Portugal plans electric vehicle incentives of up to €15,000 for eligible families - Big Tech and the digital economy

The proposed package would support more than 21,500 electric vehicles, with funding for lower-income families, microenterprises and public transport. Applications are expected to open in early 2027, though the final rules and dates have not yet been published.

Portugal’s government is preparing a major incentive package to accelerate electric mobility, with support planned for more than 21,500 vehicles. Announced by Environment and Energy Minister Maria da Graça Carvalho, the measures are expected to begin in early 2027, although application dates and procedures are not yet confirmed.

Families would receive an initial €104.5 million in funding for around 5,500 cars. Eligible applicants could receive between 70% and 90% of a vehicle’s cost, up to €15,000. Trading in a used car for scrapping could add €1,000 to the incentive.

The scheme would cover new or used fully electric cars less than five years old, bought from a dealership and priced at no more than €37,500. Recipients would have to keep the vehicle for at least three years. Eligibility would extend to households receiving the Social Energy Tariff or with income below 80% of the median, using an annual threshold of €11,572 per equivalent adult. Households on the social tariff would have priority.

The income threshold is adjusted for household size and age. The first adult counts as one equivalent adult, each additional person aged 14 or over as 0.5, and each child under 14 as 0.3. On that basis, the annual threshold would be €17,358 for two adults and €24,301.20 for two adults with two children under 14. Eligibility depends on the household’s adjusted available income, not only on one person’s salary.

Microenterprises would receive €228 million in funding, with support planned for 13,700 electric vehicles. The scheme is intended for businesses with fewer than 10 employees and annual turnover of up to €2 million. Support could cover up to 100% of eligible costs, excluding VAT, and each business could apply for one or two vehicles.

A further €125.5 million is earmarked for 700 electric buses serving low-density areas. The aim is to strengthen transport for workers, students and people who need healthcare.

The government is also examining support for electric vehicle charging stations and preparing measures to reduce natural gas use in industries such as ceramics, cement and glass. The definitive regulations are still to come and will confirm the final eligibility conditions, amounts and application requirements.

Sources: Pplware.