Incentives and Legislation
The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.
Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.
If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice.
The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.
Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.
If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice.
- Registration tax benefits
Regional purchase subsidies are no longer available. In Flanders, the subsidy (€5,000 for new BEVs under €40,000; €3,000 for used BEVs under €60,000) was terminated early on 22 November 2024. The scheme was initially intended to phase out gradually until 2027.
- Registration Tax Benefits
In Flanders, zero-emission vehicles (BEVs and FCEVs) are exempt from registration tax (BIV). Natural gas and plug-in hybrid vehicles registered before 31 December 2020 are also exempt. In Wallonia, the current registration tax is €61.50. As of July 2025, a new BIV system will be introduced. The tax for BEVs will be calculated based on engine power, weight, CO₂ emissions, and a fuel coefficient. This reform is expected to reduce costs for smaller BEVs — for example, the Renault 5 E-Tech will be taxed at €50, while a VW ID.4 will cost €334. Additional BIV reductions are planned for large families and single-parent households, including ICE vehicles.
- Ownership tax benefits
In Flanders, BEVs are exempt from annual circulation taxes. In Wallonia and the Brussels Capital Region, BEVs pay the minimum circulation tax of €100.98. Additionally, since 1 April 2023, the VAT rate on electricity has been permanently reduced to 6% (from 21%), benefiting all EV charging.
- Company tax benefits
Battery electric vehicles (BEVs) are 100% tax-deductible for companies from 2020 through 2026. From 2027 to 2031, this will be reduced gradually to 75%. Plug-in hybrids are no longer eligible as of 2024. Electricity used for charging is also deductible. Deductibility for ICE vehicles is being phased out between 2025 and 2028.
- Purchase subsidies
No current purchase subsidies. In Flanders there was a purchase subsidy available since January 2016, but this has ended in 2020. The Flemish government will introduce a EUR 5000 premium in 2024 for BEVs, with a price cap of EUR 40000 (including VAT). The grant will be reduced to EUR 4000 in 2025 and EUR 3000 in 2026. This grant will disappear in 2027. Used BEVs will also benefit from this grant, with an amount of EUR 3000 in 2024, EUR 2500 in 2025 and EUR 2000 in 2026.
- VAT benefits
There is no VAT exemption for BEV purchases. However, the reduced VAT rate of 6% on electricity (and gas) indirectly lowers EV charging costs.
- Other financial benefits
Up to 75% of home and business EV charging installation costs can be deducted from personal income tax. In Brussels, micro and small enterprises replacing diesel vans due to the Low Emission Zone (LEZ) may qualify for a 20% subsidy, up to €3,000.
- Local incentives
- Flanders: Local subsidies are available for electric taxis, shared vehicles, and private chargers.
- Brussels: Installing a charging point can exempt businesses from the parking tax. Some municipalities also offer support for electric cargo bikes.
- AF Infrastructure Incentives
- Company charging infrastructure is 100% tax deductible.
- Private home chargers benefit from a 15% tax deduction in 2024 (maximum €1,500). This was 45% in 2022–2023.
- The 150% cost deduction scheme for public chargers ended in August 2024.
- Announced Policy Changes (Effective Later in 2025 and After)
- Diesel cars will be banned in Brussels by 2030; petrol and LPG vehicles by 2035.
- As of 2025, all public authority fleet purchases must be zero-emission vehicles.
- A digital road tax system is under development to include foreign EVs in Belgian toll schemes. Details pending as of April 2025.
- Interesting Links
- Institutions involved in Incentives
Flemish RegionBrussels Capital RegionWalloon RegionFederal Tax Authority
- 2020Introduction of Company Tax Deductibility for BEVs
Belgium introduced 100% corporate tax deductibility for BEVs and the electricity used to charge them, effective from 2020 to 2026.
- 2023 (April 1)Reduction of VAT on Electricity
The Belgian federal government permanently reduced the VAT on electricity from 21% to 6%.
- 2024 (February 9)Reintroduction of Purchase Subsidy in Flanders
The subsidy provided €5,000 for new BEVs priced under €40,000 (including VAT) and €3,000 for used BEVs with an original catalogue value under €60,000. The program was announced by Flemish Minister of Mobility Lydia Peeters and was initially planned to reduce gradually, with €4,000 in 2025 and €3,000 in 2026, before ending in 2027
- 2024 (November 22)Early Termination of Purchase Subsidy in Flanders
The program, launched in February 2024, was originally set to phase out gradually by 2027. However, due to its popularity, the €20 million budget was depleted, and the final purchase date was moved to November 22, 2024. Buyers had until December 31, 2024, to register their sales contracts.
- 2025 (July)New Registration Tax Calculation in Wallonia
The tax is now based on engine power, weight, CO2 emissions, and a fuel coefficient, making smaller EVs cheaper (e.g., Renault 5 E-Tech taxed at €50) while increasing costs for larger models (e.g., VW ID.4 taxed at €334). This change aims to align taxation with environmental goals.