The incentives and legislations section is updated for beginning of 2024, as of 23rd April 2024.

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.

Expected changes from 2025

• A new subsidy programme will replace Moves III, with payments made directly at purchase.
• The government aims to centralize subsidy management.
• Distribution criteria may shift from population-based to demand-based allocation.
• Provisions for used vehicles and expanded eligibility are expected, with details pending.
• The 15% income tax deduction for EV purchases will end unless renewed.

Registration tax benefits

Exemption from ‘special tax’ for vehicles emitting ≤ 120g CO2/km

Ownership tax benefits

Road tax exemption / reduction depending on local policies

Company tax benefits

The use of a company car for private purposes is regarded as a payment in kind and included in the calculation of personal income tax:

- 30% reduction for BEVs and PHEVs ≤ €40,000- 20% reduction for HEVs ≤ €35,000

Purchase subsidies

MOVES I 2020 

Subsidy of 4,000€, or 5,500€ if adding a scrappage car.

MOVES II (July 2020: waiting for official publishment)

Subsidy of 4,000€, or 5,500€ if adding a scrappage car. 

The subsidies through the MOVES II plan have been generally approved, but must be published by every single Autonomous region since every regional government is in charge of its own budget. Up to date (July 2020), no region has published its plan.

Moves III (Officially started on 13th April 2021)

Application period until end of 2023. Budget is 400 million EUR, which can be further increased to 800 million. 

Susbsidy of 4500 EUR, or 7000 EUR, if a 7+ years old ICE is scrapped for BEVs. For PHEVs, also 7000 EUR. Conditions: at least 90 km range for maximum subsidy, maximum 45.000 EUR net price, In case of 8 or 9 seats, the upper price limit is 53.000 EUR. Fuel cell cars also receive a subsidy of up to 7,000 euros.

The MOVES III Plan, which expired on December 31, is extended until July 31, 2024, according to a recent resolution of the Council of Ministers.

Other financial benefits

Luxury tax exemption until 2017. Toll exemption on regional highways for electric vehicles. Free parking in selected cities. Traffic lanes reserved for high occupancy circulation can be used only by the driver of BEV's. 

AF infrastructure incentives

In the case of charging points with a power of less than 50 kW , the direct aid percentage is 30% of the installation cost for large companies, 45% for medium-sized companies and 55% for small ones. In municipalities with less than 5,000 inhabitants, aid reaches 40% (large), 50% (medium) and 60% (small).

For the self-employed , on the other hand, the aid is 70%, which increases to 80% in municipalities with less than 5,000 inhabitants.

In all cases, the aid limit is 800,000 euros per file and 2.5 million euros per company for the entire duration of the plan.

Local incentives

- 75% reduction for BEVs in main cities (eg Barcelona, Madrid, Valencia, Zaragoza, etc) - Canary Islands: VAT exemption for alternatively powered vehicles (eg BEVs, FCEVs, PHEVs, EREVs, and HEVs) emitting ≤ 110g CO2/km.

Interesting links

• https://www.acea.auto/files/Electric_cars-Tax_benefits__purchase_incentives_2023.pdf
• https://www.edpenergia.es/es/blog/movilidad-sostenible/plan-moves-iii-amplia-2024/
• https://adity.es/subvenciones-para-coches-electricos-en-espana-2024-y-como-solicitarlas/