How to drive in Portugal

Buying, renting, and driving a car anywhere in the world can be a never-ending matrix of information. Add that to not being familiar with a country’s rules, laws, and regulations, and you may find yourself wanting to smash up your driver’s licence, vowing to never step foot behind the wheel again. Portugal is no exception. This article will detail everything you need to know about cars and roads in Portugal, and hopefully make your experience somewhat more tolerable. 

You can buy any car you want, but not knowing how to drive your car on the roads will immediately put a spanner in those works (no pun intended). Therefore, we first look at my advice for driving on the sometimes pleasant Portuguese roads…

EDIT: Driving an Electric Car in Portugal

10 tips for driving your car in Portugal

1. Drive on the right-hand side of the road

I know, it sounds simple, right? But this one is for you Brits in Portugal. Too often when I first began my Portuguese driving experience did I find myself drifting over to the left-hand side on the smaller roads. Luckily, it’s very hard to make this mistake on the main, busier roads, but it can be a sub-conscious comfortability on the more rural roads in Portugal. So, don’t be stupid like me, ALWAYS remember to drive on the right-hand side!

2. Don’t turn right on red

If you’re coming over form the USA you should know that you can’t “turn right on red”. Its not common to do this anywhere in Europe and if it is allowed in Portugal you will be guided by a traffic light. Sometimes it’s a little confusing when arriving at some traffic lights and both the red and green lights are showing – look closely and there’ll be an arrow on the green light.

3. Road Quality

The roads are fantastic ever since we joined the EU in 1986. A lot of money has been pumped into the infrastructure here in Portugal.

Via Verde Transponder

There are many toll roads in Portugal and your bank account will certainly be able to tell if you have driven a long distance. The Via Verde detector will automatically take the money from your account which, I promise, is a lot easier than going through the agony of the CTT (Post Office) where you have a certain window to pay your tolls before a fine is imposed. Without the detector, you will find yourself at the CTT much more than you could imagine… Get one here https://visitors.viaverde.pt

4. Roundabouts

Portugal seemingly has their own set of rules for driving on roundabouts, differing to the universal understanding of them. In Portugal, the inside lane is prioritised, not the outside. If you are in the outside lane and reach an exit, you must take it. The police are often seen parked in unusual positions on the roundabouts to catch those not obeying these laws (which is actually against the law… to park on a roundabout).

5. Accessing the highways

Probably the strangest phenomenon of Portuguese roads are the on/off ramps. This is like a slip road, but the lane is reserved for both those trying to join the road and those trying to leave. This can be a nightmare, but it is best to get on/off these ramps as quickly as possible (permitted it is safe to do so). Leave it too long, and you will be trying to join the road at the same time somebody is trying to leave. 

6. Zebra crossings are everywhere

Rightfully, there are lots of zebra crossings in Portugal. Giving pedestrians the right of way is necessary, but it is the location of the crossings that are befuddling. On a blind bend in the road, immediately off the exit of a roundabout and sometimes behind the traffic lights, rather than in line. Always keep those eyes in front of you and bear this in mind when driving in Portugal, keep those pedestrians safe!

7. Cell phone / mobile phone use

All too often, I will see many people texting or calling on their mobile phone. There are many theories surrounding this. The police don’t enforce it. You won’t really get fined etc. Don’t listen to this, it’s untrue and mobile phone use whilst driving is illegal, like most places in the world. My driving instructor always told me, drive like nobody else on the roads can!

8. Accidents

Call 112 if you’re involved in a serious accident. Put your green reflective jacket on and if you need to take photos for insurance purposes you may do it.

9. Alcohol driving limits

Limits are the following in Portugal:

  • 0.5 – 0.8 grammes of alcohol per litre of blood in your system, up to €1,250 fine.
  • 0.8 – 1.2 grammes of alcohol per litre of blood in your system, up to €2,500 fine.
  • 1.2 grammes (and over) of alcohol per litre of blood in your system, possibility of losing your license.

10. Wear your seat belts

All occupants of the car need to wear their seat belts at all times. It’s the law (except for buses etc).

Brilliant! You’ve followed the rules above and driving on the roads is now more a walk in the park. However, if you are pulled over for whatever reason and the police want to see your documents… Quick, open-up this article and find out what you need.

Documents required in your car

For the driver:

  • Identity Document
  • Driving Licence 

For the car:

  • Proof of (at least) third party insurance 
  • Vehicle identification document (livrete) 
  • Proof of ownership of the vehicle
  • Vehicle inspection test report (road worthiness, MOT). The vehicle may be inspected up to 3-months before its due date:
    • All cars and motorbikes over 250cc with more than 4 years of age must be approved at a garage test centre
    • Every two years after that, they need to be tested until the vehicle is 7 years old.
    • From 8 years onwards, the vehicle must be inspected annually and there is no exemption for classic or vintage cars.  

The fine for not having the correct documentation can range between €60 and €300. 

