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Portugal considers 80 per cent EV purchase subsidies

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Portugal considers 80 per cent EV purchase subsidies

Portugal will support low-income households in purchasing an electric car with up to 80 per cent of the vehicle price in the future. The new program is expected to cover around 20,000 vehicles. In parallel, the government will continue its regular electric car incentive program with a budget of €50 million euros.

Portuguese Environment and Energy Minister Maria da Graça Carvalho announced the new subsidy during parliamentary debates on the 2027 state budget. For the first time, there will be a dedicated programme for low-income households, offering subsidies of up to 80 per cent of the vehicle value for around 20,000 electric cars.

According to the Portuguese Ministry of the Environment, the eligible purchase price will be capped at €15,000 excluding VAT. If a combustion-engine vehicle is scrapped at the same time, the upper limit increases by €1,000 to €16,000. Additionally, up to €1,000 will be granted for the installation of a charging point.

This puts the announced subsidy rate of 80 per cent into clear context: it does not apply indefinitely to arbitrarily expensive electric cars but rather within these price limits. However, it remains unclear what income thresholds will apply for participation and when the programme will officially launch.

In addition to the new social programme, Portugal also intends to continue its existing subsidy for the general population. Around €50 million will be available for this in 2027. According to the minister, the conditions will essentially follow those of previous programmes.


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