The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.

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, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice. 

Purchase subsidies

In 2025, private individuals in Portugal can receive a €4,000 cash rebate for new BEVs priced up to €55,000 (including VAT), conditional on scrapping a vehicle over 10 years old. 

Social institutions (e.g. IPSS) may receive €5,000 per vehicle. The total budget is €13.5 million, with €5.7 million allocated to individuals and €3 million to social institutions. 

Applications are accepted on a first-come, first-served basis, and each beneficiary may apply for one vehicle. Vehicles must be 100% electric, new, registered in Portugal, and kept for at least 24 months.

Registration tax benefits

BEVs are fully exempt from vehicle registration tax. PHEVs benefit from a 75% reduction if they have ≥50 km electric range and emit <50 g CO₂/km. HEVs with the same parameters receive a 40% reduction.

Ownership tax benefits

BEVs are exempt from vehicle excise duty and autonomous taxation. PHEVs may receive up to 60% excise duty reduction and 50% reduction in autonomous taxation, provided their CO₂ emissions are below 50 g/km and they have an all-electric range above 50 km.

Company tax benefits

Corporate tax benefits include:

• Autonomous tax exemption for BEVs
• Reduction for qualifying PHEVs (≥50 km electric range and <50 g CO₂/km)
• 100% VAT deductibility for BEVs ≤ €62,500 + VAT and PHEVs ≤ €50,000 + VAT
• BEVs are not taxed as corporate benefits-in-kind

 

VAT benefits

Companies may fully deduct VAT on BEVs with acquisition costs up to €62,500 + VAT, and on PHEVs up to €50,000 + VAT.

Other financial benefits

Subsidies for BEV purchases are exempt from income tax. BEV owners may deduct 100% of VAT on electricity used for vehicle charging. Free public parking is offered in several municipalities.

Local incentives

Many Portuguese cities (e.g. Lisbon, Beja, Funchal, Loures, Oeiras) offer free or discounted BEV parking. BEVs have unrestricted access to low-emission zones in over 200 municipalities and may use bus lanes in selected areas.

AF Infrastructure Incentives

Support is available for EV charger installation in condominiums:

• 80% of charger purchase costs (up to €800)
• 80% of installation costs (up to €1,000 per space)

This is funded through a €10 million allocation from the Environmental Fund to promote EV infrastructure deployment.

 

Announced Policy Changes (Effective Later in 2025 and After)

Portugal plans to install 15,000 public EV charging points by the end of 2025 under the National Recovery and Resilience Plan. By 2030, 50 to 100 hydrogen refueling stations are expected under the National Hydrogen Strategy (EN-H2).

Institutions Involved in Incentives html Copy Edit

Portuguese Environmental Fund (Fundo Ambiental)<br>
MOBI.E (Electric Mobility Network Managing Entity)<br>
Ministry of the Environment and Climate Action

Interesting Links

Essential Business – 2025 Incentive Overview