Bad News for Those Expecting Electric Vehicle Incentives in Portugal: Second Round is on the Table, But No Date

If you are planning to take a zero kilometer electric vehicle to the garage in Portugal and benefit from government support, it looks like you will have to wait a while longer. The second 10 million euro incentive package put on the table by the government has not yet become official and it is a complete mystery when the applications will be opened.

In fact, the crazy demand experienced in the first round instantly reset the house. The first 10 million euro fund, opened on June 11, covered everything from passenger cars to motorcycles and even apartment-type charging stations. However, the money ran out so quickly that the system shut down completely on July 27. The Ministry of Environment and Energy directly depends on the remaining budget in the Environment Fund whether the new round will be opened or not.

Funds Sold Out Within Hours: Why Did It Receive So Much Interest?

Those who remember the day when the first applications opened in June know; There was literally a speed race. Individual passenger vehicle applications started at 16.30 and, hard to believe, all quotas were closed at 18.18, that is, less than two hours later. By the evening, the motorcycle and charging unit budgets had completely melted away.

The reason why the interest was so great was the attractiveness of the conditions:

Passenger Vehicle Support: A net grant of €4,000 was given to 100% electric vehicles with a price of up to €38,500 (€55,000 for more than 5 seats).

Retroactive Application: When vehicles purchased as of January 1, 2025 were included in the scope, those who had previously purchased a car were also uploaded to the system.

Why is the Second 10 Million Euros Delayed?

The government actually allocated a total of 20 million euros for electric transformation and announced that it would distribute it in two installments. Although Environment Minister Maria da Graça Carvalho said that the second tranche could be opened later in the year, the calculations are a bit confused.

Recent storm damage, Middle East tension and efforts to stabilize fuel prices have shifted resources in the Environmental Fund to other urgent items. The fund is currently busy subsidizing different areas, from taxis to freight transportation. Naturally, the second 10 million euros promised for drivers who will buy passenger cars remains only a "possibility" for now, rather than a definitive schedule.

Funds Open for Public Transport and Taxis

While individual drivers are on hold, steps continue to be taken on the commercial and public side. The new Transport and Mobility Fund, with a budget of 14.8 million euros for 2026, is active in the field.

With the calls opened in August, 1 million euros were provided for urban logistics and 700 thousand euros for the conversion of taxis to electric and charging infrastructure. However, these budgets have nothing to do with individual vehicle purchases.

In summary, if you are planning to buy an electric car in your own name and pocket the € 4,000 grant, it would be useful to carefully follow the new budget statement from the ministry.

Source: ECO, Portuguese Ministry of Environment and Energy, Kate Sreenarong

Image Source: Unsplash / Eren Goldman