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European Alternative Fuels Observatory

Portugal

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 26th April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.

Registration tax benefits

Car tax:- BEVs: complete exemption- PHEVs: 75% reduction if the range in all-electric mode ≥ 50km and < 50g CO2/km- HEVs: 40% reduction if the range in all-electric mode > 50km and CO2 emissions <50 g CO2/km

 

Ownership tax benefits

Tax reduction/exemption calculated based on CO2: 100% electric vehicles are exempt from ISV, and PHEVs (Plug-in Hybrid Electric Vehicles) have a 60% reduction for vehicles with CO2 below 50 g CO2/km and a range of more than 50 km.

Exemption from vehicle excise duty for 100% electric cars.

Exemption from Autonomous taxation (AT)  for 100% electric vehicles and up to 50% reduction for PHEVs with CO2 below 50 g CO2/km and a range of more than 50 km.

Company tax benefits

Autonomous corporate income tax:- Exemption for BEVs- Reduction for PHEVs if range in all-electric mode ≥ 50km and CO2 emissions < 50g/km VAT deduction for M1:- 100% for BEVs ≤ €62,500 + VAT- 100% for PHEVs ≤ €50,000 + VAT

BEV Company cars are not taxed as part of corporate income tax.

Purchase subsidies

Battery-electric vehicles (BEVs) are eligible for a EUR4,000 purchase incentive for vehicles with a gross list price of up to EUR62,500.

Plug-in hybrid vehicles (PHEVs) are eligible for a EUR1,500 purchase incentive for vehicles with a gross list price of up to EUR62,500.

The maximum purchase price for eligible EVs is EUR62,500.

VAT benefits

VAT is Deductable for companies (With acquisition cost <€ 50,000€+VAT for PHEVs or 62,500€+VAT for BEVs).

Other financial benefits

Free parking in several cities. Local utility company gives 1 year discount in electricity for BEV buyers.

 

Local incentives

Cities are limiting the entry of cars with combustion engines, depending on their age and volume of emissions, into urban centres due to the harmful pollutants found in fuels. Low-emissions zones already exist in more than 200 cities. These restricted zones are still accessible using electric vehicles.

AF Infrastructure Incentives

Financial support for charging stations: Portugal encourages the widespread installation of charging stations by providing financial assistance covering a significant portion of the costs. Condominiums and organizations can benefit from an 80% contribution of the purchase price of the charger, up to a maximum of €800 per station.

Electrical installation assistance: In addition to charger support, incentives extend to the electrical installation required for charging stations. This includes contributions of up to €1,000 per parking space, provided that the stations are connected to the Mobi.E network.

Interesting links

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 26th April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.