Incentives and Legislation | European Alternative Fuels Observatory

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.

Registration tax benefits

Registration Fee (IPT) – Italy has no CO₂-based car registration tax. Only a provincial registration fee (IPT) is due on new registrations, which in many provinces is fully waived for electric vehicles (or sharply reduced) as a local policy. (Any minor stamp duty or transit fee is often exempted for BEVs as well.)

Ownership tax benefits

Vehicle Circulation Tax (Bollo) – Full exemption for 5 years from first registration for BEVs. Thereafter BEVs pay only 25% of the standard rate (75% reduction). The standard “bollo” is based on kW and emission class.
Some regions grant additional relief – e.g. Lombardy and Piedmont permanently waive the annual tax for BEVs beyond 5 years. In Valle d'Aosta, the 5 year period is extended to 8 years.

Company tax benefits

Corporate Depreciation: No EV-specific super-depreciation in 2025 – standard tax rules apply (40% VAT deductibility and 20% cost deductibility of a car’s cost up to €18,076 for mixed-use company cars).

Fringe Benefits (Company Cars): New rules from 2025 dramatically favor EVs – the taxable value of a company-provided EV for private use is only 10% of the standard amount (for PHEVs 20%), versus 50% for conventional cars. This makes EVs much cheaper as employee benefits.

Fleet Incentives: The government has earmarked €4.6 billion to support the domestic auto industry and fleet electrification, including future incentives for electric company fleets. (Details are being developed, aiming to spur business adoption of EVs.)

Purchase subsidies

As of 3rd March 2025, there are no national subsidies for the purchase of BEVs in Italy.

However, some regions have filled this void. For example, in Valle d'Aosta, private individuals who do not carry out economic activity can receive a contribution of up to 50% of the price (excluding VAT, road taxes and transcription) for new BEVs with emissions ≤ 20 g/km CO2, with a maximum of €9,000 for over 35s and €12,700 for under 35s, for vehicles under €60,000. Bolzano confirmed incentives, but specific details for 2025 were not found, suggesting continuity with previous years. These regional incentives often include scrapping surcharges, such as a +10% for Euro 0-2 vehicles in Valle d'Aosta.

Until 2024, these were the purchase subsidies available, below.

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.
Overall Budget:
- A total budget of €250 million allocated for BEVs for the years 2022, 2023, and 2024.
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

There are no specific VAT benefits for BEVs in 2025.

VAT Rate: Standard VAT 22% applies to electric vehicles – no VAT reduction or exemption at purchase.
VAT Deduction: For businesses, input VAT on passenger cars is generally only 40% deductible (unless the vehicle is exclusively business-use). EVs follow the same rule – Italy has not introduced enhanced VAT deductibility for EVs. (Commercial vehicles are 100% deductible for VAT if truly used for business operations.)

Other Financial Benefits

Local Perks: Electric cars enjoy local benefits such as free or discounted parking and access to restricted traffic zones (ZTL) in many cities. For example, Milan, Bologna, Rome, and others allow BEVs to park free in “blue zone” pay spaces and enter ZTLs without fees(typically via a free permit).
Public Transport: Government programs (e.g. PNRR) are funding the rollout of electric buses and related infrastructure for transit fleets (with hundreds of millions € allocated to zero-emission buses by 2026).

Local incentives

Regional/Local Purchase Incentives: Some regions offer stackable rebates. Lombardy (2024–25) provides up to €4,000 per electric car and €8,000 per van for local SMEs, in exchange for scrapping older vehicles.
The autonomous province of Bolzano (South Tyrol) grants €2,000 to private buyers leasing or buying a new BEV (and €1,000 for PHEVs), often doubled via matching utility grants to total €4,000 for BEVs.
Other regions (e.g. Trento, Piedmont, Veneto) have periodically offered rebates or scrapping bonuses for EVs when local air-quality funds permit.
Additional Tax Breaks: Some regions permanently waive the annual road tax for EVs beyond the national 5-year period (notably Lombardy & Piedmont, as above).

AF infrastructure incentives

Bonus Colonnine – Private Use: 80% grant on EV charger purchase & installation. Max: €1,500 (individuals), €8,000 (condominiums). Applies to installations completed in 2024. Application window: 29 Apr–27 May 2025 via Invitalia.
Business/Public Use: 40% grant for companies/professionals. Max:
- €2,500 per 7.4–22 kW AC point
- €8,000 for dual-outlet AC
- €50,000 (50–100 kW DC), €75,000 (>100 kW DC)
National Plan (PNRR): €740M to deploy ~21,000 public chargers by 2025 via calls managed by Ministry of Environment & GSE.

Interesting links

Institutions involved in Incentives

Ministry of Enterprises and Made in Italy
Ministry of Economic Development
Ministry of Environment/MASE
ACI and regional authorities (Lombardy, Bolzano)

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

Inform about incentive