What Changed for Car Hire in Madeira in 2026?

If you are planning a trip to Madeira in 2026, several changes are worth knowing before you collect a hire car. The most visible one for visitors is a new regional vehicle usage fee of €2 per full day (capped at €20 per contract) for conventional petrol and diesel cars. Official hiking trails now require advance reservation and payment, and traffic arrangements in central Funchal have been updated.

There have also been changes to the rules governing car hire companies themselves. These are not all additional costs for visitors, but they form part of a wider effort to manage transport, tourism and the island’s natural environment.

Here is what the changes mean in practical terms, how much you may need to budget, and what to check before setting off.

1. The New Regional Vehicle Usage Fee: What Is It?

One of the most important changes for visitors hiring a car in Madeira is the introduction of a regional vehicle usage fee.

The fee came into effect on 1 June 2026 and applies to car rental agreements concluded from that date onwards. It is a regional legal requirement rather than an optional service or a charge introduced by an individual rental company.

The measure forms part of Madeira’s wider transport legislation. Its stated purpose is to help fund sustainable mobility policies, traffic management and the protection of the island’s natural environment.

For visitors, the main point is simple: the fee is an additional cost that needs to be included when calculating the total cost of car hire.

If you would like to understand the background in more detail, read our guide to the new mandatory regional usage fee in Madeira.

2. How Much Is the Madeira Car Rental Fee in 2026?

The amount depends on the type of vehicle you rent.

For conventional petrol and diesel vehicles, the regional fee is €2 for each complete day of rental, up to a maximum of ten days per contract.

Fully electric vehicles are subject to a reduced rate of €1 per complete rental day, also capped at ten days.

Examples of how the fee is calculated

The legislation defines a complete rental day as a 24-hour period.

Does the fee apply to bookings made before June 2026?

Yes. The important date is when the rental agreement is concluded, not when the reservation was originally made.

If you reserved a car in April 2026 for a holiday in July, the fee still applies if the rental agreement is concluded on or after 1 June 2026.

How should the fee appear on your rental agreement?

The regional authorities require the fee to be itemised on the invoice issued to the customer. The rental documentation should identify the contract, vehicle, registration number, rental period and corresponding fee.

Before collecting your car, check that you understand how the charge has been included in the final amount. It is also sensible to read the rental company’s Terms and Conditions before signing. If anything is unclear, ask the company to explain it.

You can read the official information on the IMT Madeira rent-a-car platform.

3. Electric and Hybrid Cars: What Has Changed?

The introduction of the regional usage fee is also relevant when choosing between petrol, diesel, hybrid and fully electric vehicles.

The reduced €1 daily rate applies only to vehicles with zero direct emissions. Conventional hybrids and plug-in hybrids do not qualify.

There is also a wider regulatory change affecting the rental industry.

Under Regional Legislative Decree No. 7/2025/M, rental vehicles generally cannot be more than five years old, calculated from their first registration date. Fully electric vehicles have a separate seven-year age limit.

The legislation also establishes a minimum proportion of zero-emission vehicles within rental operators’ fleets. Existing operators have until 31 December 2027 to meet this requirement.

These are obligations for rental businesses, not additional paperwork that tourists need to complete.

For visitors, the practical advice remains to check the vehicle category, specifications and rental conditions before confirming a booking.

If you are comparing different vehicle types, our guide to choosing the right car for Madeira’s roads explains what matters on the island’s steep gradients and narrower streets. You can also browse the Girassol.Rent car fleet.

4. Mandatory Hiking Trail Reservations: What Drivers Need to Know

Another significant change in 2026 concerns Madeira’s classified walking routes.

From 1 January 2026, the regional authorities introduced a system of reservations, entry time slots and fees for classified hiking trails managed by the Institute of Forests and Nature Conservation (IFCN).

This is particularly relevant to visitors who hire a car to reach mountain areas, levadas and coastal walking routes.

Previously, many visitors simply drove to the starting point of a trail. Under the new system, a reservation must be made before entering a route covered by the scheme.

How does the new reservation system work?

Reservations are made online through the official SIMplifica portal. Visitors select the trail, date and available entry time slot. The system distributes arrivals throughout the day to manage visitor numbers.

The reservation is mandatory even for visitors who qualify for a fee exemption.

The rules do not apply to every walking path on Madeira. They concern classified trails managed by IFCN and included in its reservation system.

How much do hiking trail reservations cost in 2026?

For visitors without a special agreement with IFCN, the published 2026 fees are:

Children aged 12 or under are exempt from the fee but must still be registered. Residents of Madeira and certain other eligible visitors also have exemptions subject to the applicable conditions.

Which hiking routes are affected?

The system covers popular classified routes, including:

• PR1 – Vereda do Areeiro
• PR1.2 – Vereda do Pico Ruivo
• PR6 – Levada das 25 Fontes
• PR8 – Vereda da Ponta de São Lourenço

Always check the current list, as the status of individual routes can change.

Why does this matter if you are hiring a car?

A hire car makes it easier to reach trailheads, particularly those outside the main towns. However, having a car does not replace the need for a valid reservation and time slot.

Before driving to a trail, check three things:

1. Whether the route is open on your intended date.
2. Whether a reservation is required and whether your preferred time slot is available.
3. Whether you have completed the payment and registration requirements.

Mountain weather can change quickly, and some routes may close temporarily for safety reasons. It is sensible to check the official trail status before leaving your accommodation.

