EV and EV Charger Incentives in Europe: A Complete Guide for Businesses and Individuals

ELECTRIC VEHICLES

SINA BALZHÄUSER
Content Manager

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4 December 2019 (Updated on: 31 March 2020)

This article will sometimes refer to electric vehicles as EVs. Battery electric vehicles will sometimes be referred to as BEVs and plug-in-hybrids - vehicles that combine a gasoline or diesel engine with an electric motor and a large rechargeable battery - will sometimes be referred to as PHEVs.

EU Monetary EV Incentive Map

Belgium

EV Incentives

EV Charging Incentives

Denmark

EV Incentives

Tax Benefits

  • Registration tax: Denmark removed the registration tax benefits for EVs (exemption in 2015 to full payment in 2020), which resulted in a decline in EV sales in the country. As such, the Danish government decided to fix the tax rate at the 2018 level of 20% of normal vehicle registration tax for the next two years, but only for cars below DKK 400,000 (roughly €54,000) in value.
  • The Danish government also introduced a deduction in registration tax based on battery capacity in April 2017.
  • Ownership Tax: In Denmark, circulation taxes are based on fuel consumption and weight. BEVs pay the minimum amount and plug-in hybrids pay less than an equivalent diesel or gasoline car.

Local Benefits

  • Parking fees: Electric cars are exempt from parking fees up to DKK 5,000 (€670) per year.

Subsidies for Private/Public Sector Purchase of EVs

  • Public procurement: the Danish Energy Agency has funded programs to support municipalities and companies’ purchase of electric cars for fleets since 2013.

EV Charging Incentives

Tax Benefits

  • Denmark currently offers a tax exemption for commercial charging. This means that companies that supply EV charging on a commercial basis can receive an electricity tax rebate of around 1 DKK (€0.13) per kilowatt-hour.

Favorable Tariffs for Buses

  • Favorable tariffs for electric bus charging will last until 2024.

Finland

EV Incentives

EV Charging Incentives

France

France is well-known for its dedication to electrification. Current President Emmanuel Macron set a goal of increasing EV sales fivefold by 2020 when he came into office and this goal was channeled into some of the incentive policies listed below:

EV Incentives

EV Charging Incentives

Germany

EV Incentives

EV Charging Incentives

The Federal Ministry of Transport and Digital Infrastructure has an incentives program to encourage the roll-out of public charging stations in Germany.  Between 2017 and 2020, €300 million has been dedicated to the installation of 10,000 normal charging stations and 5,000 DC fast charging stations in public spaces. The new 2030 climate plan approved this year (2019) continues to aim for the 1-million-target for EV charging stations by 2030. A corresponding “masterplan” for charging infrastructure is in the works and should be released by the end of this year.

Subsidies

  • A subsidy of up to €3,000 for purchasing charging stations of up to 22 kW.
  • A subsidy of up to €12,000 for purchasing DC chargers up to 100 kW.
  • A subsidy of up to €30,000 for purchasing DC chargers above 100 kW.
  • Connections to the grid are subsidized by up to €5,000 for low voltage and €50,000 for medium voltage grid connections.

Tax Benefits

  • Private owners of plug-in electric vehicles that charge their cars in their employer premises are exempt from declaring this as a cash benefit in their income tax return until 2020. 
  • Employers offering free charging of electric vehicles or bicycles will not be taxed for this service until 2030.

Italy

EV Incentives

Eco-Taxes 

  • An ‘eco-tax’: new vehicles purchased and registered in Italy between March 1st 2019 to December 31st 2021, including those leased, will have to pay a penalty for choosing a polluting model.

Subsidies

  • Subsidies of up to €4,000 towards the purchase or lease of a new electrified vehicle in the M1 category (passenger cars for up to 8 people) with a CO2 emission rating of up to 70 g/km for individuals and companies - essentially, only BEVs.
  • Subsidies of up to €1,500 for vehicles that emit between 21 and 70 g/km (plug-in hybrids and some smaller regular hybrids) for individuals and companies.
  • These bonuses can rise to €6,000 and €2,500 (respectively) if you scrap an older vehicle that complies with the Euro 1, 2, 3 or 4 emission standards. 
  • These amounts are deducted from the dealer’s sales price. 

