Incentives and Legislation
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.
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
Spain's MOVES III programme, extended through 31 December 2025, offers:
- Up to €7,000 for new BEVs priced under €45,000 (excl. VAT) with vehicle scrapping
- €4,500 without scrapping
- Applies retroactively to purchases made from 1 January 2025
The successor scheme, MOVES IV, is expected in 2026 and aims to streamline access and raise eligible price thresholds.
- Registration tax benefits
BEVs are fully exempt from Spain’s CO₂-based registration tax (Impuesto de Matriculación).
- Ownership tax benefits
BEVs are eligible for up to a 75% reduction in the annual local road tax (Impuesto sobre Vehículos de Tracción Mecánica – IVTM), depending on the municipality. Cities such as Madrid, Barcelona, and Valencia apply significant discounts.
- Company tax benefits
- 30% reduction in the Benefit-in-Kind (BIK) value for BEVs priced ≤ €40,000
- Accelerated amortisation of BEVs and charging infrastructure for corporate income tax purposes
- Full deduction of BEV-related business expenses
- VAT Benefits
Companies may deduct VAT fully on BEVs used exclusively for professional purposes. No VAT incentives apply for private individuals.
- Other financial benefits
Private BEV buyers may claim a 15% personal income tax (IRPF) deduction on their annual tax return, up to €3,000. In some autonomous communities, such as Castilla y León, the deduction may reach €4,000.
- AF infrastructure incentives
Under MOVES III, individuals may receive up to 70% of eligible home charging installation costs (80% in municipalities with fewer than 5,000 inhabitants), with a maximum aid of €5,000. Companies may receive up to €2.5 million in aid. Additional benefits:
- 15% IRPF deduction for home charger installation (max tax base: €4,000)
- Accelerated depreciation of business-related EV charging infrastructure
- Expected changes from 2025
MOVES IV is expected in 2026 and may feature:
- Higher purchase price limits
- Upfront grants instead of reimbursements
- Simplified application and payment procedures
- Local incentives
Many municipalities—including Madrid, Soria, and Zaragoza—grant partial or full IVTM exemptions for BEVs. In addition, BEVs receive preferential access to low-emission zones (ZBE), which are expanding across urban areas.
- Interesting links
- Institutions Involved in Incentives
IDAE – Institute for Energy Diversification and SavingMinistry for the Ecological TransitionRegional GovernmentsMunicipalities