The incentives and legislations section is undergoing a comprehensive annual update for 2025, due to be published by 18th April 2025.

The last annual update was to represent situation as of 2024, publihsed on 23rd April 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, 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

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 for 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 € 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

Tax exemption for BEVs and PHEVs.

Purchase subsidies

From the 5th of Febuary 2024 a budget of 79,091,000€ will be available for supporting the purchase of BEVs. This subsidy scheme will be available only for companies.

For a passenger car that costs max. 30,000 € and the battery capacity is not more than 41kWh, the purchase grant is 5,500€.

For a passenger car that costs max. 37,000 € and the battery capacity is between 41kWh and , 59 kWh the purchase grant is 9,500€.

For a passenger car that costs max. 52,700 € and the battery capacity is more than 59 kWh the purchase grant is 10,500€.

Furthermore, other vehicle categories receive support from the budget. In the case of M2, N1 and N2 vehicles the support works as the following:

For a N1,N2 or M2 that costs max. 44,800 € and the battery capacity is not more than 49kWh, the purchase grant is 9,500€.

For a N1,N2 or M2 that costs max. 58,000 € and the battery capacity is between 49 kWh and 74 kWh the purchase grant is 10,000€.

For a N1,N2 or M2 that costs max. 66,000 € and the battery capacity is more than 74 kWh the purchase grant is 10,500€.

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 01.01.2017, a tax credit can be used in the corporate tax 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 € 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.

Local incentives

Most of the municipalities offer free parking in public spaces for green plate vehicles. In 2023 some municipalities withdrawn this benefit.

Interesting links

Call for proposal text (ZFR-D-Ö-2020)

Call for proposal text (GZR-D-Ö-2018)Call for proposal text (GZR-D-Ö-2016)2003 CX. law on registration tax1991 LXXXII. Act on Motor Vehicle Tax              

1990 XCIII. Act on FeesList of cities with free parking for green plate carsJedlik Ányos Plan 2.0 - Hungarian E-Mobility Strategy

Government decree on the adoption of the Jedlik Ányos Plan 2.0Tax advantages of electric cars2024 subsidy program

Announced policy changes (effective later in 2024 and after)

Support of the electric vehicles: reduction of the outdated import vehicles + continuously providing the non-monetary incentives (like green license plate) until 2030

Development of electric car support system for local governments until 2025

Development of charging infrastructure
2025 – NO special requirement for home charging
2025 – Installation of home charging equipment only with qualified professional
2030 – Support the spreading of CCS-Type 2 and CHAdeMO