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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

Incentives are granted to consumers who purchase cars emitting up to 60 g/km CO2 (so the measure actually supports the purchase of battery electric vehicles (BEVs) and of few plug-in hybrid electric vehicles (PHEVs) models which are compliant with the 60 g/km CO2 threshold). The amount of the incentive depends on whether the beneficiary ensures the scrapping of a car from Euro 0 to Euro 4 .

Without scrapping:

  • vehicles emitting from 0 to 20 g/km CO2 receive an incentive of EUR 4 000;
  • vehicles emitting from 21 to 60 g/km CO2 receive an incentive of EUR 1 500.

In case of scrapping:

  • vehicles emitting from 0 to 20 g/km CO2 receive an incentive of EUR 6 000;
  • vehicles emitting from 21 to 60 g/km CO2 receive an incentive of EUR 2 500.

Temporary increase from 1 August 2020 to 31 December 2020:
The increase in premiums will apply from 1 August until the end of 2020 for electric and hybrid vehicles up to a gross list price of EUR 61 000. Specifically, without scrapping purely electric vehicles will be subsidised with EUR 6 000 during this period instead of the previous EUR 4 000. Anyone who scraps their old combustion engine vehicle in connection with the purchase of an electric vehicle will receive EUR 10 000 (previously EUR 6 000).

Hybrids with emissions of between 21 and 60 g/km CO2 will be subsidised with EUR 3 500 or EUR 6 500 if an old car is decommissioned at the same time. These rates were previously EUR 1 500 and EUR 2 500 respectively. The increased incentives are financed partly by the state and partly by the car manufacturers.

 

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 centers 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.