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Incentives and tax benefits for electric mobility

The incentives for purchasing an electric vehicle were created with the objective of promoting the purchase of these vehicles with a perspective of protecting the environment. Environmental sustainability through the reduction of the greenhouse effect is one of the main concerns of present day. 

Aware of this, the State, as a way of promoting and accelerating this transition, has been approving a set of tax incentives and benefits, ranging from the acquisition of electric vehicles, reduction of charging costs on the Mobi.E network and installation of loading stations.

Individuals  

100% Electric Vehicles  

  • Exemption from the payment of ISV (vehicle Tax) – (subparagraph a) of no. 2 of article 2, of Annex I of the Motor Vehicle Tax Code; 
  • Exemption from the payment of IUC (Road Tax) – (subparagraph e) of no. 1 of article 5, of Annex II of the Motor Vehicle Tax Code).  

Hybrid Vehicles  

  • Reduction of 75% in the ISV for hybrid plug-in vehicles that have a minimum autonomy, in electric mode, of 50 kilometres and official emissions below 50 gCO2/km (no. 1 of article 8, of Annex I of the Motor Vehicle Tax Code). 
  • Reduction of 40% in the ISV for hybrid vehicles that have a minimum autonomy, in electric mode, of 50 kilometres and official emissions below 50 gCO2/km (no. 1 of article 8, of Annex I of the Motor Vehicle Tax Code). 

Companies 

100% Electric Vehicles 

  • Exemption from Autonomous Taxation (no. 3 of article 88 of the IRC Code);  
  • Exemption from the payment of ISV (subparagraph a) of no. 2 of article 2, of Annex I of the Motor Vehicle Tax Code);  
  • Exemption from the payment of IUC (subparagraph e) of no. 1 of article 5, of Annex II of the Motor Vehicle Tax Code);  
  • Deduct in its entirety the VAT associated to expenditure on the purchase, manufacture or import, to leasing and the transformation in electric or hybrid plug-in vehicles, of light passenger or mixed use electric or hybrid plug-in vehicles, when considered tourism vehicles, whose acquisition cost does not exceed 62 500 (euros). (subparagraph f) of no. 2 of article 21 of the VAT Code, with the value defined by no. 4 of article 1 of the Ordinance no. 467/2010, from 7 of July, altered by Law no. 82-D/2014 from 31 of December). 
  • Deduct in its entirety the VAT associated to expenditure relating to electricity used in electric or hybrid plug-in vehicles (subparagraph h) of no. 2 of Article 21 of the VAT code). 
  • It is accepted as expenses the depreciation of light passenger or mixed use vehicles, on the part related to the acquisition cost or up to the revaluation value of 62.500€ (subparagraph e) of no. 1 of article 34 of the Corporate Tax (IRC) Code, with the value being defined by no. 4 of article 1 of the Ordinance no. 467/2010, from 7 of July, altered by the Law no. 82-D/2014 from 31 of December).   

Hybrid Vehicles  

  • Autonomous Taxation fees applicable upon the costs with hybrid plug-in vehicles that have a minimum autonomy, in electric mode, of 50 km and official emissions below 50 gCO2/km are of (no. 18 of article 88 of the IRC Code): 
    o    5 %, for vehicles with an acquisition cost below 27 500 (euros); 
    o    10 %, for vehicles with an acquisition cost equal to or above 27 500 (euros) and below 35 000 (euros); 
    o    17,5 %, for vehicles with an acquisition cost equal to or above 35 000 (euros). 
  • Reduction of 75% in the ISV for hybrid plug-in vehicles that have a minimum autonomy, in electric mode, of 50 kilometres and official emissions below 50 gCO2/km (no. 1 of article 8, of Annex I of the Motor Vehicle Tax Code). 
  • Reduction of 40% in the ISV for hybrid vehicles that have a minimum autonomy, in electric mode, of 50 kilometres and official emissions below 50 gCO2/km (no. 1 of article 8, of Annex I of the Motor Vehicle Tax Code). 
  • Deduct in its entirety the VAT associated to expenditure on the purchase, manufacture or import, to leasing and the transformation in electric or hybrid plug-in vehicles, of light passenger or mixed use electric or hybrid plug-in vehicles, when considered tourism vehicles, whose acquisition cost does not exceed 50 000 (euro). (subparagraph f) of no. 2 of article 21 of the VAT Code, with the value defined by no. 4 of article 1 of the Ordinance no. 467/2010, from 7 of July, altered by Law no. 82-D/2014 from 31 of December). 
  • Deduct in its entirety the VAT associated to expenditure relating to electricity used in electric or hybrid plug-in vehicles (subparagraph h) of no. 2 of Article 21 of the VAT code). 
  • It is accepted as expenses the depreciation of light passenger or mixed use vehicles, on the part related to the acquisition cost or up to the revaluation value of 50.000€ (subparagraph e) of no. 1 of article 34 of the Corporate Tax (IRC) Code, with the value being defined by no. 4 of article 1 of the Ordinance no. 467/2010, from 7 of July, altered by the Law no. 82-D/2014 from 31 of December).

 

Municipalities where parking is free: 

Beja 

Free parking for electric vehicles (see here).  

Funchal 

Total exemption to 100% electric vehicles on parking meter fees through the application called “Tarifa Verde”, in the “Civitas Mimosa” framework and upon requesting it at the Loja do Munícipe (municipal citizens’ store) (see here).  

Guimarães 

Exempt from paying fees associated to Parking Areas of Limited Duration for those vehicles that exhibit, on the windscreen, a visible electric vehicle label, issued by IMT (see here).  

Lisbon 

Parking for 100% electric vehicles with a Dístico Verde (Green Label) is free in Parking Areas of Limited Duration without a barrier, by purchasing the green label annually for 12€. This can be obtained online or at EMEL stores.  

Loures 

Electric vehicles are exempt from paying the parking fee (see here or here).  

Mirandela 

Electric vehicles that are duly identified with the respective label issued from IMT are exempt from paying fees in ZEDL and the parking duration limit (see here).  

Oeiras 

Parking for 100% electric vehicles with a Dístico Verde (Green Label) is free in Parking Areas of Limited Duration without a barrier, by purchasing the green label annually for 6€. This can be requested from ParquesTejo (see also here). 

Oliveira de Azeméis 

Exemption from paying above-ground parking fees for electric vehicles (see here).  

Póvoa do Varzim 

From July 2019, the municipality shall exempt all electric vehicles from paying above-ground parking fees. Exemption shall be applied during 10 years. Valid for residents and non-residents in Póvoa de Varzim (see here).  

Ribeira Brava  

Exempt from paying fees (uve.pt).  

Setúbal 

Exemption from paying parking fees to vehicles that have an Identifiable Electric Vehicle Label provided by IMT (see here).  

Vila Real 

Exemptions. Article 8. See here: General Regulation for limited duration parking from the Municipality of Vila Real (uve.pt). 

Municipalities where parking has discounts: 

Funchal 

50% discount for hybrids on parking meter fees through the application called “Tarifa Verde”, in the “Civitas Mimosa” framework and upon requesting it at the Loja do Munícipe (municipal citizens’ store) (see here). 

Porto 

15% discount for electric vehicles on subscriptions in municipal car parks for light vehicles (see here).