Lei da Fiscalidade Verde (Lei 82-D/2014 de 31 de Dezembro); Despacho 2535/2021 of 5 March
Green Tax Law (Law 82-D/2014 of 31 December): Order 2535/2021 of 5 March
This law is part of environmental taxation reform in Portugal and establishing a set of green fiscal rules in the sectors of energy and emissions, transport, water, waste, land use, forests and biodiversity. This law provides a set of tax reductions for sectors including low emissions vehicles.
In 2021, the Portuguese Government’s Environmental Fund has allocated €4,000,000 to incentive Electric Vehicles (Order 2535/2021 of 5 March). For the companies the incentives are:
- €6,000 for the purchase of an electric van or light goods vehicle (in 2020 the amount was €2,000), limited to 2 vehicles per candidate;
- 50% of the purchase value price (up to a maximum of 1000€) for the purchase of an electric freight bicycle, limited to 4 per candidate;
- 50% of the purchase value price (up to a maximum of 350€) for the purchase of a fully electric bicycle, moped or motorcycle, limited to 4 per candidate.
Companies that invest in green energy vehicles benefit from some of the following tax incentives:
- Corporate tax deduction for company fleets with EVs.
- BEVs are exempt from autonomous corporate income tax.
- Plug-in hybrid vehicles are eligible for reduced autonomous corporate income tax.
In Portugal, the market share of electric vehicles has been increasing exponentially, thanks to the so-called “green incentive”, which translates into several financial advantages for companies. In 2020, Plug-in hybrids (with charging plug), conventional hybrids and electric hybrids vehicles had the best year ever. Together, they represented more than a fifth of sales (22.8%). Plug-in hybrids and conventional hybrids each had a market share of 8.1%. Electric cars already represent 5.4% of sales.After being with 49.2% of the market in 2019, the share of petrol cars has fallen to 44.2%. In diesel cars, after losing the leadership in 2019, the weight in sales decreased from 40% to 32.8%.
According to the Association of the Users of eletric vehicles in Portugal (UVE - Associação de Utilizadores de Veículos Elétricos), the sale of electric vehicles increased by 55.3% between 2019 and 2020. On the contrary, vehicles powered by fossil fuels had a decline of 40.6% in the same period. In 2020, the sale of Electric Vehicles registered a growth of 135.7% in December (anticipating an exponential growth for 2021) and a market share of 13.6% for the whole year and 22.5% in December.
Cost covered by
- National government
Involved actors other than national government
- Employer organisation
- Regional/local government