Surely if you drive a rental car with your foreign licence (and assuming you rented on that licence) then there’s literally nothing to worry about?
If you somehow managed to buy a local car, and then you drive that one on your foreign licence, then you may raise some eyebrows when you are stopped, but then again, why would anyone stop you for any questioning?
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Actually, I have seen random stops in Lisbon city centre (Rua da Escola Politécnica and Praça Duque de Saldanha) by police to check car registration documents, insurance, technical inspection status, and driving license. They are very infrequent, but they do occur.
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+1 @PCERoman
I’ve been stopped once while driving a rental car and they checked all my documents. I want to abide by the law and show an eligible drivers license when driving in Portugal during my GV stays.
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