Whether you need a car in Portugal depends on your itinerary, but for a standard "first-timer" trip, the answer is often no. In 2026, Portugal's public transportation network is excellent; you can easily travel between Lisbon and Porto in under three hours using the high-speed Alfa Pendular trains, and both cities are incredibly walkable with great metro and tram systems. Popular day-trip destinations like Sintra, Cascais, and Braga are all easily accessible by cheap regional trains. However, a car becomes essential if you plan to explore the Douro Valley wineries at your own pace, visit the remote medieval villages of the Alentejo region, or find secluded "hidden" beaches in the Algarve. Driving in Lisbon and Porto can be a nightmare due to narrow streets, steep hills, and extremely limited parking. A popular strategy in 2026 is to use trains for the city-hopping portion of your trip and rent a car for just 2 or 3 days when you head into the rural countryside or the national parks in the North (like Peneda-Gerês).