Overview Of Incentives For Buying Electric Vehicles In EU
European Union has 28 countries and each of them are supporting (or not) electric cars in different way.
The European Automobile Manufacturers’ Association (ACEA) released in March an overview of incentives for buying EVs in the EU.
Most countries have some tax exemptions and some countries throw in generous incentives. About one third of the countries do not support EVs, which is similar to the US (some states have rebates, others do not).
“Incentives for electrically-chargeable vehicles are now applied in many European countries. The incentives mainly consist of tax reductions and exemptions, as in countries such as Austria or Germany, and bonus payments and premiums for the buyers of electric vehicles in France and the UK.
The European car industry supports the further introduction of fiscal incentives for fuel efficiency. Tax measures are an important tool in shaping consumer demand towards fuel-efficient cars and help create a market for breakthrough technologies, notably during the introduction phase.
Innovations generally first enter the market in low volumes and at a significant cost premium, and this needs to be offset by a positive policy framework. Electric mobility will make an important contribution towards ensuring sustainable mobility. However, advanced conventional technologies, engines and fuels will play a predominant role for years to come. Governments must continue to include these CO2-efficient technologies and solutions in their overall sustainable mobility policy approach.”
Here is the list:
“This table provides an overview of the incentives that are granted in the Member States of the European Union for the purchase and use of electric and hybrid electric vehicles including plug‐in hybrid and conventional hybrid vehicles. Unless specified otherwise, the term “electric vehicles” refers to vehicles that are powered exclusively by an electric motor. The incentives that are listed here relate only to the vehicle itself. Additional incentives may exist in certain counties for the installation of the necessary recharging infrastructure.”
“AT (AUSTRIA) Electric vehicles are exempt from the fuel consumption tax and from the monthly vehicle tax. The Austrian automobile club ÖAMTC publishes the incentives granted by local authorities on its website (www.oeamtc.at/elektrofahrzeuge).
BE (BELGIUM) Electric and plug‐in hybrid vehicles vehicles are exempt from registration tax in Flanders. Electric vehicles pay the lowest rate of tax under the annual circulation tax in all three regions. The deductibility from corporate income of expenses related to the use of company cars is 120% for zero‐emissions vehicles and 100% for vehicles emitting between 1 and 60 g/km of CO 2. Above 60 g/km, the deductibility rate decreases gradually from 90% to 50%.
BG (BULGARIA) None
CY (CYPRUS) None
CZ (CZECH REPUBLIC) Electric, hybrid and other alternative fuel vehicles are exempt from the road tax (this tax applies to cars used for business purposes only).
DE (GERMANY) Electric vehicles are exempt from the annual circulation tax for a period of ten years from the date of their first registration.
DK (DENMARK) Electric vehicles weighing less than 2,000 kg are exempt from the registration tax. This exemption does not apply to hybrid vehicles.
EE (ESTONIA) None
ES (SPAIN) None
FI (FINLAND) Electric vehicles pay the minimum rate (5%) of the CO2 based registration tax.
FR (FRANCE) Electric and hybrid electric vehicles emitting 20 g/km or less of CO 2 benefit from a premium of € 6,300 under a bonus‐malus scheme. For vehicles emitting between 20 and 60 g/km, the premium is € 4,000. For vehicles emitting between 61 and 110 g/km, it is maximum € 2,000. The amount of the incentive cannot exceed a given percentage of the vehicle purchase price including VAT, increased with the cost of the battery if this is rented. For vehicles emitting less than 20 g/km, this is 27% of the purchase price, for vehicles emitting between 20 and 61 g/km, it is 20% and for vehicles emitting between 61 and 110 g/km, it is 5%. Electric vehicles are exempt from the company car tax. Hybrid vehicles emitting less than 110 g/km are exempt during the first two years after registration.
GR (GREECE) Electric and hybrid vehicles are exempt from the registration tax, the luxury tax and the luxury living tax. Electric and hybrid passenger cars with an engine capacity up to 1,929 cc are exempt from the annual circulation tax. Hybrid cars with a higher engine capacity pay 50% of the normal circulation tax rate.
HR (CROATIA) None
HU (HUNGARY) Electric vehicles are exempt from the registration tax and the annual circulation tax.
