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. 

Company tax benefits

BEVs used for business purposes are exempt from company car tax. Costs related to purchasing and installing electric charging infrastructure are deductible from corporate tax, promoting investment in workplace BEV support.

Purchase subsidies

As of 5 February 2024, Hungary launched a company-only BEV subsidy programme with a total budget of €79.1 million. Despite high demand and budget exhaustion by 17 April 2025, the programme remains open for applications. Support levels:

• Passenger cars:
  • ≤€30,000 & ≤41 kWh: €5,500
  • ≤€37,000 & 41–59 kWh: €9,500
  • ≤€52,700 & >59 kWh: €10,500
• N1, N2, M2 commercial vehicles:
  • ≤€44,800 & ≤49 kWh: €9,500
  • ≤€58,000 & 49–74 kWh: €10,000
  • ≤€66,000 & >74 kWh: €10,500

 

Registration tax benefits

Vehicles with green license plates—classified as 5E (100% electric), 5N (PHEV), 5P (electric ≥50 km range), or 5Z (zero emission)—are exempt from registration tax. From 2025, hybrids and PHEVs are no longer exempt. For instance, regular hybrids now pay around €209 in registration tax.

Ownership tax benefits

Green plate vehicles are exempt from both annual vehicle tax and property transfer tax. Other vehicles are taxed based on engine power and vehicle age. From 2025, PHEVs lose their exemption from vehicle tax.

VAT benefits

BEVs follow standard VAT rules. Businesses may deduct 50% of VAT on operating costs. Foreign companies may also recover VAT on BEV-related expenses, subject to reciprocity and EU regulations.

Other financial benefits

Since 1 January 2017, companies investing in energy efficiency assets, including EV chargers, benefit from a corporate tax credit:

• Applicable for 6 tax years
• Cap: 70% of the total tax due, max €15 million
• Eligible under differentiated conditions based on company size and location

This credit is not classified as de minimis aid.

 

AF infrastructure incentives

Hungary’s national EV charging network is expanding with a €72 million programme (28 billion HUF), focused on underserved rural areas (“white spots”). Key elements:

• Over 100 public charging points to be installed outside Budapest
• Integration of solar panels and battery storage encouraged
• Funding: €250,000 to €10 million per project (HUF 100M–4B)
• Low-interest loans (≤15 years), with 10% self-financing required
• Support intensity: 65% for micro/small, 55% for medium, and 35% for large enterprises

 

Local incentives

Most municipalities offer free public parking for green plate vehicles. However, since 2023, a number of cities have started phasing out this benefit.

Interesting links

2003 CX. law on registration tax1991 LXXXII. Act on Motor Vehicle Tax1990 XCIII. Act on FeesMunicipal parking mapJedlik Ányos Plan 2.0Charging programme 2024–2025Subsidy update (April 2025)

Announced Policy Changes (Effective Later in 2025 and After)

Though the company BEV purchase subsidy budget was exhausted by mid-April 2025, applications are still being accepted. Free parking for BEVs in Budapest is scheduled to end on 1 January 2027.

Institutions Involved in Incentives

Ministry of Finance, Ministry of Energy, Hungarian Tax Authority, Local Municipalities