Americans are not required by law to obtain an international driving permit to drive a rental car in Portugal. Short term visitors staying less than six months in the country can drive their rental with a valid US license.
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U.S.Citizens are entitled to drive in Portugal with their U.S. issued driver's license for a period no to exceed 185 days, provided they are not legal residents.
In Portugal, the law requires that drivers carry unlimited third-party liability insurance, but it is automatically included in the price of all car rentals.
International Driving Permit (if you have one) Passport. Car documents (like the registration, proof of ownership, and vehicle inspection report) Proof of insurance (in Portugal this is represented by a sticker on the lower right corner of the windshield as well as a certificate of insurance)
You can pay tolls by going in person to a CTT post office, a post office with NaVe or a Payshop agent. You can also pay by Multibanco reference, through the CTT website or app. Don't forget that you can only pay tolls 48 hours after you have passed through the electronic toll and up to a maximum of five working days.
Portuguese traffic lights follow the conventions of the Vienna agreement and so should be familiar to most drivers. You cannot turn right on a red light unless indicated and you should also be aware that many local drivers run red lights.
Renting a car allows us to visit the country at our own pace, visit off-the-beaten-track sights, and generally make the most of our time in Portugal. Day trips to beautiful places like Sintra, Évora, and Alcobaça are easy to take, and having a rental avoids the added costs of tours.
If you want to make the most of your time in Portugal, it is definitely worth renting a car in Algarve. Driving in the Algarve is easy and can be more affordable than using other transportation.