Purpose Statement: This page documents the legal requirements, costs, insurance options, and common issues associated with renting vehicles in Portugal. It serves as a reference for travelers evaluating car rental procedures, deposit structures, and regulatory compliance.
Quick Overview: Car Rental Requirements and Costs
| Category | Requirement/Detail | Cost Range | Notes |
|---|---|---|---|
| Minimum Age | 19-21 years (company-dependent) | N/A | Most companies require 21+ |
| Young Driver Fee | Under 25 years | €3-€10/day | Not all companies charge |
| Senior Driver Fee | Over 70-75 years | Varies or refused | Company-specific policies |
| License Validity | 1-2 years minimum | N/A | From date of issue |
| International Driving Permit | Non-Roman alphabet licenses | €15-€20 (home country) | Required alongside domestic license |
| Credit Card | Required for deposit | N/A | Must be in driver’s name |
| Security Deposit | Hold on credit card | €0-€3,000 | Depends on vehicle/insurance |
| Basic CDW Insurance | Mandatory, usually included | Included in base rate | Deductible €950-€3,600 |
| Super CDW/Excess Waiver | Reduces deductible to €0 | €7-€15/day | Optional but recommended |
| Theft Protection | Usually included | Included or €3-€8/day | Check policy details |
| Third-Party Liability | Mandatory by EU law | Included | Minimum coverage required |
| Via Verde Toll Device | Mandatory with most companies | €1.85-€2.23/day (max €18.50-€22.29/rental) | Plus actual toll costs |
| Additional Driver | Second named driver | €0-€10/day | Some companies include free |
| One-Way Fee | Different pickup/return location | €30-€150 | Varies by distance |
Legal Requirements for Renting
Age Requirements
Minimum Driving Age in Portugal: 18 years
Minimum Rental Age: Most rental companies require renters to be 21 years old. Some companies accept drivers as young as 19, but vehicle categories are restricted and surcharges apply.
Young Driver Surcharge: Drivers aged 19-25 typically incur additional fees of €3-€10 per day, though amounts vary by company and vehicle class.
Maximum Age Limits: Some companies impose restrictions or additional fees for drivers over 70-75 years. Policies vary significantly; verify before booking.
Driver’s License Requirements
EU/EEA Citizens: Valid national driver’s license accepted without additional documentation. License must have been held for minimum 1-2 years depending on company policy.
Non-EU Citizens (English-Language Licenses): Valid driver’s license from United States, Canada, United Kingdom, Australia, New Zealand accepted. While International Driving Permit (IDP) not legally required for stays under 185 days, some rental companies request it.
Non-EU Citizens (Non-Roman Alphabet Licenses): Licenses printed in Arabic, Japanese, Cyrillic, Chinese, or other non-Roman alphabets require International Driving Permit (IDP) or official translation in English/Portuguese presented alongside original license.
License Validity Duration: License must be valid for minimum 185 days (approximately 6 months) for non-EU visitors. Travelers staying longer than 6 months in Europe with non-EU licenses face restrictions.
Photo ID Requirement: License must include photo. UK drivers with old paper-only licenses need official photo ID. Some companies require both paper counterpart and photo card for UK licenses.
Required Documentation at Pickup
Mandatory Items:
- Valid driver’s license (original, not photocopy)
- International Driving Permit if applicable
- Passport or national ID card
- Credit card in primary driver’s name
- Reservation confirmation/voucher
- Proof of insurance if declining company insurance (credit card coverage documentation)
Additional Driver Documentation: If adding second driver, that person must present same documentation and be present at pickup.
Credit Card and Payment Requirements
Credit Card Necessity
Standard Practice: Rental companies require credit card (Visa, Mastercard) in primary driver’s name for security deposit. Credit cards link deposit to driver’s liability.
Debit Card Acceptance: Limited companies accept debit cards, typically with restrictions:
- Higher deposits required
- More restricted vehicle categories
- Additional documentation may be required
- Funds must cover full deposit amount
Prepaid Cards: Not accepted by most rental companies.
American Express and Diners: Less widely accepted; Visa and Mastercard preferred.
Security Deposit Structure
Deposit Amounts:
- With basic CDW insurance: €950-€3,600 (matches deductible/excess)
- With Super CDW: €0-€500 (significantly reduced or eliminated)
- Luxury/premium vehicles: Higher deposits regardless of insurance
Hold Duration: Deposits held as authorization (not charged) on credit card. Released 7-30 days after vehicle return depending on company and bank processing times.
Multiple Holds: If changing vehicles or extending rental, companies may place new holds before releasing original, temporarily doubling frozen funds.
