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European Alternative Fuels Observatory

Germany

Incentives and Legislation

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.

Ownership tax benefits

For initial registrations from 1 January 2016 until 31 December 2030, there is a tax exemption of 10 years for electric vehicles (purely electric or fuel-cell vehicles, not hybrid vehicles). After the exemption, the car tax will amount to 50 % of EUR 11.25 (up to 2,000 kg), EUR 12.02 (up to 3 000 kg) or EUR 12.78 (up to 3 500 kg) for each 100 cc or part thereof.

Company tax benefits

The private use of a company car is treated as taxable income in Germany and normally measured at a flat monthly rate of 1 % of the vehicle's gross list price.

However, the preferential tax treatment for electric vehicles and plug-in hybrids introduced in 2018 and initially limited to 3 years is extended in two stages until 2030: From 2022 to 2024, only electric and hybrid vehicles with a minimum range of 60 km or a maximum CO2 emission of 50 g/km with a purely electric drive will benefit; in the period from 2025 to 2030, the required purely electric minimum range will increase to 80 km.

Purely electric cars with a gross list price of a maximum of EUR 60 000 (increased from EUR 40 000 to EUR 60 000 in June 2020) will receive greater support, with only a quarter of the monetary advantage being taxed (0.25 %). The increased list price means more models qualify for the lower taxation.

The tax exemption for the free recharging of EVs and plug-in hybrids in the employer’s company was also extended until 2030.

Purchase subsidies

Until 31 December 2022, the ‘innovation bonus’ temporarily increases the environmental bonus for new and used BEVs, PHEVs and FCEVs.

  • Bonus for cars with net list price ≤ €40,000:

    • €9,000 for BEVs and FCEVs
    • €6,750 for PHEVs
  • Bonus for cars with net list price > €40,000:
    • €7,500 for BEVs and FCEVs
    • €5,625 for PHEVs

Note: stricter requirements under discussion.

Other financial benefits

As part of the package of financial incentives approved in 2016, private owners of plug-in EVs that charge their cars in their employer premises are exempted from declaring this perk as a cash benefit in their income tax return.Employers who provide this perk are allowed to discount from their income tax a 25 % of the lump sum value of the cash benefit. These two fiscal benefits apply only from 1 January 2017 until the end of 2020.

To reduce the tax disadvantages of EVs provided as company cars, the German government has implemented a tax adjustment for electric company cars that applies to both the 1% regulation and the driver’s logbook method. For practical reasons, this is implemented as standard, in the form of a flat-rate deduction.
For EVs that are handed over to an employee for private use for the first time after 31 December 2018, only half of the gross catalogue price will serve as the taxation base. As a result, for users of an electric company car the taxable amount is 0.5 % of the gross catalogue price per month. The halving of the tax base also applies to the distance between the residence and the office of the employee. Under certain circumstances the same applies to journeys to the employee's home base.
The regulation will apply for 10 years, i.e. until 31 December 2030. In addition, externally rechargeable hybrid vehicles, ie plug-in hybrids (PHEVs), will also benefit from the tax reduction if the PHEV emits a maximum of 50 g/km CO2 or has an electrical range of at least 40 km. This range requirement applies until 31 December 2021, subsequently it will be increased to 60 km. From 1 January 2025 it will increase to 80 km. For all other PHEVs, the existing deduction continues to apply. For EVs with a gross list price of up to EUR 40 000 only one quarter of the gross catalogue price will serve as taxation base. In this case, the taxable amount is 0.25 % of the gross catalogue price per month.
The regulation does not apply only to new cars. Used cars can also be covered if they are handed to the employee as a company car for the first time from January 2019.

AF infrastructure incentives

There will be a EUR 2.5 billion fund to speed up the ramp-up of charging infrastructure and facilitate research in e-mobility and battery cell manufacturing.

The realisation of a unique payment option at charging stations is accelerated.

The German government aims to equip at least 25 % of all pit stops with fast-charging infrastructure by the end of 2022, at least 50 % by the end of 2024, and at least 75 % by the end of 2026.

Non-public charging infrastructure (wallbox and charging station)

Local authorities and municipal companies

  • 80 % max. EUR 2 600/wallbox max. EUR 5 800 per charging point (charging station) only until 30 Nov 2020;
  • 80 % max. EUR 1 600/wallbox / EUR 4 800per charging station.

Companies

  • 60 % max. EUR 2 000/wallbox  max. 4.000 € per charging point(charging station) only until 30 Nov 2020;
  • 50% max. 1.000 € wallbox / 3.000 € per (charging station);
  • 40 % for larger companies only at parking places for tenants, employees and ETW.

Private persons

  • 60 % max. EUR 2 000 per charging point only until 30 Nov 2020;
  • 50 % max. EUR 1 000 per charging point.

Controllable, non-public charging infrastructure (wallbox and charging station)

Local authorities and municipal companies

  • 80 % max. EUR 4 100 wallbox / max. EUR 7 300 per charging point (charging station) only until 30 Nov 2020;
  • 80 % max. EUR 3 100  /wallbox / EUR 6 300 per controllable (charging station).

Companies

  • 60% max. EUR 3.500 wallbox / max. EUR 5.500 per charging point (charging station) only until 2020-11-30;
  • 50% max. EUR 2.500 wallbox / EUR 4.500 per (charging station);
  • 40 % for larger companies only at parking places for tenants, employees and ETW.

Private persons

  • 60 % max. EUR 3 500 per charging point only until 30 Nov 2020;
  • 50 % max. EUR 2 500 per charging point.

Public charging infrastructure

Municipalities and municipal enterprises, companies, private individuals

  • 60 % max. EUR 6 000 per charging point only until 30 Nov 2020