Portugal plans to introduce a new electric vehicle incentive programme that would cover up to 80 per cent of the purchase price for low-income households. The initiative is expected to support around 20,000 electric car purchases, while the government also intends to maintain its existing incentive scheme with a budget of €50 million in 2027.
Portuguese Environment and Energy Minister Maria da Graça Carvalho announced the proposed programme during parliamentary discussions on the 2027 state budget, according to The Portugal News. The initiative would mark the first time Portugal has introduced a dedicated electric car subsidy specifically for lower-income households.
Under the proposed scheme, eligible buyers could receive funding covering up to 80 per cent of an electric vehicle’s purchase price. However, the subsidy would be subject to vehicle price limits set by the Portuguese Ministry of the Environment.
Vehicle Price Limits and Charging Support
The eligible purchase price will be capped at €15,000 excluding VAT. Buyers who scrap a combustion-engine vehicle as part of the purchase would qualify for a higher price ceiling of €16,000.
The programme would also provide up to €1,000 towards the installation of a home charging point.
These conditions mean the 80 per cent subsidy would apply only within the programme’s specified vehicle price limits, rather than to electric cars at any price level. The government has not yet clarified the income thresholds applicants must meet or announced an official launch date.
Existing EV Incentive Scheme to Continue
Alongside the new social programme, Portugal plans to continue providing electric vehicle subsidies to the wider population. The government intends to allocate approximately €50 million to the existing scheme in 2027.
According to Carvalho, the programme’s conditions will largely follow those applied in previous funding rounds.
Portugal has supported electric vehicle adoption through several incentive initiatives. At the beginning of 2026, the government launched a €17.6 million programme covering electric cars, electric two-wheelers and charging infrastructure.
Under that scheme, private individuals could receive up to €4,000 towards an electric car purchase. Applicants were required to scrap a combustion-engine vehicle at least 10 years old. The eligible vehicle price was limited to €38,500, increasing to €55,000 for vehicles with more than five seats.
A further funding round followed in June, when the Portuguese Environmental Fund introduced a €10 million programme. It also covered eligible vehicles acquired from the beginning of 2025, provided applicants had not already received support through an earlier round.
The proposed low-income household scheme would introduce a different approach by linking the subsidy to a percentage of the vehicle’s purchase price rather than providing a fixed grant. The final amount received by each household would therefore depend on the eligible vehicle’s cost and the programme’s participation requirements.
Additional Support for Commercial and Public Transport
The government’s 2027 transport electrification plans extend beyond private electric car purchases.
During the budget discussions, officials outlined support for the acquisition of up to 9,000 electric vehicles by micro-enterprises. Further incentives are planned for lower-emission heavy-duty commercial vehicles and their associated charging infrastructure.
The government also intends to co-finance the procurement of electric buses in sparsely populated regions, supporting the expansion of lower-emission public transport beyond major urban areas.
Portugal Sets €17.6 Million Incentive Scheme to Boost Electric Vehicles and Charging
Final Budget Approval Still Pending
Portugal’s 2027 state budget has not yet completed the parliamentary approval process. Parliament approved the draft at its first reading on 28 October, with the final vote scheduled for 24 November.
The detailed funding rules for the proposed low-income household programme also remain pending. Income eligibility criteria, the application process and the official launch date have yet to be announced.