New Rules for Renting a Car in Madeira in 2026: What Changes From June

If you are planning to rent a car in Madeira in the coming months, there is an important change you should know about.

Starting on June 1, 2026, a new tax will officially apply to car rental contracts in Madeira.

In practice, a daily fee will now be associated with rental vehicles:

• €2 per day for combustion vehicles
• €1 per day for electric or zero-emission vehicles

This fee will be charged by car rental companies and must appear on both the rental contract and invoice.

What actually changes for tourists renting a car?

The impact exists, but it is smaller than many visitors initially expect.

There is one important detail:
the tax has a maximum limit of 10 charged days per contract.

This means:

• a 3-day rental only pays 3 days of tax;
• a 7-day rental pays 7 days;
• a 14-day rental only pays 10 days;
• a 30-day rental still only pays the maximum amount defined.

The maximum total will therefore be:

• €20 for combustion vehicles
• €10 for electric vehicles

So even on longer trips, the impact on the total booking cost remains relatively small.

Why this new tax may create confusion during bookings

Over the coming months, many tourists will compare prices between different car rental companies in Madeira without realizing that not every company will present this fee in the same way.

In some cases, the tax may:

• only appear during vehicle pickup;
• be separated from the initially advertised price;
• not be clearly explained during the booking process.

And that creates exactly what tourists dislike most during a reservation: unexpected costs at the final stage.

What changes at 7M Rent a Car

At 7M Rent a Car, this fee will be communicated clearly from the very beginning of the booking process.

• No hidden costs.
• No unexpected charges at pickup.
• No differences between the online price and the final amount paid.

The goal is simple: customers booking with us know exactly how much they will pay before arriving in Madeira.

Is renting a car in Madeira still worth it?

Absolutely.

Madeira remains a destination where having a car makes a huge difference to the overall travel experience.

Places such as:

• Pico do Areeiro
• Ponta de São Lourenço
• Paul do Mar
• Ribeira da Janela
• north coast viewpoints
• hiking trails and sunrise spots

remain much easier to access with full freedom of movement.

Even with this new tax, renting a car continues to be one of the best ways to explore Madeira at your own pace.

Frequently Asked Questions

1. When does the new tax start?

From June 1, 2026.

2. How much does it cost?

€2 per day for combustion vehicles and €1 per day for electric vehicles.

3. Is there a maximum amount?

Yes. The maximum charge is limited to 10 days per contract.

4. Will the tax appear in the contract?

Yes. It must be clearly identified in the contract and invoice.

5. Is renting a car in Madeira still worth it?

Yes. It remains the most practical way to explore the island.