Stay informed about the main tax benefits available for the purchase and use of electric vehicles for companies. These incentives are provided by the Portuguese Tax Authority.

100% Electric Vehicles

• CIT (Corporate Income Tax) – Conditional exemption from Autonomous Taxation (paragraph 20 of Article 88 of the Corporate Income Tax Code);
• ISV (Vehicle Tax) – Exempt from payment (subparagraph a) of paragraph 2, Article 2, Annex I of the Vehicle Tax Code);
• IUC (Annual Road Tax) – Exempt from payment (subparagraph e) of paragraph 1, Article 5, Annex II of the Vehicle Tax Code);
• VAT (Value Added Tax):
  - Full deduction of VAT on expenses related to the purchase, manufacture, import, leasing or conversion of electric passenger or mixed-use light vehicles, when considered company cars, provided the acquisition cost does not exceed €62,500 (subparagraph f) of paragraph 2, Article 21 of the VAT Code, as defined in Article 1(4) of Ordinance No. 467/2010 of 7 July, amended by Law No. 82-D/2014 of 31 December);
  - Full deduction of VAT on electricity costs used to power electric vehicles (subparagraph h) of paragraph 2, Article 21 of the VAT Code).

Hybrid Vehicles

• CIT (Corporate Income Tax) – The applicable Autonomous Taxation rates on expenses related to plug-in hybrid vehicles with a minimum electric range of 50 km and official emissions under 50 gCO₂/km are (paragraph 18 of Article 88 of the Corporate Income Tax Code, as defined in paragraph 3):
  - 2.5% for vehicles with an acquisition cost below €37,500;
  - 7.5% for vehicles costing €37,500 or more but less than €45,000;
  - 15% for vehicles costing €45,000 or more.
• ISV (Vehicle Tax):
  - 75% reduction for plug-in hybrids with a minimum electric range of 50 km and official emissions under 50 gCO₂/km (subparagraph d) of paragraph 1, Article 8, Annex I of the Vehicle Tax Code);
  - 40% reduction for hybrids with a minimum electric range of 50 km and official emissions under 50 gCO₂/km (subparagraph a) of paragraph 1, Article 8, Annex I of the Vehicle Tax Code).
• VAT (Value Added Tax):
  - Full deduction of VAT on expenses related to the purchase, manufacture, import, leasing or conversion of plug-in hybrid passenger or mixed-use light vehicles, when considered company cars, with an acquisition cost not exceeding €50,000 (subparagraph f) of paragraph 2, Article 21 of the VAT Code, as defined in Article 1(4) of Ordinance No. 467/2010 of 7 July, amended by Law No. 82-D/2014 of 31 December);
  - Full deduction of VAT on electricity costs used in electric or plug-in hybrid vehicles (subparagraph h) of paragraph 2, Article 21 of the VAT Code).

Information on benefits granted by municipalities to facilitate the parking of electric or hybrid vehicles.

Since municipal parking regulations may change, it is recommended to consult them with the respective Municipalities before your visit.