After a large increase in the share of EV sales in 2023, Portugal is on track to reach 100 percent EV sales by 2035 (and 72 percent by 2030). The country has made substantial progress in the past three years, being ten percentage points ahead of the EU average (32 percent compared to 22 percent in the European Union in 2023).
The progress has been supported by strong incentives from the government's Environment Fund, which allocated €20 million in financing for 2024/25. It offers individuals up to €4,000 to purchase new zero-emission vehicles (which includes EVs).
Corporations, too, benefit from attractive tax incentives to upgrade their fleet with cleaner vehicles. Buyers are exempt from registration tax and can deduct the VAT on their tax returns.
However, early Associação Automóvel de Portugal (ACAP) sales numbers for 2024 show a potential significant slowdown.
