How to rent a car in Lisbon: what to know first

Renting a car in Lisbon can make a lot of sense, but only for the right kind of trip. If you are staying in the city centre and spending most of your time between Alfama, Baixa, Chiado and Belém, a car is usually more trouble than it is worth. But if you are planning to explore places beyond Lisbon, it can make your trip much easier. Lisbon Airport has major rental desks in Terminal 1, including Avis, Europcar, Goldcar, Guerin, Hertz and Sixt, which makes airport pickup one of the simplest options for many travellers.

In this article, you will find a practical guide to renting a car in Lisbon, including whether you actually need one, where to pick it up, what documents to bring, how deposits and insurance usually work, how Portuguese tolls work, and the common mistakes that can make a cheap booking turn expensive.

Do you really need a rental car in Lisbon?

For most first-time visitors, the honest answer is no.

Lisbon is a city where you can do a lot on foot, by metro, by tram, by train, or with the occasional Uber or Bolt. Parking can be annoying, the streets are narrow in older areas, and driving in central Lisbon is not the most relaxing way to start a holiday.

A rental car becomes much more useful when Lisbon is only the starting point. It makes sense if you are heading to the Alentejo, Costa Vicentina, Arrábida, central Portugal, or doing a broader road trip around the country. It can also be useful for beach-focused stays or slower itineraries with several overnight stops. Even Lisbon Airport’s own rental page frames car hire as a practical way to go beyond the city and reach destinations across Portugal.

If your trip is mostly urban, skip the car at first and pick one up later when you leave Lisbon.

Personally, I often use Kayak when comparing car rental options in Portugal. It is a simple way to get a quick overview of prices and providers before narrowing down the best choice for your dates and pickup location.

Where to rent a car in Lisbon: airport or city centre?

For most travellers, Lisbon Airport is the easiest place to rent a car.

The main advantage is convenience. You land, collect your luggage, and go straight to the rental desk. According to the official airport site, several major companies are located in the terminal itself, including Avis, Europcar, Goldcar, Guerin, Hertz and Sixt.

There is another practical point here: many travellers arriving on low-cost flights do not realise that car pickup is generally tied to Terminal 1, which is where the main rental desks are located. Some providers and airport rental guides also note that if you arrive via Terminal 2, you may need to transfer to Terminal 1 for collection.

City-centre pickup can still make sense if:

• you are spending a few days in Lisbon first

• you want to avoid parking fees during your city stay

• you prefer to start driving only when leaving town

That said, airport pickup is usually simpler, especially for visitors who want to get on the road quickly.

What documents do you need to rent a car in Portugal?

This depends a little on the rental company, but in most cases you should expect to need:

• a valid driving licence

• passport or national ID

• a payment card in the main driver’s name

• your booking confirmation

• any extra documents required for insurance or cross-border travel, if relevant

Rental companies in Portugal also commonly apply age rules and licence-holding rules. For example, Hertz says the driver must present a valid national driving licence and, for many vehicles, must have held it for at least one year, with some vehicle groups requiring longer. Guerin notes that when renting, extra requirements often apply beyond the legal driving age, and highlights licence validity and driving experience as things to check before travelling.

So before booking, always check:

• minimum driver age

• how long the licence must have been held

• whether your licence is accepted as-is

• whether the main driver’s card must be physical and not prepaid

Do you need an international driving permit?

Not always.

Many visitors can rent a car in Portugal using their normal national driving licence, but acceptance depends on the country of issue and the rental provider’s rules. The safest approach is not to assume. Check your rental company’s conditions before you book, especially if your licence is not from the EU or is not written in the Latin alphabet. That is also the advice repeated in rental guidance for Portugal.

Do you need a credit card to rent a car in Lisbon?

Very often, yes.

This is one of the biggest reasons travellers get caught out. A company may accept debit card payment for the booking itself, but still require a credit card in the main driver’s name for the security deposit at pickup. Some providers have exceptions, but many still treat a credit card as the default requirement.

If this matters for your trip, do not stop at the headline price. Check the rental conditions carefully before booking. This is exactly where “cheap” offers often become frustrating.

How deposits and insurance usually work

When you collect the car, the rental company will usually place a security deposit or pre-authorisation hold on your card. The amount varies by company, vehicle class and insurance choice. Some travellers also choose fuller coverage to reduce excess and lower stress, especially if they are not used to driving abroad. Evidence from Portugal rental guidance and user experiences shows that deposits are a major pain point, which is why photographing the car at pickup and return is essential.

A few practical rules help here:

• inspect the car carefully before leaving

• photograph every side of the vehicle

• record any scratches, wheel marks or interior damage

• make sure all existing damage is noted

• repeat the process when returning the car

This takes five minutes and can save a lot of hassle later.

How tolls work with rental cars in Portugal

This is one of the most important parts of renting a car in Portugal.

