Portugal is small, and that shapes everything about getting around it. Lisbon to Porto is under three hours by train; Lisbon to Faro about the same. Two cities have metros and nowhere else does. The interior is beautiful and effectively requires a car. And the single most repeated claim about Portuguese driving licenses — that you must exchange within 90 days — is wrong.
Driving licenses: the rule most guides get wrong
Under Decreto-Lei 46/2022 of 12 July 2022, which amended the RHLC, the position is:
- EU and EEA licenses are valid in Portugal until the document expires. Exchange is optional, and becomes practically necessary only at renewal.
- OECD and CPLP member states — which includes the United States, Canada, the United Kingdom, Switzerland, Brazil, Angola and Cabo Verde — holders may drive in Portugal without exchanging at all, subject to cumulative conditions: the license was issued or last renewed not more than 15 years ago; the holder is under 60; the holder meets Portuguese minimum ages for the categories held; the license is not suspended, seized, expired or revoked; and the issuing state is party to the Geneva 1949 or Vienna 1968 conventions or has a bilateral agreement with Portugal.
- Other bilateral-agreement countries: residents have up to two years after establishing residency to exchange; non-residents may drive for 185 days.
- Non-convention countries: exchange is mandatory and requires a practical driving test for each category.
The practical reading. An American, Canadian or Briton under 60 holding a recently issued license can legally keep driving on it after taking up residence. But the exemption lapses on your 60th birthday, or once the license passes 15 years from issue or renewal — whichever comes first — and at that moment exchange becomes compulsory. Many people therefore exchange proactively rather than discover the cliff edge on a birthday. Note one exception the FCDO flags: Jersey, Guernsey and Isle of Man licenses must be exchanged.
The exchange process runs through IMT: an online form, then an in-person appointment for biometrics. You need a medical certificate, plus a psychological assessment for categories C, CE, D and DE. Bring the foreign license, residence card, NIF, proof of address, an authenticity declaration for the license, and a certified translation if it is not in Portuguese, French, English or Spanish. UK holders obtain a DVLA check code first. Your original license is surrendered — it does not come back. A provisional guia lets you drive while the application runs, and average issue time is around 60 days.
Importing a car
Vehicle tax (ISV) is calculated on engine capacity plus CO2 emissions and is high enough that it routinely exceeds the residual value of an older car. Before shipping anything, price the ISV.
An exemption exists on transfer of residence, with conditions that are all cumulative:
- You are over 18 and were resident abroad for at least six months.
- You owned the vehicle in the country of origin for at least six months before the transfer, evidenced by the registration certificate or lease start date.
- All taxes were paid in the country of origin without fiscal benefit.
- You apply within 12 months of transferring residence to Portugal.
- One vehicle per person.
The application is filed online through the Tax Authority portal using the DAV, the Declaracao Aduaneira de Veiculo, and Modelo 1460.1. Annual circulation tax, IUC, applies thereafter. For most people arriving from North America, selling at home and buying locally is cheaper and simpler than shipping — the exception being a car you are attached to and have owned long enough to qualify.
Tolls
Most Portuguese motorways are tolled, and some are electronic-only — the former SCUT roads have overhead gantries and no booths, so there is no way to pay cash as you go. The Via Verde transponder is the standard answer: 27 euros for the permanent resident device linked to a direct debit, or a Visitors version at 6.50 euros for three months. Setup takes 24 to 48 hours.
Under Law 37/2024, tolls were abolished from January 2025 on the A22 in the Algarve, the A23, A24, A25, the A4 Transmontana and part of the A28 north of Porto. That is a meaningful ongoing cost change for Algarve and interior residents, and it also removes the single biggest administrative annoyance of driving the Algarve coast.
Foreign-plated vehicles can use EASYToll, which registers a plate and card at a border kiosk with a 0.32 euro fee per toll on top of the charge — suited to stays under 30 days. Rental cars usually carry a built-in pass at 2 to 5 euros a day in admin fees. Indicative Class 1 tolls in 2026: Lisbon to Porto on the A1 about 23 euros; Lisbon to Faro on the A2 about 22.50; Porto to Braga on the A3 about 4.40. Roughly 7 to 10 cents a kilometer on conventional motorways.
Trains
CP, Comboios de Portugal, runs the network. Ticket prices rose 2.26 percent in 2026 while passes were frozen.
- Alfa Pendular, the fastest service, runs Lisbon–Porto in about 2h50m for roughly 49.90 euros in comfort class or 35.70 in tourist class. CP runs periodic deep discounts — an April 2026 promotion put Lisbon–Porto at 7.50 euros for a fortnight — so it is worth checking before defaulting to a flight.
- Intercidades covers the same corridor more slowly for around 28 euros in second class.
- The Passe Ferroviario Verde, the Green Rail Pass, costs 20 euros a month loaded onto a CP Card for 30, 60 or 90 consecutive days, and is available to foreign residents as well as nationals. It covers Regional, Inter-Regional, Coimbra urban and the Lisbon and Porto urban trains on routes not covered by the intermodal passes, plus Intercidades in second class with a compulsory but free seat reservation. It does not cover Alfa Pendular. For anyone traveling domestically with any regularity it is extraordinary value.
Outside the main coastal corridors, regional services are slow and infrequent. The interior is poorly served by rail and effectively requires a car — a fact worth weighing against the much lower rents there.
