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. 

Purchase subsidies

No direct national purchase subsidies are available in Denmark as of 2025.

Registration tax benefits

Denmark applies a high vehicle registration tax, but BEVs benefit from significant reductions. The taxable value is calculated progressively:

• Up to DKK 72,900: 25%
• From DKK 72,900 to DKK 226,500: 85%
• Above DKK 226,500: 150%

From 2021 to 2025, BEVs are subject to only 40% of the calculated registration tax. This rate was planned to be gradually increasing by 8 percentage points per year between 2026–2030, reaching 80% by 2030, and then by 4 percentage points per year until reaching 100% by 2035. 

In 2026, the registration tax rate for zero-emission vehicles remains frozen at 40% (the 2025 level), following the 2026 Finance Act agreement. The previously planned increase to 48% has been postponed. The gradual increase toward 80% (2030) will resume in subsequent years.

A fixed deduction for BEVs in 2026 is DKK 161,300, compared 

to only DKK 45,000 for ICE vehicles emitting less than 50g CO₂/km. BEVs are fully exempt from the CO₂ allowance surcharge. For ICE vehicles, the surcharge ranges from DKK 280 to DKK 1,064 depending on CO₂ emissions. A battery capacity deduction (up to 45 kWh) was phased out by 2025.

Ownership tax benefits

Vehicles registered after 1 July 2021 are subject to a CO₂-based annual ownership tax. BEVs pay DKK 840 in 2025, increasing to DKK 920 in 2026 (approx. €123). In contrast, a petrol car emitting 100g CO₂/km pays DKK 1,160 per year.Since 1 January 2022, Fuel Cell Electric Vehicles (FCEVs) are taxed in the same way as petrol vehicles.

Company Tax Benefits

The taxable benefit for private use of a company car (Benefit in Kind – BIK) is 25% of the car’s registered value. Since BEVs benefit from reduced registration tax, this leads to lower taxable value and BIK for employees.Employer-paid electricity for workplace charging is exempt from tax.Plug-in hybrid vehicles face a DKK 30,000 surcharge in the BIK calculation, while BEVs benefit from a DKK 15,000 deduction.

VAT Benefits

The standard VAT rate in Denmark is 25%, with no reductions for BEVs or related goods and services. Input VAT on passenger cars, including BEVs, is generally non-deductible. However, VAT on vans and trucks used for business purposes is fully deductible.

Other financial benefits

For 2026 and 2027, the regular electricity tax is lowered to the EU minimum (~0.8 øre/kWh). As a result, the separate tax reimbursement scheme for EV charging is suspended for these years, as the electricity price already reflects the lowest possible tax rate.

This lowers the cost of home and workplace charging.Free charging at workplaces is tax-free for employees. Housing associations can receive subsidies for installing charging points, supported by a DKK 92.5 million national fund (2023–2025).

AF infrastructure incentives

• DKK 50 million has been allocated to develop public charging infrastructure.
• Housing associations can receive grants covering up to 25% of charging installation costs under a DKK 92.5 million programme (2023–2025).
• 25 new charging parks for electric trucks are planned, with first sites operational by 2025.
• Private companies (e.g., PowerGo) are installing ~1,600 public chargers across Denmark (2023–2025).
• Commercial charging stations benefit from a continued electricity tax exemption (2024–2025).
• Building regulations require:
  • Existing buildings with >20 parking spaces to have at least one charger installed.
  • Buildings with >10 parking spaces undergoing renovation must install one charger and pre-equip every fifth space.
  • Non-residential buildings with >10 parking spaces must also include at least one charger.
• A DKK 6 million fund (2023–2025) supports a national knowledge center for EV charging infrastructure.

 

Local incentives

Free parking for BEVs is being phased out: 

• Copenhagen: Ended free parking for electric and hydrogen vehicles on 1 January 2024.
• Aarhus: Offers four hours of free parking for BEVs until 1 October 2025.
• Aalborg: Free parking for BEVs discontinued in 2023.
• Odense & Esbjerg: Offer limited free parking subject to specific conditions.

 

Announced Policy Changes (Effective Later in 2025 and After)

• Denmark aims to have 1 million green vehicles by 2030.
• Gradual registration tax increases for BEVs will continue until 2035, reaching parity with ICE vehicle taxation.
• A ban on the sale of new petrol and diesel vehicles is proposed for 2030, with hybrids phased out by 2035.
• Favourable tax regimes for BEVs are expected to be extended to maintain adoption rates.
• Policy changes are expected regarding co-financing rules for municipal public charging infrastructure.

Interesting links

Road tax calculatorBIK information – SKATBIK calculatorRegistration tax rulesRegistration tax calculatorElectricity tax refund – Norlys

Institutions Involved in Incentives

Skatteforvaltningen (Danish Tax Agency)Danish Ministry of TransportDanish Energy AgencyDanish Road DirectorateDanish Environmental Protection Agency