Portugal has both traditional tolls and electronic tolls. On traditional toll roads, you may be able to pay by cash or card. On electronic systems, payment works differently and is much easier to manage if your rental car already has the right setup. Guerin explains that traditional tolls may be paid by Via Verde, card or cash, while electronic toll roads are easiest to handle through a rental-company toll service or an electronic device.

Hertz goes even further and states that rental cars in Portugal are required to be equipped with an automatic toll payment system. Via Verde’s visitor information also makes clear how central this system is for motorway travel in Portugal.

In simple terms, this means:

• ask at pickup how tolls will be charged

• confirm whether the toll device is active

• understand whether you pay a daily service fee, the tolls themselves, or both

• keep receipts and the rental agreement until final charges are settled

If you are planning to drive outside Lisbon, especially on longer routes, this is not something to ignore.

What to check before driving away

Before leaving the rental lot, take a few minutes to check:

• existing exterior damage

• tyre condition

• fuel level or battery charge

• whether you understand the fuel policy

• whether the toll device is active

• whether the car includes warning triangle and safety kit if required

• pickup and return times

• return location, especially at Lisbon Airport

This is boring, but useful. It is much better to solve a problem before leaving than at the return desk.

Common mistakes when renting a car in Lisbon

Booking the cheapest option without reading the conditions

A low headline price often tells you very little. The real differences appear in deposit rules, fuel policy, insurance excess, mileage, toll setup and airport collection method.

Renting the car too early

If you are spending two or three days in Lisbon first, there is little point paying for a car that will mostly sit parked.

Ignoring tolls

This is one of the easiest ways to end up confused or overcharged later.

Not checking whether pickup is in-terminal or shuttle-based

Some companies are directly in the airport terminal, while others use shuttle or meet-and-greet collection. That can be fine, but it is good to know in advance. Official airport information confirms that several major brands are in the terminal, while other providers and comparison sites note that some collections are outside the terminal area.

Driving in Lisbon when you do not need to

For many visitors, trains, taxis and rideshare are simply easier inside the city.

Is it better to book in advance?

Yes, in most cases.

Booking in advance usually gives you more choice, more transparent conditions, and a better chance of avoiding inflated last-minute prices, especially in peak travel periods. Rental providers themselves repeatedly encourage booking ahead for better availability.

That is particularly true if:

• you want an automatic car

• you need a larger vehicle

• you are travelling in summer or during holidays

• you want airport pickup at a specific time

Is renting a car in Lisbon worth it?

It can be, but only if it matches your itinerary.

If your plan is to stay in Lisbon, walk the neighbourhoods, eat well, and do a couple of easy day trips by train, you probably do not need a car at all. But if you want flexibility and plan to explore more of Portugal after Lisbon, renting a car can make the trip far easier.

The smartest approach is usually this: enjoy Lisbon without a car, then pick one up when the road-trip part of your itinerary begins.

Practical tips before you book

• compare more than one company

• read the rental conditions, not just the summary

• confirm the deposit rules before payment

• check how tolls are handled

• avoid renting for your Lisbon-only days

• take photos at pickup and drop-off

• book earlier if you want an automatic car

Final thoughts

A good Lisbon car rental experience usually comes down to one thing: knowing what matters before you click book.

The cheapest listing is not always the best option. The best option is the one with clear conditions, the right pickup point, manageable deposit rules, and a toll setup you actually understand. If you get those details right, renting a car in Lisbon can be straightforward and genuinely useful.

FAQ

1. Do I need a car in Lisbon?

Usually not for the city itself. Lisbon is well connected by public transport, taxis and rideshare apps. A rental car becomes more useful once you leave Lisbon and start exploring other parts of Portugal.

2. Can I rent a car at Lisbon Airport?

Yes. Lisbon Airport has several major rental companies located in Terminal 1, including Avis, Europcar, Goldcar, Guerin, Hertz and Sixt.

3. Do I need a credit card to rent a car in Portugal?

In many cases, yes. Even when debit cards are accepted for booking, a credit card in the main driver’s name is often still required for the deposit.

4. Do I need an international driving permit in Portugal?

Not always. It depends on where your driving licence was issued and on the rental company’s rules. Always check before booking.

5. How do tolls work with rental cars in Portugal?

Portugal has both traditional and electronic tolls. Many rental cars use an automatic toll payment system, and rental companies may charge tolls plus a service fee depending on the setup.

6. Is it better to rent a car at Lisbon Airport or in the city?

For most travellers, Lisbon Airport is easier. But if you are staying in Lisbon first and only leaving the city later, a city pickup can make more sense.

7. Is it easy to drive out of Lisbon?

Yes, once you are out of the centre. The main challenge is not leaving Lisbon itself, but whether you actually want to deal with city traffic and parking before your road trip starts.

8. Should I book my rental car in advance?

Yes, especially in summer, on holiday dates, or if you want an automatic car or a specific pickup time.