City transport
Lisbon, 2026 fares effective 1 January: a single Carris or Metro ticket is 1.90 euros, zapping 1.72, contactless bank card 1.92. A 24-hour Carris and Metro pass is 7.25 euros, 10.35 including the Transtejo ferry to Cacilhas, 11.40 including CP. A tram single bought on board is 3.30 and a bus single on board 2.30 — always load a Navegante card rather than paying the driver.
| Lisbon Navegante monthly, 2026 | Price |
|---|---|
| Metropolitano — all 18 municipalities | 40 euros |
| Municipal — Lisbon city only | 30 euros |
| Family (a household pays for at most two passes) | 80 / 60 euros |
| Over-65s | 20 euros |
| Under-23s and under-12s | Free |
The Lisbon network is four metro lines plus Carris buses, trams and funiculars, CP suburban lines out to Cascais and Sintra, and Transtejo and Soflusa ferries across the Tagus. It is genuinely usable without a car, with one caveat: the hills are not decorative, and a flat-looking map hides some brutal climbs.
Porto, 2026: the Andante zonal card. A single in zone 2 is 1.40 euros, zone 3 is 1.80. Monthly municipal or three-zone is 30 euros, metropolitano 40, and travel is free for ages 4 to 23. Six metro lines plus STCP buses and the historic trams.
No other Portuguese city has a metro. Coimbra, Braga and Faro rely on buses. For routes the railway does not cover, Rede Expressos and FlixBus run intercity coaches, generally cheaper and slower than rail.
Airports and flight connectivity
| Airport | 2025 passengers | Change |
|---|---|---|
| Lisbon (Humberto Delgado) | 36.1m | +2.9% |
| Porto (Francisco Sa Carneiro) | 16.9m | +6.3% |
| Faro | 10.4m | +5.8% |
| Madeira | 5.6m | +12% |
| Azores | 3.3m | +2.7% |
North America. Lisbon is TAP Air Portugal’s hub and has the densest transatlantic network of any Iberian airport relative to its size, with direct service to New York (both JFK and Newark), Boston, Washington, Miami, Chicago, San Francisco, Toronto and Montreal on TAP and North American carriers. Porto has grown its transatlantic service materially. Faro has no scheduled direct North American service — Algarve residents connect through Lisbon, which adds most of a day to a trip home.
United Kingdom. Exceptional. Faro, Lisbon and Porto all have high-frequency service to multiple London airports and to regional UK airports including Manchester, Birmingham, Bristol, Edinburgh and Dublin, on TAP, Ryanair, easyJet, Jet2 and British Airways. Faro in particular is served from an unusually large number of UK regional airports, and that is a serious practical argument for the Algarve if your family is British.
One caveat worth knowing: Lisbon airport is capacity-constrained and congested, and a replacement or expansion has been under political discussion for years without resolution. Build buffer into tight connections.
Frequently asked questions
Do I have to exchange my American driving license in Portugal?
Not while you are under 60 and your license was issued or last renewed within the past 15 years. Decreto-Lei 46/2022 lets holders of OECD and CPLP licenses, including US, Canadian and UK ones, drive in Portugal without exchanging. The commonly repeated 90-day rule is out of date. The exemption ends on your 60th birthday or when the license passes 15 years, and exchange becomes compulsory at that point.
Do I need a car in Portugal?
Not in Lisbon or Porto, where the metro, buses, trams and suburban trains cover daily life and a monthly pass costs 30 to 40 euros. In the Algarve, yes — towns are strung along the coast, bus service between them is thin and slow, and the practical range without a car is very small. In the interior a car is essentially mandatory, which offsets some of the rent saving.
How much is the train from Lisbon to Porto?
About 49.90 euros in comfort class or 35.70 in tourist class on the Alfa Pendular, which takes around 2h50m, or roughly 28 euros in second class on the slower Intercidades. CP runs periodic promotions well below those figures. If you travel domestically with any regularity, the 20 euro a month Green Rail Pass covers Intercidades in second class, though not the Alfa Pendular.
How do Portuguese motorway tolls work?
Get a Via Verde transponder: 27 euros for the resident device on direct debit, or 6.50 for a three-month Visitors version. Some motorways are electronic-only with no booths, so there is no cash option on those roads. Since January 2025 the A22 in the Algarve, the A23, A24, A25, A4 Transmontana and part of the A28 have been toll-free. Foreign-plated cars can use EASYToll at a border kiosk instead.
Is there a direct flight from the Algarve to the United States?
No. Faro has no scheduled direct North American service; you connect through Lisbon. Faro’s strength is the UK and Northern Europe, where it is served from an unusually wide range of regional airports. If frequent, easy travel to North America matters more than to Britain, Lisbon is the better base.
Sources
- IMT and Decreto-Lei 46/2022 — recognition and exchange of foreign driving licenses
- Autoridade Tributaria, customs — ISV and the transfer-of-residence exemption
- Lei 37/2024 — abolition of tolls on the former SCUT motorways
- CP Comboios de Portugal — 2026 fares and the Green Rail Pass
- Metro de Lisboa and Metro do Porto — 2026 tariff schedules
- ANA Aeroportos de Portugal — 2025 passenger figures
- UK Foreign, Commonwealth and Development Office — driving in Portugal
