- Phase
- Green Tax Law (Law 82-D/2014 of 31 December): Dispatch 3169/2020 of 10 March; Order 2535/2021 of 5 March; Dispatch 5126/2023 of 3 May
- Native name
- Lei da Fiscalidade Verde (Lei 82-D/2014 de 31 de dezembro); Despacho 3169/2020 de 10 de março; Despacho 2535/2021 de 5 de março; Despacho 5126/2023 de 3 de maio
- Type
- Company incentives to deploy electric vehicles
- Added to database
- 17 May 2021
Article
Law 82-D/2014 of 31 December reforms environmental taxation, changing a large set of regulations
Decree Law 42-A/2016 of 12 August
Dispatch 3169/2020 of 10 March
Order 2535/2021 of 5 March
Dispatch 5126/2023 of 3 May
Description
This law is part of environmental taxation reform in Portugal and establishing a set of green fiscal rules in the sectors of energy and emissions, transport, water, waste, land use, forests and biodiversity. This law provides a set of tax reductions for sectors including low emissions vehicles (Law 82-D/2014 of 31 December).
The Dispatch 5126/2023 of 3 May continues the incentive to decarbonise individual mobility, started in 2017 (Decree Law 42-A/2016 of 12 August) amended the previous conditions for the companys' incentives.
In 2023, the Portuguese Government’s Environmental Fund has allocated €10,000.000 to incentive Electric Vehicles (Dispatch 5126/2023 of 3 May). For the companies the incentives are:
- €6,000 for the purchase of an electric light goods vehicle (in 2020 the amount was €2,000), limited to 2 vehicles per candidate;
- 50% of the purchase value price (up to a maximum of 1500€) for the purchase of an electric freight bicycle, limited to four per candidate;
- 50% of the purchase value price (up to a maximum of 500€) for the purchase of a fully electric bicycle, moped or motorcycle, limited to 4 per candidate.
- 20% of the purchase value price (up to a maximum of 100€) for the purchase of a conventional city bike.
Companies that invest in green energy vehicles benefit from some of the following tax incentives:
- Corporate tax deduction for company fleets with EVs (if value price not exceed €62,500).
- BEVs with a purchase value price up to €62,500 are exempt from autonomous corporate income tax. The BEVs that exceed this amount (€62,500), began to be taxed autonomously at a rate of 10%, since 1 January 2023.
- BEVs are exempt from Circulation Tax (Imposto Único de Circulação)
- Plug-in hybrid vehicles are eligible for reduced autonomous corporate income tax, that varies between 2.5% (for vehicles with a purchase price below €27,500) and 15% (for vehicles with a purchase price below €35,000).
Citation
Eurofound (2021), Portugal: Company incentives to deploy electric vehicles, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/company-incentives-to-deploy-electric-vehicles/portugal