Renting A Car In Lisbon: 2025 Prices + Pro Tips

We’re not big fans of driving a vehicle in a big city, but we are big fans of fun day trips! When we write about renting a car in Lisbon, we’re not suggesting you need (or should) splash out for a motor so you can get from the Alfama neighbourhood to the Belem Tower. But if after you’ve seen the capital’s sights, you want to escape to a fresh locale, a car is invaluable.

We’ve done a fair bit of renting a car in Portugal, from Lisbon-based drives to the palaces of Sintra and the beaches of Cascais to weeks-long road trips stretching from Porto to the Algarve. There are a lot of places around the country that we could only conveniently reach using a vehicle – and the scenic routes to get there are the icing on the cake!

Hiring a car in Lisbon, whether at the airport or in town, is a relatively simple process, but just to help you out, here are a few tips from our personal experiences of driving around (and out of) the capital.

#1 Is It A Good Idea To Rent A Car In Lisbon?

That really depends on what you plan to do. To help make your decision on whether to rent a car in Lisbon Portugal, easier, here are a few different scenarios to consider.

Hire a car in Lisbon if:

✅ You plan to do day trips. There are loads of cool places to check out within 90 minutes’ drive of Lisbon (scroll down for deets). Some of these can be reached by public transport, but that not only restricts your schedule, it also means you’ll struggle to get to remoter beaches and/or beauty spots.

✅ Lisbon is your first stop on a wider tour of Portugal. The capital is a good place to start a weeks-long trip around the country, stopping off in places like Porto, the Douro Valley, and the Algarve. 

✅ You have a lot of luggage. Sometimes, with larger groups or families, it’s easier to rent a car, rather than lug bags onto the metro or try and squeeze them into a single Uber. It can also be more economical, even with the cheap public transport prices.

Don’t hire a car in Lisbon if: 

❌ You intend to stay in the city. The metropolitan public transportation system is reliable, affordable, and regular, so a car isn’t necessary.

❌ You don’t like busy roads. Driving in Lisbon isn’t as difficult as some European capitals, but it’s still a major city that comes with unique challenges.

❌ You want to save money. Sometimes, budget concerns outweigh convenience. Although we’ve got a good deal every time we’ve got a car in Portugal, it’s almost always going to be more expensive than public transport once you factor in things like petrol and parking.

#2 Our Experience

We recently decided to rent a car in Lisbon downtown specifically so we could visit Sintra and the famous Pena Castle. There is a direct train that runs between the city centre and Sintra that departs multiple times an hour, but we felt that having a car would make our daytrip super easy and comfortable – which it did! ☺️

We used SIXT on that occasion, but honestly, we wouldn’t necessarily recommend them. The office we went to was understaffed, so we waited over an hour to pick up the car. Then, on returning the car, the staff tried to pin on us some damage to one of the alloy wheels. 

Luckily, we had carefully recorded all the vehicle’s imperfections so we could prove the damage was there already. 😫 Still, that kind of experience leaves a sour taste in the mouth.

We had a better experience with Drivalia, who we leased a car from in Porto as part of our Algarve road trip. While we didn’t rent a car at Lisbon airport, we did drop it off there, and we didn’t have any issues with the staff.

#2 Cost Of Hiring A Car In Lisbon

The number one question running through your head is probably how much is it to rent a car in Lisbon? There’s no shame in admitting cost is a big factor in most decision-making processes.

Prices obviously vary according to the time of year, but for both a vehicle and accompanying insurance, we were quoted about €120 for 1 week for a small car. 

That was fine for us, but we could have got an SUV for about €30 more, which is something to consider if there are more than 2 people in the vehicle – or you travel with your complete wardrobe!

To get the best price, we recommend booking as soon as you have an idea of your travel plans. We always book through DiscoverCars, which offers a generous cancellation policy, so we never worry too much if our itinerary changes.

Keep in mind that you’ll also need to pay at least €1,000 for a security deposit when renting a car in Lisbon, Portugal. We used a credit card, so they only reserved the money. If you supply a debit card instead, which some places will let you do, the money leaves your account, and you have to wait for a refund after returning your vehicle.

