer a wide range of vehicles, flexible rental terms, and support in several languages. However, prices can be higher, especially for additional services.

Pros:

• transparent conditions;
  
• new cars;
  
• option to return the car in another city;
  
• support in English.
  

Cons:

• often higher prices;
  
• possible pitfalls — conditions for deposits and insurance;
  
• the cost of additional services (GPS, child seat, second driver) is higher than with local companies.
  

Local Portuguese companies

• Guerin — https://www.guerin.pt
  
• Drive on Holidays — https://www.driveonholidays.com
  
• Amoita Car Hire — https://www.amoita.com
  
• Cael Rent a Car — https://www.cael.pt
  
• Autatent — https://autatent.pt
  

These are companies that operate only within Portugal. They often offer lower prices, more flexible booking conditions, and lower deposit requirements. The cars are not always new, but the service is decent.

Pros:

• favorable rates;
  
• fewer requirements for credit cards;
  
• flexibility in booking.

Cons:

• not always offices in small towns;
  
• more modest car fleet;
  
• it is necessary to read the contract carefully — an automatic transmission is not always available.
  

How to choose a company: what’s important to consider

1. Ratings and reviews

○ Read reviews on Google, Trustpilot, Rentalcars.com, DiscoverCars.com.
○ Pay attention to complaints related to security deposits, damages and hidden charges.

2. Fuel policy

○ Full tank — return full (Full-to-Full) — the most honest and cost-effective option.
○ Paid — return empty often includes a deposit for fuel and a hidden commission.

3. Insurance

○ Basic insurance is almost always included in the price, but the franchise can vary from €800 to €2,000.
○ Additional insurance without a franchise can often be purchased on the rental company’s website or when picking up the car.

4. Mileage terms

○ Unlimited mileage — standard for most companies.
○ Some international companies limit mileage, especially for rentals longer than 14 days.

5. Payment method

○ Most often, only credit cards in the name of the main driver are accepted — not debit cards.
○ Some local companies accept debit cards, but require higher deposits and longer booking periods.

Where to search and compare prices

To avoid overpaying, use aggregators where you can compare offers from dozens of companies, filter by terms and read reviews:

• Rentalcars.com — one of the largest global aggregators.
  
• DiscoverCars.com — convenient for car rentals in Portugal, often includes a full insurance package.
  
• Localrent.com — specializes in small local companies.
  
• Kayak.com — price comparison + filtering by options.
  

Step-by-step guide to car rental in Portugal

Although renting a car may seem like a simple task, it involves many details that affect the final cost, convenience, and road safety. Below is a structured step-by-step plan, from choosing a car to returning it, so everything goes smoothly.

1. Choosing and booking a car

First, everything starts with the car — it depends on your travel plans. It depends on the route, number of passengers, and budget.

What cars are popular:

• Compact (Fiat Panda, etc.) — economical, suitable for trips in the cities of Lisbon and Porto.
  
• Economy (VW Polo, VW Golf) — suitable for trips between regions.
  
• Station wagons / minivans (Renault Grand Scenic, VW Touran) — suitable for traveling with family or small companies.
  
• SUV (Dacia Duster, Hyundai Tucson) — popular in the countryside and mountainous areas (Serra-da-Estrela, Alentejo).
  
• Electric and hybrid models — increasingly in demand.
  

Note:
It’s best to choose a car with an automatic transmission, especially if you’re not confident with manual shifting. Many local rental companies offer only manual cars — pay attention when booking.

2. Checking rental conditions

Before booking, carefully read the terms:

• Mileage limit — usually unlimited, but some companies may have restrictions.
  
• Fuel policy — choose the Full-to-Full option, where you return the car with a full tank and get your deposit back.
  
• Franchise — this is the amount that the company may withhold in case of damage (ranging from €600 to €2000). If you don’t purchase additional insurance, this amount will be blocked on your card.
  
• Driver age requirements — most companies require the driver to be at least 21 years old and have had a license for at least 1 year. Some rentals are available from age 25 only.
  
• Additional driver — often paid extra (about €5 per day).
  

3. Booking and confirmation

It’s better to book a car online in advance, especially if you plan to travel in the high season (June–September).

What documents are needed:

• Passport, or another identity document (including international ones);
  
• Driver’s license (international or local);
  
• NIF is not required, but may be requested if renting for more than 30 days;
  
• Credit card in the name of the driver.
  

