Portugal: Company incentives to deploy electric vehicles

Portugal
Phase: Anticipation
Type:
Company incentives to deploy electric vehicles
Sist endret: 10 December, 2021
Virkelig navn:

Lei da Fiscalidade Verde (Lei 82-D/2014 de 31 de Dezembro); Despacho 2535/2021 of 5 March

Engelsk navn:

Green Tax Law (Law 82-D/2014 of 31 December): Order 2535/2021 of 5 March

Artikkel

Law 82-D/2014 of 31 December reforms environmental taxation, changing a large set of regulations Order 2535/2021 of 5 March - whole document

Beskrivelse

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.

 

 

Kommentarer

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
  • Companies
  • National government
Involved actors other than national government
  • Employer organisation
  • Regional/local government
Thresholds
No, applicable in all circumstances
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