If you were holidaying in the Algarve region of Portugal last year and had a rental car, you would have almost certainly opted for a toll transponder. The toll transponder which is fitted to the vehicle windscreen records your use of any toll roads within Portugal. However, this year you may choose to reconsider adding a transponder to your hire.
After a proposal was agreed in 2024, early this year tolls were removed from the A22, the main arterial road through the Algarve, as well as the A4, A13, A23, A24, A25 and A28. If you are flying into Faro for your holiday and staying in the Algarve region, you are now unlikely to need a transponder to pay for toll roads.
Currently most car hire companies – even in Faro – will still provide cars with transponders fitted but they will not be activated unless you pay the relevant fee. So, if you are confident you will not be using a toll road, you can avoid the transponder fee and keep the cost of your car hire down! If you do pay the fee, any tolls you are charged during your hire are then added to your final bill after you have returned your hire car
The A1, linking Lisbon with Porto in the north, and the A2, linking Lisbon with Albufeira remain as toll roads so, if you are using either of these two main roads, we would suggest using a transponder to ensure you do not face any toll road fines. Charges for use of the roads will still apply. If you are flying into Lisbon and heading to the coast or planning a city break to the capital during the course of your holiday then you are highly likely to use the A1 or A2.
More information can be found in our Portugal toll roads FAQ article.
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