Sweden

After various grants were introduced and electric vehicles with better batteries and ranges were launched, Sweden is now one of the countries with the fastest growing number of electric vehicles. A key reason for this is the government’s ‘Green Technology’ grant, which has speeded up the transition and ensured that there are now approximately 107,000 chargeable electric vehicles in Sweden.

The Swedish government has set a target for Sweden to become carbon neutral by 2045. Several grants have been introduced in order to reach the target:

EV incentives

Just like France, Sweden has what is known as a ‘bonus-malus’ system, which means that vehicles that emit less receive a ‘bonus’ whereas those that emit more have to pay a higher level of vehicle tax (malus) during the first three years. The bonus-malus system was introduced on 1 July 2018 and was updated with new stricter requirements on 1 April 2021.

New bonus rules:

• Pure electric vehicles that emit zero grams of carbon dioxide receive an increased bonus. The bonus has been raised from SEK 60,000 to SEK 70,000.
• The emission limit at which a vehicle can benefit from the climate bonus has been reduced from 70 to 60 grams of carbon dioxide per kilometre.
• Plug-in hybrids receive a reduced climate bonus. The maximum bonus for a plug-in hybrid is SEK 45,000, which is then reduced by SEK 583 for each gram emitted up to 60 grams. In practice this means that plug-in hybrids receive a purchase bonus that is approximately SEK 10,000 lower.

New malus rules

• From the date on which the increased vehicle tax is levied, the emission limit is reduced to 90 grams of carbon dioxide per kilometre.
• The increased vehicle tax is raised by increasing the amount for carbon dioxide from SEK 82 to SEK 107 per gram if the vehicle emits between 90 and 130 grams of carbon dioxide per kilometre and from SEK 107 to SEK 132 per gram if the vehicle emits more than 130 grams of carbon dioxide per kilometre.

Tax benefits

• There is currently a discount of 25% when you purchase electric bicycles, quadricycles (quad bikes) or tricycles.
• Company tax: Company cars are also covered by new rules that came into force on 1 January 2021. Here the deduction of SEK 10,000 per year for gas vehicles and chargeable vehicles has gone.

Eco tax

• Vehicle tax (malus) has been increased for petrol and diesel vehicles during the first three years for which the vehicle is liable for tax from 2019 onwards. This tax will increase over time.

Local incentives for electric vehicles

• Free parking in some public spaces.
• Free access to high-occupancy vehicle and bus lanes in some areas.

EV charging incentives

Subsidies

The ‘Green Technology’ tax reduction applies from 1 January 2021. The grant operates like any at-source deduction and is intended for the purchase and installation of charging stations, solar cells and batteries. The tax reduction or grant, as it is referred to by some, does not cover travel expenses, equipment or administration costs in connection with the installation.

Who can obtain the Green Technology grant?

All individuals who live in a housing association property, detached property or owner-occupied apartment who would like the opportunity to charge at home are entitled to receive this tax reduction. The grant covers all installations that are started and paid for from 1 January 2021.

How much is the grant for a charging station?

The Green Technology deduction includes up to 50% of the costs of labour and materials, and the tax reduction can amount to a maximum of SEK 50,000 per year. One important factor to remember is that if you have also made use of the at-source deduction, you need to ensure that you have paid enough tax in the course of the year in order to be credited with the full tax reduction.

Norway

Norway comes out top in Europe in terms of electric vehicle development, which is due to a long-term commitment dating back to the 1990s. The original plan was to have 100,000 electric vehicles by 2020, but the country had already reached the target in 2018. Indeed, almost 60% of all new vehicles sold in Norway in March 2019 were completely electric. It is interesting that the country’s range of benefits does not include many grants for electric vehicles and EV chargers, but instead provides tax incentives and major investments in publicly managed EV charging infrastructure, as we will see below:

EV incentives

Tax benefits

• Purchase tax and VAT: No purchase tax and no VAT on the purchase of electric vehicles.
• Annual road tax: 75–90% tax reduction for annual road tax for both fully electric vehicles and plug-in hybrids.
• Company tax: 50% discount on company car tax for both fully electric vehicles and plug-in hybrids.
• Exemption from purchase tax.
• Exemption from the country’s 25% value added tax

Local benefits

• Under Norwegian law, counties and municipalities must offer a half-price option for electric vehicles compared with vehicles using fossil fuels on ferries, in standard car parks and on toll roads.
• In practice, this means both discounts and total exemptions from toll road charges, ferry charges and parking fees, depending on the location.