Is it annoying having to budget extra for this? Yes, but it’s also common practice when renting a car in Europe, so there’s not much to do but suck it up! Part of the reason we always tag on DiscoverCars’ full coverage insurance is because it protects our deposit, so we don’t have to worry about losing out.

We also paid a €100 deposit for toll roads, most of which are now digital in Portgual. Basically, scanners register when you enter and exit the toll roads, and the associated charge is then deducted from your balance. Any money left over when you return the vehicle is refunded a week after you return the car. Super simple, super convenient.

Finally, don’t forget to budget for petrol (always a significant expense) and parking (mostly great value in Portugal) when you’re hiring a car in Lisbon.

#3 How & Where To Rent A Car In Lisbon

The easiest way to rent a car in Lisbon city is online, and the earlier in advance, the better! That’s the best way to snuffle out the discounts.

DiscoverCars is our go-to for all our travels because they have a whole bunch of different rental companies that work with them. The interface is super clear so that you can see and compare all the options easily. 

There are usually more than a thousand different deals available, so it can take us a bit of time to narrow down our options. To help with that process, the DiscoverCars site has multiple filters, such as the number of seats, supplier rating, manual vs automatic, and so on. 

If you do go with DiscoverCars, we recommend paying a bit extra for their full coverage, which just provides that additional peace of mind in case something goes wrong. We’re not overly big worriers in general, but having been on many road trips at this point, it’s safe to say we’ve had our fair share of unexpected issues!

Now we’ve got how to rent a car in Lisbon out the way, let’s talk about where. There are two main choices: airport or city centre. 

If you rent a car from Lisbon airport, you have the convenience of picking it up as soon as you get off the plane and dropping it off right before you leave. No need to worry about taxis or public transport to get between the airport and your accommodation. 

In this scenario, you’d ideally only book a place to stay that comes with free parking because you really don’t want to nail down the dream Airbnb only to realise it’s 30 minutes from the nearest garage!

The other option is to pick up your car in town. Obviously, you don’t get the convenience and comfort of having your own vehicle as soon as you touch down, but it does mean you don’t have to worry about parking either. 

Instead, you can explore Lisbon at your leisure using public transport, only picking up your car when you want to go on short excursions out of town to Sintra or Cascais or when you’re ready to leave the city to go on a longer Portugal trip or Algarve road trip.

#4 Renting A Car In Lisbon: Requirements

There are really only 4 things you need to think about when hiring a car in Lisbon:

✅ Driver’s licence. Usually, rental agreements will stipulate that you must have had your licence for at least a year. International Driving Permits (IDPs) are required for some nationalities – this info should usually be supplied on your government’s website. FYI, EU, US, and UK citizens don’t need one.

✅ ID. This needs to be something other than your driver’s license, so that the leasing company can verify your identity. We usually show a passport.

✅ Credit card. This is for security deposit purposes. It’s not impossible to rent a car in Lisbon without credit card details, but just bear in mind that only some companies accept a debit card as an alternative.

✅ Age. Legally, cars can only be rented to people who are 21 and over, even though the driving age is 18. Also, car quotes are often more expensive if you’re under 25.

#5 Is Renting A Car In Lisbon Safe?

Yes, it is safe, as long as you take the same precautions that you should take anywhere in the world. 

First, thoroughly record the condition of the car using your smartphone before leaving the lot. That should help cover you in case there are disputes down the road. We also always take out full coverage with DiscoverCars to double protect ourselves.

Second, crosscheck your shortlisted results on DiscoverCars against reviews on Google Maps and Trustpilot. Especially if you want to rent a cheap car in Lisbon, it’s worth doing a bit of snooping on the reputation of a rental office, just to make sure the deal isn’t too good to be true.

This is a good idea with both brands you may not have heard of before AND well-known international brands. Just because a company is a respectable global giant doesn’t mean their local office in a specific location doesn’t have a bad rep for shady dealings.

#6 What Kind Of Car Is Recommended?

There aren’t really any limitations on what kind of car you can choose for Lisbon – and the same holds true for Portugal more generally. Roads are good quality and well-marked, so you can get away with pretty much any kind of vehicle.

