Cars & Driving
PortugalCars & Driving
Welcome to the Land of Discovery. Known for its impressive coastlines and fascinating cities, Portugal can be an excellent location to get behind the wheel. However, acquiring a vehicle on the 'Green Continent' comes with a multitude of challenges such as bureaucratic red tape, emission taxes and the rapidly evolving sales market. This section is essential reading for all expats and local Portuguese citizens wanting to save time, money and a significant amount of stress.
To buy a car in Portugal you need a fiscal number (NIF) and proof of residence. As for the price of a car, new vehicles generally cost between €15,000 and €30,000, depending on the size, while second hand versions are affordable. Remember to also bear in mind the paperwork that may be required as well as other factors such as insurance and the cost of official registration.
To drive a car in Portugal, you have to be at least 18 years old and hold a valid driving licence. Non-EU residents are required to hold an International Driving Permit (IDP) in addition to their domestic licence. The Portuguese driving licence is issued by the Instituto da Mobilidade e dos Transportes (IMT). The costs of getting a Portuguese licence, including taking driving lessons and passing the various tests, can range from €500 to €1,000 ($550 to $1,100 USD).
In Lisbon prices tend to be higher due to the demand. In Porto the prices are generally 10% lower than in Lisbon.. The period to renew a driving license in Portugal is of 15 years up to 60 years old, and after 60 years it reduces to 5 years up to 70 years, and from 70 onwards to 2 years.
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IMT (Instituto da Mobilidade e dos Transportes) offices across Portugal handle driving license applications and renewals. The IMT office in Faro is known for its efficiency, with license renewals typically completed within a week. The Coimbra office is also well-regarded for its customer service. In Braga, intensive courses are available that can reduce the time needed to pass the Portuguese theory exam. Being familiar with these options can save both time and money.
Are you looking to buy a car in Portugal? You have two options – you can buy a brand new car or a pre-owned car. New cars are generally warranted and are available in a price range of €15,000 to €30,000 ($16,500 to $33,000 USD). On the other hand, pre-owned cars can be bought at a lower cost ranging from €5,000 to €15,000 ($5,500 to $16,500 USD). While new car sales are available in Lisbon at all new car dealerships, the second-hand car market is said to be strong in Porto.
Used vehicles in Portugal retain a higher value as a result of strong demand and limited offers. Used vehicles in Faro are extremely popular in the international community in Faro as they're also much cheaper. In Coimbra car dealers sometimes also propose financial packages for both new and used cars. Braga is quickly becoming a core market in Portugal for Electric & Hybrid cars.
In Setúbal, used cars are a popular choice due to the region's mild climate, which reduces wear and tear. The secondhand market offers a wide selection, from compact city cars to larger family vehicles. Prices in Setúbal tend to be 10–15% lower than in Lisbon, making it an attractive option for budget-conscious buyers.
The Portuguese car market is varied with budget options at one end of the spectrum and luxury cars at the other. New cars on average are priced around €25,000. In Lisbon, because of heavy urban use, small cars remain one of the largest segments, but in Porto where the attitude and habits of citizens are changing, such as larger families, demand for SUVs has significantly increased.
A Vehicle Tax (Imposto Sobre Veículos) must be paid on new vehicles when they're purchased in Portugal, which can represent a considerable expense. Buy a convertible in Faro and take advantage of high demand for them among foreign tourists and new residents in the region. The car market in Braga is developing well and we benefit from very competitive sales prices for customers.
The region of Coimbra is becoming a focal point for growing interest in low-emission vehicles. One driver of this trend is the increasing number of students at the University of Coimbra, who bring a stronger environmental awareness. In Aveiro, the used car market is performing well, with affordable pre-owned vehicles in high demand. These regional trends offer valuable insight for anyone looking to purchase new or pre-owned transport in Portugal.
Car insurance is compulsory in Portugal and third party liability is mandatory. it's highly recommended to have complete insurance, with annual prices ranging from €200 to €600 ($220 to $660 USD) depending on the type of vehicle and the characteristics of the driver. In Lisbon, the car insurance prices are higher due to the greater concentration of vehicles on the roads.
Portugal has a selection of insurers offering pay-as-you-drive insurance deals. Prices in Porto are generally reasonable, and most insurers offer discounts for clean driving records. In Faro, several insurers specialize in providing coverage to expats, with competitive rates and English-language support.
Insurance in Coimbra is a relatively competitive business, with a number of brokers based here who specialise in providing advice. In Braga, the monthly premiums for young drivers are noticeably lower when covered through a family policy. Carefully researching your car insurance policy is a worthwhile exercise – costs can be potentially high and shouldn't be taken lightly.
