Why is EV adoption in Portugal so much greater than in Spain?

Portugal’s electric vehicle (EV) penetration rate surpassed 50% for the first time in September 2026, as 58% of new passenger cars and light duty vehicles registered for the first time were either a battery EV (BEV), plug-in hybrid EV (PHEV) or range extended EV (REEV). While neighbouring Spain also experienced a record EV penetration rate in September of 30%, Portugal has long led Spain in terms of EV adoption, despite both having operated EV subsidy schemes in recent years. The design of Portugal’s tax incentives is largely responsible.