Portugal

Last modification: 22 Oct 18

Chapter 1: Economic and business environment

Demographics

10 325 500 (2016)

Capital

Lisbon

Major cities

Oporto, Coimbra, Braga, Aveiro

Languages

Portuguese

GDP

184 931 100 euros

Unemployment rate

11%

Main industries

 Car manufactoring and parts, Textile

Currency

euro

Interest rate

-0,33% (euribor 3M)

Political key info

Republican democracy

Inflation

0,6%

Chapter 2 : Automotive market, segments & sales

Total Car park

6 208 350 (2016)

New vehicle registrations (Cars, LCV, Trucks)

266 385 (2017, ACAP)

Top 5 brands (total market)

Renault, Peugeot, Volkswagen, Mercedes-Benz, BMW

Model preference top 5 (total market)

Renault Clio, Peugeot 208, Renault Megane, Nissan Qashqai, Renault Captur

Used car market/renewal cycle

6,1 million cars, 12,4 years medium age, 63,2% with more than 10 years

Chapter 3: Company car market

Total Fleet Park (company cars)/Fleet penetration in total fleet sales

52% of the total sales

Evolution fleet sales (last 5 years)

Growing according to market, but getting few revelation because of the rent-a-car market growth

Top 5 fleet brands (fleet market)

Information about car company sales not existent officially

Fleet Model preference top 5 (fleet market)

Information about car company sales not existent officially

Chapter 4: Taxation & legislation

4.1. Car Taxation

Cars are taxed in the moment of registration and every year

  1. kind of taxes:
  • VAT (23%) (registration)
  1. (Imposto sobre veículos) (registration)
  2. goes related with the size of the engine and CO2 emissions, like this:
  3. size

Passenger Cars

 cm3

euros/cm3

Deduction to the result:

< 1.000

0,99€

767,50€

1.001 to 1.250

1,07€

769,00€

> 1.250

5,06€

5600,00€

CO2 emissions

Diesel

CO2 (g/km)

Tax for each g/km

Deduction to the result:

< 79

5,22€

396,88€

80 to 95

21,20€

1671,07€

96 to 120

71,62€

6504,65€

121 to 140

158,85€

17107,60€

141 to 160

176,66€

19635,10€

> 160

242,65€

30235,96€

 

Petrol

CO2 (g/km)

Tax for each g/km

Deduction to the result:

Até 99

4,18€

386,00€

100 a 115

7,31€

678,87€

116 a 145

47,51€

5337,00€

146 a 175

55,35€

6454,52€

176 a 195

141,00€

21358,39€

Mais de 195

185,91€

30183,74€

  1. (imposto sobre circulação) (annually)
  2. it goes related with the size of the engine and CO2 emissions, like this:

First:

 cm3

Tax

< 1.250

28,92€

1.251 a 1.750

58,04€

1.751 a 2.500

115,96€

> 2.500

396,86€

Then:

CO2 (g/km)

Tax

Adicional Tax for registations since 2017

< 120

59,33€

0€

121 a 180

88,90€

0€

181 a 250

193,08€

28,92€

> 250

330,76€

58,04€

Then, only for diesel:

Diesel

cm3

Aditional tax

< 1.250

5,02€

1.251 a 1.750

10,07€

1.751 a 2.500

20,12€

> 2.500

68,85€

4.2. Income tax – Taxable persons

Portuguese legislation predict the taxations of company vehicles for private use with an agreement document, but it is not often used.

4.3. Company car

Company cars are subject to more taxes than private cars. Different standarts apply to the taxations of the ownership and all the expenses regarding to the use (Tributação Autónoma).