After booking, you’ll receive a confirmation by e-mail — it should be printed or saved on your phone.

4. Receiving the car: what to pay attention to

When picking up the car at the airport or office of the rental company:

Check and photograph:

• scratches, dents, chips, interior condition, wheels, windshield;
  
• fuel level;
  
• mileage.
  

Ask for all damages to be recorded in the check-out form. It’s better to take photos or videos right in the parking lot.

Financial note:

• A deposit will be blocked on your credit card (franchise), which is returned within 3–10 business days after return.
  
• If you don’t have a credit card, choose companies that accept debit cards and offer full insurance (for example, Drive on Holidays).
  

5. Returning the car

What needs to be done:

• Return the car with the same fuel level as at pick-up, if you selected Full-to-Full.
  
• Clean the car — cleaning is usually not included.
  
• Take photos of the car and interior condition.
  
• Ask for a return confirmation (check-in form) with a signature so that the return is officially confirmed.
  

Tip:
Allow some extra time before your flight/train in case of delays during the return process.

What to do if there is a dispute:

• If you are charged for damages you didn’t cause — show photos taken at the time of pick-up.
  
• If necessary — request a written explanation and contact the aggregator (e.g., Rentalcars or Discover Cars) if you booked through them.
  

Legal and insurance aspects of car rental

Renting a car is not just about comfort, but also about responsibility. That’s why it’s important to understand what you’re signing, what insurance you are getting, and how it works in case of an accident or theft.

Key points of the rental agreement

When renting a car, you will sign a rental agreement. It can be in English or Portuguese — always read the terms carefully before signing.

The agreement usually includes:

• Franchise (deductible / excess) — the amount you are liable to pay in case of damage or theft of the vehicle, even with insurance;
  
• Fuel policy — for example, Full-to-Full;
  
• Return terms and penalties — usually a 30 to 60 minute grace period is allowed;
  
• Mileage restrictions — some providers limit daily kilometers;
  
• Driver requirements — a standard license is enough, but limits on driving experience and driver age may apply.

Types of insurance and what they cover

CDW (Collision Damage Waiver)
Basic insurance, always included in the rental cost.
Covers damage in case of an accident, but leaves a deductible (usually €1000–2000).

Does not cover: tires, roof, bottom, mirrors.

SCDW (Super CDW)
Extended insurance — completely or partially covers your financial liability. Sometimes costs €20–30 per day, but removes the deductible.

TP (Theft Protection)
Covers theft of the vehicle. Usually included with CDW. Note: if you left the keys in the car — the insurance is void.

PAI (Personal Accident Insurance)
Covers treatment of the driver and passengers. Optional.

Insurance from brokers (Rentalcars, Discover Cars, etc.)

Some aggregators (for example, DiscoverCars.com) offer external insurance — it’s cheaper, but in case of an incident you first pay the deductible, and then get reimbursed from the aggregator or broker.

What to do in case of an accident or breakdown

1. Stop in a safe and secure place.
   
2. Call the police — if the accident involves other participants. In Portugal, call 112.
   
3. Report the accident to the rental company — the number is listed in the contract.
   
4. Fill out the accident report (Declaração Amigável) — even for minor accidents.
   
5. Take photos of the location, damage, license plates, and insurance documents.
   
6. Do not move the car independently.
   

If a breakdown occurs, most companies provide 24-hour roadside assistance (Assistance 24h) — call the hotline number specified in the contract. You may be offered:

• repair on the spot;
  
• towing to the nearest office;
  
• vehicle replacement (depending on availability and rental conditions).

What about fines and cameras?

● All fines (for speeding, illegal parking, toll road violations) can be issued retroactively. First, they go to the rental company, and then — are sent to you.

● Companies may charge an administrative fee for processing the fines (usually €25–50).

● Note: if you don’t pay the fine, your next entry into the country may be problematic: rental companies may refuse to rent again or border crossings may result in court sanctions.

Traffic rules and fines in Portugal

Portugal is a country with a relatively relaxed driving style within the limits of the law, but with certain peculiarities that are important to know. As in most EU countries, the rules are strictly regulated, fines are issued through cameras, and fines can be issued retroactively — especially for toll roads, additional administrative fees are charged for processing the fine.

Knowing the basic rules and common mistakes will help you feel more confident on the road and avoid unpleasant situations.