Insurance Requirements and Options
Mandatory Third-Party Liability (TPL)
Legal Requirement: EU law requires unlimited Third-Party Liability insurance on all rentals. Covers damage or injury caused to other people, vehicles, or property. Always included in rental price automatically.
Coverage Limitation: Does NOT cover damage to rental vehicle itself or injuries to driver/passengers in rental vehicle.
Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW)
Standard Practice: Basic CDW typically included in quoted rental prices. This is a waiver, not technically insurance; rental company agrees to limit financial liability for vehicle damage.
Important: Some sources indicate CDW legally required to be included in all Portuguese car rentals. However, this remains disputed; some brokers offer rates without CDW allowing use of credit card insurance.
What CDW Covers: Damage to rental vehicle from collisions, accidents, vandalism (subject to deductible/excess).
What CDW Does NOT Cover:
- Tires
- Windshield/glass
- Undercarriage damage
- Mirrors and headlights
- Keys lost or locked in vehicle
- Damage from off-road driving
- Damage while driver intoxicated
- Damage from policy violations
Deductible/Excess: Amount renter pays before insurance covers remainder. Standard excess ranges:
- Economy/compact cars (Groups A-D): €950
- Mid-size/larger vehicles (Groups E-G): €1,500-€3,600
Super CDW / Excess Waiver / Full Insurance
Purpose: Eliminates or reduces deductible to €0 or near-zero amount.
Cost:
- Economy cars: €7/day
- Larger vehicles: €10-€15/day
When Purchased: Significantly cheaper when added during booking than purchased at rental counter.
Important Clarification: If no damage occurs, this payment is NOT refunded. It functions as insurance premium paid for coverage, not deposit.
Deposit Impact: Choosing Super CDW typically reduces or eliminates security deposit hold on credit card.
Theft Protection
Coverage: Protects against vehicle theft. Usually included with CDW or available as add-on. Subject to deductible unless Super CDW purchased.
Cost When Separate: €3-€8 per day if not included in base rate.
Personal Accident Insurance (PAI)
Coverage: Medical expenses for driver and passengers in accident.
Recommendation: Check if existing travel insurance provides equivalent coverage before purchasing. Many travelers already covered through personal travel insurance policies.
Cost: €5-€8 per day.
Supplemental Liability Protection (SLP)
Purpose: Increases third-party liability coverage beyond standard minimum (often €50 million legal standard vs. lower company minimums).
Consideration: Standard TPL coverage may only cover tens of thousands of euros. For serious multi-party accidents, additional coverage provides protection.
Credit Card Insurance as Alternative
Coverage Details
Primary vs. Secondary:
- Primary coverage: Pays claims directly without requiring other insurance
- Secondary coverage: Only applies after personal auto insurance exhausted
Common Exclusions: Most credit card rental insurance excludes:
- Portugal specifically (some cards)
- Tires, glass, windshields
- Undercarriage damage
- Mirrors and headlights
- Vehicles over certain value
- Vans, trucks, luxury/exotic vehicles
- Rentals exceeding 30-60 days
- Off-road use
- Violations of rental agreement terms
Important Operational Details
Rental Company Requirements: To use credit card insurance, companies typically require:
- Documentation proving coverage (benefit guide, certificate)
- Full security deposit hold (€950-€3,600)
- Declining company’s optional CDW/Super CDW
Reimbursement Process: Credit card insurance is reimbursement-based. Renter pays rental company for damage, then submits claim to credit card issuer for reimbursement. Processing takes weeks to months.
Documentation Requirements: Must obtain police report (Auto de Ocorrência) for any accident, regardless of insurance type. Without police documentation, insurance companies (including credit cards) may deny claims.
When Credit Card Insurance Works
Best For:
- Experienced travelers comfortable with claims process
- Renters with primary (not secondary) coverage
- Those willing to pay damage upfront and await reimbursement
- Travelers who verified coverage includes Portugal and excludes nothing relevant
Not Suitable For:
- First-time renters abroad
- Those without sufficient credit limit for deposit + potential damage
- Travelers uncomfortable with reimbursement delays
- Cards with significant exclusions
Third-Party Insurance Options
Providers: Allianz, AXA, RentalCover, Insurance4CarHire, iCarhireinsurance, Questor Insurance
Coverage: Often covers CDW excess/deductible plus items excluded by standard CDW (tires, glass, undercarriage).
Cost:
- Single trip: €30-€70 for 1-2 weeks
- Annual policy: €60-€150 (covers all rentals within year)
Process: Reimbursement-based like credit card insurance. Pay rental company for damage, file claim with third-party insurer afterward.