Fuel prices in Portugal as of 2026: The average fuel price in Portugal is €1.70 per liter, or about $1.87 USD, with diesel a bit lower at €1.60 per liter, or $1.76 USD, depending on movements in oil prices worldwide. Fuel prices are more expensive in cities, and particularly in the capital city of Lisbon.
The fuel tax in Portugal is among the highest in Europe. However, petrol and diesel are generally cheaper at stations in cities like Porto, where discount fuel outlets are available. Fuel prices in Faro tend to increase during the peak tourist season in summer.
Carpooling is a great way to reduce transport costs for students in Coimbra. Public transport is another viable option to help reduce fuel costs for motorists in Braga. In Setúbal, many motorists are also choosing to drive more economic cars to cut costs. Knowing how fuel prices are set and how fuel consumption is calculated can also help you to better plan your transport costs.
In Portugal it’s Driving on the Right hand side of the road and the speed limits are as follows:. Urban areas: 50 km/h. Rural roads: 90 km/h. Motorways: 120 km/h. Drivers and all passengers must wear their seat belts at all times.. Using your mobile phone while driving isn't allowed if you aren't fitted with a hands free device.
Portugal has some very strict drink-driving laws, with the limit set at 0.05% (note that it's illegal to even have a breath test tube in your car after having a drink). On the roads of Lisbon, congestion is a major plague, particularly during rush hours. In Porto, many stretches of road have been equipped with various types of traffic calming measures.
In Faro, there are a lot of roundabouts and in roundabouts, you have to give priority to the traffic coming from the left. In Coimbra, the area where pedestrians had most problems is being adapted so that pedestrians have priority. In Braga, the city council modernised all the traffic lights so that the circulation of vehicles is more efficient. Obeying the traffic rules not only protects the life of others, but also avoids fines.
Portugal has a good network of main and secondary roads. Its modern motorway system, known as autoestradas, covers many routes to main cities. The country’s main motorway is the A1, which connects Lisbon and Porto, and is a major transportation artery. However, secondary roads and rural routes need improvements.
Portugal has invested heavily in toll roads, which are always kept in very good condition. The roads in and around Lisbon are also undergoing constant improvement to deal with increasing traffic. the orbital roads around Porto are also helping to ease congestion.
Faro has a number of motorways and main roads that pass through the coastline of the region, although the main roads along the coast can get quite congested in the summer months. In Coimbra, the new infrastructure projects are improving the links to the exterior of the province. Braga has a good network of roads that ensure a strong connection to the economy of the city. Understanding the state of the roads can be very helpful when planning your trip.
Parking in the Portuguese cities can be a real headache. There are few parking spots available and high demand for them. In Lisbon, the rates vary between €1 and €3 per hour (approximately $1.10-$3.30 USD) in the city centre. In Porto you can find some free parking spots outside of the city centre.
Portugal has an electronic toll system called Via Verde. Paying tolls in your car used to be a frustrating stop and go business, but this system really changed the dynamics of traveling by car in Portugal. Another about Faro is that you can actually park your car in this city without too much of a hassle. There are a number of public car parks.
Coimbra has added several new public car parks near the University district, easing the parking pressure in the city centre. In Braga, new smart parking systems help drivers find available spots quickly. Portugal's intelligent toll system (Via Verde) continues to expand, making motorway travel more convenient across the country.
Research shows the best way to buy a car in Portugal is to first get it homologated with a (Documento Único Automóvel). This involves having the car checked and an official plaque and number plate added. The DUA must be renewed every two years and also involves passing a emission test as well as an annual road worthiness test. The (Imposto Único de Circulação) or licence tax is paid for the first time when a car is registered. Registration in general takes a week to two weeks. The official charges are in the region of 150 € to 300 € ($165 to $330 USD).
D this: New imported vehicles have to undergo an official technical inspection and be adapted to the standards and regulations of Portugal in order for them to be eligible for registration. In Lisbon, however, all that remains to be done for registration is to access the IMT online system.
Local offices in Porto can help to get you registered very quickly, usually within a week. Expats commonly ask for help with registration from local companies in Faro. The IMT office in Coimbra also provides a great resource to help with the move and any questions you may have about the registration of foreigners. Registering foreigners in Portugal is a process that needs to be understood to avoid any confusion that may cause delays in official procedures.
You can see that new policy developments are emerging almost on a daily basis. Portugal has a clear and focused policy supporting the electrification of transport through a whole range of measures, including reduction of the tax for registration, as well as financial support. Electric vehicles currently start at about €25,000, but can also be made available with a grant of up to €3,000.