EV charger incentives

Public investment in chargers

Norway has more than 10,000 public charging points and more than 1,500 vehicles can be quickly charged at the same time. Instead of offering tax reductions and subsidies to citizens and companies, Norway has focused on investing in the public charging infrastructure. Its programme for EV chargers currently focuses on:

• Public funding of fast charging points every 50 kilometres on main roads.
• Oslo’s increase in the budget for the distribution of electric charging infrastructure in 2018.
• A doubling of the budget allocated to enable housing associations to install chargers to NOK 20 million (EUR 2.1 million).
• Some local petrol stations have started to replace petrol pumps with EV chargers, thus increasing the local charging infrastructure available to owners of electric vehicles.

United Kingdom

The UK has a comprehensive strategy for electrification which is called the ‘Road to Zero’. The country has an official Office for Zero Emission Vehicles (OZEV) which, along with various government departments, is working to end the sale of fossil-fuel vehicles by 2040. In the next few years the country will invest GBP 500 million in green technology.

The EV market in the UK is growing rapidly with more than 164,100 fully electric vehicles on British roads, according to statistics from autumn 2020. In addition, there are more than 373,600 plug-in models, including plug-in hybrid electric vehicles (PHEVs).

The latest set of figures from the Society of Motor Manufacturers and Traders (SMMT) shows that fully electric models accounted for 6.7% of total new vehicle registrations, and if we add plug-in hybrids to this, the figure increases to 10.5%.

EV incentives

Subsidies

• Purchase grant: Low-emission vehicles can benefit from the Plug-in Car Grant, which means that the purchaser can obtain up to:
  • 35% of the cost of an electric car (up to a maximum of GBP 3,500 depending on the model)
  • 20% of the cost of an electric motorcycle or moped (up to GBP 1,500 max.).
  • 20% of the cost of an electric van (up to GBP 8,000 max.).
  • 20% of the cost of a large electric van or truck (up to a maximum of GBP 20,000 for the first 200 orders placed and up to a maximum of GBP 8,000 for subsequent orders).
  • 20% of the cost of an electric taxi (up to max. GBP 7,500).
• OZEV is responsible for managing the grant. No action is required to benefit from the grant because the vehicle dealership includes the value of the grant in the price of the vehicle.
• There is also a grant to cover the cost of installing an EV charger at home via the Electric Vehicle Homecharge Scheme, under which you can get up to GBP 350 off the cost of installing a charging station at home.

Tax benefits

• Ownership tax: pure electric vehicles costing less than GBP 40,000 are exempt from the annual ownership tax.
• Company car tax: companies that buy electric vehicles can write down 100% of the purchase price against their corporation tax liability if the vehicle emits no more than 50 g/km of carbon dioxide. Electric vehicles that emit more than 50 g/km of carbon dioxide have their company car tax set at 18% per year; read more here.

Local and regional EV incentives for individuals and companies

• Scotland: The Scottish government offers an interest-free loan to support drivers changing to an electric car or a hybrid car. Loans of up to GBP 35,000 to cover the cost of buying a new electric/hybrid vehicle, which is repaid over a period of 6 years.
• Northern Ireland: A maximum grant of EUR 5,000 is available for privately purchased electric cars and a maximum grant of EUR 3,800 is available for those purchased commercially. Read more here.
• London: Electric vehicles and plug-in hybrids (PHEVs) are exempt from London’s congestion charge until 2025.
• Local parking benefits: There is free and reduced-rate parking for electric vehicles in some places.
• Other benefits: The British government plans to give electric vehicles special green registration plates so that it is easier for them to take advantage of local benefits, such as free parking, the use of bus lanes and access to areas that are closed to normal vehicles.