Ensure your driver’s licence is legal in Portugal

If you’ve moved from an EU country

You may use your existing licence but you need to tell IMT within 60 days that you will reside and drive. When the licence expires then you must request the exchange for a Portuguese licence.

  1. To qualify for a Portuguese driver’s licence:
    1. You need to be over 18 years old
    2. Be physically, mentally, and psychologically able
    3. Have lived here for over 185 days, 
    4. Not be prohibited to drive by a court, 
    5. Not hold a driving license of the same category from another European Union country, Iceland, Liechtenstein, or Norway. 

If you qualify for a Portuguese driver’s license, you must do as follows:

  • While your existing driver’s licence is valid – you may use it in Portugal, but you must inform IMT, within 60 days, that you will reside and drive in Portugal.
  • When the licence expires or if you hold a licence of another category – you must request the exchange of the foreign licence for a Portuguese licence. 

US/UK citizens

US/UK citizens can drive on their licence up to 185 days. If you have residency,

  • you have 90 days to request the exchange (you need to surrender your licence for a Portuguese one) without doing a driver’s test (but you can still drive normally).
  • If you don’t do that, you cannot drive but have two years to request your licence without completing a Portuguese driver’s licence test (US Embassy.gov).
  • If you only apply for your driver’s license two years AFTER applying for residency, you’ll to write the Portuguese Driver’s license exam.

It’s suggested that you get an IDP International Driver’s Permit before you come here (from the AA or AAA). It’s apparently not legally required but it could make your life a whole lot easier if you’re in an accident.

Okay, now that’s all cleared up. You now know what documentation you need to drive a car, and how to drive a car in Portugal. There’s just one thing missing… ah yes, a car!

Buying a car in Portugal

What documents do you need?

  • Proof of residency (a rental agreement, proof of real estate purchase, residence card)
  • NIF – go to bordr.io/use coupon “nick” for $10 off – https://bordr.io
  • Identity documentation (passport, legitimate drivers licence etc.)
  • Method of payment

How much are cars in Portugal?

  • Toyota Corolla Sedan 1.6L 97kW Comfort: Portugal ($34k), UK ($29k), US ($22k) Source
  • VW Golf 1.4L 90 KW Trendline: US ($23k), UK ($28k), Portugal ($30k) Source
  • Mercedes Benz C300: Portugal ($71k), USA ($41k)
  • This is due to Portugal having the highest vehicle taxes (ISV) in Europe
  • Check out new car prices in Portugal with https://www.guiadoautomovel.pt/marcas
  • To find a second-hand car in good condition would be tough for anything under 8,000 euros, unless it was an older, small economy car but have a look at www.standvirtual.pt

4 tips for buying a car in Portugal:

  1. The good news is that the dealer is legally required to give you a 1-year guarantee.
  2. Annual road tax costs are significantly lower on vehicles registered here pre-2007 and cheaper on lower-emission vehicles, but on average around €60 per year, around €35 for smaller economy cars.
  3. You will need to go through the declaration of sales and purchase (administered by www.imtonline.pt ), and the seller would need to have this document in their name. To exchange over to your name, there is a small registration fee of about 60 euros.
  4. Use www.acp.pt  (the national motoring organisation) before buying a car so they can assess it properly for you and give you a detailed estimate of how much it should cost, to see if you are being ripped off or even getting a bargain

Oh, you already have a car that you love and would like to take that to Portugal with you? Here’s how to import your car into Portugal…

Importing a car into Portugal

  • First thing to note is that the process is NOT the same for everyone!
  • Look for a RoRo (roll on/roll off) Shipping Company or an Exclusive container service.
  • Depending on the price, weight, distance from Portugal and age of the car, the shipping can cost between $2,500 and $5,000.

Taxes

Two of the taxes you will need to pay along the way are VAT and ISV. Two groups of people that are EXEMPT from paying these taxes are:

  • Ex-immigrants (Portuguese citizens that emigrated and lived in another country for more than 6 months have the right not to pay these taxes).
  • Expats (the exception also applies to those who have a car in their own country and wish to import it only if they wish to relocate and officially become a Portuguese resident).

The only requirements are as follows:

  • You need to be 18 years of age or older.
  • You need to have owned your car for 6 months before moving to Portugal.
  • You must have lived in the country the car is from for at least 6 months.

You would also require the following documents:

  • Proof of residency from the country you have been living in.
  • All documentation that identifies you as the owner of the car.
  • Proof you have been living in that country (house payments, receipts etc).

Documentation required when importing a car from outside the EU:

This can vary from country to country, but the minimum you will have to do (in addition to all the above) is file at least one customs form of exportation. Once you arrive in Portugal, you will need to fill an online form of importation (Documento Administrativo Unico) – using the “STADA Importação”, a platform of the Autoridade Tributaria e Aduaneira (Tributary and Customs Authority). 

You will have to pay VAT most likely (unless you are one of the above exceptions) and a Customs fee. 

