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.

Purchase subsidies

No national purchase subsidies are available for BEVs in Norway as of 2025.

Registration tax benefits

Since January 2023, BEVs are subject to a weight-based registration tax of 12.5 NOK per kilogram over 500 kg. For example, a 1,700 kg BEV incurs a tax of 15,000 NOK (~€1,410). BEVs remain fully exempt from the CO₂ and NOₓ components of the registration tax.

Ownership tax benefits

As of 2025, BEVs are no longer exempt from the Road Traffic Insurance Tax (Trafikkforsikringsavgift), and pay NOK 3,270 annually (~€280). This is higher than the NOK 2,329 paid by a typical petrol vehicle. BEVs remain exempt from other recurring fees such as the annual circulation tax and fuel-related taxes.

Company tax benefits

BEVs benefit from a 20% reduction in company car tax. Leasing arrangements for BEVs continue to benefit from a 25% VAT exemption on the portion of the vehicle cost below NOK 500,000. Beyond this threshold, VAT is applied at the standard rate. Businesses transitioning to electric vans may receive subsidies covering up to 60% of the additional purchase cost for heavy-duty electric vehicles.

VAT benefits

From 1 January 2026, the VAT exemption for electric vehicles applies only to the first 300,000 NOK of the purchase price. Amounts exceeding this threshold are subject to the standard 25% VAT. Additionally, a weight-based tax ('Vektavgift') of 12.71 NOK per kg applies to the weight exceeding 500 kg.

Other financial benefits

Electric vehicles enjoy reduced road toll rates. National regulations stipulate that zero-emission vehicles cannot be charged more than 70% of the rate for conventional vehicles, though many municipalities operate at lower rates (e.g., 50%).

Local incentives

Oslo: Up to 20% subsidy for charging infrastructure in housing cooperatives (max NOK 5,000 per point; NOK 1,000,000 total per cooperative).
Bergen: Same terms as Oslo, with a cap of NOK 200,000 per housing entity.
Bærum: Up to NOK 50,000 in support for EV infrastructure in housing companies.

AF infrastructure incentives

Building regulations: New parking lots must dedicate at least 6% of spaces to EVs.
Fast-charging network: Charging stations are located every 50 km on major roads.
Charging access: National chip-based access programs (e.g. Elbilforeningen and Charge & Drive) offer widespread and reduced-cost access to public charging stations.

Announced policy changes (effective later in 2025 and after)

Norway maintains its target that all new cars sold from 2025 must be zero-emission (electric or hydrogen).
Since 2022, all new vehicles in public procurement must be zero-emission.
From 2025, only zero-emission city buses may be purchased.

Institutions involved in Incentives

Norwegian Ministry of FinanceNorwegian Public Roads AdministrationNorwegian Environment Agency

Interesting links

https://elbil.no/english/norwegian-ev-policy/

https://kld.dep.no

https://www.skatteetaten.no

Norwegian Road Federation (OFV)

https://ofv.no/registreringsstatistikk

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Inform about incentive

Incentives and Legislation timeline

1990
Exemption from Purchase/Import Tax
Norway introduced a full exemption from purchase/import tax for EVs.
1996-1997
Exemption from Annual Road Tax and Toll Roads
BEVs were exempted from the annual road tax. This exemption, lasting until 2021, further reduced ownership costs for EV drivers.
In 1997, BEVs were exempted from charges on toll roads. This benefit, which lasted until 2017, allowed EV drivers to avoid toll fees, a significant cost in Norway due to its extensive toll road network.
2001
Exemption from 25% VAT on EV Purchases
A 25% VAT exemption was introduced for EV purchases. This applied to the entire purchase price of EVs, further lowering their cost compared to ICE vehicles, which faced the full VAT rate.
2005
Access to Bus Lanes
EVs were granted access to bus lanes. This benefit, still in place as of 2025, allows EV drivers to bypass traffic in congested areas. Since 2016, local authorities can limit access to EVs carrying one or more passengers
2018
Reduced Toll and Ferry Charges
EVs were subject to a maximum of 50% of the total amount for toll roads and ferry fares. This replaced full exemptions, capping EV charges at 50% of the rates for fossil fuel vehicles on toll roads (2018–2022) and ferries.
2021-2022
Introduction of Reduced Annual Road Tax and Full Annual Road Tax and Company Car Tax Adjustment
EVs began paying a reduced annual road tax of NOK 455 (approximately €48) in 2021, with the full tax rate applied starting in 2022.
The company car tax benefit, previously 25% (2000–2008), 50% (2009–2017), and 40% (2018–2021), was reduced to 20% in 2022.
2023
Introduction of Weight-Based Purchase Tax and Partial VAT Exemption
A weight-based purchase tax was introduced for all new EVs.
The 25% VAT exemption was limited to the first 500,000 NOK of an EV’s price.
The VAT exemption now applies only to the first 500,000 NOK (approximately €44,000), with the standard 25% VAT applied to the amount exceeding this cap.