EV charging incentives

Of the zero emission strategy’s total budget of GBP 290 million, GBP 80 million is directed to improving the EV charging infrastructure, which includes the following areas:

National EV charging incentives for individuals and companies

Subsidies:

Grants for EV charging at home: The Electric Vehicle Homecharge Scheme (EVHS) allows purchasers of electric vehicles to receive a grant of up to 75% (GBP 350 max., including VAT) of the total purchase and installation costs of an EV charger for their home. Company cars and leased cars are also eligible for the incentives.

Grants for EV charging at workplaces: The Workplace Chargepoint Grant is a scheme that provides the upfront costs for the purchase and installation of charging stations at workplaces:

From 1 April 2020: companies can cover 75% of all purchase and installation costs, up to a maximum of GBP 350 in each case, for a maximum of 40 sites.

Tax benefits:

Company tax benefits: companies that install charging infrastructure can claim tax benefits through a 100% first year allowance (FYA) for expenses linked to EV charging equipment.

Local and regional incentives for individuals and companies

Subsidies:

Grants for charging stations at home in Scotland: The Energy Saving Trust allows purchasers of electric vehicles to obtain a grant of up to GBP 300 of the total purchase and installation costs of an EV charger for their home. This grant is available on top of the OZEV grant of GBP 350 as indicated above.

Grant for charging stations at workplaces in Scotland: The Energy Saving Trust allows companies to obtain funding for the purchase and installation costs for EV chargers at their workplace. The precise number of EV chargers for which financial support can be provided depends on the number and type of company-owned and individual-owned electric vehicles.

Denmark

Denmark is lagging slightly behind Sweden and Norway with regard to electric vehicles and charging stations. After the government started to phase out the EV incentive in 2015, sales of electric vehicles fell in the country. In fact, in 2017 sales of electric vehicles only accounted for 0.4% of all vehicle sales in the country. But thanks to a new Climate Act and the scrapping of EV tax increases in 2019, things are steadily improving in Denmark. EVs now have a market share of approximately 4%. Some of the following actions are behind the increase:

EV incentives

Tax benefits

• Registration tax: Denmark had previously withdrawn the registration tax benefits for electric vehicles, which resulted in a reduction in sales of electric vehicles in the country.
• In April 2017 the Danish government also introduced a reduction in the registration tax based on battery capacity.
• Ownership tax: In Denmark taxes are based on the fuel consumption and weight. Electric vehicles pay the lowest amount and plug-in hybrids pay less than equivalent diesel or petrol vehicles.

Local benefits

• Parking fees: Electric vehicles are exempt from parking fees up to DKK 5,000 (EUR 670) per year.

Subsidies for the private/public purchase of electric vehicles

• Public procurement: Since 2013 the Danish Energy Agency has funded a programme to support the purchase of electric vehicles by municipalities and companies.

EV charging incentives

Tax benefits

• Denmark currently offers a tax exemption under which companies providing EV charging points on a commercial basis can claim a discount on the electricity tax of approximately DKK 1.00 (EUR 0.13) per kilowatt-hour.

Favourable tariffs for buses

• Favourable tariffs for charging electric buses will continue until 2024.

Finland

Just like Denmark, Finland needed to do some catching up compared to its neighbours. For a long time, Finland had few incentives and, notably, no subsidies for electric vehicles. The government has, for example, welcomed biofuel and until recently had very low sales of electric vehicles. However, through various types of incentive, sales have increased in recent years and in 2020 the proportion of electric vehicles was 14%.

EV incentives

Eco tax

• In Finland, fuel taxes have more than doubled the price of diesel and more than tripled the price of petrol, making electric vehicles a very cost-effective alternative.

Subsidies

• Purchase grants: Individuals can receive up to EUR 2,000 for new electric cars, as long as the price of the car does not exceed EUR 50,000.
• The Finnish government runs a scrappage scheme every couple of years (2015, 2017 and 2018 and probably again in the near future) offering bonuses of up to EUR 2000 to scrap old diesel/petrol vehicles and buy new electric cars and plug-in hybrids.

Tax benefits

• Ownership tax benefits: electric vehicles pay the lowest tax rate (5%) of the CO₂-based registration tax.