Requirements for everyone when importing a car into Portugal:

Certificate of Conformity

  • Document issued by the manufacturer, stating the technical and physical characteristics of the car to prove it meets all legal requirements.
  • Obtained from the manufacturer, dealership, or hiring a company that will do it for you, and you will need the car’s identification number.
  • Could take up to 15 days and could cost up to $250.

Transaction declaration

  • Proof you bought the car from a private citizen or a dealership.

IMT form Model 9

If you are only staying in Portugal for a short period, then it may make more sense to look at renting a car once you have arrived in Portugal. Here’s how you can do that…

Renting a car in Portugal

What do you need?

  • You need to be 18 years old with a full valid driver’s licence for at least one year (some car hires may have their own minimum age, usually around 21 years old and sometimes under 26s may be charged a small “young driver fee”).
  • Credit card – so the company can hold down (block) a security deposit (ours was around €1,000 but no charge is taken if there is no damage attained in your time).
  • Your Passport.

How much is a rental car?

  • This depends on size of car and insurance policy you take out (you can opt for premium cover instead of just 3rd party).
  • Smaller economy cars start from about €20 per day but this also depends on the season you’re hiring it.
  • Larger cars can range up to €100 per day (BMWs, Audi etc.).
  • For Opels, VWs, Vauxhall, or other cheaper manufacturers, usually around €30 per day.
  • Third party basic liability insurance is included with the standard price, but collision damage waiver and theft protection (optional) are not, which varies from €19 to €70 per day depending on the car.
  • Scout cars online over here at www.holidayautos.com

Tips for renting a car in Portugal

  • Always book online as this will be cheaper than paying when you arrive.
  • Choose the “full to full” tank option, meaning you are given the car with a full tank and return it as such, rather than paying for how much you want filling up, and choosing to return empty, you won’t be reimbursed for any leftover fuel so will lose money.
  • Make sure you take a picture of every mark or scratch or bump on the car and thoroughly inspect exterior and interior.
  • Return the car clean to avoid extortionate cleaning charges.
  • Get the Via Verde detector for €1.85 per day up to €18. This automatically subtracts toll charges from your credit card.
  • USE car rental comparison websites, like Kayak before booking.
  • Always read the fine print – car hire companies pricing is never as cheap as it seems.

Finally, you should be all set to cruise the warm, open roads of Portugal. 

If you would like to know more information about cars in Portugal, head over to our YouTube video below and hit SUBSCRIBE if you would like to see more content about living in Portugal!

13 Comments

  1. Warren Shalm

    Hi Nick. I’ve been trolling your Youtube videos and find them great. We are investigating retiring in Portugal and more specifically the Algarve, and will continue to follow your information.
    Just a quick question. Is this a typo from up above in the text? It says, “1.2 grammes (and over) of alcohol per litre of blood in your system, up to €1,250 fine.” which matches the lowest alcohol content?
    Keep up the good work.
    Warren

  2. HI Nick, any approximate guidance on typical motor insurance premiums annually.

  3. we are moving to Portugal in the next 2 years and are wondering whether to import a gas vehicle or a electric car what are your views on that appreciate any feed back

    • Hi Paula, there is a growing network or charging points so I’d definitely recommend bring an electric car. Just do a lot of research before you import any car into Portugal, it may be a LOT more work than you think and sadly every case is different.

  4. David Emerson

    My main question is about bicycle racks. I sort of accidently learned that bicycle racks on cars are quite restricted in Portugal. I was originally thinking to bring a fairly new (and expensive) one I recently got but now I’m not so sure. Do you use a bicycle rack and what’s the best way to carry bicycles on a car? I don’t really want to use the car-top style of rack.

    I’ve also been waffling back and forth on whether to bring my 2019 Kia hybrid. I do really love the car and would love to bring it, but there’s so much info out there advising against it. It gets over 50 mpg in the spring / summer months. I’m not actually looking for specific advice on this just “shoot from the hip” commentary.

  5. Hi. We’re planning on moving to Portugal in the next two years or so, but we’d first like to stay for only a few months before we make any major commitments. Portugal is only familiar to us through holidaying. What would be the best options to have a car available for us for a few months? Renting? Buying something and then selling it at the end of our stay?

    Thanks in advance.

  6. Hi Nick, I’m a current UK citizen, with a UK driving licence and am applying for an Irish (EU) passport.
    Where does this leave me in terms of driving in Portugal, as a new resident?

    • Hi Marie, If you’re under 60 and with a UK or EU passport you can drive on your existing license until you’re 60 (according to the latest regulations). If you’re over 60 you have to swop it for a Portuguese license (within 6 months of moving I believe).

  7. Oswin Monteiro

    Hi Nick,
    I’m oswin and I live in Goa. My wife and 2 teenage kids live in England past over 2 years.
    We are planning to relocate to Portugal, outskirts of Lisbon would be I deal I think.
    We intend to buy a house with in the budget of 130000 £.
    I am a hospitality professional with 20 years of experience, in India and international ( Dubai).
    We want to live and work in Portugal.

    Await your valuable advise,

    Regards,
    Oswin

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