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European Alternative Fuels Observatory

Denmark

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 29th March 2024.

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 and let us know.

Registration tax benefits

1. Taxable value:
List price of BEV – battery reduction

Battery deduction
- 2023: - €120/kWh (175 in ‘22)
- 2024: - €67/kWh
- 2025: - €0/kWh
Max. 45 kWh reduction. 

3 phase for tax base calculation:
- 1st € 9,100: 25%
- 2nd € 19,200: 85%
- 3rd above € 19,200: 150%

2. CO2 allowance
- 100% exemption for BEVs
- 0-117 g CO2 / km: - € 35 per g CO2
- 117-150 g CO2 / km: - € 70 per g CO2
- 150 g + CO2 / km: - € 133 per g CO2

3. Phase-in deduction for BEVs
- Until 2025: 40%
- 2025-2035: gradual increase to 100%

4. Basic deduction
€ -22,150 for BEVs (only € 3,000 for ICE cars)

Ownership tax benefits

Cars registered after July 1st, 2021 will pay a CO2 ownership tax (CO2-ejerafgift) calculated on the basis of a scale based on the car’s CO2 emissions (grams of CO2 per km). The less g. CO2 per km, the lower the tax. Vans registered between March 18th, 2009, and July 1st, 2021, as well as passenger cars, registered between July 1st, 1997, and July 1st, 2021, will pay a green ownership tax (grøn ejerafgift). Green ownership tax is calculated based on the car’s fuel consumption (km per litre) if the car is a petrol or diesel car. For electric cars and plug-in hybrid cars, the car’s electricity consumption (Wh) per km is converted into km per litre of petrol. I.e., the longer the car drives per litre, the lower the tax.

Purchase subsidies

No purchase subsidies are available as of July 2023. 

Other financial benefits

As a part of the green politics for Denmark, the government has allowed giving a discount when charging an EV or PHEV. When charging an EV and PHEV, the car owner will get DKK 0,12 as a returned amount of money. Also, there is free charging of a BEV at work and a subsidy for charge point installation at housing associations.

AF infrastructure incentives

Since 2016, Denmark offers a tax exemption for commercial charging, which in 2017 was extended to 2019, and favourable tariffs for electric buses were extended to 2024 (Government of Denmark, 2017).

The Executive Order on Chargers provides several provisions for companies and municipalities on establishing charging stations. In existing buildings with more than 20 parking slots, at least 1 charging station must be connected to the parking facility. In buildings with more than 10 parking slots, that are undergoing a major renovation, at least 1 charging station must be established and at least every fifth converted parking space prepared for charging stations. In case of new constructions, buildings with more than 10 parking spaces that are not residential buildings must establish at least 1 charging station.

Company Tax Benefits

LCV’s above 3.000 kg have a fixed registration taxation fee. This means that these vehicles are exempt from the additional CO2 supplement of DKK 250 per gram of CO2 /km. Extra basic taxation deduction of DKK 80.000.
-Battery taxation deduction of DKK 1.700.
-60% discount on the registration tax in 2021 (gradually decreases to 20% until 2030.)

If the value of the car does not exceed DKK 300,000 as a maximum, you must pay tax on 23.5% of the value plus an environmental supplement. If the value of the car exceeds DKK 300,000, you must pay tax on 23.5% of the first DKK 300,000 and 21.5% on the rest plus an environmental supplement. See for BIK example tab Denmark BIK.

There is a partial refund of electricity tax down to the process rate of 0.4 øre per. kWh, regardless of where and under what conditions the charging of the batteries for the electric cars etc. occurs. The refund includes both electricity used in charging stations, including fast chargers operated at the company's expense and risk, and electricity used to charge batteries at battery change stations. It is proposed that the special scheme with repayment of electricity tax down to the process rate of 0.4 øre per. kWh for commercial charging of electric cars etc. extended until 31 December 2030.

VAT Benefits

No VAT reduction.

Local incentives

Free parking initiatives for EVs in five big cities in Denmark.

Interesting links

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 29th March 2024.

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 and let us know.