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European Alternative Fuels Observatory

Portugal

Incentives and Legislation

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure. 

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.

Registration tax benefits

Tax reduction/exemption – CO2-based tax:

  • Battery electric vehicles (BEVs) and renewable energy vehicles: complete exemption;
  • Plug-in hybrid (PH)EVs: 75 % reduction if range in all-electric mode ≥ 50 km and < 50g/km CO2;
  • Compressed Natural Gas (CNG): 60 % reduction;
  • HEVs: 40 % reduction if range in all-electric mode over 50 km and CO2 emissions less than 50 g/km.

 

Ownership tax benefits

Tax reduction / exemption - CO2 based tax

Company tax benefits

Autonomous corporate income tax:

  • exemption for BEVs;
  • reduction for PHEVs if range in all-electric mode ≥ 50 km and CO2 emissions < 50 g/km.

VAT deduction for M1 and N1:

  • 100 % for BEVs ≤ EUR 62 500;
  • 100 % for PHEVs ≤ EUR 50 000;
  • 50 % for LPG and CNG vehicles ≤ EUR 37 500.
Purchase subsidies

Private: EUR 3 000 to buy a new BEV (M1 vehicle), with purchasing price of up to EUR 62 500, limited to one vehicle per person. Companies (limited to N1 vehicles): EUR 6 000 to buy a new BEV.

VAT benefits

VAT is deductible for companies (with acquisition cost <EUR 50 000+VAT for PHEVs or EUR 62 500+VAT for BEVs).

Other financial benefits

Free parking in several cities. Local utility company gives 1 year discount in electricity for BEV buyers.

BEV company cars are not taxed as part of corporate income tax.

 

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Incentives and Legislation

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure. 

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.