While Lisbon is the Capital of Portugal, and considered the most important city in the country, Algarve is known as the most beautiful place in Portugal for beach holidays, famous for it’s warm temperatures, calm ocean and good seafood restaurants.
Lisbon airport has about 3 times more passengers landing, than Algarve/Faro, Airport (in 2019, about 30M vs 9M in Algarve/Faro).
The distance from Lisbon to Algarve is about 300km (180mi), and the driving time about 2h30 (one way), or 5h (roundtrip).
There is one major highway connecting both regions (A2), but there are also minor roads through the coastal line (Estrada Nacional N120).
While A2 is the most popular one, going straight to Algarve, the N120 goes along the coast, going through some villages such as Porto Covo, , Nazare or Aveiro.
The best-recommended way to travel from Lisbon to Algarve is using a private car transfer service.
- For one way transfer, this has a cost of 750EUR (Fixed price up to 5 guests, for direct transfer), with reservation here, and 1h/2h complimentary stops on the way: https://portugal-magik.com/private-transfers/
- Alternatively, you can also book a single one-way transfer service from Lisbon to Algarve, or hourly charter, available here: https://lisbonguide.org/private-transfers-portugal/
Other alternative, Car + Driver app, with instant quotation and booking online here
(point to point)
The other option would be renting a car. A medium-size car with full insurance from Europcar or Hertz, should cost 150EUR to 200EUR for one day. If you leave the car in a different city, an additional fee should apply. Then you should also consider gas, tolls and parking (about 70EUR for gas, roundtrip, about 50EUR for tolls, roundtrip, and then parking depending on where you park and for how long, but eventually 15-20EUR per day). One day with car rental to Algarve from Lisbon should cost about 300EUR.