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How To Save Money When Buying an EV In Portugal

7 minutos

Portugal has one of the highest EV market shares in Europe, with plug-in hybrids making up 13,6% of the country’s auto sales in 2020. EV sales have been increasing substantially in the country since 2017, mainly thanks to financial incentives such as subsidies and tax breaks. Here’s how you can benefit and potentially even save money.

🚘 National EV Purchase Incentives

The Portuguese Government’s Environmental Fund has allocated €4,000,000 in funding in 2021 to incentivize EV ownership:

  • Private individuals:
    • €3,000 for the purchase of a new BEV (car/van), limited to 1 vehicle per person
    • €6000 for the purchase of a new fully electric van, limited to 1 vehicle per person
    • 50% of the purchase value price (up to a maximum of 1000€) for the purchase of an electric freight bicycle, limited to 1 per person
    • 50% of the purchase value price (up to a maximum of 350€) for the purchase of a fully electric bicycle, moped or motorcycle, limited to 1 per person
  • Companies:
    • €6,000 for the purchase of an electric van or light goods vehicle, limited to 2 vehicles per candidate
    • 50% of the purchase value price (up to a maximum of 1000€) for the purchase of an electric freight bicycle, limited to 4 per candidate
    • 50% of the purchase value price (up to a maximum of 350€) for the purchase of a fully electric bicycle, moped or motorcycle, limited to 4 per candidate

Tax Benefits

VAT Benefits:

Road Tax Benefits:

Vehicle Tax Benefits:

  • Fully electric vehicles (BEVs):
    • Full exemption from vehicle tax.
  • Plug-in Hybrid Electric Vehicles (PHEVs) with a range of over 50 km+
    • 60% discount on vehicle tax (75% if the vehicle registration is nationalized).
  • Find more information on vehicle tax benefits here.

Company Tax Benefits:

  • Corporate tax deduction for company fleets with EVs.
  • BEVs are exempt from autonomous corporate income tax.
  • PHEVs are eligible for reduced autonomous corporate income tax.
  • Find more information here.

🔌 EV Charging Incentives

Save money with EV incentives in Portugal

Portugal has implemented a wide range of tax benefits and grants to incentivise EV ownership to make it more attractive to buyers. It is also investing in EV charging infrastructure in an effort to make EV ownership more practical. It also seems that private operators are going to play a major role in developing the charging network.

To find out more about EV and EV charging incentives in other European countries and how they compare to the Portuguese subsidies, read our complete EU EV incentives guide.