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European Alternative Fuels Observatory

Hungary

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.

Registration tax benefits

Cars with green plates (environmentally friendly cars) have environmental classifications of ‘5E’ (100 % electric), ‘5N’ (plug-in hybrid), ‘5P’ (100 % electric for at least 50 km), or ‘5Z’ (zero emission cars), which are exempt from paying registration tax. For other cars, the system is progressive, with different levels of technical properties (engine capacity and environmental classification) that pay different amounts of registration tax.

Registration tax for regular hybrids is EUR 209.

Ownership tax benefits

Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.

Company tax benefits

Environmentally friendly cars are excluded from the scope of the law for company car tax.

Purchase subsidies

Since May 2017, Hungary has opened three different purchase subsidy calls for natural and private persons (companies, public organisations, etc.).

For 2020 the subsidy amounts for electric passenger cars that meet the conditions are:

  • New electric passenger car for sale or private lease (private usage): EUR 6 950 or 50 % of purchase price, if it is between EUR 2 800 and EUR 30 500
  • New electric passenger cars for sale or private lease (business purposes): max. 55 % of purchase price if it is between EUR 2 800 and EUR 41 700.

Conditions:

  • 100 % electric passenger or light freight car.
  • The list price (original new price) is not lower than EUR 2 800 and not higher than EUR 41 700.
  • Eligible vehicle categories are "M1" (passenger car), "N1" (freight transport)  and "N2" (not higher than 4,25 tonnes)
  • New cars must be purchased through a specialist dealer, listed to the database of the IFKA agency
  • Test car mileage must not exceed 6 000 km and registration date can be no older than 180 days
  • Subsidy condition for business purposes is "de minimis"

Budget

The budget is allocated for each of the subsidy calls. The total available budget for the subsidy programme (ZFR-D-Ö-2020) in 2020 is EUR 15.15 million. The budget for new electric cars for business purposes (passenger transport) is EUR  6.06 million. The funds for the different call for proposals are usually subsequently replenished. Budgets for next the call are expected to be announced in early 2021.

 

VAT benefits

With regard to VAT, the same rules apply to these vehicles as to any other passenger car (50 % of the operating VAT is deductible).

Other financial benefits

From 1 January 2017, a tax credit can be used in the corporate tax scheme for the acquisition of assets for energy efficiency purposes. The tax credit does not constitute de minimis aid and can be claimed for 6 tax years, up to a maximum of 70 % of the calculated tax. The tax benefit is differentiated progressively based on the geographical region and size of the company, but no more than EUR  15 million.

AF infrastructure incentives

Total cost of electric charging stations is deductible from corporate tax (since 2017)

Total cost of electric charging stations is deductible from the income tax base of energy suppliers