It’s easy to see why Madeira is becoming a favourite with travellers. To help support the island’s ongoing maintenance and conservation efforts, the regional government has introduced a new tax.
What you need to know
To put it simply, there is now a €2 per day tourism tax for petrol and diesel rental cars, paid locally when you pick up your vehicle. If you go electric or choose a zero-emission car, the charge is just €1 per day. Good news though – for those lucky enough to be exploring the island by car for an extended amount of time, the total is capped at €20 per rental, so any extra rental days past your 10th is tax-free!
When does it start?
The new rule came into effect on 1 June 2026, so it applies to any rentals collected from that date onwards. With such a quick rollout, it might catch a few people by surprise – but overall, the charge is straightforward and helps support the island you’re there to enjoy.
Renting a car in Madeira
Should this new charge be enough to put you off renting a car in Madeira? We say absolutely not - but we get it, you’re probably thinking, “well, you would say that...”
So rather than just take our word for it, it’s worth having a quick look yourself at whether renting a car makes sense for your trip. If you’re an adventurous soul, you’ll find plenty of sources (including TimeOut and Lonely Planet) that recommend having your own ride if you want to escape the crowds and explore more remote hiking trails, beaches, and charming hidden gems of the island.
We’re here to help
As your car rental broker, we’re here to keep things smooth and stress-free. We work closely with our Madeira partners to make sure this is clearly explained upfront wherever possible, so you know exactly what to expect. And if anything’s unclear? Just ask – we’re always happy to help make things simple!
