Renting a car in Madeira and the rest of Portugal can be one of the best decisions you make for your trip, especially if you plan on exploring beyond the cities like Funchal, Lisbon or Porto. Having rented cars in Portugal seven times now, including in Madeira, I have lots of insights, tips, and tricks to share.
Renting a Car in Madeira and Portugal Table of Contents
- My Personal Experience
- Where to Rent a Car in Portugal
- FAQ Renting a Car
- Gas vs. Electric: Which is Better?
- Automatic vs. Manual Transmission
- Do You Need an International Driving Permit (IDP)
- Car Rental Insurance
- Portugal Specific Driving Tips
- Drinking and Driving Laws in Portugal
- Parking in Cities and Historic Towns
- Toll Roads: How to Pay and Avoid Hassles
- Car Seats and Mom Tips
I am an affiliate for RentalCars.com, Booking.com and Amazon Associates so some of the links below may give me a commission at no extra cost to you, thanks!
My Renting a Car In Madeira Experience
Renting a car from Madeira Airport (FNC) was incredibly easy and hassle-free for our family on our last trip. Since the airport is small and well-organized, picking up our rental car was a seamless experience. Unlike larger international airports where you often have to take a shuttle to an off-site rental location, Madeira’s rental desks are conveniently located inside the terminal, literally 30 feet from baggage claim!
We booked via RentalCars.com before we arrived. Then after a quick check-in with the rental company, we walked straight to the parking lot, where the cars are parked just outside the terminal. Then, were on the road, ready to explore the island. The entire process—from landing to driving away—was so smooth that it made renting a car in Madeira one of the easiest experiences we've had in Portugal!
Renting a Car from Lisbon Airport
Likewise, Lisbon Airport's car rental is located just inside the terminal and you don't have to take a shuttle. We have had longer wait times because it is a busier and larger airport with many more car rental companies. It still makes a lot of sense to rent a car to explore Lisbon though!
My sister and her family recently booked an automatic rental from the Lisbon airport for seven days for just €130 with Sixt in 2025! When you factor in the cost of trains, buses, and Ubers, renting a car can be more cost-effective and provide far more flexibility—especially when traveling with young children.
We use RentalCars.com to compare different companies like Sixt, Enterprise, Hertz and Gurein. It's easy, the best rates and we've found has great customer service.
Public transportation in Portugal is excellent, but train strikes can occur. If you have a limited time to explore, renting a car can help you maximize your trip. Just last week, friends were stuck on a commuter train from Lisbon to Cascais for hours when the journey typically takes only 30-40 minutes! Unless you’re planning to stay exclusively in Lisbon, renting a car is a fantastic option.
Where to Rent a Car in Madeira and Mainland Portugal
We’ve rented a car 7 times in Portugal without any issues and have consistently found great deals using RentalCars.com. This website allows you to compare rental options from companies like Sixt and Hertz, ensuring you get the best price and customer service. RentalCars.com is a Booking.com company, so their customer support is reliable and responsive.
We've done pick up mostly at the airports as I shared above but also in downtown locations when we need the car in the middle of the trip. Both have been convenient but I will say check the rental car company open times at the airport. Once we landed at 6 AM and the rental car counter at Lisbon airport didn't open until 8 AM!
And if you are looking for a Family Friendly All Inclusive hotel on Madeira, I've written all about our family's experience at Enotel Lido near Funchal.
FAQ Renting a Car in Madeira, Lisbon and Porto
Gas vs. Electric Car Rental in Portugal
Gasoline in Portugal is expensive, currently averaging around $7.30 per gallon! Because of this, you may want to consider renting an electric car. We drive an electric car ourselves and use the Miio App, which provides a map of charging stations throughout Portugal. Many grocery stores, like Lidl and Aldi, offer charging stations, so you can conveniently charge while shopping. This can help you save significantly on fuel costs but you have to be mindful of charging time when doing a road trip.
Automatic vs. Manual Transmission Car Rentals in Portugal
If you’re used to driving an automatic, be sure to specify that when booking your rental car. Manual transmission cars are far more common in Europe and usually cheaper to rent. However, given the steep hills in Madeira, we were advised that choosing an automatic was a smart choice for an easier driving experience. While automatics are slightly more expensive, rental car prices in Portugal are generally reasonable (€30-40 per day), making it worth the extra cost for peace of mind.
