Portugal: Company incentives to deploy electric vehicles

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.