The Portuguese government is planning a new subsidy program for low-income households, covering up to 80 per cent of the purchase price for electric vehicles. The initiative is expected to support approximately 20,000 cars. The eligible price for these vehicles is capped at €15,000 excluding VAT, or €16,000 if an old combustion-engine car is scrapped.
Participants in the new program may also receive up to €1,000 for the installation of a charging point. Alongside this social initiative, the government intends to maintain its general electric vehicle incentive scheme with a budget of €50 million for 2027. The specific income thresholds for the new program and the official launch date remain to be determined.
The 2027 state budget, which includes these proposals, passed its first parliamentary reading on 28 October, with a final vote scheduled for 24 November. The government also plans to support the acquisition of 9,000 electric vehicles for micro-enterprises, alongside funding for heavy-duty commercial vehicles and electric buses in rural areas.
Portugal has previously utilized fixed-amount subsidies for electric vehicles. A program launched in early 2026 provided up to €4,000 per vehicle with a budget of €17.6 million, while a subsequent June round allocated €10 million. The new proposal marks a shift toward percentage-based support for vehicle purchases.
