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European Alternative Fuels Observatory

Italy

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.

Ownership tax benefits
  • Electric vehicles are exempt from the annual ownership tax for a period of 5 years from the date of their first registration.
  • After this five‐year period, they benefit from a 75 % reduction of the tax rate applied to equivalent petrol vehicles in many regions.
Company tax benefits

Starting from 2020, fringe benefit cars emitting up to 60 g/km CO2 are taxed at a lower rate (25 % on conventional parameters related to an average journey and cost per km) compared to the previous taxation (30 % applied to all vehicles on the basis of the above-mentioned parameters).
At the same time, the new legislation introduces different rates based on car emissions:

  • 30 % for cars emitting from 61 to 160 g/km CO2;
  • 40 % for cars emitting from 161 to 190 g/km CO2;
  • 50% for cars emitting from 191 g/km CO2 upwards.

In 2021, the percentages will be partially reviewed as follows:

  • 50 % for cars emitting from 161 to 190 g/km CO2;
  • 60 % for cars emitting from 191 g/km CO2 upwards.

 

Purchase subsidies
  1. National Purchase Subsidy for Private Individuals:

    • For individuals with an income below €30,000:

      • Subsidy amount: €4,500.
      • Additional scrappage bonus: €3,000.
    • For individuals with an income above €30,000:
      • Subsidy amount: €3,000.
      • Additional scrappage bonus: €2,000.
    • Additional Conditions:
      • Applicable only for brand new vehicles.
      • Businesses are allowed to lease vehicles.
      • Maximum net retail price of €35,000.
      • Mandatory holding period of 1 year for private individuals and 2 years for business leases.
  2. Overall Budget:

    • A total budget of €250 million allocated for BEVs for the years 2022, 2023, and 2024.
  3. Regional Subsidy in Lombardy:

    • Maximum subsidy amount: €4,000 (or €1,000 without vehicle scrapping).
    • Maximum net retail price of vehicle: €45,000.

 

VAT Benefits

4 % reduced VAT for disabled persons who purchase cars.

Other Financial Benefits

Free access to the limited traffic zone (LTZ) and free parking in many urban centres for hybrid/electric cars.

Local incentives

Some regional governments, especially in northern Italy, have introduced incentives for the purchase of alternative fuel cars and commercial vehicles (up to 7-12 tons). The amount of the incentive usually depends on the type of fuel or power source (electric vehicles obtain the highest incentive). Only Lombardy has adopted an incentive scheme based on the combination of NOx and CO2 values (manufacturer's declared values).

AF infrastructure incentives

Tax credit granted to taxpayers who install EV charging infrastructures up to 22 kW. It amounts to 50 % of the purchase and installation cost up to EUR 3 000, to be split into ten equal annual tranches.

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

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.