All the details of our Family Holidays in Madeira including Whale Watching!
Do You Need an International Driving Permit (IDP)?
You do not need an International Driving Permit (IDP) to rent a car in Portugal. We initially got one from AAA in the U.S. just in case, but in all our trips, we have never been asked for it. All you need is your U.S. passport and driver's license.
Car Rental Insurance: What You Need to Know
Before finalizing your car rental, make sure you understand the insurance options available:
- Rental Company Insurance: Rental agencies offer different coverage levels, but they can be expensive.
- Credit Card Coverage: Some U.S. credit cards, like the Chase Sapphire Preferred or American Express Platinum, offer rental car insurance for international travel. Check your card’s benefits before your trip.
- Third-Party Insurance: You can often purchase cheaper insurance through RentalCars.com or other providers at checkout.
- Important Tip: Always inspect the car for existing damage before driving off. European rental companies are very strict about even the tiniest scratches. Take photos and videos of the vehicle to avoid disputes.
Portugal Specific Car Rental Considerations
Drinking and Driving Laws in Portugal
Portugal has strict drinking and driving laws, with a legal BAC limit of 0.05% (compared to 0.08% in the U.S.). For professional drivers and new drivers (licensed for under three years), the limit is even lower at 0.02%. Portuguese police conduct frequent roadside alcohol checks, even if you haven’t committed an offense. Be aware of these limits if you plan to have wine or port with your meals.
Parking in Madeira and the Rest of Portugal
Parking in Portugal’s cities and islands, especially in Lisbon and Porto, can be difficult and expensive. Some key points:
- City Parking: Public garages are available but can be costly. Search for "estacionmento" on google maps.
- Street Parking: Be mindful of restricted areas and time limits. We use Google Translate to help translate the signage!
- Historic Towns: Many old town centers have parking restrictions, so you may need to park on the outskirts and walk.
- Hotels: Some accommodations offer free or discounted parking, so check with your hotel before booking and you can even search "parking included" on Booking.com
Toll Roads in Portugal when You Rent a Car
Portugal has an extensive toll road system, and some tolls are electronic-only. I highly recommend opting for your rental car company’s electronic toll payment program, as it simplifies the process. If you don’t use this option, you’ll need to manually pay for tolls online after your trip, which can be a hassle.
Car Seats in Portugal Car Rentals
If you’re traveling with kids, know that Portuguese law requires car seats for children under 135 cm (4 feet 5 inches). Some rental companies offer car seats, but availability can be limited, and the quality isn’t always great.
- Our Recommendation: Bring your own travel car seat. We’ve used portable options and even taken them on flights and Ubers.
- Taxis: Car seats are not required in taxis, but they are still recommended for safety.
Options for Car Seats in Portugal
- Buy a lightweight booster at a Portugese store Continente or Worten which vary from $10 - $50 euros.
- Bring your own carseat and use a carseat bag to carry. We love this brand and it lasted many interaction flights.
- We've used this MiFold Comfort Grab and Go Backless Booster in Ubers and it has worked well. This car seat is designed for kids aged 4 and up, 40-100 lbs., and 40 to 59 inches tall. They also make a Highback Adjustable Boosterwhich I have not used. It is for similar age and size kids but slightly larger.
- I've also heard great things from parents about this RideSafer Lightweight, Compact, Portable Car Seat but I have not tried it myself. The small size is recommended to use 3 years and above and a weight between 30 lbs. and 60 lbs.
Mom Tip for Renting a Car in Portugal
We absolutely love Colibri service stations in Portugal (pictured above)! They are a lifesaver for families on road trips! With clean restrooms, delicious food options, and spacious seating areas, they make pit stops comfortable.
Most have little play areas as wells as these yellow toy vending machines for 1 euro. My kids always look forward to stopping there for lunch or charging/filling up our rental car!
And check out my separate blog post on Regional Packing and a full packing list for Portugal here!
Booking.com
More Portugal Family Trip Links
- Itineraries
- Best Family Hotels in Portugal (Lisbon, Algarve, Sintra, Porto)
- How to Get to the Castles in Sintra
- 20 Things to do in Sintra
And check out all of my Family Travel Tips here!
