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
- €3,000 (€5,000 with scrappage) for an electric car (M1) emitting ≤ 20g CO2/km and with a selling price of ≤ €35,000 + VAT.
- €2,000 (€4,000 with scrappage) for an electric car (M1) emitting 21-60g CO2/km and with a selling price of ≤ €45,000 + VAT.
- 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.