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. 

Purchase subsidies

The Sustainable Energy Authority of Ireland (SEAI) provides purchase grants for new BEVs, based on list price:

• €14,000–€15,000: €1,500
• €15,000–€16,000: €2,000
• €16,000–€17,000: €2,500
• €17,000–€18,000: €3,000
• €18,000–€60,000: €3,500

Grants apply only to new BEVs priced €14,000–€60,000.Commercial BEVs receive higher grants, up to €3,800. Panel vans (N1, ≤3,500 kg, ≤€90,000) may qualify for up to €7,600.Additional grants of up to €25,000 apply to wheelchair-accessible BEVs. Grants for PHEVs ended in 2022. BEV grant levels were reduced in 2023 as part of a phase-out strategy.

 

Registration Tax benefits

New BEVs benefit from up to €5,000 in Vehicle Registration Tax (VRT) relief:

• Full relief for BEVs priced up to €40,000
• Relief tapers for vehicles between €40,000–€50,000
• No relief for vehicles above €50,000

Commercial BEVs may qualify for a reduced Category C VRT rate of €200 if the weight ratio exceeds 125% (lowered from 130%). Category B commercial vehicles with CO₂ <120g/km receive a reduced 8% VRT rate.

 

Ownership tax benefits

BEVs are taxed at the lowest motor tax band: €120 per year. In comparison, ICE vehicles pay between €200–€2,400 depending on emissions. PHEVs emitting <50g/km are taxed at €140 annually.

Company tax benefits

Businesses benefit from 100% Accelerated Capital Allowance (ACA) for BEV and charger investments, claimable in the first year, up to €24,000. This is available until 31 December 2025.For company cars, a 0% Benefit-in-Kind (BIK) rate applies to the first €50,000 of the Original Market Value. In 2025, a €10,000 universal BIK relief reduces the effective taxable amount to €45,000. This will taper to €20,000 in 2026 and €10,000 in 2027.

VAT Benefits

Businesses can reclaim VAT on BEVs used commercially, but only up to 40% for passenger cars. VAT recovery rules follow Ireland’s standard treatment for vehicle-related expenses.

Other financial benefits

BEVs are eligible for toll reductions under the Low Emission Vehicle Toll Incentive (LEVTI), including up to 75% off the M50 and 50% in the Dublin Tunnel.

AF infrastructure incentives

The SEAI offers:

• Up to €300 grant for home charger purchase and installation
• 60–90% coverage under the EV Apartment Charging Grant, depending on applicant type

These grants support both individual homeowners and residents in multi-unit dwellings.

 

Announced Policy Changes (Effective Later in 2025 and After)

• SEAI BEV grants are expected to remain at €3,500 in 2025, but future levels are not confirmed.
• VRT relief for BEVs ends on 31 December 2025 unless extended.
• A new 8% VRT rate applies from 1 July 2025 to commercial Category B vehicles with CO₂ <120g/km.
• From 1 January 2025, the weight ratio threshold for Category C commercial BEVs is reduced to 125%.
• The €10,000 temporary universal BIK relief is scheduled to end after 2025.

 

Sources

Information sourced from SEAI guidelines, Department of Transport announcements, and national tax policy documentation. Specific figures reflect current programme rules as of 2025.

Institutions Involved in Incentives

Sustainable Energy Authority of Ireland (SEAI)Department of TransportZero Emission Vehicles Ireland (ZEVI)Local Authorities