Acquisition Value

Tax (if positive results)

Tax (negative results)

< 25k euros

10%

20%

25-35k euros

27,5%

37,5%

>35 k euros

35%

45%

LCVs can deduct VAT and they are not subject to the previous taxes

Diesel VAT values can be deductible at 50%

4.4. Income taxes – drivers’ personal taxation

n/d

4.5. Electric vehicles

If it is an electric vehicle, they’re not subject to the taxes is 4.3 and also can deduct VAT (price < 50 k euros)

If plug-in hybrid, there is a reduction in the 4.3 taxes that goes like this:

Acquisition Value

Tax (if positive results)

Tax (negative results)

< 25k euros

5%

15%

25-35k euros

10%

20%

>35 k euros

17,5%

27,5%

4.6. Future developments

The incentive to electric and plug-in hybrid cars should continue, but in smaller total volume.

Taxation for the use of the car by the driver must become more regulated in the future.

Taxation between diesel and petrol costs will be smaller

4.7. Legal background (import taxes)

Chapter 5: Car policies

  • Company car entitlement

The title stays with the company or with the leaser

  • Which sectors provide most fleet cars?

Utilities, Constructions, Services, Pharma, Distribution, Maintenance, State institutions

  • Which job functions often include a company car

Top level manager to medium managers. Commercial and sales, user-chooser owner of the business

  • Which reference car(s) is given to:
    • Entry/junior sales level: Renault Clio, Opel Corsa
    • Senior sales / management level: Renault Megane, VW Golf, Nissan Qashqai
    • Executive level: BMW Serie 3, MB Classe C, Audi A4

Chapter 6: Funding methods

Overview of penetration of funding methods (buy or lease statement)

Financial leasing and operacional leasing are the most used methods of acquisition. Also a big share of direct buying

 

Type of suppliers:

For operacional leasing: Internacional companies, but two local companies (Locarent and Finlog) have a big share (number not disclosed by the leasing association)

For financial leasing: stays with the biggest banks (CGD, Novo Banco, Millenium bcp), locals, with the exception of Santander

There are captive providers, like RCI Bank, Mercedes-Benz Financial…

6.1 Outright purchase:

 

6.2 Renting (operational leasing) :

Same as other countries, since the biggest companies are international.

Pro’s: accountability as a service, minimal risk, good values

Con’s: SLAs, compensatory values for bad use (very discussed)

6.3 Financial leasing

  • Used as an option for most of the companies, because of its simplicity, easy access and car option at the end

6.4 Fleet Management

  • There are some consultancy for fleet management in Portugal, but with little expression.
  • Pro’s: Client relationship
  •  Con’s: prices and fleet sizes

6.5 Short term rental

  • Renta-car is the biggest buyer of vehicles in Portugal, a tourism dependable country.
  • It is used by clientes and by lease companies

6.6 Other funding methods

Chapter 7: Fuel

Diesel: 61%

Petrol: 34%

GPL/GNV: 0,8%

Hybrids: 2,1%

PHEV: 1,1%

Electric: 0,7%

 

Fuel price evolution

 

Petrol

Diesel

2010

 1,44

 1,15

2011

 1,61

 1,37

2012

 1,72

 1,45

2013

 1,66

 1,39

2014

 1,61

 1,30

2015

 1,49

 1,21

2016

 1,46

 1,15

Fuel infrastructure

Present in all country

Fuel card solution

Companies have been offered by fuel cards solutions by almost all the players at the market

Chapter 8 : TCO components

Most important cost factors in TCO: depreciation, taxes and fuel

Maturity of TCO usage: just a few companies use TCO as a tool regarding fleet management. Lease companies provide this information in some cases, other get it by themselves.

Chapter 9: Safety, insurance and telematics

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Chapter 10: Environment

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Chapter 11: Mobility

Trafic conditions: In Lisbon and Oporto, traffic is very bad. Mobility solutions are being created and with a lot of usage, like bike-sharing and scooter-sharing.

Mobilty conditions for employees

Mobility for Portuguese companies is a car. Other solutions are not being used at the expense of the companies, with some exeptions for scooter sharing for urban distribution

Mobility solutions (car sharing, taxi, Uber, car pooling…)

Portugal became a test country for some mobility solutions. So, it has all of the international one (exception for car2go).

Chapter 12: Key trends to watch