IE (IRELAND) Electric vehicles benefit from VRT (registration tax) relief up to a maximum of € 5,000. For plug‐in hybrids, the maximum relief is € 2,500. For conventional hybrid vehicles and other flexible fuel vehicles, the maximum relief is € 1,500. In addition, electric and plug‐in hybrid vehicles receive a grant of up to € 5,000 on purchase.
IT (ITALY) Electric vehicles are exempt from the annual circulation tax (ownership tax) for a period of five years from the date of their first registration. After this five‐year period, they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles in many regions.
LT (LITHUANIA) None
LU (LUXEMBOURG) None
LV (LATVIA) Electric vehicles are exempt from the registration tax.
MT (MALTA) None
NL (NETHERLANDS) Electric vehicles are exempt from the registration tax BPM. Vehicles emitting maximum 50 g/km of CO 2 are exempt from the annual circulation tax.
PL (POLAND) None
PT (PORTUGAL) Electric vehicles are exempt from the registration tax ISV and from the annual circulation tax. Hybrid vehicles benefit from a 40% reduction of the registration tax.
RO (ROMANIA) Electric and hybrid vehicles are exempt from the registration tax.
SE (SWEDEN) Five year exemption from paying annual circulation tax: Electric vehicles with an energy consumption of 37 kWh per 100 km or less are exempt from the annual circulation tax for a period of five years from the first registration. The same five year exemption applies to electric hybrid and plug‐in hybrid vehicles that fulfill the new green car definition applied for new registrations from 1 January 2013. The definition is dependent on the CO2 emission in relation to the curb weight of the car. The formula for petrol, diesel, electric hybrid cars and plug‐in cars is as follows: Maximum CO2‐emission allowed=95 g/km CO2‐emission + 0,0457 x (the curb weight of the car – 1372 kg curb weight).
Example: a plug‐in hybrid car has a CO2‐emission of 50 g/km and a curb weight of 1 500 kg: 95 + 0.0457 x (1500‐1372) = 100.8. The actual CO2‐value 50 g/km is less than the calculated value 100.8 which means that the car is classified as a green car with a five year exemption from paying annual circulation tax. Moreover, for both electric cars and plug‐in hybrids the electrical energy consumption per 100 km must not exceed 37 kwh to be regarded as a green car.
Reduction of company car taxation: For electric and plug‐in hybrid vehicles, the taxable value of the car for the purposes of calculating the benefit in kind of a company car under personal income tax is reduced by 40% compared with the corresponding or comparable petrol or diesel car. The maximum reduction of the taxable value is SEK 16,000 per year.
Super green car premium new cars: A so called “Super green car premium” (Supermiljöbilspremie) of SEK 40,000 is available for the purchase of new cars with CO2 emissions of maximum 50 g/km. The premium is applied both for the purchase by private persons and companies. For companies purchasing a super green car, the premium is calculated as 35% of the price difference between the super green car and a corresponding petrol/diesel car, with a maximum of SEK 40,000. The premium was introduced in 2012 and will be paid also in 2015 as long as the funds are sufficient to pay the premium.
SI (SLOVENIA) None
SK (SLOVAKIA) Electric vehicles are exempt from the annual circulation tax. Hybrid vehicles benefit from a 50% reduction of the annual circulation tax (this tax applies only to vehicles used for business purposes).
UK (UNITED KINGDOM) Purchasers of electric vehicles and plug‐in hybrid vehicles with CO2 emissions below 75 g/km receive a grant of up to £ 5,000. There are three categories:
‐ Category 1: CO2 emissions of less than 50 g/km and a zero emission range of at least 70 miles
‐ Category 2: CO2 emissions of less than 50 g/km and a zero emission range between 10 and 69 miles
‐ Category 3: CO2 emissions of 50‐75 g/km and a zero emission range of at least 20 miles
Electric vehicles are exempt from the annual circulation tax. This tax is based on CO2 emissions and all vehicles with emissions below 100 g/km are exempt from it.”
Note that there could be some additional incentives. For example, France has an additional €3,700 for BEVs or €2,500 for PHEVs if you currently own a 14-year old (or older) diesel car, which will be scrapped upon trading it in for electric.