Portugal proposes new electric vehicle incentives for 2027

The Portuguese government's 2027 State Budget proposal includes new incentives for the acquisition of zero-emission vehicles as part of a strategy to decarbonize transport. The proposal was submitted to the Assembly of the Republic on October 8.

While the intent to provide support is confirmed, specific details regarding the total budget, individual subsidy amounts, eligibility rules, and application timelines remain unknown. Previous programs through the Environmental Fund (Fundo Ambiental) saw high demand, with funds for 2026 being exhausted quickly.

In past iterations, subsidies for individuals reached up to 4,000 euros for 100% electric passenger vehicles, subject to specific price caps and the scrapping of older fossil fuel vehicles. However, these previous conditions are not guaranteed for the 2027 cycle. The proposal is scheduled for debate in late October, with a final global vote expected on November 24.