Car Hire Faro & Algarve 2026: A22 Tolls, Licences & Tips

Picking up at Faro Airport: terminal desk or shuttle

Faro (FAO) is the gateway to the Algarve, and almost all the big car hire and car rental brands are here, along with plenty of smaller regional firms. What matters is exactly where your car is waiting. Broadly there are three set-ups: desks in the arrivals area of the terminal, desks and cars in the car rental area in the car park opposite the terminal (follow the “Rent-a-Car” signs from the exit), and companies with an office outside the airport grounds, reached by shuttle bus.

Shuttle deals are often cheaper, but they cost you time. After a late flight, or with children and lots of luggage, the difference can be bigger than the price suggests. So check these points when you book:

• Where is the meeting point, and how often does the shuttle run?
• Until what time is the desk staffed, and what happens if your flight is delayed?
• How does the return work: who inspects the car, and how long does it take to get back to the terminal afterwards?
• Are there fees for picking up or dropping off outside opening hours?

Algarve tolls in 2026: the A22 is toll-free

Plenty of older guidebooks and forum threads still warn about electronic tolls on the A22, the motorway that crosses the Algarve from west to east. That advice is out of date (as of October 2026). With Law No. 37/2024 of 7 August 2024, Portugal abolished tolls on several former SCUT motorways, including the A22 along its roughly 133 kilometres between Bensafrim (near Lagos) and Castro Marim on the Spanish border. Nothing has been charged there since 1 January 2025, as the road operator Infraestruturas de Portugal (IP) has explicitly confirmed.

That is still the situation in October 2026. In April 2026 Portuguese media reported much heavier traffic on the A22 since the tolls went, but no plans to bring them back. A road users' group has voiced concern that a future government might reintroduce them, but nothing concrete has been proposed.

The main toll road you are likely to use is the A2 from the Algarve to Lisbon. It has conventional toll plazas. The green Via Verde lanes are only for cars with a transponder; without one, use the lanes for cash or card payment.

Tolls in a hire car: transponder, Easytoll and paying later

If you stay in the Algarve, you usually do not need any toll solution at all. If you are planning a trip to Lisbon or further north, the tolls in a hire car go through the rental company's device. The other methods apply to other cars:

Unpaid tolls get expensive. Since a 2023 change in the law (Law No. 27/2023), the fine is at least five times the toll, but never less than 25 euros. With a hire car, the notice goes to the rental company first, which passes it on to you and often adds its own admin fee.

Driving licence rules for UK, Irish, US and Canadian drivers

Portugal's transport authority IMT and your own government's travel advice set out which licences you can use as a visitor. In short:

The 185 days count from your entry into Portugal and apply to visitors. The UK, the US and Canada are also on IMT's list of OECD countries whose licences are recognised under certain conditions: the licence must be valid, have been issued or renewed less than 15 years ago, and the holder must be under 60. That matters mainly if you later move to Portugal.

• You must be at least 18 to drive a car in Portugal. Rental companies often set a higher minimum age and may charge a young driver fee.
• According to gov.uk, it is mandatory to carry ID when driving, so keep your passport with you, not just your licence.
• Rental companies may set their own requirements, such as an IDP or a minimum number of years holding a licence. Check the rental terms before you book, because an IDP has to be obtained in your home country before you travel.

Rules of the road in Portugal: speed, alcohol, roundabouts

Unless signs say otherwise, these limits apply to cars:

• Drink-drive limit: 0.5 grams per litre, or 0.2 for drivers with less than three years' experience.
• Phone calls only with a hands-free kit.
• Hi-vis vest: drivers of cars registered in Portugal, explicitly including hire cars, must carry one and wear it when getting out after a breakdown or accident. Check it is in the car at pick-up.
• Yellow lines along the kerb mean no parking or no stopping.
• Portugal drives on the right, so UK and Irish drivers should take extra care at junctions, roundabouts and when pulling out of car parks.

Roundabouts are everywhere in the Algarve, and there is one rule many visitors do not know: traffic already on the roundabout has priority. On multi-lane roundabouts you may only use the outer lane if you are taking the next exit. If you are going further round, move to the inside and only switch to the outer lane just before your exit. Watch the traffic beside you, because locals rely on exactly this rule.

EN125 and speed cameras: take care here

The EN125 national road runs parallel to the A22 through almost every coastal town. It used to be the alternative route for anyone avoiding tolls; today it is still important for short hops between towns. It is narrow, with many junctions, roundabouts and stretches through villages. According to a report by the road safety authority ANSR for 2023, it is one of the five most dangerous roads in Portugal.

The A22 has also become busier since the tolls were scrapped. The National Republican Guard (GNR) reported significantly more road casualties there in 2025 than in the previous year. So keep your distance on the motorway too, and expect vehicles merging late.

According to a June 2026 report by the regional newspaper Postal do Algarve, based on the “Radares à Vista” portal, fixed speed cameras in the Algarve are located here:

• EN125 near Lagoa/Carvoeiro (km 49.6), near Guia (km 68.7) and near Ferreiras (km 74.6), all in the Albufeira and Lagoa area
• EN125 in Faro, São Pedro (km 102.0)
• EN125-10 in Montenegro near Faro (km 1.4), on the approach road towards the airport
• A2 near Paderne (km 233.1), southbound

Speeding fines start at 60 euros and can reach 2,500 euros. On top of that there are mobile checks that are never announced.

Day trips by car: Sagres, Monchique and Seville

A hire car pays off most for places that are hard to reach by bus or train:

• Sagres and Cabo de São Vicente: the A22 ends at Bensafrim, after which country roads take you to the far south-west. Fill up first, as the area is sparsely populated.
• Serra de Monchique: the road into the hills is winding and steep. Take it easy and let locals pass where it is safe.
• Benagil: the famous sea cave can only be reached from the water. Since a 2024 regulation by the maritime authority, swimming into the caves and landing on the beach inside are banned, and the rules can change.

Seville is a popular day trip from Faro. Take the A22 to Castro Marim, cross the Ponte Internacional do Guadiana to Ayamonte and continue on the Spanish A-49 motorway. Since 2025 there are no tolls on the Portuguese side.

Deposit, insurance and avoiding disputes

Deposits and insurance cause most car hire headaches. Consumer advisers such as the European Consumer Centre in Ireland recommend:

1. Bring a physical credit card in the main driver's name. Debit cards are often not accepted. A deposit of 1,000 euros is not unusual, according to the German consumer testing organisation Stiftung Warentest.
2. Get cover with no excess, or buy excess insurance in advance, which is often much cheaper than at the rental desk. Check whether glass, tyres and the underside of the car are included.
3. Choose a full-to-full fuel policy: you collect the car with a full tank and return it full.
4. Do not let the desk talk you into extra insurance if you are already covered. Check whether a so-called deposit is actually an insurance product.
5. Photograph or film the car inside and out at pick-up and return. Make sure every scratch is on the vehicle report and that you get a copy.
6. Return the car during opening hours and have it inspected with a member of staff, rather than dropping the key in a box.

If an unexpected damage claim arrives later, dispute it in writing and ask for evidence and an itemised breakdown of costs. If you live in the EU, Iceland or Norway, including Ireland, the European Consumer Centre in your country of residence can help with cross-border disputes free of charge. UK residents are not covered by this network; complain in writing to the rental company and any broker, and contact your card issuer if a disputed charge has already been taken.

Frequently asked questions