Speed limits

● In populated areas — 50 km/h (unless otherwise specified)

● Outside populated areas — 90 km/h

● On expressways (autoestradas) — 120 km/h

Note: Cameras are installed not only in cities but also on highways. Some use the Section Control system — a camera at the entrance and exit, which calculates the average speed.

Parking

● White lines — legal public parking.

● Blue lines — paid parking (via meters or parking apps).

● Yellow lines — no parking allowed.

● Red zones — for emergency vehicles (prohibited).

Note: In many cities and towns, parking meters or the ePark app are used — the most popular is Via Verde Estacionar. Do not leave your car in places with red lines or at intersections.

Toll roads and the Via Verde system

Portugal is one of the countries with a developed system of toll roads (autoestradas com portagens). Some highways have:

● traditional toll booths — you take a ticket and pay at the exit (by cash or card);

● electronic roads — barrier-free, only for cars with the Via Verde system.

How to use:

● Most rental cars are already equipped with Via Verde devices (electronic sensors).

● All tolls are automatically charged from your card when you return the car.

● Check when renting whether the device is installed and how payment will be made.

You can check toll sections on the map:

● https://www.viaverde.pt

Typical violations and fines

Additional tips

● Always pay the nearest bill near populated areas and at junctions.

● Children under 12 years old and under 135 cm — only in special child seats.

● The driver is responsible — even if someone else is behind the wheel.

● Police may ask for documents on the spot: passport, international driver’s license, and car papers — carry them with you.

Useful tips for renters

Renting a car in Portugal is not only freedom on the road, but also a matter of cost: from the choice of fuel to the return of the car to the airport. This section collects proven tips to help you avoid mistakes, save money and not spoil your impressions of the trip.

How to reduce rental costs

1. Book in advance
   
   ○ Booking 2–4 weeks before the trip can save up to 30–50% compared to prices on the spot, especially in high season.
   
2. Use aggregators with insurance
   
   ○ On DiscoverCars.com or Rentalcars.com you can often choose a full insurance package and avoid paying a franchise 2–3 times cheaper than at the counter.
   
3. Rent for a minimum of 3–7 days
   
   ○ For long-term rentals, the daily price is lower. The difference between 3 days and a week can be minimal.
   
4. Opt out of additional services
   
   ○ GPS? Better to use Google Maps or Maps.me.
   
   ○ Child seat? Many airlines allow you to bring your own.
   
   ○ Second driver? Only if the second person will actually be driving.
   
5. Choose cars with low fuel consumption
   
   ○ Diesel engines and hybrids (1.0–1.3) are especially relevant for long trips.
   
6. Follow promotions
   
   ○ Some rental companies offer discounts of up to 20%, especially on unpopular dates — follow announcements on the company’s website.

Safety and technical condition tips

● Before leaving, always inspect the car and take a photo or video.

○ Pay special attention to — bumpers, mirrors, wheels, interior, fuel level, mileage;

○ Make sure the trunk contains:

— a jack, a tow rope, a warning triangle, a vest (all this is mandatory by law);

— a spare tire or repair kit, tools.

● Do not leave things in plain sight.

○ Especially in tourist areas, and in parking lots of supermarkets.

● When parking for a long time, choose well-lit areas.

○ Better — public or paid parking with security.

● Use mobile apps for parking and road information:

○ Via Verde Estacionar — parking payment throughout the country.

○ Waze — will notify you about cameras on Portuguese roads: warns about speed limits, radar, and police.

Frequently asked questions and common mistakes

Can I rent without a credit card?

Some companies (for example, Drive on Holidays) accept debit cards if you also purchase their insurance. But in 90% of cases, you will still need a credit card in the name of the main driver.

I paid for the rental, do I still need to pay something at the office?

Yes, if you haven’t paid for full insurance in advance. When issuing the car, they may offer you another policy or require a deposit. In some cases, additional fees may also apply (30–50 €) if you arrive outside working hours.

Can I go to Spain or Morocco?

Trips to Spain are usually included by default. Clarify the conditions. Some companies charge a small fee (30–50 €) for entering another country.

As for Morocco, it is not always allowed. In some cases, crossing is possible by prior request, but full additional insurance is required. Often, special interior and underbody cleaning is also required (20–60 €).

Do I need to keep the receipt for fuel when returning the car?
It is recommended. This will confirm that the tank was indeed full, especially if the fuel level is visually lower on the gauge.