EV charger incentives

Investment in public charging infrastructure

• Helsinki, Finland’s capital, has invested EUR 4.8 million to build public charging points over the last three years, which has nearly tripled the number of charging points in the country. The Finnish government has announced a EUR 5.5 million budget to increase the charging infrastructure in 2020–2021.

Subsidies

• In 2016, the Ministry of Economic Affairs and Employment extended its EV charging subsidy programme as part of an energy investment programme and allocated EUR 4.8 million to develop the public charging infrastructure in Finland. This programme offers subsidies to commercial organisations that want to build charging infrastructure and lease electric vehicles as company cars. Organisations can receive support for up to 35% of the investments and up to 30% of the capital share of the leasing cost.

Germany

Germany provides some of the most generous EV benefits in Europe as the country is determined to reach its target of having 10 million electric vehicles and one million charging stations by 2030. This summer’s EUR 130 billion post-COVID-19 stimulus package includes significant funding to boost EV incentives even more, meaning that a Seat Mii Electric can now be purchased for under EUR 11,000. Here is all you need to know:

EV incentives

Subsidies

Germany’s ‘Umweltbonus’ (Environmental Bonus) programme encourages the purchase of electric vehicles and the decommissioning of diesel and petrol vehicles with incentives such as:

• Purchase grants:
  • For vehicles costing up to EUR 40,000:
    • Fully electric: EUR 9,000
    • Plug-in hybrid: EUR 6,750
  • For vehicles costing up to EUR 65,000:
    • Fully electric: EUR 7,500
    • Plug-in hybrid: EUR 5,625
  • A further bonus of EUR 100 is available if the purchased electric vehicle is equipped with an Acoustic Vehicle Alerting System (AVAS)
  • Until 2030, a one-off subsidy of up to 50% of the purchase costs of fully electric vehicles used for commercial deliveries.

Tax benefits

Kfz tax (motor vehicle tax):

• Fully electric vehicles registered between 2011 and 2030 have a 10-year exemption from this tax. This means that EV owners in Germany can save around EUR 194 in ownership tax per car and year, but depending on the type of car, this figure can be even higher.
• Electric vehicles and hybrids pay the tax, but it is lower for them than for diesel/petrol vehicles, as the rate is set in proportion to their CO₂

Company car tax:

• Private use of a fully electric company car with a list price below EUR 60,000 is taxed at only 0.25% of the list price per month. In comparison petrol/diesel cars are taxed at 1%.
• Private use of a hybrid company car or a fully electric company car with a list price above EUR 60,000 is taxed at only 0.5% of the list price per month. In comparison petrol/diesel cars are taxed at 1%.

VAT:

• Has been reduced at times, such as from 19% to 16% between 1 July and 30 December 2020. This tax incentive benefits both fully electric cars and hybrids.

Local incentives for electric cars

• Up to EUR 1,500 in additional purchase grants from cities and municipalities depending on your place of residence (you can check this here)
• Additional EV subsidies are often paid by local energy producers to new or existing customers
• Free parking
• Reserved parking spaces
• Use of bus lanes

EV charging incentives

Subsidies for individuals:

National grants:

• The KfW bank was launched in November 2020 and invested EUR 3 million in the ‘Wohngebäude 440’ (Residential Property 440) initiative
  • The available subsidy covers EUR 900 per charging station, including:
    • Costs for the installation and connection of the charging station
    • Costs for an energy management system to control the charging station

Criteria for the national grants

• Applies to private owners, tenants or landlords
  • Does not include public charging points or chargers for company cars
  • The purchase cost plus installation cost must amount to EUR 900
  • The charging station must be powered by 100% renewable energy
  • Only applies to chargers with an 11 kW charging capacity, equipped with an intelligent control system

Regional grants:

• Nordrhein-Westfalen: 50% (EUR 1,000 max.) of the purchasing and installation costs of your private EV charger via the ‘Sofortprogram Elektromobilität’ programme
• Munich: 40% of the total net costs (max. EUR 3,000 per charging point of up to 22 kW capacity, max. EUR 10,000 per fast charging point with a capacity over 22 kW): includes purchase price, installation and planning
• Hannover: EUR 500 incentive for the purchase and installation of a smart charging station and
• Limburg: EUR 300 incentive per charging point

Subsidies for public charging points:

• A subsidy of up to EUR 3,000 for purchasing charging stations of up to 22 kW.
• A subsidy of up to EUR 12,000 for purchasing DC chargers of up to 100 kW.
• A subsidy of up to EUR 30,000 for purchasing DC chargers above 100 kW.
• Connections to the grid are subsidised by up to EUR 5,000 for low voltage and EUR 50,000 for medium voltage grid connections.

