Portugal to subsidize electric vehicles for low income households

Maria da Graça Carvalho, the Minister for Environment and Energy in Portugal, announced a new program to help low income families purchase electric cars.

The government plans to provide subsidies for 20,000 vehicles, with the goal of covering up to 80 percent of the purchase costs. The ministry says it will maintain existing incentives for the general public while establishing this new social initiative. These measures are funded by the Green Mobility package from the Portuguese Environment Fund.

While the specific budget for the 20,000 vehicles and the exact income limits remain unknown, the total budget for electric mobility subsidies stands at 50 million euros. Current subsidies provide 4,000 euros to private individuals and 5,000 euros to private social solidarity institutions. To qualify, vehicles must have been purchased since 1 January 2025 and stay below price limits of 38,500 euros for standard cars or 55,000 euros for vehicles with more than five seats.