Overview Of Incentives For Buying Electric Vehicles In EU


Many Model S were delivered to norway in a short timeframe!

Tesla, Tesla, Tesla….

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%.



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.



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.


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.



LV (LATVIA) Electric vehicles are exempt from the registration tax.


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.


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.


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.

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22 responses to "Overview Of Incentives For Buying Electric Vehicles In EU"
  1. QCO says:

    Good summary!

    Would be nice to have a U.S. State incentive update as well, especially since a number of them are about to go away.

  2. Ricardo says:

    I believe we still have those nice incentives in Portugal. Just went to Nissan’s site and they too say “Inclui incentivo do governo aos veículos eléctricos”. I think it is something like No ISV, no circulation tax, 4500 euro for trading in an old car and 4500 euro for buying Ev. Could Nissan’s site be outdated?

  3. Joza Gulikoza says:

    “SI (SLOVENIA) None”

    Not according to https://www.ekosklad.si
    (Eco Fund, Slovenian Environmental Public Fund)

  4. przemo_li says:

    Hmm. Are those incentives changing this year?

    In USA one of pro-EVs state change their subsidies, this will mean great up-tick of EVs (as dealers/buyers try to move stuff with incentives still on). And then steep dive down afterward.

  5. Deyan Ivanov says:

    BG (BULGARIA) None
    Not true
    Electric cars are free from annual tax and can park in the center of the capital (Sofia) for free

  6. Tor says:

    Norway is not a member of EU,and therefore not a part of the above survey. However, Norway, to my knowledge, still has the best EV- incentives in Europe. They will, after this week political agreement, at least last another 2 years. 2 % of the cars in Norway are EV!

  7. Noel says:

    Re Malta it is not correct. There is a scheme http://www.electricvehiclesmalta.eu/overview/detail/electric_vehicles_purchase_scheme.

    It is either 4000 euros with a new car or 5000 euros if you also scrap your old car.

  8. Bob says:

    Denmark data is NOT correct.
    Seem to be very unprofessional work.

  9. Lensman says:


    Grammar Nazi post here. In the final sentence of the article, the word “scraped” should be “scrapped”. (Unless they really are just scraping the paint off… 🙂 )

  10. Mark Kane says:

    Thanks for all comments.
    Feel free to add info about actual incentives to the ACEA report.

    1. Emc2 says:

      Norway has just announced the phase out of their incentives!

  11. Ricardo says:

    The information for Portugal isn’t updated since 1 January 2015:
    Pure electric car 0CO2 – you can get up to 4.500 euros
    Hibrid cars “pug-in” – you can get up to 3.250 euros

    1. Bruno says:

      Completing the otherwise correct information given by Ricardo.

      In Portugal, from Jan 1st the incentives are as follow:

      * Zero emission cars can get a €4.500 refund if you deliver a 10+ years old working ICE car for scrap (cash for clunkers). Companies may get this incentive, plus VAT refund.

      * In Lisbon ZE cars can park free of charge

      * These incentives do not apply to ZE motorcycles

      * Plug-in-hybrids can get €3.500 from the cash for clunkers scheme, but companies cannot get a VAT refund.

      * Simple plug-in-hybrids, like the Prius, can get €2.000 from the CC scheme

  12. inberno says:

    Purchasers of electric vehicles and plug‐in hybrid vehicles with Zero emissions receive a grant of up to € 5,500. There are three categories:
    ‐ Category 1:zero emission range of at least 90 Km 5500 €
    ‐ Category 2: zero emission range between 40 and 90 Kms 3700 €
    ‐ Category 3: zero emission range between 15 and 40 Km 2700 €
    Electric vehicles are exempt from the annual circulation tax (some cities).

    Very Bad Mark Kane.

    1. Jay Cole says:

      I don’t really think it is necessarily Mark’s issue, the story (and incentive list) is generated by the European Automobile Manufacturers’ Association (ACEA).

      There is a lot of EU countries, and one would assume that ACEA would have the bulk of their data correct without back-checking all their info.

      …that is apparently not the case. At least we can attempt to now put together an accurate overview based on the community’s knowledge

  13. Paul says:

    Let’s not criticise Mark; this is a very good initiative. Let us help and make this a cooperative effort.

    When we have all the correct incentives per country and then look at the sales per country (see http://ev-sales.blogspot.fr) we can find out if there is a link between incentives and sales. And if so, which incentives work best.

    However we must understand that sales are not only linked to incentives, but even more so to the density of (fast) chargers. This explains why Germany has surpassed France in sales, although France has much bigger incentives. But France has nearly no fast chargers, and many are not open 24h a day or don’t work.

    1. zizitopp says:

      paul saying:” This explains why Germany has surpassed France in sales”
      But not in percentage and not when we count only the pure electric vehicules.
      An electric car car has no muffler

  14. Paul says:

    Correction of last sentence of the article: the diesel you have to scrap in France to get the € 3700 super-bonus must be older then 14 years, not 13.

    1. Mark Kane says:


  15. Paul says:

    The Netherlands (NL) has MUCH more incentives. You can find them all here: http://en.wikipedia.org/wiki/Plug-in_electric_vehicles_in_the_Netherlands (second paragraph).

  16. Marko says:

    This data in not correct!
    Croatia has the highest grant in the EU for BEVs with 9.300eur.
    Slovenia has the grant in amount of 5000eur for BEVs and 3000 for PHEVs under 50gCo2/km and this lasts from 2011.

  17. notting says:

    The information about Germany is absolutely incomplete. To get 0EUR anual tax for 10 years from the day of first registration, the car has be first registered until December 31st 2015. Afterwords it’s only 5 years (if first registration is between January 1st 2016 and December 31st 2020).
    If nothing of that matches (anymore) for your EV, you get 50% discount on the normal “doesn’t has engine displacement because it’s no normal fuel or Diesel engine” rate (IIRC it’s much cheaper than an 1.6 16V (Euro 4) with 162g CO2/km in NEDC first registered at the end of 2009 – which costs roughly 120EUR/year).

    There are also tax discounts when buying an eletric/hybrid car as company.

    There’s also a law allowing the city administrations to give EV privileges like using the bus-lanes or declaring EV-only parking lots (with special rates like for free).

    And you may use eletricity with the tax rate for use in your flat (Diesel for usage in a car has much higher taxes that Diesel for a house and you’ll get very much trouble even if you use only one time many years ago 1l of the cheaper Diesel in your car – can cost thousands of EUR).