Portugal has one of the highest EV market shares in the world, with plug-in hybrids making up 12% 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 2020 to incentivize EV ownership:
- Private individuals:
- €3,000 for the purchase of a new BEV (car/van), limited to 1 vehicle per person.
- There is a full VAT deduction for fully-electric vehicles under €62,500 and €50,000 for hybrid plug-in vehicles.
- BEV company cars are not taxed as part of corporate income tax.
Road Tax Benefits:
- Fully electric vehicles (BEV):
- Total exemption from road tax.
- Other EVs:
- Fully electric vehicles (BEVs):
- Full exemption from vehicle tax.
- Plug-in Hybrid Electric Vehicles (PHEVs) with a range of over 25km+
- 75% discount on vehicle tax.
- 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
- The Portuguese government is developing a public EV charging network with national coverage to enable electric vehicle users to drive throughout the country without range anxiety.
- It will include 1,350 charging points on 25 major roads and within cities.
- The Portuguese Government has also rolled out an Environment Fund that will provide €1,500,000 for a 50% non-repayable grant to operators investing in quick EV charging.
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 heavily in EV charging infrastructure in an effort to make EV ownership more practical.
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.