Welcome to Lagos, Portugal, in the Algarve region of southern Portugal; this guide explains the driving rules that matter most for a rental car from Faro Airport, Lagos, or Portimão, including the A22, N125, tolls, speed limits, child seats, insurance excess, and police enforcement. Portugal's road rules are set out in the Código da Estrada, and the two changes most relevant for 2026 are Law No. 37/2024, which removed the A22 toll from 1 January 2025, and the electronic tolls that still apply on the A2 towards Lisbon. Is the A22 Motorway Still a Toll Road? No: the A22 motorway, also called Via do Infante, is toll-free in 2026. Law No. 37/2024 ended the electronic SCUT toll system on the A22 from 1 January 2025, so a Lagos-to-Faro Airport trip via the A22 has a toll cost of €0. The practical value for a Lagos car rental booking is simple: a Luzcar Group B, Autorent compact, or Europcar economy car can use the A22 without a Via Verde transponder. A longer drive to Lisbon on the A2 still costs about €23.80 in electronic tolls one-way, while the drive to Seville uses Spain's A-49 — a toll-free autovía all the way from Ayamonte. Toll costs from Lagos in 2026 for a class-1 car, one-way: Lagos to Faro Airport via the A22 costs €0, with the toll removed on 1 January 2025 under Law No. 37/2024. Lagos to Albufeira or Tavira via the A22 costs €0; the toll-free N125 alternative adds 20–60 minutes, so the A22 is now both the fastest and the cheapest option. Lagos to Lisbon via the A22 and A2 costs about €23.80 plus roughly €2–3 for the Tagus bridge northbound; the IC1 and N-roads are much slower, and this route needs a transponder or post-pay, so ask the desk before leaving the Algarve. Lagos to Seville via the A22 and A-49 costs €0, because Spain's A-49 is a free autovía; tolls start only if you continue to Cádiz on the AP-4. Toll rates last verified: July 2026. For an Algarve-only itinerary, skip the transponder add-on entirely — the A22 no longer needs one. Some desks at Faro Airport (FAO) still market Via Verde packs as if the A22 were tolled; that is a pricing upsell, not a legal requirement, for travel between Lagos, Albufeira, and Faro. A transponder only pays off if you are driving to Lisbon on the A2. What Are the Speed Limits in Portugal? Portugal enforces speed limits through the GNR and PSP, and the standard limits for Lagos, the Algarve, and routes such as the N125 and A22 are as follows: motorways (A-roads) such as the A22 and A2 are 120 km/h with cameras and patrols; dual carriageways, including some bypass sections near Faro and Portimão, are 100 km/h with more radar than signs; national roads such as the N125 and EN125 are 90 km/h with frequent police checks; urban areas such as Lagos, Faro, and Albufeira are 50 km/h, with lower limits near schools and roundabouts. The Código da Estrada allows fines to be processed through the rental operator, and a foreign visitor can see a charge from a company such as Avis, Hertz, Budget, or Sixt after the police record the offence. On the N125/EN125 between Lagos, Portimão, and Faro, treat 90 km/h as the ceiling unless a sign lowers it further near junctions or village entrances. A speeding fine can arrive after the holiday, and a rental company may add an administration fee before charging the card used for the booking. What Happens If You Get Fined? The main enforcement authorities for rental-car drivers in the Algarve are the GNR on rural roads and the PSP in urban areas such as Lagos, Faro, and Portimão; both can issue penalties under the Código da Estrada. Typical fine ranges are €60–€300 for minor speeding on the N125, A22, and town approaches, often camera-based; €120–€600 for mobile phone use in Lagos, Faro, and Albufeira, treated as a high-risk offence; €30–€150 for illegal parking in Lagos centre and Praia da Rocha, where yellow lines are monitored; and €250–€1,250 for drink driving in nightlife areas and at checkpoints, which can trigger a suspension. If a police stop happens, the driver should show a passport or ID, driving licence, and rental agreement; in many cases, the fine is recorded electronically and later forwarded to the rental company, which may also charge a handling fee. Useful emergency number: 112 is the universal emergency number in Portugal. What Are the Child Seat Rules? Portugal's child restraint law in Article 55 of the Código da Estrada requires children under 12 years old or under 1.35 metres to use an approved child seat or booster matched to height and weight. The newer R129 i-Size standard requires rear-facing travel for infants until at least 15 months, and many rental firms in Lagos and Faro now offer high-back boosters instead of backless cushions for smaller children. If a family is collecting a Kia Picanto, Citroën C3, or Seat Arona from Faro Airport, pre-book the child seat in writing and confirm the age band before pickup. Licensed taxis and regulated ride-hailing services may be