Is Renting a Car in Portugal Worth It? Real Costs & Alternatives

Portugal is one of those countries where the answer isn't straightforward. Whether renting a car makes sense depends entirely on where you're going and what kind of trip you're planning.

If the plan is to stick to Lisbon and Porto, a car will probably be more hassle than help. But if the goal is exploring the Douro Valley, driving along the Algarve coast, or visiting small villages in central Portugal, having your own wheels changes everything.

This guide breaks down the real costs, when a car rental in Portugal actually makes sense, and what alternatives work better for different itineraries.

When You Really Need a Car in Portugal

Exploring the Douro Valley

Public transport to the Douro wine region exists, but it's limited. Buses don't cover all the quintas (wine estates), and train connections require careful planning. Renting a car gives the freedom to stop at viewpoints, visit multiple wineries, and stay in smaller villages without stress.

Road-tripping the Algarve

The Algarve has trains and buses connecting major towns like Lagos, Albufeira, and Faro. But the best beaches, hidden coves, and coastal viewpoints aren't near bus stops. A car turns a generic beach holiday into something far more interesting.

Visiting small towns and villages

Places like Óbidos, Monsaraz, Sintra's lesser-known spots, or anything in the interior regions (Beiras, Alentejo) are either inaccessible by public transport or require multiple connections that eat up half the day.

Traveling with kids or elderly family members

Hauling luggage on and off trains, waiting for buses in the heat, or navigating cobblestone streets with a stroller gets old fast. A car rental makes family trips significantly easier.

Multi-region itineraries

If the trip includes Lisbon, Porto, the Algarve, and rural areas, a car saves time. Train connections between cities are fine, but once you add smaller destinations, public transport becomes painfully slow.

When You Don't Need a Car in Portugal

Staying only in Lisbon or Porto

Both cities have excellent public transport. Lisbon's metro, trams, and buses cover everything tourists need. Porto is even more walkable. Driving in either city means dealing with narrow streets, expensive parking, and traffic. Not worth it.

Day trips from Lisbon

Sintra, Cascais, and Évora are all reachable by train or bus. Sintra gets crowded, and parking is a nightmare during peak season. Taking the train is faster and cheaper.

Traveling between major cities only

Portugal's train network connects Lisbon, Porto, Coimbra, Faro, and a few other key spots efficiently. If the itinerary doesn't include rural detours, trains work perfectly fine.

Short trips (3–4 days)

For a quick Lisbon-Porto trip, renting a car adds unnecessary cost and logistics. Trains are affordable, comfortable, and take about the same time once you factor in parking.

Real Costs of Renting a Car in Portugal

Base Rental Price

Expect to pay €25–50 per day for a basic economy car, depending on the season and how far in advance you book. Summer and holidays push prices higher. Booking through comparison sites like DiscoverCars or Rentalcars often finds better deals than going directly to rental companies.

Insurance

Basic insurance is usually included, but it comes with a high excess (€800–1,500). Full coverage (CDW + theft protection) adds €10–20 per day. Some credit cards cover this, so check before paying extra.

Fuel

Fuel prices in Portugal sit around €1.60–1.80 per liter (as of late 2024). A full tank for a small car costs roughly €50–70. Driving from Lisbon to Porto and back uses about a tank and a half.

Tolls

Portugal's highways use electronic tolls. Most rental cars come with a toll device, but rental companies charge €1–2 per day for the device plus the actual toll fees. Lisbon to Porto via the A1 costs around €20–25 in tolls. Avoid toll roads to save money, but expect longer travel times.

Parking

Parking in Lisbon and Porto costs €1.50–3 per hour in city centers. Hotels in cities often charge €10–20 per night for parking. In smaller towns and rural areas, parking is usually free.

Total Estimated Cost (7-day rental)

• Car rental: €175–350
• Full insurance: €70–140
• Fuel: €80–120
• Tolls: €40–60
• Parking: €50–100

Total: €415–770 for a week, depending on choices and how much you drive.

Alternatives to Renting a Car

Trains

Portugal's train network (CP – Comboios de Portugal) connects major cities efficiently. Lisbon to Porto takes about 3 hours and costs €25–35 depending on the train type. Coimbra, Faro, and Évora are also accessible by train. Book through the official CP website or app for the best prices.

Buses

FlixBus and Rede Expressos cover routes trains don't. Buses are slower but cheaper. Lisbon to Lagos costs around €20, and smaller towns often have bus connections where trains don't go. Buses are also useful for reaching places like Nazaré or Óbidos.

Ride-sharing and transfers

BlaBlaCar is popular in Portugal for shared rides between cities. For airport transfers or specific routes, private transfers or shared shuttles work well. They're more expensive than buses but still cheaper than renting a car for one day just to get somewhere.

Day tours

If the goal is visiting places like Sintra, the Douro Valley, or the Algarve's hidden beaches without driving, organized day tours are a solid option. GetYourGuide and Viator offer small-group tours that handle transport and often include skip-the-line perks or local guides. Not the cheapest option, but convenient if you're only doing one or two excursions.

Mix and match

One strategy that works well: use trains and buses for city-to-city travel, then rent a car for 2–3 days specifically for exploring rural areas or the coast. This avoids paying for a car you're not using while parked in Lisbon or Porto.

Practical Tips if You Do Rent a Car

Book early

Prices jump closer to the travel date, especially in summer. Booking 4–6 weeks in advance usually gets better rates.

Check the excess carefully

Rental companies in Portugal are notorious for surprise charges. Take photos of any existing damage before driving off, and don't skip documenting scratches.

Tolls are unavoidable on highways

The A1 (Lisbon-Porto) and A22 (Algarve coast) are toll roads. Budget for this. Some backroads avoid tolls but add significant time.

Parking apps help in cities

Apps like "EMEL" for Lisbon and "ParkMe" save time finding parking spots. Street parking is cheaper than garages but fills up fast.

Watch for narrow streets

Portuguese villages weren't built for modern cars. Streets in Óbidos, Monsaraz, and parts of Lisbon's Alfama are extremely narrow. Compact cars are easier to maneuver.

Fuel up before returning

Rental companies charge inflated rates if you return the car without a full tank. Fill up at a nearby gas station instead.

Final Verdict: Do You Need a Car in Portugal?

Rent a car if:

• The itinerary includes rural areas, small towns, or coastal road trips
• Traveling with family or a group
• Doing a multi-region trip (Lisbon + Algarve + Douro, etc.)
• Planning to visit 3+ places not well-connected by public transport

Skip the car if:

• Staying only in Lisbon and Porto
• Doing a short trip (under 5 days)
• Sticking to major cities with good train connections
• Traveling solo and prefer public transport

For most travelers, a hybrid approach works best: trains between cities, then a car rental for a few days when it actually adds value. This keeps costs down while still giving flexibility where it matters.

Portugal is one of the easiest European countries to explore by car, but it's also very doable without one. The key is matching the transport method to the itinerary, not just defaulting to a rental because it feels convenient.