Across the different EU states there is a wide variety of tax and cash incentives available to electric car buyers. Since EVs remain quite expensive, the idea is to encourage EV purchases to help each nation meet its crucial sustainability goals.
Unfortunately, finding the exact percentages and sums involved isn’t always easy. Many websites are sloppy, with poorly-informed sources which mislead readers. This page has been built to eliminate those problems!
On this page we’ll share the precise tax benefits and cash incentives from each EU member, validated by the European Automobile Manufacturers Association (ACEA). We also discuss some of the main takeaways and compare different countries.
So what’s actually available?
What are the main takeaways?
Out of 27 member states, Lithuania is the only EU country to offer zero incentives. Their EV market share is less than 0,5%, but hopefully some incentives will be introduced in the next few years and increase the flow of green cars into the country.
By contrast, nations like France, Germany, and Italy offer substantial purchase incentives: buyers can receive up to €7.000, €9.000 and €6.000 respectively off their new electric car. Each of these nations also offers some kind of tax break, but the cash grabs all the headlines. These are 3 of the countries leading the way in the adoption of green vehicles in the EU.
No purchase incentives?
Unfortunately, if you’re a citizen of the following countries, there is currently no cash incentive:
However, there are excellent tax breaks. For example, for Belgian drivers, 75% of the cost of charging can be deducted from individual income tax. In Denmark, electric cars are exempt from parking fees up to DKK 5.000 (€670) per year!
The full list of discounts and tax breaks are highlighted in the ACEA document.
Norway is the EV king of Europe
Norway has maintained an impassioned EV stance since the 1990s, and the dividends show today. As of January this year, more than 50% of new cars sold in Norway are fully electric. Its biggest incentives no longer focus on giving cashback to buyers, but instead on EV infrastructure.
The country has 10.000+ public charging points (plus 1.500 fast charge points) and funding for fast charging stations for every 50km of main roads in the country. Driving an EV in Norway is simply easier and more attractive than in any other EU country.
And these government incentives are far from the only significant benefits available to EV drivers. Including free parking, cheaper fuel, lower running costs and an improved driving experience, there are a lot of reasons to consider an electric car.
Over the next few years, we hope that all of these benefits will bring the rest of the EU closer to Norway’s level. Electric cars are the future and there’s never been a better time to get your own.
Now that you learned more about the cash incentives for EU electric car buyers, it’s time to take a look at the FAQ section, where we have compiled a list of answers to common questions.
If there’s anything, you might want to ask, please don’t hesitate to contact us via live chat. ↘