Portugal Plans Up to 80 Percent Support for Lower-Income Electric Vehicle Buyers in 2027 and a 50 Million Euro General Incentive
The environment minister told parliament that lower-income households will get up to 80 percent support to buy an electric vehicle in 2027, and the general Fundo Ambiental incentive will rise to 50 million euros. No rules or dates have been published yet.
Lower-income households will be able to have up to 80 percent of the cost of an electric vehicle covered by the state in 2027, the Minister of Environment and Energy, Maria da Graça Carvalho, told parliament on Wednesday 28 October.
Speaking in the general debate on the Orçamento do Estado para 2027 (2027 State Budget) in the Assembleia da República (Portuguese parliament), the minister said the government would support the purchase of more than 20,000 vehicles for "the most deprived" (os mais carenciados), with a contribution of up to 80 percent. Her remarks were reported by the Lusa news agency, carried by Dinheiro Vivo, and by Observador's live coverage of the debate.
General incentive rises to 50 million euros
The general scheme, run by the Fundo Ambiental (Environmental Fund), will continue. "We will also maintain the incentives for the purchase of electric vehicles for the population in general, with rules similar to those of the past, but with an allocation of 50 million euros," the minister said. The most recent round, which opened in June 2026, had a budget of 10 million euros, according to the Ministério do Ambiente e Energia (Ministry of Environment and Energy).
She also announced support for 9,000 electric vehicles for micro-enterprises and cleaner heavy vehicles.
What has not been published yet
No rules for the 2027 schemes have been published. The government has not said who will count as lower income, how much each household could receive in euros, which vehicles will qualify, what share of the money goes to the low-income strand, or when applications will open. The Fundo Ambiental website carried no new notice on Wednesday afternoon. The measures are part of a budget proposal that parliament has not yet approved.
How the last round worked
In the second phase of the 2025 and 2026 incentive, open from 11 June to 27 July 2026 or until the money ran out, the Fundo Ambiental set these terms:
- Up to 4,000 euros for a new fully electric passenger car bought by a private individual, and 5,000 euros for charities registered as Instituições Particulares de Solidariedade Social (IPSS, private social solidarity institutions), transport authorities and local councils.
- A fossil-fuel vehicle more than 10 years old had to be scrapped to qualify.
- The car could cost no more than 38,500 euros including VAT and associated costs, or 55,000 euros for vehicles with more than five seats.
- Bicycles, cargo bikes, electric motorcycles and mopeds: 50 percent of the price, capped at 500 to 1,500 euros depending on type.
- One application per private individual.
Applications were handled in order of submission on the Fundo Ambiental's platform, and the round also covered vehicles bought new since 1 January 2025.
What to do now
There is nothing to apply for yet. If you are thinking about an electric car next year:
- Watch the Fundo Ambiental site for the 2027 notices.
- If you own a petrol or diesel car more than 10 years old, keep it until the rules are out: past rounds required scrapping one.
- Be cautious about buying before the rules appear: earlier rounds accepted past purchases, but the 2027 schemes may not.
- Have your documents ready: money in past rounds went to applicants in order of submission.
For running costs, see our report on the proposal by the Entidade Reguladora dos Serviços Energéticos (ERSE, the energy regulator) to halve Mobi.E network fees from January and our guide to charging an electric car in Portugal.
