By Sunny
Faro is the Algarve’s airport town, and most visitors drive straight past it. That is a mistake twice over: Faro’s own old town is one of the best in southern Portugal, and a hire car is the only way to reach the Algarve’s real variety, from the Spanish border to the cliffs at Sagres. This guide covers the practical bits, then the drives.
UK licence holders: the rules
You can drive in Portugal on a UK photocard licence for up to 185 days without any permit. That is the GOV.UK position. If you hold a paper licence, you need to update to a photocard or get a 1968 International Driving Permit before travel. As with Spain, some hire companies ask for an IDP regardless, so check your supplier’s terms at booking time. Bring your passport; the name on your payment card must match the main driver.
The toll system, explained properly
This is the one thing that genuinely confuses Algarve visitors. Portugal has two motorway systems. Traditional tolls have booths: you take a ticket, pay a person or a machine. Electronic-only tolls have no booths at all: cameras read your number plate as you pass.
The A22, the motorway that runs the length of the Algarve, is electronic-only. You cannot pay cash on it. Rental cars solve this in one of two ways: many already carry a transponder and bill tolls to your rental agreement, or you arrange payment yourself through EasyToll, which links your number plate to a bank card at machines near the border crossings (subscription costs 1 euro plus 0.32 euros per trip). Ask your supplier which system your car uses before you leave the desk, and check the toll terms in your rental agreement. If in doubt, the N-125 runs parallel to the A22 the whole way and is free.
Choosing the car
Most Algarve rentals are manual. Automatics exist but are scarce and book out first in summer, at a premium; if you cannot drive manual, reserve an automatic months ahead. Size-wise, a compact covers Faro town and the coast road. The A-22 and the main routes are excellent, but the lanes down to the western beaches and some old-town streets are narrow, which argues against anything oversized.
Where to drive from Faro
Drive times below are measured from Faro centre.
Olhão (about 10 minutes). The seafood capital of the Algarve, built on cubist white houses, with ferry boats to the barrier islands. The market hall on the waterfront is the reason to come.
Loulé (about 20 minutes). A working Portuguese market town, not a resort, with a Saturday market in the Arabic-style market hall and a ruined castle in the centre. The easiest genuine-culture trip from Faro.
Tavira (about 35 minutes). Roman bridge, church towers, and a slow ferry out to the sandbar beaches of Ilha de Tavira. The prettiest town on the eastern Algarve, and flat, which families appreciate.
Albufeira (about 40 minutes). The big resort: old town square, the Strip, boat trips and dolphin watching. Go for what it is and it delivers.
Silves (about 50 minutes). The red-stone castle above the town is the best-preserved Moorish fortress in Portugal. Orange groves all around, and far fewer tourists than the coast.
Lagos and Sagres (about 1 hour 05, then 30 minutes more). Lagos for the cliff walks at Ponta da Piedade, Sagres for the fortress at mainland Europe’s south-west corner. Do them in one loop day: Faro to Lagos on the A22, back along the coast road.
Parking in Faro itself
The old town is pedestrian lanes; park at the large paid car parks by the marina and walk in. Street parking in the newer streets is metered. In July and August arrive before 11am or after 4pm for the best spots.
For deposits, insurance and cross-border rules in plain English, see the car rental guide. For Spain’s Costa Blanca equivalent, our Alicante guide covers the same ground. Ready to compare? Search live Faro car hire prices on the homepage.