Important: Full deposit still required at pickup. Third-party insurance does not reduce deposit; only reimburses costs later.
Additional Costs and Fees
Via Verde Toll Transponder
Mandatory with Most Companies: Since Portuguese government regulations, most rental companies require Via Verde toll payment device. Cannot be declined.
Cost Structure:
- Daily fee: €1.85-€2.23/day
- Maximum per rental: €18.50-€22.29
- Plus: Actual toll charges
Refund Policy: If zero toll passages registered during rental, service fee refunded 10 days after vehicle return.
Alternative (Rarely Available): Some smaller companies allow manual toll payment via CTT post offices or Payshop locations, but introduces complications and time constraints.
Child Safety Seats
Legal Requirement: Children under 12 years or under 135 cm height must use appropriate restraint system and sit in rear seat.
Rental Cost: €5-€10 per day per seat. Booking in advance recommended for availability.
Alternatives: Travelers may bring own car seats from home if airline baggage allowance permits.
GPS Navigation
Cost: €5-€10 per day.
Alternatives: Most travelers use smartphone apps (Google Maps, Waze) with offline maps downloaded. Many rental vehicles include built-in navigation.
Additional Driver
Cost: €5-€10 per day with most companies. Some (notably Zest, certain brokers) include second driver free.
Requirement: Additional driver must meet same age and license requirements, present documentation at pickup, and be added to rental contract.
One-Way Rentals
Availability: Most major companies allow one-way rentals between Portuguese cities. Restrictions may apply for luxury vehicles or specific routes.
Cost: €30-€150 depending on distance. One-way between branches in same city often free.
International One-Way: Dropping car in Spain or other EU countries possible but expensive (€100-€300+) and subject to restrictions.
Winter Equipment
Snow Chains: Required by law when road signs indicate. Available for rental €5-€15 per day in mountainous regions during winter. Not standard equipment; must be requested.
Winter Tires: Not mandatory in Portugal except when signs indicate. Available November-April in mountain areas if requested in advance.
Fuel Policies
Full-to-Full (Standard): Receive car with full tank, return with full tank. Most economical option. Failure to refuel results in refueling fee €25-€40 plus inflated fuel cost.
Prepaid Fuel: Pay for full tank upfront at pickup. No refund for unused fuel. Avoid this option.
Partial Refund: Some companies offer partial refunds for unused prepaid fuel, but calculations typically disadvantageous to renter.
Mandatory Vehicle Equipment
Required by Law in All Vehicles:
- Warning triangle (reflective)
- Reflective safety vest (EN 471 standard)
- Spare wheel or tire repair kit
- First aid kit (recommended but not always mandatory)
Inspection at Pickup: Verify all equipment present before leaving rental lot. Rental company responsible for providing; fines for missing equipment fall on driver.
Common Rental Pitfalls
At Booking Stage
Advertised vs. Actual Costs: Companies advertise low base rates (€3-€5/day) then add insurance, toll device, young driver fees bringing actual cost to €40-€60/day.
Solution: Use comparison sites showing total costs (Zest Car Rental, Discover Cars). Read all terms before booking.
Insurance Pressure at Counter
Common Tactic: Rental agents aggressively promote expensive Super CDW at pickup, claiming inadequate coverage otherwise or emphasizing horror stories.
Solution: Decide insurance coverage before arrival. Politely decline if already covered. Agents receive commissions; pressure is sales technique.
Excess vs. Insurance Confusion
Misunderstanding: Some renters believe excess/deductible is separate from insurance. It is not. Excess is maximum renter pays before CDW covers remainder.
Clarification:
- With basic CDW: Renter pays up to excess amount (€950-€3,600), company covers beyond
- With Super CDW: Renter pays €0, company covers all damage (subject to policy terms)
Damage Documentation
Critical at Pickup: Thoroughly inspect vehicle with rental agent. Photograph all existing damage (scratches, dents) from multiple angles with timestamps. Ensure all damage noted on rental agreement.
Areas Often Missed:
- Undercarriage
- Roof
- Wheel rims
- Mirrors
- Interior damage
Return Process: Agent inspects vehicle. Damage not documented at pickup attributed to renter. Photos prove pre-existing condition.
Toll Payment Complications
Last 48-72 Hours Issue: Manual toll payment via CTT/Payshop only processes 48 hours after passage and must be paid within 5 days. Tolls incurred in final 2 days of rental cannot be paid before return.
Solution: Always use Via Verde device if offered, or avoid electronic toll roads during final days.
