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Electric cars: what taxes are there in Portugal?

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The sale of electric cars in Portugal broke records. As you know, an electric car is cheaper to maintain than a petrol car, but what taxes are there in Portugal?

Electric Vehicles: ISV, VAT, IUC and Autonomous Taxes

a Vehicle Tax (ISV) It came to replace the motor vehicle tax (IA). This is a registration-linked tax, that is, it is paid only once when the vehicle is first registered in Portugal, whether it is new or used.

ISV values ​​are updated annually, according to cylinder capacity and environmental impact, with a separate schedule for cars and another for motorcycles or other vehicles.

Benefits by type of electric vehicle.

  • 100% electric cars - exempt.
  • Hybrid vehicles - enjoy a reduction of 40%, provided they have a range of at least 50 km in electric mode and official emissions of less than 50g of CO2two/how much.
  • hybrid vehicles Connect in - 75% reduction in ISVs for cars with a range of at least 50 km in electric mode and official emissions of less than 50 grams of CO2two/how much.

regarding Value added taxCompanies have the possibility of deducting the total value of VAT on electric vehicles in Portugal. As for the purchase cost, this cannot exceed 62,500 euros for electric cars and 50,000 euros for plug-in hybrid cars.

Valuable IUC By fuel type, displacement and year of registration. Electric cars are 100% exempt, but plug-in hybrid or plug-in hybrid cars pay taxes,

  • 100% electric cars - Excuse me.
  • Hybrid or plug-in hybrid cars - Pay the tax, but due to the lower CO2 emissions, they pay less IUC compared to combustion vehicles.

a independent taxes It only applies to corporations, more precisely to corporate income tax (IRC) taxpayers.

Among the expenses referred to are the fees for light passenger vehicles. However, keep in mind that the Electric cars in Portugal Enjoy exceptions to this rule:

  • 100% electric cars - Exempt. However, this rule may change with the state budget (OE) for 2023. Learn more in this article About corporate electric vehicles.
  • hybrid vehicles Connect in - specifically for cars with a range of at least 50 km in electric mode and official emissions of less than 50 g CO2/km, the rate may be 5% (acquisition cost less than €27,500); 10% (between €27,500 and €35,000, inclusive) or 17.5% (equivalent to or more than €35,000). The new OE proposes to reduce fees at each level

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