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State to pay about 80% of an electric car's price for low-income families, up to €15,000. Used cars qualify too

The government has given more detail on how its help for low-income families to buy an electric car will work. The state will pay about 80% of the car's price before IVA (VAT), up to €15,000, and will add another €1,000 for anyone who hands in a petrol or diesel car for scrapping. The car itself can cost more than €15,000: the price cap is about €37,500 before IVA, but this has not been finalised yet (ECO, Observador).

The car can be new, or used and no more than five years old, but it must be bought from a dealer, not privately. The help comes as a voucher paid directly to the seller, and the family pays the rest: the part of the price the help does not cover, plus IVA (Jornal de Negócios). For example, for a car costing €16,700 before IVA, the state will pay 80% (€13,360), plus €1,000 if an old car is handed in. With an old car handed in, the family will be left to pay €2,340, plus IVA on the full price — another €3,841.

The help is for families on the social energy tariff (tarifa social de energia) and families whose income is below 80% of the national median — under €11,572 a year per adult. About 1.58 million families meet these conditions, and €104.5 million has been set aside — enough for roughly 5,500 cars. Money for about 1,100 more cars will be added if the European Commission agrees: the programme is part of the Social Climate Plan (Plano Social para o Clima), which Portugal sent to Brussels in early October.

A car bought with this help cannot be sold for three years.

The government says applications will open in the first months of 2027, but there is no exact date yet. You will be able to check whether you qualify using a calculator the government is building together with the tax authority (AT).

For everyone else, there will be a separate €50 million programme in 2027. Its rules have not been set yet, and it is due to open around the middle of the year. Last time, buyers of a new electric car got €4,000 if they handed in an old car, and the money ran out in under two hours. Another programme, worth €228 million, is for micro-businesses: up to two electric cars per firm, and handing in old petrol or diesel cars is compulsory (Jornal de Negócios).

A MOBI.E public charging point outside a Continente supermarket. Photo: Resende13, Wikimedia Commons, CC BY-SA 4.0