Unpaid Toll Consequences: Fines 10× toll cost plus administrative fees (€25-€125) plus rental company handling charges (€20-€40 per violation).
Fuel Tank Disputes
Issue: Rental companies may claim tank not full at return even if renter refueled.
Solution: Fill tank at station within 10 km of return location. Keep fuel receipt with timestamp. Photograph fuel gauge showing full level at return.
Unauthorized Charges Post-Return
Common Scenarios:
- “New” damage claims weeks after return
- Toll violations
- Traffic fines
- Cleaning fees
Protection: Take comprehensive photos/video at vehicle return showing all sides, interior, fuel level, odometer. Request written confirmation no damage when returning keys.
Drop-Off After Hours
Risk: Leaving vehicle in lot without staff inspection creates vulnerability. Any subsequent damage attributed to last renter.
Solution: Avoid after-hours returns if possible. If unavoidable, take extensive video documentation showing vehicle condition, locked state, key drop-off process.
Vehicle Inspection Checklist
Exterior Inspection (Before Driving Away):
- All panels (doors, hood, trunk, roof) for dents/scratches
- All windows and windshield for cracks
- All lights functional (headlights, brake lights, turn signals)
- Mirror condition
- Tire condition and tread depth
- Undercarriage (use phone flashlight)
- License plates secure and clean
Interior Inspection:
- Seats, upholstery condition
- Dashboard controls functional
- Air conditioning/heating operational
- Radio/infotainment system
- Cleanliness (to establish baseline for cleaning fee disputes)
Mandatory Equipment Verification:
- Warning triangle present
- Reflective vest(s) present
- Spare tire or repair kit
- Jack and tire iron
- Via Verde device installed and activated (if applicable)
- GPS device if rented
Documentation Check:
- Rental agreement complete and signed
- All existing damage documented in writing
- Fuel level noted correctly
- Mileage recorded accurately
- Emergency contact number for rental company
- Insurance documents in vehicle
Test Before Leaving Lot:
- All windows open/close
- All doors lock/unlock
- Turn signals, wipers, lights function
- Brakes responsive
- Fuel gauge accurate
Rental Company Categories
International Chains
Examples: Hertz, Avis, Europcar, Sixt, Budget, Enterprise
Advantages:
- Locations at all major airports
- English-speaking staff
- Standardized procedures
- International support
- Accepted insurance/coverage
Disadvantages:
- Higher base prices
- Aggressive insurance sales
- Less flexibility on policies
Local Portuguese Companies
Examples: Guerin, Drive on Holidays, Funchal Car Hire (Madeira), OK Mobility
Advantages:
- Often lower base prices
- More negotiation flexibility
- Local knowledge
Disadvantages:
- Limited English sometimes
- May not accept certain credit card insurance
- Fewer locations
- Vehicle availability varies
Brokers/Aggregators
Examples: Zest Car Rental, Discover Cars, Auto Europe, Rental Cars
Function: Compare rates across multiple companies; often negotiate bulk rates providing lower costs than booking directly.
Advantages:
- Price comparison simplified
- Often include second driver free
- Better insurance packages at lower cost
- Transparent total pricing
Disadvantages:
- Less direct control if issues arise
- May need to contact broker first, not rental company
- Return policies vary
Fuel Costs
Current Prices (2024):
- Gasoline (Gasolina): €1.65-€1.85 per liter
- Diesel (Gasóleo): €1.50-€1.70 per liter
Fuel Type Identification: Most rental vehicles use diesel in Portugal. Verify before refueling. Diesel pumps typically labeled “Gasóleo” with black nozzle. Gasoline pumps labeled “Gasolina sem chumbo” (unleaded) with green nozzle.
Misfueling: Putting wrong fuel type causes severe engine damage. Rental insurance does NOT cover misfueling. Cost: €500-€3,000+ plus loss-of-use fees.
Official Authorities and Resources
Rental Regulation:
- ANTROP (Associação Nacional das Transportadoras Rodoviárias de Pesados): Road transport authority
- IMT (Instituto da Mobilidade e dos Transportes): Transport regulatory authority
- DECO (Defesa do Consumidor): Portuguese consumer protection association
Toll System:
- Brisa: Major toll operator
- Via Verde Portugal: Electronic toll system operator
- Portugaltolls.com: Official toll information
Driving Regulations:
- Guarda Nacional Republicana (GNR): Highway police
- Polícia de Segurança Pública (PSP): Urban police
- ACP (Automóvel Club de Portugal): Automobile association
Insurance Regulation:
- Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF): Insurance supervision authority
