Car Rental in Lisbon, Portugal

Last updated: March 2026

Renting a Car in Lisbon: Your Complete Guide

Lisbon is one of Europe's best-value car rental cities, with prices significantly lower than in Western European capitals. A rental car is the ideal way to explore Portugal's stunning coastline, from the dramatic Algarve cliffs to the wild Atlantic beaches of the Silver Coast, all within a few hours of the capital.

Picking Up at Lisbon Airport

Humberto Delgado Airport (LIS) is located just 7 km from the city center, making it one of Europe's most conveniently located airports. Rental car companies operate from a dedicated area accessible by shuttle bus from the arrivals hall. The shuttle runs every 10 minutes and takes about 5 minutes. Major international and local companies are all represented, with Portuguese company Guerin often offering competitive rates against the global brands.

Economy car rentals in Lisbon start from as low as €10-€18 per day in the off-season, making Portugal one of the cheapest countries in Europe for car hire. Even during peak summer, rates remain reasonable compared to Spain, France, or Italy.

Navigating Lisbon's Hills

Lisbon is built on seven hills, and the city's topography creates unique driving challenges. The historic neighborhoods of Alfama, Mouraria, Bairro Alto, and Graça feature streets so narrow that mirrors must be folded in, gradients so steep that handbrake skills are essential, and cobblestones so polished they become slippery in rain. Practical advice:

• Avoid driving in the historic center entirely if possible. Use the metro, trams, or tuk-tuks instead
• If you must drive, request an automatic transmission. Navigating steep hills with a manual gearbox in heavy traffic is stressful
• Watch for the iconic Tram 28 on shared routes. It has right of way and there is no room to pass
• Park in an underground garage and explore on foot. Surface parking in the center is nearly impossible
• Be especially careful on rain-slicked cobblestones, which can be as slippery as ice

Understanding Portuguese Tolls

Portugal's toll system is one of the most confusing in Europe for visitors. Many motorways use electronic-only tolling with no physical toll booths. You have three options:

• Via Verde transponder: Ask your rental company to include one. The device costs €1-€2 per day and tolls are charged to your account automatically
• Toll card: Purchase a pre-paid card at post offices (CTT) or Payshop outlets. Register your license plate at the point of sale
• Online payment: Pay within 5 days at portagens.online. Missing the deadline results in fines forwarded to your rental company

Typical toll costs are moderate: Lisbon to Porto is about €22, Lisbon to the Algarve about €20. Free alternative roads (the N- and EN- national roads) exist but add 1-2 hours to long journeys.

Best Time for a Portuguese Road Trip

Portugal's climate makes it a year-round driving destination. The best months are April-June and September-October, offering warm weather, lower prices, and manageable tourist numbers. July and August are hot in the interior (40°C+) and the Algarve becomes extremely crowded. Winter (November-March) is mild on the coast but rainy, and the best time for visiting Lisbon itself. The Alentejo wine region is spectacular in spring when wildflowers blanket the rolling hills.

Fuel and Practical Tips

Fuel prices in Portugal hover around €1.60-€1.80 per liter, among the highest in Southern Europe. Diesel is typically €0.15-€0.20 cheaper per liter than petrol. Supermarket fuel stations (Jumbo, Continente, Intermarche) offer the best prices. Most rental companies in Portugal include basic insurance with a €800-€1,200 excess. The deposit hold is usually €750-€1,200 on a credit card. Portuguese drivers are generally courteous on motorways but can be aggressive on urban roads and roundabouts. Speed cameras are common, and fines are forwarded to rental companies efficiently.

Airport Rental Pickup

You can pick up a rental car at these airports near Lisbon:

• LIS — desks in arrivals hall, follow "Car Rental" signs

Parking in Lisbon

Traffic note: Lisbon's famously steep hills and narrow cobblestone streets in the Alfama, Mouraria, and Bairro Alto neighborhoods make driving in the historic center extremely challenging. Many streets are one-way, and trams share the road on routes too narrow for passing. The 25 de Abril Bridge and Vasco da Gama Bridge are the two Tagus River crossings; tolls apply in both directions. The city's main motorways (A1 north, A2 south, A5 west to Cascais) all use electronic tolling, so ensure your rental has a Via Verde transponder or purchase toll cards at post offices. Rush hour (8:00-10:00, 17:30-19:30) creates serious congestion on all bridge approaches.

Day Trips from Lisbon by Car