Portugal Plans 80% EV Subsidy for Low-Income Households

Portugal Plans to Pay Up to 80% of an EV for Low-Income Households

Portugal plans its first electric car subsidy aimed only at low-income households, covering up to 80% of the price of a new EV. Environment and Energy Minister Maria da Graça Carvalho presented the plan during the parliamentary debate on the 2027 state budget, electrive reported on 29 October, citing The Portugal News.

Key takeaways

Up to 80% of the vehicle price for low-income households, for around 20,000 electric cars.

Eligible cars cost at most €15,000 before VAT in 2027, or €16,000 if an old combustion car is scrapped.

Up to €1,000 in 2027 towards a home charging point.

Regular EV subsidies for everyone else in 2027: about €50 million.

How the new programme works

The low-income scheme is a first for Portugal. It sets a price cap of €15,000 excluding VAT for the 2027 programme, which limits it to small and budget electric cars. Buyers who scrap a combustion-engine car at the same time get a cap raised to €16,000 for 2027. A grant of up to €1,000 for installing a charging point is also planned for 2027.

Several details are still open. The government has not published the income limits that decide who qualifies, the funding rules or the start date. Parliament approved the draft 2027 budget at first reading on 28 October 2026, and the final vote is set for 24 November 2026.

Subsidies for everyone else

Alongside the new scheme, Portugal keeps a regular EV subsidy budget of about €50 million for 2027, with rules expected to follow earlier programmes. In early 2026 the country ran a €17.6 million programme for electric cars, electric two-wheelers and charging. Private buyers could receive up to €4,000 in 2026 for an electric car if they scrapped a combustion car at least ten years old; the car price was capped at €38,500 in 2026, or €55,000 for cars with more than five seats. A further €10 million round followed in June 2026 from the Portuguese Environmental Fund.

More measures in the budget

Support for up to 9,000 electric vehicles for micro-enterprises.
Subsidies for lower-emission heavy commercial vehicles and their charging.
Co-financing for electric buses in sparsely populated regions.

What it means for you

If you live in Portugal and your household income is low, 2027 could bring one of the most generous EV subsidies in Europe, but only for cars under the €15,000 net price cap set for 2027. That rules out most mid-size models and points to small city cars. Wait for the income limits and the start date before you sign a contract, and keep any old combustion car you plan to scrap, as it raises the price cap. For buyers with higher incomes, the regular grant is likely to stay much smaller.

Find affordable battery cars in our electric cars section.