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.
- Announced policy changes (effective later in 2025 and after)
No national direct purchase subsidies for BEVs.Some municipal and brand-specific schemes (e.g., TOGG finance packages) offer favorable credit terms, especially for domestic EV models.
- Local incentives
Cities such as Istanbul and Izmir offer parking privileges and license plate benefits for BEVs.Municipal EV readiness varies; users should check city-level schemes.
- Company Tax Benefits
Full VAT deduction and asset depreciation possible for BEVs used for business.Tax incentives for leasing and fleet electrification are emerging but not centrally codified.Domestic EVs like TOGG may qualify for additional corporate tax reductions under industry support schemes.
- VAT benefits
BEVs are generally subject to standard 18% VAT.However, PHEVs and HEVs with specific powertrain criteria benefit from 45% or 90% VAT reductions depending on electric motor power and engine volume.
- Purchase Subsidies
No national direct purchase subsidies for BEVs.Some municipal and brand-specific schemes (e.g., TOGG finance packages) offer favorable credit terms, especially for domestic EV models.
- Registration Tax benefits
Special Consumption Tax (ÖTV) rates are significantly reduced for BEVs:
- 10% for ≤160 kW and price ≤₺1,450,000
- 40% for ≤160 kW and price >₺1,450,000
- 50% for >160 kW and price ≤₺1,350,000
- 60% for >160 kW and price >₺1,350,000
- Ownership / Circulation Tax Benefits
Lower Motor Vehicle Tax (MTV) compared to ICEs.MTV for BEVs depends on vehicle age, engine power (kW), and market value. Reductions apply up to 75% compared to ICEs.
Examples:
- 70–85 kW, 1–3 years: ₺2,104–2,528
- 160 kW: approx. ₺14,716 for TOGG T10X
- Announced Policy Changes (Effective Later in 2025 and After)
Fast Charging Infrastructure Support Program by the Ministry of Industry and Technology:
- Support for entrepreneurs and businesses to install DC chargers in 81 provinces.
- Focus on expanding network in rural and low-density regions.
- 2nd call open until 20 June 2025.
- Interesting links
- Turkey Sets Special Consumption Tax Rates for Electric Motor Vehicles – VATupdate
- Turkey raises special consumption tax on electric vehicles to 10-60% | Reuters
- New Incentives on Electric Vehicle Charging Stations - Lexology
- Electric vehicle regulation and law in Turkey | CMS Expert Guides
- Status of Electric Vehicles in Turkey – Voltgo
- The Electric Vehicle Charging Infrastructure Boom in Turkey
- Turkey: The government supports the first fully homemade electric car investment project worth $3.7 billion
- Turkey Gazettes Communique on Tax Incentives Concerning Electric Vehicles
- VAT Rates in Turkey - Rates for all goods & services
- Motor Vehicle Tax - Turkey - Angloinfo
- Electric Car Rental in Turkey: Exploring Eco-Friendly Travel
- ELECTRIC VEHICLE INCENTIVES
- Scientific paper on Turkish taxation policies of EVs