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Energy renovation grants in Portugal

Discover all the subsidies, loans and tax credits available in Portugal to renovate your home.

6 programs documentedFundo Ambiental (Ministério do Ambiente) / Agência para o ClimaReference updated on May 20, 2026

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The calculator applies all Portugal schemes below to your personal situation.

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E-Lar Programme (Phase 2) — replacing gas equipment with electric

Active
Fundo Ambiental / DGEGGrant

Eligible works

Thermodynamic water heaterOther

Amounts

  • €369 · Induction hob — Group II (Social tariff)
  • €300 · Induction hob — Group III
  • €615 · Water heater — Group II
  • €500 · Water heater — Group III
  • €738 · Electric set — Group II
  • +2 more
Conditions: Group II: Social Energy Tariff recipients. Group III: other electricity contract holders. Class A equipment required (Class B min for water heaters > 30 L).
2026 changes: Phase 2 open since 11 Dec 2025 with €60.8M envelope. Phase 1 used up €30M in 6 days.

BPF Loan — Residential Energy Efficiency

Upcoming
Banco Português de Fomento (BPF) / Agência para o ClimaSubsidized loan

Eligible works

External wall insulationInternal wall insulationRoof insulationFloor insulationWindow replacementDoor replacementAir-to-water heat pumpAir-to-air heat pump+6

Amounts

  • Subsidised loan with possible public guarantee · Subsidised loan with possible public guarantee
Conditions: Individuals, tenants (with owner consent), municipalities, cooperatives, IPSS, residents associations, other public bodies. Coverage: mainland + Azores + Madeira.
2026 changes: New financial instrument launched in 2026 to replace the closed PAES II.

Reduced 6% VAT — Housing construction and refurbishment

Active
Autoridade Tributária e AduaneiraReduced VAT

Eligible works

Comprehensive renovationExternal wall insulationInternal wall insulationRoof insulationFloor insulationWindow replacementDoor replacementAir-to-water heat pump+4

Amounts

  • 17% · Saving vs 23% standard VAT
Conditions: Works for primary owner-occupied housing up to €660,982 sale price. Rental: rent ≤ €2,300/month, lease ≥ 36 months. ARU rehab requires an approved municipal urban rehabilitation operation.
2026 changes: Housing Tax Package 2026 (approved 27 Mar 2026): 6% VAT consolidated for operations 23 Sep 2025–31 Dec 2029.

IRS tax deduction — Urban Rehabilitation (ARU)

Active
Autoridade Tributária e AduaneiraTax deduction

Eligible works

Comprehensive renovationExternal wall insulationRoof insulationWindow replacementOther

Amounts

  • 30% · cap €500 · 30% of expenses, capped at €500/household
Conditions: Properties in ARU rehabilitated per municipal strategy OR leased under NRAU. Municipal before/after certification mandatory.

IMI exemption — ARU or 30+ year-old buildings

Active
Autoridade Tributária e Aduaneira / MunicípiosTax deduction

Eligible works

Comprehensive renovationOther

Amounts

  • · Full IMI exemption for 3 years (renewable +5 years)
  • · Renda Moderada: 8-year exemption + 50% from year 9
Conditions: Buildings > 30 years OR in ARU. Owner-occupied or residential rental. Recognition by municipality and municipal assembly required.

Casa + Eficiente Programme (Madeira)

Active
IHM — Investimentos Habitacionais da MadeiraGrant

Eligible works

External wall insulationRoof insulationWindow replacementSolar PVSolar thermalAir-to-water heat pumpOther

Amounts

  • Regional support for residential energy efficiency in Madeira · Regional support for residential energy efficiency in Madeira
Conditions: Madeira regional initiative managed by IHM, funded by PRR (€136M Madeira housing envelope).

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