View interactive infographics and data visalisations on alternative fuel uptake across all different transport modes.
Access EU-wide statistics and measure how Member-States compare to each other on key metrics.
Geospatial Intelligence. Access a comprehensive suite of interactive maps and geospatial data, including fleet, registration, and infrastructure indicators, to visualise the alternative fuels landscape across Europe.
Explore the Trans-European Transport Network (TEN-T) GIS map, enriched with up-to-date data on alternative fuels infrastructure across Europe.
Regulatory & Market Framework. Discover key market trends, consumer insights, and the full regulatory framework for alternative fuels. Access essential policy support instruments and documentation.
Recent News: View the latest updates on consumer behaviour, market trends, and the results of the most recent consumer monitor and survey.
Policy Focus: Read the full text and guidance on the Alternative Fuels Infrastructure Regulation (AFIR) and the Clean Vehicles Directive.
A consolidated list of EU policies and legislation on sustainable transport and alternative fuels.
Discover: The latest market analysis on alternative fuels, covering key segments and future projections.
Calculate Your Costs. Use our dedicated interactive calculators to determine the real-world costs of alternative fuel vehicles, including Total Cost of Ownership (TCO), charging prices, and more, tailored to your specific use case.
Explore how much you can expect to pay on average per month for recharging your electric vehicle in your country of choice.
Essential AF Knowledge Hub. Find foundational information on alternative fuels, vehicle types, and recharging systems. Access FAQs, glossaries, news, and useful links to quickly understand the electromobility ecosystem.
Stay Informed: Access the latest news, press releases, and official updates from the European Alternative Fuels Observatory (EAFO).
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.
Grants for electric car purchases ranging from ISK 400,000 to 900,000 Total of ISK 2.5 billion has been granted since January 2024 Digital process for grant applications has been streamlined with automated processing
Vehicles emitting up to 75 g/km (NEDC) are taxed at a rate of 5%
BEVs, hydrogen vehicles, and most PHEVs are exempt from registration tax due to their zero or minimal emissions
The ownership tax structure for BEVs in Iceland underwent significant changes in 2024, with the introduction of a kilometer-based road tax. This system continues into 2025, representing a shift from traditional fuel taxes to a usage-based model.
Introduced in January 2024, this tax applies to electric, hydrogen, and plug-in hybrid vehicles:BEVs and hydrogen vehicles: ISK 6 per kilometerPlug-in hybrids: ISK 2 per kilometer The tax is calculated based on odometer readings, which must be logged at least once a year. Payments are made monthly, with settlements adjusted based on actual driving distances.
BEVs and hydrogen vehicles: VAT exempt up to a maximum of ISK 1,440,000 per vehicle.Plug-in Hybrid Electric Vehicles (PHEVs): VAT exempt up to a maximum of ISK 960,000 per vehicle.These exemptions are capped at 15,000 vehicles of each type
Free parking is availble for up to two hours for BEV's in Reykjavik and Akureyri
Incentives for charging infrastructure
Grants are available from he City of Reykjavik to multi-appartment buildings when installing charging facilities.
As of 2025, the kilometer-based road tax, which was introduced for electric and hybrid vehicles in 2024, will be expanded to include all vehicles, including those powered by diesel and petrol.
Electric and hydrogen vehicles: 6 ISK per kilometer (unchanged from 2024) Plug-in hybrids: 2 ISK per kilometer (unchanged from 2024) Diesel and petrol vehicles: Rate to be confirmed, but expected to be higher than for electric vehicles This expansion aims to create a more equitable taxation system across all vehicle types and to further incentivize the adoption of low-emission vehicles.
While no official announcements have been made regarding changes to purchase subsidies for 2025 and beyond, the government may consider adjustments based on market trends and the rate of BEV adoption.
Iceland Revenue and Customs
Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.
