Driving in Portugal — License Exchange, Rules, and Road Tips for Expats

Portugal drives on the right (same as most of Europe). The road network ranges from excellent motorways (autoestradas) to narrow, winding village roads. For most expats, having a car is essential outside of Lisbon and Porto, and understanding the driving licence situation early saves stress later.

Can I drive in Portugal with my foreign licence?

Yes — with conditions:

• EU/EEA licence holders: your licence is valid in Portugal indefinitely and does not need to be exchanged. However, if your EU licence expires, you renew it in Portugal via the IMTT (Institute of Mobility and Transport).
• Non-EU licence holders (US, UK, Australia, Canada, Brazil, etc.): your foreign licence is valid for driving in Portugal for one year from the date you establish residency (i.e., from when you register as a resident). After one year, you must either exchange your licence or pass the Portuguese driving test.

Which countries can exchange their driving licence in Portugal?

Portugal has bilateral agreements allowing direct licence exchange (no test required) with a number of countries, including:

• All EU/EEA member states
• Brazil
• South Africa
• Cape Verde, Mozambique, Angola
• Several other Portuguese-speaking and bilateral agreement countries

The United Kingdom, USA, Canada, and Australia do not have full exchange agreements with Portugal. Holders of licences from these countries must generally pass the Portuguese theoretical test (código) — the practical test may be waived in some bilateral agreement situations. Check the current agreements with the IMT or a local driving school, as these change.

How to exchange your driving licence in Portugal

Apply at the IMT (Instituto da Mobilidade e dos Transportes) office or via their online portal. You will need:

• Original foreign driving licence + certified translation (if not in Latin alphabet or Portuguese/French/English/Spanish)
• Portuguese residence card (Cartão de Residência) or EU registration certificate
• NIF number
• Medical certificate of fitness to drive (atestado médico) — issued by an IMT-authorised doctor
• Passport photos
• Fee: approximately €30

Your original foreign licence is retained by the IMT and returned (or sent) to your home country's authority.

Key traffic rules in Portugal

• Speed limits: 50 km/h in urban areas, 90 km/h on national roads (roads with yellow centre lines), 100 km/h on dual carriageways, 120 km/h on motorways (autoestradas). New licence holders are restricted to 90 km/h for 2 years.
• Mobile phones: illegal to use a handheld phone while driving, including when stopped at lights. Hands-free is allowed. Fine: €120–€600.
• Seatbelts: mandatory for all passengers, front and back.
• Blood alcohol limit: 0.5 g/L (0.2 g/L for new drivers). Zero tolerance is strictly enforced.
• Right of way: at unmarked junctions, give way to vehicles from the right.
• Roundabouts: vehicles already on the roundabout have right of way — the same rule as most of Europe but the opposite of old UK roundabout instinct for some British expats.

Tolls on Portuguese motorways

Portugal has extensive tolls (portagens), including on some formerly free motorways in the north. There are no cash toll booths on most motorways — payment is electronic via Via Verde (the main electronic toll system) or by registering a foreign card. Rented cars typically have temporary toll passes included. For residents, getting a Via Verde transponder (€35–€50 setup) avoids queues and reduces toll costs slightly.