With the new Regional Legislative Decree, the changes also affect customers, who will now be subject to a daily fee of two euros, up to a limit of ten days.

The new measures also tighten the crackdown on the parallel rental activity, or that carried out by companies without facilities in the region. Vehicles must be owned or leased in the name of the licensed operator, displaying an activity sticker, the model of which is yet to be defined.

In the case of companies, they must first pass the scrutiny of the Madeira Institute of Mobility and Transport (IMT), which restricts direct access to car rental to companies licensed only on the mainland. In parallel, the tacit deferral for starting vehicle rental activity is eliminated, according to a report by Eco.

The preamble to Regional Legislative Decree 7/2025/M refers to constraints generated in the territory by the increased use of private vehicles, particularly by tourists, and explains that "it is necessary to act firmly and with conviction in what is essential to preserve good conditions for travel and mobility" in Madeira. To this end, it is considered "crucial to supervise, discipline and regulate, in order to guarantee sustainable mobility and development".

Operators of traditional vehicle rentals, as well as those designated in the legislation as "sharing" (a concept encompassing the occasional use of a vehicle, with and without a motor, including motorcycles and bicycles), will need to have "physical space" in the region, dedicated to the activity and "where customers can go".

Parking

In addition, it will be mandatory to have their own parking lot at a maximum distance of 15 kilometres from that address "or the delivery location with the highest activity" and which accommodates a share of the total fleet between 20% and 40% – the definitive share will be defined by the regional secretary for this area, continues the preamble of the legislation.

When not rented, vehicles must park in this parking lot, "and may not park on public roads", except for spaces designated for this purpose next to transport terminals.

To be able to carry out the activity, there is also a minimum number of vehicles: ten, in the case of passenger cars; and five in the other categories.

In the case of ride-sharing, this legislation, approved by the Legislative Assembly, creates conditions for the measure, specifically requiring an electronic reservation system, a permanent customer support line, a contract, and other requirements that hinder informal rentals.

Fines

Infractions can reach €2,500 for individuals and €7,500 for companies, with the latter being responsible for paying all fines.

The conditions also cover the motor vehicles themselves, whose age cannot exceed five years, or, in the case of zero-emission vehicles (excluding hybrids), seven years. Importantly, at least 10% of the fleet (which must be duly registered) must consist of "zero-emission vehicles." In the case of bicycles, they must have a license number and insurance.

Although already in effect, several of these regulations have a transitional period extending until 2027.