Portugal Plans Grants of Up to 15,000 Euros for Electric Cars, Extra 1,000 for Scrapping Old Cars

Portugal's government is planning major financial support for citizens and expatriates buying electric cars. Under the new programme, buyers could receive a subsidy covering 70 to 90 percent of the car's eligible purchase price.

The maximum grant has been set at 15,000 euros. Scrapping an old fuel-powered car would bring an additional 1,000 euros. The programme could start at the beginning of 2027.

The initiative aims to reduce dependence on fuel oil and increase the use of environmentally friendly vehicles. Environment and Energy Minister Maria da Graca Carvalho gave the details to reporters during parliamentary discussion of the proposed 2027 state budget.

Under the government's plan, the support will be available for used electric cars as well as new ones. However, a used car must be less than five years old and must be bought from an approved dealership or seller.

A ceiling of 37,500 euros has been set for a car's maximum eligible price. The grant amount will be calculated on the eligible purchase price excluding VAT.

Low-income families are to be given priority under the programme, especially those who receive the social electricity tariff benefit. Families whose annual income is below 80 percent of the national median income, that is within about 11,572 euros, may also come under the support.

By the government's initial estimate, about 1.5 million families in the country could potentially come under the programme. Being on the potential list does not guarantee a grant for everyone; final eligibility and priority will be determined through government rules.

The government is also considering financial support for installing electric car charging stations at home. Under the initial plan, support may be given through vouchers or subsidy coupons instead of direct cash refunds, which could be used to buy a car from a participating dealership. However, the application process, required documents and voucher rules have not yet been finalised.

A car bought with the grant must be kept in the buyer's ownership for at least three years; it cannot be sold before that period ends.

An initial allocation of 104.5 million euros is planned for the programme, funded through the Social Climate Plan. The target is to support the purchase of about 5,500 electric cars. If talks with the European Commission succeed, that number could rise by about another one thousand.

Support is also planned separately for small businesses, not only for private cars. An allocation of 228 million euros in that sector aims to help about 9,000 small firms buy 13,700 electric vehicles.