The official objective is for 20% of the cars in Portugal to be electric by 2030, and this in a country that has already built out a huge number of charging points. In Lisbon, there's an enormous investment in charge points, and they're sprouting up all over the place.
Porto has been implementing eco-friendly, low-emission plans for public transportation, including adding new electric buses to the fleet. EV charging infrastructure continues to expand across the Algarve region, with Faro seeing significant investment. Research partnerships between Portuguese universities and the automotive industry are advancing electric vehicle technology. Switching to electric transport reduces environmental impact and can significantly lower long-term expenses.
When purchasing a car in Portugal, understanding the associated costs and data is crucial. Below is a comparison table outlining the costs involved in obtaining a driving license and purchasing cars, along with other relevant data.
| Item | Cost (EUR) | Cost (USD) | Notes |
|---|---|---|---|
| Driving License (Lessons & Exams) | €500 – €1,000 | $550 – $1,100 | Includes theory + practical lessons |
| Vehicle Registration (DUA) | €200 – €400 | $220 – $440 | Includes IMT processing fees |
| Vehicle Tax (ISV) – New Car | €1,000 – €5,000 | $1,100 – $5,500 | Varies by engine size and emissions |
| Annual Road Tax (IUC) | €30 – €500 | $33 – $550 | Based on CO2 emissions and engine capacity |
| Car Insurance (Annual) | €200 – €600 | $220 – $660 | Third-party mandatory; full coverage recommended |
| IPO Inspection | €30 – €40 | $33 – $44 | Required every 2 years (after initial 4 years) |
| Annual Maintenance | €150 – €300 | $165 – $330 | Oil change, brakes, general servicing |
Portugal has modified the Imposto Sobre Veículos (ISV) rates for cars, arising an increase in the rates for high-emission vehicles.
Enhanced penalties for speeding and mobile phone use while driving were introduced.
Additional funding for electric vehicle subsidies was announced, increasing grants by 20%.
The cost of living in different Portuguese cities can significantly impact a car-buying budget. Lisbon is the most expensive city, with higher costs for rent, food, and entertainment. Porto is also relatively expensive but generally 10–15% cheaper than the capital, especially for rent and dining. Faro has mid-range prices overall, though costs can spike during the tourist high season.
Cost of living in Coimbra is lower and slightly lower in Braga. This makes Coimbra a great study destination for students, and also offers a reasonable alternative for young working professionals. Braga is also a good option for families and senior citizens looking for an affordable yet modern place to call home. Knowing the cost of living in each destination helps you better plan your budget and allows you to have enough money for running your car.
Buying in the off season — from November to February — is highly recommended. During this period, car dealers are eager to make sales and will often offer special promotions to attract buyers. Working with a car broker can also be advantageous, as brokers are well-informed about current prices and can negotiate concessions on behalf of the buyer.
Checking online marketplaces such as StandVirtual, OLX.pt, or CustoJusto.pt is recommended for finding good deals. These platforms list both new and used vehicles across Portugal. Always check the vehicle thoroughly and carry out background checks. With used cars, verifying the mileage and service history is essential, as undisclosed maintenance issues can be costly later.
Financing your car purchase in Portugal Financing your car in Portugal can be a complex process, as a vast number of banks and other financial institutions offer a large variety of car loan options, which vary by rate and terms. Many of the main banks in Lisbon offer relatively attractive financing options, including Caixa Geral de Depósitos and Banco Santander Totta. The local credit cooperatives in Porto sometimes offer even more accommodating terms for the local population.
In Faro, several banks offer vehicle financing tailored to expats, with competitive interest rates and flexible repayment terms. In Coimbra, financing options are generally available from major banks, often with the option of pre-approval. When choosing a financing deal, it is always worth comparing offers from multiple institutions and ensuring full understanding of all fees, interest rates, and conditions.
The purchase price is just one of the costs that drivers in Portugal have to contend with.it has been calculated that car owners are on average having to shell out a further €800 a year in levies. The annual charge for vehicle registration can be anything from €45 to €65 ( approximately $50 to $72 USD) and the road tax or Imposto Único de Circulação (IUC) can start at €60 ( $66 USD) and rise to as much as €300 ( $330 USD) a year, depending on the size of the engine and levels of emissions.
Servicing and repairs can also be a factor. Expect to pay around €150 a year. And if your car breaks down, repairs can be even more costly, often over €500. Taking into account average fuel prices for Portugal are around €1.60 a litre, which is around $6.05 per gallon USD, you’ll need to allow for costly fuel too.
