Car hire
Car hire in Portugal: the Algarve, Lisbon, Porto and Madeira
Cliffs and sea caves in the Algarve, giant waves at Nazaré and vineyards along the Douro. Here are the routes, the toll rules and the airports for a driving holiday in Portugal.
Portugal is a small country with long gaps between its highlights. The beaches and sea caves of the Algarve, the fishing town of Nazaré, the fairy-tale palaces of Sintra and the vineyards of the Douro all sit some way from the railway. With car hire in Portugal you can link them in one trip and stop for grilled sardines wherever you like.
The motorways are good and often quiet, but many of them have electronic tolls only. That is the most important thing to sort out when you collect the car.
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How to choose the right hire car in Portugal
Toll transponder: Ask the rental company whether the car has a toll device (Via Verde) for the electronic toll roads.
A small car for the old towns of Lisbon and Porto and the Algarve villages.
A bit more power on Madeira, where the roads are steep.
Collect the car at the airport in Faro, Lisbon or Porto.
The Algarve
The Algarve is made for a coastal drive. From Faro you can head west to the sea caves at Benagil, the old town of Lagos and the cliffs at Sagres, where Europe ends in the south-west. To the east are quieter towns such as Tavira.
Collect your car in Faro
Faro is the airport for the whole Algarve, and the motorway runs along the coast in both directions.
Car hire: See car hire in Faro
Vila Vita Parc
A clifftop resort near Porches.
Where to stay in the Algarve: Vila Vita Parc
A clifftop resort with gardens running down to the sea and a short drive to Benagil. A good base when you want to drive a little and swim a lot.
Book your stay: See rooms at Vila Vita Parc
Lisbon, Sintra and Nazaré
In Lisbon you are best off with trams, the metro and your own two feet. A car is perfect for day trips, though: to the palaces and gardens of Sintra, along the coast to Cascais, and north to Nazaré, where the winter waves are among the biggest in the world.
Collect your car in Lisbon
Pick up the car at the airport on the day you leave the city, and drop it off before you stay in the centre.
Car hire: See car hire in Lisbon
Porto and the Douro Valley
Porto is the gateway to the Douro Valley, where vineyard terraces climb up from the river. The riverside roads are winding and beautiful, and many wine estates welcome visitors. Agree on a designated driver if there is tasting involved.
Collect your car in Porto
Porto has a good airport and a fast road east towards the Douro Valley.
Car hire: See car hire in Porto
Where to stay in Porto: The Yeatman
The hotel sits in Vila Nova de Gaia among the port lodges, looking across the river to Porto's old town.
Book your stay: See rooms at The Yeatman
Madeira
On Madeira the roads tunnel through the mountains and hairpin up to the viewpoints. With a car you can reach the levadas, the peaks and the fishing villages of the north coast in a single day. See also our best hotels in Madeira.
Collect your car in Funchal
The airport is east of Funchal, and most rental companies have desks there.
Car hire: See car hire in Madeira
Reid's Palace
The classic clifftop hotel in Funchal.
Where to stay in Madeira: Reid's Palace
Madeira's classic hotel, on the cliffs above the sea in Funchal, with gardens and afternoon tea on the terrace.
Book your stay: See rooms at Reid's Palace
What you need to know about driving in Portugal
Electronic tolls: Several motorways have cameras instead of toll booths. With a transponder from the rental company the tolls are charged automatically.
Old towns: The centres of Lisbon and Porto have narrow, steep streets and little parking. Use car parks.
Driving licence: Check the current rules for your licence before you travel, and bring your passport and a credit card in the driver's name.
Roundabouts: Portugal has lots of them. Use the correct lane and signal when you exit.
When should you book your hire car?
For summer in the Algarve: book early, as small cars and automatics go fast.
Spring and autumn are lovely for road trips, with fewer visitors on the roads.
Check whether the toll transponder is included or extra.
Frequently asked questions about car hire in Portugal
Do I need a hire car in Portugal?
In Lisbon and Porto you can manage well without one. If you want to see the Algarve coast, Sintra, Nazaré or the Douro Valley, a hire car gives you far more freedom, because many of the sights are a long way from the railway.
How do I pay tolls in Portugal in a hire car?
Several motorways have electronic tolls only. Ask the rental company whether the car has a toll transponder (Via Verde), so tolls are charged automatically to your bill. Without one you have to pay afterwards, which is easy to forget.
Where should I hire a car in the Algarve?
Faro airport has the most rental companies and is the natural starting point. From there you can reach both the west, with Lagos and Sagres, and the east, with Tavira.
Is it hard to drive in Madeira?
The roads are good but steep and winding, with lots of tunnels. Choose a car with a bit of power, take the descents slowly and allow plenty of time for trips into the mountains.
What car should I hire in Portugal?
A small car is easiest in the old towns of Lisbon and Porto and in Algarve villages. On Madeira a car with a bit more power makes the steep roads more comfortable.