Portugal expands €4,000 EV cash rebate program

Lisbon: To incentivize EV adoption, the Portuguese government has been offering a €4,000 rebate to buyers of electric cars worth up to €38,500. However, this has now been expanded to include vehicles of a higher value.

The rebate will now cover new BEVs bought for up to €55,000 (incl. VAT) – on the condition that they have between six and nine seats. As before, the incentive only applies if the buyer of a new EV scraps a vehicle that’s over 10 years old and that they have owned for at least one year.

The funds are being provided by the Portuguese Environmental Fund (Fundo Ambiental), as one of a number of incentives and tax benefits being offered for electric mobility. For example, individuals purchasing BEVs are also exempt from the payment of road and vehicle tax, while companies are able to deduct the entirety of VAT from their purchase.

Maria da Graça Carvalho, Minister for the Environment, said: “With a total pool of incentives worth €13.5m, we want to ensure that the Portuguese can benefit from transport options that are more efficient and environmentally friendly.”

Portugal is currently witnessing large growth in EV adoption. According to a report by the European Commission, the Portuguese EV market saw an increase in sales of 40.97 per cent in January 2025 compared to the previous January – with a total of 5,399 BEVs sold.

Additionally, the government of Portugal announced in February that it plans to ‘liberalise’ the rules around EV charging. Previously, charging stations had to be connected to a state-owned app, but now, petrol stations will no longer have to have a contract with an EV energy supplier. Measures have also been implemented to allow drivers to charge “at any station and pay with the normal electronic means of payment.”