The choice between new and used cars in Portugal can significantly impact your budget. Below is a table comparing the average costs of new versus used cars in major Portuguese cities.
| City | New Car (EUR) | New Car (USD) | Used Car (EUR) | Used Car (USD) |
|---|---|---|---|---|
| Lisbon | €16,000 – €32,000 | $17,600 – $35,200 | €8,000 – €20,000 | $8,800 – $22,000 |
| Porto | €14,000 – €28,000 | $15,400 – $30,800 | €6,000 – €18,000 | $6,600 – $19,800 |
| Faro | €15,000 – €30,000 | $16,500 – $33,000 | €7,000 – €19,000 | $7,700 – $20,900 |
| Coimbra | €13,000 – €26,000 | $14,300 – $28,600 | €5,500 – €16,000 | $6,050 – $17,600 |
| Braga | €13,000 – €25,000 | $14,300 – $27,500 | €5,000 – €15,000 | $5,500 – $16,500 |
In Portugal, all vehicles must undergo an IPO (Inspecção Periódica Obrigatória) inspection at regular intervals to be declared roadworthy. The initial inspection is four years after the first registration, and then every two years for the next four years, before being increased to an annual check for the remainder of the car’s lifespan. The cost of an IPO is in the region of €30 – €40.
Mechanical maintenance is fundamental to the extension of the life of a vehicle. You can ask at any dealership in Lisbon for the maintenance of a car, changing oil, checking brakes, among other services. However, in Porto the independent garages are the ones that generally offer the most advantageous prices, and there they offer a much more personalized service. In addition to providing a safer way to move, the punctuality of the mechanical maintenance also maintains the value of a car at the time of selling.
Yes, foreigners may purchase a car in Portugal. The conditions to purchase a car in Portugal are as follows: NIF, proof of address.
Car insurance costs can vary. As of the latest update, most insurers tend to charge between €200 and €600 per annum.
Obtaining the Documento Único Automóvel and paying the yearly Imposto Único de Circulação are the steps involved in the car registration process.it should take about 1-2 weeks to get everything done.
Yes, in Portugal you may be eligible for a discount of up to €3,000 on an EV, in addition to reduced Stamp Duty (IMT).
The legal driving age in Portugal is 18 years.
Fuel prices (as of 2026) Average petrol price: €1.70 per litre. Average diesel price: €1.60 per litre.
Maintenance costs can vary. however, the new taxes on fuel, along with the ever increasing costs of insurance, are making owning and operating heavy vehicles a more expensive option.
In Portugal, the speed limit for vehicles is 50 kilometres per hour in urban areas, 90 kilometres per hour on rural roads, and 120 kilometres per hour on motorways.
Non-EU residents need an International Driving Permit alongside their national license.
Portugal has a well developed network of main roads and motorways, as well as secondary roads and urban streets, with modern highway infrastructure and a well-maintained system of toll roads.
Buying a car in Portugal requires a valid license and a fiscal number (NIF). This guide covers the full process, from applying for a license to purchasing a vehicle, as well as insurance, taxation, and registration. The Portuguese car market offers a wide range of options, from budget-friendly used cars to premium new models.
Portugal is a fantastic country to explore by car, with scenic coastlines, historic cities, and charming villages accessible by road. Whether purchasing new or used, thorough research and an understanding of local regulations will ensure a smooth experience. For the most current information, always consult the official sources listed below.
Gathering accurate information is essential when considering purchasing a car in Portugal. Below are some reliable sources and official links to assist in your research and decision-making process. - Instituto da Mobilidade e dos Transportes (IMT): The official body for driving licenses and transport regulations in Portugal. Visit their [official website](https://www.imt-ip.pt) for detailed information on driving license requirements and renewals. - Automóvel Club de Portugal (ACP): A valuable resource for car buyers, offering insights into the Portuguese car market and insurance options. More details can be found on their [website](https://www.acp.pt). - Portal do Cidadão: The government portal providing comprehensive information on vehicle registration, taxes, and legal requirements. Access the portal [here](https://www.portaldocidadao.pt). - Sapo Carros: A popular car marketplace in Portugal, offering listings for both new and used vehicles. Explore options at [Sapo Carros](https://carros.sapo.pt). - Euro NCAP: For safety ratings and reviews of cars available in Portugal, Euro NCAP provides extensive data. Visit their [website](https://www.euroncap.com). These sources provide a wealth of information to help you make informed decisions about purchasing a car in Portugal. Always verify the latest data and consult local experts when necessary.
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