Portuguese Environment and Energy Minister Maria da Graça Carvalho announced the new subsidy during parliamentary debates on the 2027 state budget. For the first time, there will be a dedicated programme for low-income households, offering subsidies of up to 80 per cent of the vehicle value for around 20,000 electric cars.
According to the Portuguese Ministry of the Environment, the eligible purchase price will be capped at €15,000 excluding VAT. If a combustion-engine vehicle is scrapped at the same time, the upper limit increases by €1,000 to €16,000. Additionally, up to €1,000 will be granted for the installation of a charging point.
This puts the announced subsidy rate of 80 per cent into clear context: it does not apply indefinitely to arbitrarily expensive electric cars but rather within these price limits. However, it remains unclear what income thresholds will apply for participation and when the programme will officially launch.
Regular EV subsidies to continue
In addition to the new social programme, Portugal also intends to continue its existing subsidy for the general population. Around €50 million will be available for this in 2027. According to the minister, the conditions will essentially follow those of previous programmes.
Portugal has been promoting electric vehicles for several years. At the beginning of 2026, the government launched a €17.6 million programme for electric cars, electric two-wheelers, and charging infrastructure. Private individuals could receive up to €4,000 for the purchase of an electric car. One of the requirements was the scrapping of a combustion-engine vehicle that was at least ten years old. The eligible purchase price was capped at €38,500, or €55,000 for vehicles with more than five seats.
In June, another funding round was introduced by the Portuguese Environmental Fund, with a volume of €10 million. Eligible vehicles included those acquired since the beginning of 2025, provided the applicants had not already been considered in a previous round.
With the new programme for low-income households, Portugal would thus deviate for the first time from its previous fixed-amount subsidies. Instead, a percentage of the vehicle price will be covered. As a result, the actual subsidy per household will in future depend more on the purchase price and the yet-to-be-defined access criteria.
Additionally, the government plans further measures to electrify transport. According to the budget debate, up to 9,000 electric vehicles for micro-enterprises will be supported. Subsidies are also planned for lower-emission heavy-duty commercial vehicles and their charging infrastructure. The procurement of electric buses in sparsely populated regions will also be co-financed.
However, the 2027 state budget has not yet been finalised. While parliament approved the draft in its first reading on 28 October, the final vote is not scheduled until 24 November. The specific funding guidelines for the new programme are also still pending.
