Tax regulation mechanism: Tax Reduction for Hybrid Vehicles

• Law 75-B/2020
• Law 22-A/2007

Reduction of registration tax for automobiles equipped with hybrid engines – propelled either by electric or solar and gasoline or diesel – and automobiles equipped with hybrid plug-in engines, whose battery can be charged by connecting it to the electricity system. Vehicles must have an electric autonomy higher than 50 km and emissions lower than 50 gCO2/km (art. 391 of Law 75-B/2020).
The reduction refers to the one-time tax that is due by the time the vehicle is introduced to the market.

Vehicles equipped with hybrid engines (propelled by a combination of either electric or solar energy and gasoline or diesel) benefit from an intermediate tax, corresponding to 60% of the full tax applicable to these vehicles, according to art. 7, Table A of Law 22-A/2007.
Vehicles equipped with hybrid plug-in engines, whose battery can be charged via the electricity system, are taxed with 25% of the full tax described in art. 7, Table A of Law 22-A/2007.

Portuguese owners of automobiles equipped with hybrid engines (art. 3 of Law 22-A/2007).

Owners of eligible vehicles must submit their vehicle customs declaration (DAV) to the Directorate-General for Customs and Excise in order to receive the tax benefit. The tax settlement will be communicated to the consumer directly (art. 25 of law 22-A/2007).

Directorate-General for Customs and Excise.