exempt from supplying child seats, but a rental car from Luzcar, Marina Rent-a-Car, or Goldcar is not exempt from Article 55. What Insurance Do You Actually Need? A Portugal rental contract normally includes CDW and third-party liability, but the key question for Lagos car rental customers is the excess or deductible, which is the amount charged if damage occurs. CDW (Collision Damage Waiver) is included in the base rate; SCDW or Super CDW reduces the excess and usually costs €10–€25/day; FDW (Full Damage Waiver) is sometimes sold as zero excess; a zero-excess product means no standard deductible is payable and carries the highest counter price; Excess Reimbursement refunds the excess after a claim and is often cheaper online; TWL covers tyre, window, and lock damage and is usually an add-on or bundled. A Luzcar or Bestdeal-Algarve quote may include Super CDW with TWL, while online brokers such as Rentalcars, DiscoverCars, Kayak, Booking.com, Expedia, Skyscanner, and Zest Car Rental often sell a separate Excess Reimbursement policy from providers such as iCarhireinsurance. If a desk at Faro Airport FAO requires a credit-card pre-authorisation of €800–€1,500, compare the total cost against an online excess policy before accepting the counter upsell. A debit card can trigger a mandatory zero-excess purchase at some operators, because the company cannot always place the pre-authorisation hold that CDW terms require. What About Minimum Age and IDP? Portugal allows driving from age 18, but many rental operators in Lagos and Faro set the minimum rental age at 21 and apply a young-driver surcharge of roughly €6–€10 per day for ages 21–25. For visitors from the US, Canada, or Australia, a valid home licence is generally enough for a short stay in Portugal, but a trip onward to Seville via Spain can change the documentation rules because Spanish checks may ask for an IDP depending on the licence format and nationality. For a route from Lagos to Sagres, Cape St. Vincent (Cabo de São Vicente), or Praia da Marinha, a standard licence plus a rental agreement is usually the main paperwork issue. Premium fleets such as VW Transporter, Skoda Kamiq, Opel Crossland, and Renault Megane SW can have stricter age bands than a Kia Picanto or Citroën C3. Fuel, Refuelling, and Common Mistakes The DGEG publishes national fuel trends, and in April 2026 the Algarve market is roughly €1.91/L for Gasolina 95 and €2.08/L for diesel, with supermarket stations near Lagos sometimes undercutting branded forecourts on the N125. An Intermarché-style supermarket station in Chinicato, Lagos runs about €1.84/L; Galp and Repsol roadside stations on the N125 corridor run about €1.95–€1.97/L. A common rental mistake is misfuelling a diesel car at pick-up from Faro Airport, Luzcar, Autorent, DailyRent, or Multirental; that mistake can be expensive because the repair bill may exceed the standard excess if the contract excludes contamination. If You Break Down For breakdowns in the Algarve, the first call should be the roadside-assistance number on the rental agreement, and the best-known national fallback is the Automóvel Club de Portugal (ACP) at 808 22 22 22. The ACP and rental-company assistance can cover roadside recovery on roads such as the A22, N125, and access roads toward Serra de Monchique, while local operators such as Klasswagen or Autorocha may direct customers to their own 24-hour dispatch lines. Before calling a private tow provider, check whether the rental includes roadside assistance, tyre repair, battery jump-start, or replacement car cover under CDW, SCDW, or FDW terms. If the car runs out of fuel or charge near Ponta da Piedade, recovery may still be charged unless the contract explicitly includes the incident. Best Day Trips from Lagos by Car A rental car from Lagos, Portugal makes short Algarve drives practical, with many routes using the N125, local municipal roads, or the toll-free A22. Typical drive times from Lagos: Sagres 35–45 minutes via the N125 and coastal roads for cape scenery and surf; Benagil 45–60 minutes via the A22 and local roads for cave boat access; Silves 25–35 minutes via the N125 for the castle and historic centre; Monchique and Foia 45–70 minutes via the N267 and mountain roads for Serra de Monchique views; Portimão and Praia da Rocha 20–30 minutes via the N125 or A22 for the marina, beach, and shopping; Albufeira 45–60 minutes via the A22 for restaurants and nightlife; Faro 55–70 minutes via the A22 for the old town and airport access; Lisbon 2.5–3.5 hours via the A2 for a capital city break; and Seville 2.5–3.5 hours via the A22 and A-49 in Spain for a cross-border day trip. For the best coastal loop, start in Lagos, continue to Ponta da Piedade, then drive toward Praia da Marinha, Benagil, and Albufeira before returning on the A22. Narrow roads toward Carrapateira, Bordeira, Amado, and Odeceixe can be slower than the mileage suggests, especially in summer traffic.