Benefits for electric cars in the European Union

The benefits for buying or owning an electric car are high in the European Union, but it is also important to note that there are large differences between countries, reflecting not only the commitment of individual countries to combat climate change, but also their economic differences.

Charging EV

Electric car. Author: Kārlis Dambrāns (Licence CC BY 2.0)

26 of the 27 states provide incentives and benefits for buying or owning an electric car . The only exception is Lithuania. 20 states also provide a bonus for the purchase of an electric car or a hybrid car, some of which also take into account whether the previous car was scrapped. Six states only give their citizens tax advantages.

But even between these 20 states we can find big differences. By far the highest bonus when buying a car is provided by Romania - up to 10,000 EUR for purchase of a new electric car, Croatia gives 9,200 EUR and in Germany it is possible to get 9,000 EUR. While in Finland this bonus is only 2,000 EUR.

 

COUNTRY

PURCHASE INCENTIVES

TAX BENEFITS - OWNERSHIP

TAX BENEFITS FOR COMPANY CARS

Belgium

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In Brussels and Wallonia: minimum tax rate for zero‐emission vehicles. And in Flanders: cars emitting 50g CO2/km (or less) are exempted.

Deductibility of 100% under (corporate) taxation of expenses for vehicles emitting no more than 42g CO2/km

Bulgaria

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Exemption for electric vehicles.

-

Croatia

Incentive scheme: €9,200 for electric cars and €4,600 for hybrid cars

Exemption from special environmental tax for electric vehicles.

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Cyprus

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Minimum rate for vehicles emitting less than 120g CO2/km.

-

Czech Republic

Incentives for companies to buy electric vehicles. Incentives for the public sector. Incentives for public transport operators.

Exemption for alternatively‐ powered vehicles (ie electric, hybrid, CNG, LPG and E85).

-

Denmark

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Taxes on ownership are based on fuel consumption. The electric energy consumption is recalculated to the equivalent fuel consumption of petrol vehicles.

Temporary deduction in taxable personal income for private users of (company) BEVs and PHEVs of up to DKK 3,333 per month, valid from 1 April to 31 December 2020.

Estonia

Bonus of €5,000 for the purchase of a full‐electric car or van with a price below €50,000.

-

-

Finland

Incentive of €2,000 for households to purchase or lease a new electric car with value ≤€50,000.

Minimum rate for zero‐emission vehicles.

 

France

Bonus to buy cars or vans with ≤20g CO2/km depending is the buyer and what is the situation.

-

Exemption from CO2‐based tax component for vehicles emitting less than 20g CO2/km.

Germany

An ‘innovation bonus’ temporarily increases the environmental bonus for new and used electric cars. €9,000 bonus for electric cars with net list price ≤€40,000. €6,750 for hybrid cars. €7,500 bonus for electric cars with net list price >€40,000. €5,625 for hybrid cars.

10‐year exemption for BEVs and FCEVs registered until the end of 2020

Reduction of the taxable amount for electric cars.

Greece

15% cashback on the price of electric cars of up to €5,500, plus extra €1,000 if an old car is scrapped. 25% cashback for electric taxis of up to €8,000 , plus extra €2,500 if an old taxi is scrapped.

Exemption for cars emitting less than 90g CO2/km.

Exemption for electric and hybrid cars emitting up to 50g CO2/km with price of up to €40,000.

Hungary

Purchase incentives for electric cars: €7,350 for cars with price of up to €32,000. €1,500 if the price is between €32,000€ and €44,000.

Exemption for electric and hybrid cars

Exemption for electric and hybrid cars

Ireland

Purchase incentives for individuals of up to €5,000 for electric cars. And up to €5,000 for hybrid cars with ≤50g CO2/km that can travel in full‐electric mode for a minimum of 50km.

Minimum rate for electric cars. Reduced rate for hybrid cars with ≤60g CO2/km.

‘Benefit‐in‐kind concession’ for electric cars and vans with a market value of less than €50,000.

Italy

Bonus‐malus scheme: Bonus: a one‐off amount of max €6,000 for cars emitting ≤70g CO2/km and a price less than €50,000. Malus: up to €2,500 for cars emitting more than 250g CO2/km.

Five‐year exemption for electric vehicles. After this period, 75% reduction of the tax rate applied to equivalent petrol vehicles.

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Latvia

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Exemption for cars emitting 50g CO2/km or less registered after 31 December 2009.

Minimum rate (€10) for electric cars.

Lithuania

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-

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Luxembourg

Incentives as part of people’s annual tax return: €5,000 for electric cars. €2,500 for hybrid cars emitting <50g CO2/km.

Minimum rate for vehicles emitting 90g CO2/km or less.

Minimum rate for electric cars.

Malta

-

Minimum rate for vehicles emitting less than 100g CO2/km

-

Netherlands

Subsidy scheme for private individuals to buy or lease a new or used BEV. Environmental investment deduction. Arbitrary depreciation of environmental investments scheme for electric cars equipped with solar panels.

Exemption for zero‐emission cars.

Minimum rate for zero‐ emission cars with price of up to €45,000.

Poland

Incentive scheme of up to PLN 37,500 for natural persons buying an electric car with price ≤PLN 125,000.

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-

Portugal

Bonus for a private person €3,000 to buy a new electric car or van. Companies: €2,000 for cars. €3,000 for vans.

Exemption for electric vehicles

Autonomous corporate income tax: Exemption for electric cars and reduction for hybrid cars.

Romania

Renewal scheme: €10,000 to buy a new electric car. €4,250 to buy a new hybrid car with ≤50g CO2/km. In addition, €1,250 for scrapping an old vehicle.

Exemption for electric vehicles.

-

Slovakia

Incentive scheme: €8,000 for an electric car. €5,000 for a hybrid car.

Exemption for electric cars.

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Slovenia

Incentive scheme: €7,500 for electric cars. €4,500 for electric vans and heavy quadricycles. €4,500 for hybrid cars and vans.

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Spain

Incentive scheme: Cars: €4,000‐€5,000 for electric cars and €1,900‐ €2,600 for hybrid cars , depending on scrapping of the old vehicle. Vans and trucks: between €4,400 and €6,000, depending on scrapping.

Reduction of 75% for electric cars in main cities.

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Sweden

Climate bonus: SEK 60,000 for new zero‐emission cars and light trucks. SEK 10,000 for hybrid cars with ≤70g CO2/km. Premium for purchase of new electric buses and trucks.

Reduced annual road tax for zero‐emission vehicles.

Reduction for electric and hybrid cars of 40%.

United Kingdom

Government grants for: zero‐emission cars up to £3,000, if price is <£50,000.

Exemption for zero‐emission vehicles

Minimum rate for zero‐emission vehicles

Zdroj: ELECTRIC VEHICLES: TAX BENEFITS & PURCHASE INCENTIVES. 
https://acea.be/uploads/publications/Electric_vehiclesTax_benefits_purchase_incentives_European_Union_2020.pdf 
If you are also interested in other costs and the comparison between an electric car and a traditional car with an internal combustion engine, see the article Costs of driving and maintaining an electric car.

If you don't think of buying an electric car in another EU member state, but you are planning to go on a trip, the article Network of charging stations in Europe is prepared for you. It provides an overview of the location of charging stations and it lists the most practical applications that can be helpful during the journey.

BASICS OF ELECTROMOBILITY

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