Portugal is preparing an unprecedented measure for buying electric cars: the State could cover up to 80% of the purchase cost for the most modest households. The announcement was made on 28 October 2026 by Maria da Graça Carvalho, Portugal's Minister for the Environment and Energy, during the parliamentary debate on the proposed 2027 State Budget. The scheme is not yet in force: the budget still has to be definitively adopted and the detailed rules of the programme have yet to be published.
What the Portuguese government announced
According to Portuguese media that relayed the news, including Observador, Tek Notícias and The Portugal News, this is the first dedicated programme for low-income households buying an electric vehicle. The State's contribution could reach 80% of the eligible acquisition cost, excluding VAT, according to clarifications from the Ministry of the Environment and Energy reported by the Lusa agency. The programme targets around 20,000 vehicles; Observador speaks of more than 20,000 vehicles.
The 80% rate is a ceiling on the State's contribution: it does not mean that every eligible household will automatically receive that share of the price. How it works in practice will depend on the programme's rules, which have not yet been published. According to electrive, Portugal would thus depart, for the first time, from its fixed-amount subsidies.
The announcement comes as the Jornal de Notícias points out that fuel prices remain affected by the international context. To follow the situation at the pump, you can check our comparison of fuel prices in Europe.
Price caps: differing readings
A cap of 15,000 euros excluding tax is mentioned, raised to 16,000 euros if an old combustion-engine vehicle is scrapped. The sources do not describe this cap in the same way.
Automobile Propre and electrive tie it to the eligible purchase price. Under this reading, a car priced at 15,000 euros excluding tax could receive a subsidy of 12,000 euros, leaving 3,000 euros excluding tax to pay, subject to the final terms. Automobile Propre cites, in the conditional, the Dacia Spring, Renault Twingo E-Tech and Citroën ë-C3 as potentially eligible models.
The Jornal de Notícias, for its part, reports that the ministry describes support of 80% of the acquisition cost excluding VAT, up to a maximum of 15,000 euros, and gives a ceiling of 16,000 euros per vehicle. The gap between a cap applied to the vehicle's price and a cap applied to the aid itself is significant. Only the publication of the programme's regulations will settle the question.
A scheme that adds to the general incentives
The government has confirmed that incentives for buying electric vehicles will continue in 2027 for the population as a whole, with rules similar to those of the past and a budget of 50 million euros.
These general incentives are in high demand. At the end of December 2025, the Fundo Ambiental (Environmental Fund) programme of 17.6 million euros was exhausted in 18 hours, according to Renascença: it provided 4,000 euros for individuals and 5,000 euros for IPSS (social solidarity institutions), transport authorities and local authorities. In June 2026, a new 10 million euro scheme was fully allocated within a few hours, reports Portugal Resident. These episodes show that the budgets opened so far have been used up very quickly. For 2026, Automobile Propre mentions a 4,000 euro bonus, conditional on scrapping a combustion-engine car at least ten years old.
The other parts of the 2027 budget
The same debate covered other forms of support: the purchase of 9,000 electric vehicles for micro-enterprises and the co-financing of 700 electric buses for low-density areas. According to Portugal Resident, the minister also mentioned the purchase of more sustainable heavy-duty vehicles and the network of charging points. For low-income households, the programme includes a contribution to the installation of home chargers, with an amount of up to 1,000 euros according to Automobile Propre.
Timetable and points still to be confirmed
The Portuguese budget for 2027 has not been definitively adopted. Automobile Propre indicates a vote scheduled for 24 November. The income thresholds that will determine eligibility and the launch date of the programme are not known at this stage. Lusa, cited by Turbo, advises those interested to wait for the official rules to be published before buying.
The electric vehicle users' association UVE welcomed the announcements. Its president, Pedro Faria, considers them in line with the proposals the association submitted for the 2027 budget, according to the Portuguese press.