Features
9 jan 24

EV incentives in 2024: Europe’s major fleet markets

The future is electric, but only if we make it so. That’s why governments across Europe offer tax benefits and purchase initiatives to incentivize the adoption of BEVs. Measures vary per country, but this overview of eight major European fleet markets also shows some common trends: reducing the initial cost of EVs, developing charging infrastructure, and – last but certainly not least – helping corporates make the transition. (For an overview of incentives in eight minor European fleet markets, click here).  

Belgium

  • Registration tax: BEVs and hydrogen cars exempt (Flanders), or paying minimum rate (Brussels, Wallonia).
  • Road tax: BEVs and hydrogen cars exempt (Flanders), or paying minimum rate (Brussels, Wallonia).
  • Company car tax: minimum benefit in kind rate (4% of list value) for BEVs, PHEVs and hydrogen cars; deductibility: maximum (100%) of expenses for BEVs and other, zero- or low-emission cars.
  • Infrastructure bonus: electricity tax at 6% instead of 21% if used for charging.

France

  • Registration tax: regions provide 50% or 100% relief for BEVs and other low-emission vehicles; and BEVs are exempt from the weight-based malus, a pollution tax.
  • Company car tax: BEVs (and other vehicles emitting less than 60 g CO2/km) are exempt from the CO2-based component of the TVS (‘Taxe sur les véhicules de société). 
  • Buying incentives: subsidies of €3,000 for companies (and €5,000 for private consumers) for the purchase of a new BEV costing up to €47,000. For consumers, a scrappage bonus of up to €6,000 is also available. 

Germany

  • Road tax: BEVs are exempt for a maximum of 10 years. Exemption ends at end of 2030. Valid for all vehicles registered before end of 2025. 
  • Company car tax: reduction by up to half of the taxable amount of (1% of the car’s list price) for private use of BEVs and PHEVs, and additional reduction of the taxable amount for BEVs up to €60,000.
  • Buying incentives: Having phased out its corporate incentives in September 2023, the German government in December abruptly cancelled its EV buying incentives for private consumers as well. 

Italy

  • Road tax: BEVs are exempt for five years, and then are liable for just 25% of the tax rate of equivalent ICE vehicles.
  • Buying incentives: €3,000 for BEVs and the least-emitting PHEVs (<20 g CO2/km) with a list price no more than €35K. Incentives goes down to €2,000 if list price is between that amount and €45K. In both cases, add €2,000 in case of scrappage. 
  • Infrastructure incentive: 80% of the purchase and installation cost, with a maximum of €1,500. Only for private consumers. 

Netherlands

  • Registration tax: BEVs and other zero-emission cars exempt.
  • Road tax: BEVs and other zero-emission cars exempt (50% reduction for PHEVs).
  • Corporate car tax: minimum rate (16%) capped at €30K for BEVs and other zero-emission cars.
  • Buying incentives: the SEPP scheme offers subsidies for individuals to buy or lease a new (€2,950) or used (€2,000) BEV.

Poland

  • Registration tax: BEVs are exempt, as are PHEVs up to 2,000 cc (and only until 2029).
  • Road tax: depreciation of up to PLN 225,000 for BEVs, up to PLN 150,000 for PHEVs emitting up to 50 g CO2/km, and up to PLN 100,000 for those emitting more.
  • Buying incentives: from PLN 18,750 to PLN 27,000 for the purchase or leasing of BEVs with a list price up to PLN 225,000. 

Spain

  • Registration tax: BEVs are fully exempt.
  • Road tax: major cities (including Madrid and Barcelona) offer 75% reduction for BEVs.
  • Company car tax: 30% reduction in benefit in kind taxes for EVs and PHEVs under €40,000.
  • Buying incentives: With €290 million of the original €1.2 billion in funding still unused, Moves III was extended for 7 months, to July 2024. The scheme offers up to €7,000 for new and nearly-new BEVs (€5,000 for PHEVs). Separate rules apply for company fleets (Moves Flotas).
  • Charging incentives: Moves III also subsidises charging infrastructure: 70% of the eligible cost for private consumers, and varying rates for companies (30%-55%) depending on the size of the company and the charging power of the installation. 

United Kingdom

  • Company car tax: government offers a rebate on tax rates for BEVs and company cars emitting less than 75 g CO2/km, depending on a wide range of variables. 
  • Infrastructure incentive: the EV Homecharging Scheme and Workplace Charging Scheme subsidize the installation of charge points (for businesses: up to 75% of the total cost, at a maximum of 40 sockets, and £350 per socket).

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Image: Shutterstock 2228875755

Authored by: Frank Jacobs