Tax benefits

• Private and company car owners of electric vehicles who charge their cars on their employer’s premises are exempt from declaring this as a benefit in kind on their income tax return.
• Company car owners who charge their electric vehicles at home can benefit from a tax reduction.
• Employers that offer free charging of electric vehicles or bicycles will not be taxed for this service until 2030.

Government incentives and support continued – Coronavirus Stimulus

2030 climate plan and the latest post-coronavirus stimulus package

• Batteries and infrastructure: As part of the new package of EUR 130 billion, EUR 2.5 billion will be spent on battery cell production and the development of the charging infrastructure, with the objective of having one million charging stations by 2030.
• Electrification of petrol stations: The German government has announced plans to require all petrol stations to also provide EV charging points in future. This will mean that petrol stations will also operate as charging stations.
• Grants for manufacturers: as part of the bonus scheme for 2020 and 2021, to invest in ‘new technology, processes and equipment’.
• Fleet replacement programme: as part of the post-COVID-19 financial stimulus package, these are designed to ensure that small and medium-sized companies and social services do not cut down on the replacement of their vehicle fleets in view of the financial uncertainty associated with the pandemic. The first programme is Sozial & Mobil, which will promote electric mobility in urban traffic and support non-profit organisations with an allocated fund of EUR 200 million in 2020 and 2021. The second programme is designed for traders and small and medium-sized companies using up to 7.5 tonne electric vehicles.
• Bus and truck funds: for a limited period until the end of 2021, funding for electric buses, trucks and their charging infrastructure will be increased. Private and municipal operators will receive EUR 1.2 billion to switch to alternative drive systems as an incentive to make urban transport more electrified.

The Netherlands

The Netherlands has a good reputation for its approach to boosting the use of electric vehicles and has a vast number of EV chargers in the country. In fact, it has the highest number of public charging points per electric vehicle and 100 km of all countries. With the incentives available, the cost of owning an electric vehicle is the same as for a diesel or petrol car. The key incentives include:

EV incentives

Subsidies

• EUR 4,000 to purchase or lease a new electric vehicle
• EUR 2,000 to purchase or lease a second-hand EV

Tax benefits

• Purchase tax (BPM): Fully electric vehicles are fully exempt from purchase tax, and hybrids pay a reduced fee based on their emission levels.
• Ownership tax (MRB): Until 2024, pure electric vehicles are exempt from this tax and hybrids receive a 50% discount. In 2025, fully electric vehicles will only pay 25% and hybrids 75% of the tax.
• Company tax (Bijtelling): EV owners pay a reduced fee in 2020 (8%), 2021 (12%), 2022–24 (16%) and 2025 (17%) instead of the standard fee of 22%
• Plans for 2025 indicate that electric vehicles may become exempt from value added tax and motor vehicle taxes, but this has not yet been confirmed.

Eco tax

• Punitive measures: CO₂ emissions from vehicles that are more than 12 years old incur another 15% on top of the existing ownership tax from 2019.
• Taxes for petrol and diesel will be increased by one cent per litre in 2020 and will be subject to another one cent increase in 2023.

Ban on petrol/diesel vehicles

• From 2030, only emission-free vehicles can be newly registered in the Netherlands.