Having said that, there are a few things to consider that might influence your decision: 

⭐ Driving distance. Are you planning to stick to Lisbon and its surroundings, or are you embarking on a bigger Portuguese adventure? Long-distance travel is always more comfortable in a larger car, not just because of space, but also because heavier vehicles have better equilibrium as you zoom down the highway. 

⭐ Cost. Cheap car rentals in Lisbon are usually small, manual vehicles. If you want to be as economical as possible, get something like a VW Golf or Seat Ibiza.

⭐ Number of people. This is also tied to comfort. We can say from personal experience that 2 people can fit into a little car, no problem, but 4 people (especially if some of them have long legs) might need a bit more room.

⭐ Parking. A good reason to get a small car is it’s easier to fit into snug parking spaces. Lisbon isn’t as bad as Rome for crazy-small bays, but it never hurts to be petite in these situations!

⭐ Your normal car. There are plenty of adaptations you have to make when driving in a foreign country, but getting used to a totally new vehicle doesn’t have to be one of them. Given the breadth of car-leasing options out there, it’s usually possible to get something similar to what you have at home, which can make for a smoother holiday experience.

#7 Parking In Lisbon

Should I rent a car in Lisbon if my Airbnb or hotel doesn’t have parking? Well, there are parking garages, and some of these have reasonable daily fares. It just depends on whether you can find one conveniently near your accommodation. 

Personally, we didn’t really bother driving around Lisbon itself, other than when we were picking up the car downtown. It’s just not particularly necessary, given that public transport is efficient and cheap.

#8 Is It Hard Driving In Lisbon?

No, it’s not hard, although Lisbon can be a little hilly in places with some narrow streets. Local drivers aren’t aggressive or pushy, so you can take your time navigating the roads. If you are not confident generally when it comes to driving in the city, it’s easy to just slowly follow the traffic.

Most of the signage is pretty self-explanatory in Portugal, but if you want to brush up on the various images you are likely to encounter, you can do a little bit of revision online. One thing that did catch us out a few times on our first visit was the place names. For example, Lisboa is Lisboa, not a completely different city!

#9 Awesome Places To Visit With A Hire Car In Lisbon

The main reason for renting a car in Lisbon isn’t to get about the city, but to get out of the city! Here are 4 of our favourite day trips from the Portuguese capital: 

📍 Nazare

Nazare is famous for its big waves, which have made it one of the popular surfing destinations in Portugal during the winter. Even for non-surfers, the views of the spraying surf from Forte de São Miguel are majestic enough to warrant a visit.

During the summer, Nazare has several long, sandy beaches where you can lounge about all day, picking up a tan. It’s 90 minutes to the north of Lisbon, so perfect for a day out.

📍 Cascais

Just over half an hour west of Lisbon, Cascais is a prime piece of the Portuguese Riviera. Home to lavish mansions, upmarket restaurants, and a surprisingly enthralling Museum Quarter, it’s a luxe place to spend a day out living the high life.

The reason it’s become such a hotspot is because of tis hugely attractive coastline, which blends sandy coves with rugged cliffs. We found it a perfect place to go for enjoyable hikes.

📍 Sintra

For many centuries, Sintra was essentially where the royals skipped off to when they wanted a little R&R. Of course, they needed somewhere opulent to stay during these getaways, which is why the area contains a fabulous collection of palaces and gardens.

About half an hour from Lisbon, Sintra is also home to the remains of what was once an expansive Moorish castle. You can still walk the walls today, as they undulate over the landscape.

📍 Evora

Located approximately 90 minutes from Lisbon, Evora is home to a collection of fabulous and unique monuments, including a Roman Temple from around the 1st century AD.

It’s most impressive buildings, though, are the magnificent cathedral, which lords it up on top of a hill, and the grim but fascinating Chapel of Bones, whose walls are lined with skulls, femurs, and other skeletal remains.

Final Word

We’re going to wrap this up by noting that there are very few scenarios where renting a car in Lisbon makes sense if you’re only in town for a long weekend and just plan to stick to the city’s major sights. If you want to get a little way out of the capital to see some of the amazing historical and natures sights that lie just outside its boundaries, however, then getting your own vehicle is absolutely the way to go!