Official information and reservations are available through the IFCN classified walking routes page and the SIMplifica portal.

5. Funchal Traffic Changes: New Bus Lanes and Parking Restrictions

Visitors collecting or returning a hire car in Funchal should also be aware of changes introduced in September 2026.

From 2 September 2026, new dedicated BUS lanes were introduced along three central streets:

• Rua 5 de Outubro
• Rua 31 de Janeiro
• Rua do Visconde de Anadia

The purpose is to improve public transport circulation and reorganise passenger pick-up and drop-off arrangements in the city centre. The changes also affect parking and loading operations.

Some bus stops have been relocated or removed. Paid parking spaces on Rua da Infância have been removed. On Rua 31 de Janeiro, loading and unloading is restricted to a maximum of 30 minutes during 10:00–12:00 and 14:00–16:00.

For visitors driving through central Funchal, the most important point is to pay attention to current road markings and traffic signs. Older navigation data may still show previous traffic patterns, so follow the signs on the ground.

Practical advice for parking in Funchal

Funchal has a mixture of on-street paid parking, public car parks and private facilities. If you are staying in the city centre, check whether your accommodation offers parking before arriving. When visiting central areas, a public car park is often more convenient than searching for an on-street space.

If you are arranging collection or return in the city, see our information about car hire in Funchal. You can also explore our car hire locations across Madeira.

6. What Has Not Changed for Visitors Hiring a Car?

Although 2026 has brought several important changes, not every aspect of renting and driving has been affected.

The regional vehicle usage fee is an additional legal charge, but it does not replace the usual rental agreement, insurance arrangements or the driver’s responsibilities.

You should still check:

• What is included in the rental price?
• What insurance cover is provided?
• Is there an excess or security deposit?
• What are the fuel and mileage policies?
• Where and when will the car be collected and returned?
• What happens if you need to change your booking?

For a more detailed explanation, read our guide to car hire insurance in Madeira. It is also worth reviewing the company’s rental Terms and Conditions.

Madeira’s road network has not become any less challenging. Steep gradients, narrow streets, sharp bends and changing mountain weather remain part of the driving experience. An automatic transmission can make these roads more comfortable.

For practical advice, see our guide to essential road safety tips for Madeira. If you are visiting during the quieter months, our article Madeira in Winter by Car offers additional seasonal advice.

You may also find Choosing a Car Hire Company in Madeira useful when comparing providers.

7. Practical Information: How to Plan Your Madeira Trip in 2026

The changes introduced in 2026 do not make travelling around Madeira significantly more complicated, but they do make advance preparation more important.

If you want to understand how availability and prices vary through the year, read When to Book Car Hire in Madeira.

8. Frequently Asked Questions About Madeira Car Hire Rules in 2026

Is there a new tourist tax on rental cars in Madeira?
There is a new regional vehicle usage fee, but it is not the same as the accommodation tourist tax. It applies to eligible rental contracts concluded from 1 June 2026 and is charged at €2 per full day for conventional vehicles, up to €20 per contract.

Do I have to pay the new fee if I rent a car for two weeks?
Yes. The fee is capped at ten complete rental days. For a conventional petrol or diesel car the maximum is €20 per contract, regardless of whether you rent for 10, 14 or more days.

Do electric and hybrid rental cars pay the same fee?
No. Fully electric vehicles qualify for the reduced €1 daily fee (capped at €10). Conventional hybrids and plug-in hybrids are charged at the standard €2 rate.

Does the fee appear automatically in online quotes?
It should be shown as a separate line or included in the total. Always check the breakdown before paying.

Do I need to reserve hiking trails in Madeira in 2026?
Yes, if you intend to visit a classified walking trail managed by IFCN and covered by its reservation system. You must register and reserve an available entry time through SIMplifica. Not every walking path on the island is included.

Can I visit Pico do Areeiro without a hiking reservation?
You should distinguish between visiting the Pico do Areeiro viewpoint and entering the classified PR1 walking route. The reservation and fee apply to the regulated trail sections, not simply to driving to the viewpoint. Always check current access arrangements.

Have the road rules changed in Funchal?
Some local traffic arrangements changed on 2 September 2026, including new BUS lanes on three central streets. Drivers should follow the latest road signs and restrictions.

Are there new requirements for rental cars in Madeira?
Yes. Regional legislation introduced requirements concerning vehicle age and the proportion of zero-emission vehicles in rental fleets. These are primarily obligations for rental operators rather than additional procedures for tourists.

Final Thoughts

The most important thing to remember about car hire in Madeira in 2026 is that the rental process now includes a new regional vehicle usage fee, while visiting the island’s official hiking trails requires more planning than before.

The changes are manageable if you know about them in advance. Check the rental agreement, understand the additional charge, reserve your hiking routes when needed, and pay attention to the latest traffic arrangements in Funchal.

If you are planning to explore Madeira independently, choosing a suitable car and understanding the rental conditions before arrival will help make your journey more straightforward.

If you have questions about vehicle categories, collection locations or rental conditions, contact the Girassol.Rent team before booking. You can also view the available cars and check availability for your dates.

Our team at Girassol.Rent can answer your questions before you book.

Phone / WhatsApp / Telegram: +351 961 778 886

Email: book@girassol.rent

Book online: https://girassol.rent/car_booking_madeira/