Specifics of car rental for foreigners in Portugal

If you are a citizen of another country and are planning to rent a car in Portugal, it is important to understand which additional documents may be required, whether language and cultural barriers may affect communication, and how to prepare for driving in a foreign country. Below — everything you need to feel confident and secure.

Driver’s license requirements

If you have a license from the EU:

● In most cases, you can rent a car without translations or additional documents.

● Your license must be a plastic card of the standard format, with information duplicated in Latin characters.

If you have a license from outside the EU:

● An International Driving Permit (IDP) is required if your national license:

○ is not duplicated in Latin characters;

○ does not comply with the 1949 Geneva Convention;

○ is printed only in hieroglyphs or other scripts.

Note: even if your license is in Latin (for example, from the USA, Ukraine, Kazakhstan), many rental companies may still request an IDP — especially at international airports. It’s better to have the IDP with you — even if your national license is valid, it may simplify the rental process.

Language barrier and communication with staff

● In international companies (Europcar, Sixt, Hertz) employees almost always speak English.

● In local Portuguese companies, staff may speak only Portuguese. This may lead to:

○ difficulties in explaining conditions or issues;

○ emergency translations of key phrases over the phone;

○ online booking on aggregators with active support;

○ sending booking confirmations by email.

Phrases that might be useful:

● Gostaria de confirmar a reserva do carro — I would like to confirm the car reservation
● É necessário o cartão de crédito? — Is a credit card required?
● A gasolina está cheia? — Is the tank full?
● Onde posso devolver o carro? — Where can I return the car?

Adaptation to local driving conditions

Driving culture:

● Outside of major cities, drivers behave quite calmly.

● In cities (especially in Lisbon and Porto), traffic can be more intense, with narrow streets, hills, and limited parking.

● Locals often use turn signals — but not always.

Parking:

● Be careful with parking and meters — parking in old neighborhoods can be a real challenge.
● It’s better to choose lots or underground parking.

Navigation:

● Google Maps works well in Portugal, but Waze provides more accurate information about traffic, cameras, and police checkpoints.

Particularities of Portugal:

● Some roads (especially in Alentejo and small towns) are poorly lit and less protected — slow down and be extra attentive.

● On highways, speed limits are strictly enforced, especially on toll roads and in rural areas.

Conclusion: car rental — your freedom in Portugal

Renting a car is not just about transportation, it’s also about independence. In Portugal — especially in the Algarve, in small Algarve villages without public transport, in the hot hills of Serra-da-Estrela, and in old villages where buses stop rarely — this can be critical.

By choosing a car rental, you get:

• flexibility and mobility;
  
• the opportunity to explore the country beyond the beaten tourist routes;
  
• convenience, especially when traveling with children or in groups;
  
• and often — saving time and money, especially compared to transfers and excursions.
  

To ensure your rental goes smoothly:

• book your car in advance through verified aggregators;
  
• read the contract carefully, especially the sections on insurance and deposits;
  
• take photos of the condition of the car before and after the rental;
  
• do not park in prohibited areas, pay attention to roads and insurance;
  
• and if needed, contact support — staff at major companies are usually responsive and open to dialogue.
  

Useful resources and links

Search and booking

• DiscoverCars.com — price comparison, no-deductible insurance, support in Russian
  
• Rentalcars.com — major global aggregator
  
• Localrent.com — local companies with flexible conditions
  
• Kiwitaxi.com — transfer comparison service

Official car rental websites

• Europcar: https://www.europcar.net
  
• Sixt: https://www.sixt.pt
  
• Avis: https://www.avis.pt
  
• Hertz: https://www.hertz.pt
  
• Guerin: https://www.guerin.pt
  
• Drive on Holidays: https://www.driveonholidays.com
  
• Amoita: https://www.amoita.com
  
• Autorent: https://autorent.pt
  

Services and applications

• Via Verde (toll roads): https://www.viaverde.pt
  
• ePark Lisboa (parking in Lisbon): https://www.epark.pt
  
• Waze https://www.waze.com — navigation, traffic, cameras
  
• Google Maps — routes and road conditions
  

If you are planning a trip and need help with instructions or choosing a car, Move to Cascais specialists and partners will assist you at any stage — from choosing a company to returning the vehicle. Just contact us by email or fill out the form on the website.