EV charger incentives

• There are currently no national grants for the private purchase of charging stations. There are, however, two applicable subcategories in the Netherlands when you purchase a company car: Environmental Investment Allowance (MIA) and Random Depreciation of Environmental Investments (VAMIL)
  • The MIA allows the business owner to benefit from an investment deduction of up to 36% of the amount invested.
  • VAMIL allows the business owner to depreciate 75% of the investment costs. This can be done at a time of their own choice and provides a liquidity and interest benefit.
• An electric vehicle is entitled to MIA up to a maximum of EUR 40,000. The charging station can be included in the MIA subsidy together with the EV but can also be reported separately when:
  • The total investment is at least EUR 2,500;
  • The charging location is their own premises;
  • The charging point is used to charge their own electric vehicles. Their own leased vehicles can also be regarded as their own electric vehicles

• For both systems it is important for the environmentally friendly technology or equipment to meet the requirements in a description on the eco-list. EV charging points are categorised as code G 3720 on the list
  • The 2021 budget has allocated EUR 114 million to MIA and EUR 25 million to VAMIL
• In addition, local authorities and municipalities will install free public charging points on request, (e.g. MRA Elektrisch, through which participating municipalities can request a free public charging point)
  • Some companies are committed to installing public charging poles, e.g. Vattenfall & Heijmans are collaborating in 62 municipalities and Allego in the provinces of Groningen and Drenthe

France

France has attracted attention for its dedication to electrification, and sitting President Macron recently announced an EUR 8 billion rescue plan for the local automotive industry. As part of the plan the country is set to have over 100,000 public charging points next year and produce one million electric vehicles by 2025. To achieve these objectives, EUR 1.3 billion in incentives has been set aside, meaning that residents can save up to EUR 19,000 when they buy an electric vehicle. Here is an overview of the key incentives:

EV incentives

Subsidies

• Purchase grant (eco bonus):
  • A bonus of up to EUR 7,000 for vehicles that emit 20 g CO₂ per km or less
  • A bonus of up to EUR 2,000 for plug-in hybrid vehicles that emit between 21 g and 50 g of CO₂ per km
• Scrappage scheme (conversion bonus): up to EUR 5,000 for the purchase of second-hand or new electric vehicles or hybrids if you get rid of your diesel car (older than 2001) or petrol car (older than 1997).
• Low emission zone bonus: EUR 1,000 subsidy for the purchase of an electric vehicle if you live or work in a low emission zone

Tax benefits

• Registration tax: Both fully electric vehicles and plug-in hybrids are eligible for either a 50% discount or are fully exempt from paying registration plate tax (carte grise) in Metropolitan France depending on the region.
• Company tax: Fully electric vehicles are exempt from this tax.

Local benefits

• Up to EUR 6,000 in additional purchasing grants are available in specific regions
• Up to two hours’ free parking in certain municipalities with a ‘green card’ (which electric vehicles are eligible for).
• The mayor of Paris has said that the 3,244 parking spaces previously intended for the Autolib system – a public EV sharing scheme available in Paris, Lyon and Bordeaux between 2011 and 2018, but now phased out – will be allocated as free parking spaces for EV owners.

EV charging incentives

Subsidies

• Subsidy for individuals:
  • EUR 300 tax credit (Crédit d’Impôt Transition Energétique, CITE) on the purchase and installation of an EV charger at your main residence
• Subsidy for companies:
  • Up to 40% of the purchase and installation costs of charging stations for companies
• Subsidy for apartments:
  • Up to 50% of the purchase and installation costs of charging stations in housing association properties (apartment buildings)
• Grants for public entities:
  • Up to 40% of the purchase and installation costs (max. EUR 2,160) of charging stations installed by municipalities. The charging stations must be installed at the request of EV drivers and located within a radius of 500 metres of their place of residence or work.

Spain

Spain introduced its first alternative mobility programme in 2017 and has upped its pace since then. In the first half of 2018, double the number of electric vehicles were sold as in the previous year and, in 2019, a new programme – MOVES – was launched with a budget of EUR 45 million and a mission to promote electric vehicles and the charging infrastructure. More programmes, MOVES II and Renove, have been introduced and are contributing to increased electrification.

