Portugal is adjusting its vehicle tax system for plug-in hybrids in 2026, raising emissions thresholds to preserve incentives and encourage adoption under a new European environmental standard.
The changes target the Imposto Sobre Veículos (ISV), a tax applied when vehicles are first registered or imported into Portugal. This move aims to prevent plug-in hybrids from losing existing tax benefits.
Without these adjustments, many hybrid vehicles would automatically forfeit tax breaks linked to low CO2 emissions. This is due to the upcoming Euro 6e-bis European standard, which alters official methods for homologating vehicle emissions and consumption.
To avoid disincentivizing the purchase of plug-in hybrids, the Portuguese government decided to modify the eligibility criteria.
The 75% reduction in ISV for plug-in hybrids will remain in effect. However, the maximum homologated emissions limit to qualify for this reduction will increase from 50 grams of CO2 per kilometer to 80 grams of CO2 per kilometer.
This higher emissions threshold applies specifically to vehicles certified in accordance with the new Euro 6e-bis standard.
Plug-in hybrids meeting these new specifications will also continue to benefit from reduced autonomous taxation, particularly relevant for corporate vehicle acquisitions.
Prospective buyers or importers of plug-in hybrids in 2026 should carefully verify their vehicle’s emissions values and its homologation standard. The incentives persist, but only for those vehicles that meet the revised criteria.