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

The 'Plan MOVES III' concluded on 31 December 2025. It has been succeeded by 'Plan Auto+', which simplifies the process by applying the incentive directly at the time of purchase (dealer discount).

Spain's MOVES III programme, extended through 31 December 2025, offered:

• 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

 

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.

The 15% Personal Income Tax (IRPF) deduction for purchasing an electric vehicle has been extended through 31 December 2026, with a maximum deduction base of €20,000

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

Agencia Tributaria – Electric Mobility Incentives 2025

Institutions Involved in Incentives

IDAE – Institute for Energy Diversification and SavingMinistry for the Ecological TransitionRegional GovernmentsMunicipalities