Here are the key incentives:

EV incentives

• The MOVES II plan (EUR 100 million), which was launched in June 2020, shows the different subsidies that were granted for the purchase of a charging station:
  • – 40% of the total cost (station and installation) for individuals and the self-employed, whereas companies received 30%
• In 2021, MOVES II will be replaced by the upgraded MOVES III, with an investment package of EUR 400 million. If demand so requires, the amount can be increased by a further EUR 400 million up to the end of 2023
• Although MOVES III is under the supervision of the national government, administration of the funds themselves will take place at regional level
• End consumers who buy electric cars are entitled to receive up to EUR 7,000 for a passenger vehicle and up to EUR 9,000 for a light commercial vehicle
  • – Factors such as the car model (hybrid or fully electric) and scrapping of the old (internal combustion engine) vehicle affect the final amount of subsidies granted.
• The subsidies received must be included in the income declaration and are therefore subject to taxation of approximately 20%.
• Installation companies normally assist the customer by filling in the application form and submitting it to the regional council. Due to the slow processing period, payment of the grant can take up to one year from the date of submission.

Tax benefits

• Registration tax benefits: no registration tax for electric vehicles.
• Ownership tax benefits: tax exemption or reduction depending on local policies. For example, some municipal councils (including Madrid, Barcelona,​Zaragoza and Valencia) have chosen to reduce the annual ownership tax for electric and fuel-efficient vehicles by up to 75%.

Local benefits

• Toll exemption on regional motorways for electric vehicles.
• Free parking in selected cities.
• Traffic lanes reserved for high occupancy traffic can be used by electric vehicles.

EV charger incentives

Individuals and companies can receive MOVES II subsidies of up to 30–40% of the purchase and installation costs (up to a total of EUR 100,000) for the development of public and private charging infrastructure. Grants are distributed and managed by each autonomous community.

Portugal

Portugal has a high proportion of plug-in hybrids, which made up 13.6% of the country’s car sales in 2020. The sale of electric vehicles has increased substantially since 2017, mainly thanks to financial incentives such as subsidies and tax breaks. An overview is provided below.

National EV purchase incentives

The Portuguese government’s environmental fund has allocated EUR 4,000,000 in funding in 2021 to promote EV ownership:

• Individuals:
  • EUR 3,000 for the purchase of a new BEV (car/van), limited to one vehicle per person
  • 50% of the purchase price (up to a maximum of EUR 1,000) for the purchase of an electric cargo bicycle, limited to one per person
  • 50% of the purchase price (up to a maximum of EUR 350) for the purchase of a fully electric bicycle, moped or motorcycle, limited to one per person
• Companies:
  • EUR 6,000 for the purchase of an electric car or a light commercial vehicle, limited to two vehicles per applicant
  • 50% of the purchase price (up to a maximum of EUR 1,000) for the purchase of an electric cargo bicycle, limited to four per applicant
  • 50% of the purchase price (up to a maximum of EUR 350) for the purchase of a fully electric bicycle, moped or motorcycle, limited to four per applicant

Tax benefits

VAT benefits:

• There is full VAT deduction for fully electric vehicles with a list price of less than EUR 62,500 and for hybrid plug-in vehicles with a list price below EUR 50,000.
• Electric company cars are not taxed as part of the corporate tax.

Road tax benefits:

• Battery electric vehicles (BEVs):
  • Full exemption from road tax.
• Other electric vehicles:
  • Tax reduction based on CO₂

Vehicle tax benefits:

• Battery electric vehicles (BEVs):
  • Full exemption from vehicle tax.
• Plug-in hybrid electric vehicles (PHEVs) with a range of more than 50 km
  • 60% discount on vehicle tax.

Company tax benefits:

• Company tax deduction for company fleets with electric vehicles.

EV charging incentives

• The Portuguese government is developing a public EV charging network with national coverage to make it easier for EV drivers to travel around the country. Together with private investment, 2,000 charging stations are expected to be fully functional in the course of 2021 and 20,000 are expected to be installed by 2025.

Save money with EV incentives in Portugal

Portugal has implemented a wide range of tax benefits and grants to promote EV ownership in order to make it more attractive to buyers. It is also investing in EV charging infrastructure in an effort to make EV ownership more practical. It also seems that private operators will play a major role in developing the charging network.

Conclusion

The overview shows that different European countries have reached different stages in the development of EV mobility and infrastructure. The overview also indicates that there are differences in the incentives offered in different countries. We hope that a review like this can help to increase the level of knowledge available and make it easier for countries to learn from each other’s recipes for success.