Tax Benefits

  • Ownership Tax: buyers of full-electric or hybrid vehicles enjoy exemption from the annual registration tax for five years after they have purchased their vehicle. After this five‐year period, they benefit from a 75% reduction of the equivalent tax rate for most petrol vehicles.

Local Benefits

  • Some cities in Italy offer incentives, such as free parking in urban areas and free circulation in limited circulation areas (ZTL zones).

EV Charging Incentives

  • Individuals, companies and condominiums can access a new tax deduction of 50% on a total amount of maximum €3,000, spread out into ten equal annual installments, for the purchase and installation costs of EV chargers from March 1, 2019 to December 31, 2021.

Luxembourg

EV Incentives

Subsidies

  • Purchase subsidies of up to €5,000 for zero-emissions vehicles (BEV and FCEV) and €2,500 for PHEVs with CO2 emissions of 50g/kg or less.
  • Up to €500 refund offered for the purchase of an electric quad, motorcycle, light motorcycle (125 cm3) or moped (and pedelec 45). 
  • A subsidy of up to €300 will be offered on the purchase of a new electric bike or pedelec25 (pedal-assisted bike with a power output of no more than 0.25 kW) purchased in 2019.

Tax Benefits

  • Ownership Tax Benefits: Tax reduction on CO2 based vehicle tax.
  • Company Tax Benefits: Expenses related to the use of company cars (calculated on the basis of CO2 emissions) can be deducted from corporate income for those using vehicles with zero or low emissions.

Norway

EV Incentives

EV Charging Incentives

Spain

EV Incentives

MOVES Subsidies 

  • Subsidies of €5,500 (+ €1,000 dealer bonus) for the purchase of purely electric vehicles, when a combustion motor vehicle of at least ten years old is decommissioned.
  • Subsidies of up to €2,300 (up to a zero-emission range of 31.9 km), €3,600 (32 to 71.9 km) or €6,500 (from 72 km), already including the dealership bonus for plug-in hybrids, when a combustion motor vehicle of at least ten years old is decommissioned. The list price of the new EV or plug-in hybrid must not exceed €48,400.
  • Subsidies of up to €700 are available for electric motorcycles. 
  • Subsidies of up to €15,000 are available for the purchase of trucks and buses with alternative drive systems (including natural gas).

Tax Benefits

  • Registration tax benefits: no registration tax for Battery Electric Vehicles (BEVs). 
  • Ownership tax benefits: road tax exemption or reduction depending on local policies. For instance, some city councils (including Madrid, Barcelona, Zaragoza, and Valencia) have chosen to reduce the annual circulation tax (ownership tax) for electric and fuel-efficient vehicles by up to 75%.

Local Benefits

  • Toll exemption on regional highways for electric vehicles.
  • Free parking in selected cities.
  • Traffic lanes reserved for high occupancy circulation can be used by BEVs.

EV Charging Incentives

Sweden

EV Incentives

EV Charging Incentives

    Subsidies

    Sweden has introduced its ‘Klimatklivet’ program, which is an investment incentive initiative for local and regional projects that aim to reduce CO2 emissions. Its policies include incentives for EV charging infrastructure, notably:

    • A grant that covers up to 50 % of the investment in both public and private charging stations by a range of different types of organizations, companies, municipalities, foundations, and associations, such as housing associations.
    • ‘Klimatklivet’ is exclusively designed for businesses and public associations and its grants are given out 4 times a year. 

    Sweden’s ’Charge at Home’ program is a support scheme for individuals wishing to purchase home chargers:

    • Through this program, individuals can receive up to 50% or SEK 10 000 (€960) for hardware and installation costs of home chargers. 
    • Between 2018 and 2020, this will represent a total of SEK 90 million (€8.7 million) allocated annually to support the installation of home EV chargers.

    The Netherlands

    EV Incentives

    EV Charging Incentives

    United Kingdom

    EV Incentives

    EV Charging Incentives

    Conclusion

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