What if the state paid 80% of your electric car? This European country is thinking about it!
Portugal is considering covering up to 80% of the cost of an electric car for the lowest-income households. Announced as part of the 2027 budget, this new measure could benefit around 20,000 vehicles. It is a very generous form of assistance, but it will be subject to several conditions.
Portugal wants to accelerate the electrification of its vehicle fleet without leaving the least affluent households behind. With the purchase price remaining one of the main barriers to adopting electric vehicles, Lisbon is preparing a fairly substantial support mechanism. The announcement was made by Maria da Graça Carvalho, Portugal’s Minister of Environment and Energy, during discussions on the 2027 budget.
Aid that can reach 80% of the purchase price
The Portuguese government intends to introduce a program for low-income households. The idea is to cover up to 80% of the cost of purchasing an electric vehicle. Approximately 20,000 vehicles could benefit from this measure. However, note that not every model will be eligible for subsidies. The eligible purchase price will be capped at 15,000 euros before taxes. The Dacia Spring, Renault Twingo E-Tech, and Citroën ë-C3 might fall under this category.
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In the case of dismantling an old internal combustion engine vehicle, the subsidy ceiling could be raised by 1,000 euros, reaching 16,000 euros. Specifically, with 80% coverage, an electric car priced at 15,000 euros before taxes could receive a subsidy of 12,000 euros. The remaining amount to pay would then be 3,000 euros before taxes, subject to the final details of the program.
Portugal also plans to provide an additional subsidy of up to 1,000 euros for the installation of a charging station.
Portugal aims to continue its efforts in 2027
This new mechanism would complement the existing subsidies. The government plans to allocate 50 million euros in 2027 to the traditional programs aimed at the entire population. In 2026, individuals could receive a bonus of 4,000 euros, provided they scrapped a conventional car that was at least ten years old. The electric vehicle purchased had to stay within a certain price limit.
Other measures are also being considered to support the acquisition of 9,000 electric vehicles for micro-enterprises, as well as the electrification of heavy vehicles and buses. Portugal’s budget for 2027 still needs to be finally approved, with a vote scheduled for November 24. The income thresholds required to qualify for the new subsidy and the launch date of the program remain unknown.