Portugal has expanded its electric vehicle (EV) incentive program, increasing the maximum eligible vehicle price for its €4,000 rebate from €38,500 to €55,000, provided the EV has between six and nine seats. The incentive remains contingent on scrapping a vehicle over 10 years old that has been owned for at least a year.
The rebate is part of a broader push by the Portuguese government to promote electric mobility, funded through the Environmental Fund (Fundo Ambiental). In addition to purchase incentives, EV buyers benefit from tax exemptions on road and vehicle taxes, while businesses can fully deduct VAT on electric vehicle purchases.
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“With a total pool of incentives worth €13.5 million, we want to ensure that the Portuguese can benefit from transport options that are more efficient and environmentally friendly,” said Environment Minister Maria da Graça Carvalho.
EV adoption in Portugal has surged, with the European Commission reporting a 40.97% year-on-year increase in battery electric vehicle (BEV) sales in January 2025, reaching 5,399 units.
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In a further effort to accelerate the transition, the government announced in February that it would ease regulations on EV charging. Previously, charging stations were required to be linked to a state-owned app, but under new rules, petrol stations will no longer need contracts with specific EV energy suppliers. Additionally, drivers will be able to charge at any station and pay using standard electronic payment methods.