With the aim of promoting sustainable mobility, a policy has been adopted to encourage the acquisition and use of electric and Plug-in Hybrid vehicles.
1. Electric Vehicles
ISV and IUC Benefits
The first benefit for new electric vehicles is the exemption from the Vehicle Tax (ISV), which is paid upon vehicle registration.
Fully electric vehicles are entirely exempt from this tax.
There are also benefits regarding the Single Circulation Tax (IUC). Fully electric vehicles are entirely exempt.
VAT
For fully electric vehicles, as well as electricity expenses incurred during charging, the Value Added Tax (VAT) is deductible as follows:
.Fully electric vehicles: full VAT deduction for vehicles with a purchase price up to €62,500.00 (excluding VAT).
Autonomous Taxation
Fully electric vehicles remain exempt from autonomous taxation, provided the purchase price is below €62,500.00.
For electric vehicles with a purchase price above €62,500.00, a rate of 10% applies.
2. Plug-in Hybrid Vehicles
ISV and IUC Benefits
The first benefit for new Plug-in Hybrid vehicles is the reduction in Vehicle Tax (ISV), which is paid upon vehicle registration.
Plug-in hybrids with a minimum electric-only range of 50 km and certified emissions under 50g CO₂/km benefit from a 75% reduction in ISV.
There are also IUC benefits for these vehicles, with reductions depending on the engine specifications.
VAT
For Plug-in Hybrid vehicles, as well as electricity expenses incurred during charging, the VAT is deductible as follows:
Plug-in Hybrid vehicles: full VAT deduction for vehicles with a purchase price up to €50,000.00 (excluding VAT), provided they have a minimum electric range of 50 km and official emissions under 50g CO₂/km.
Autonomous Taxation
Plug-in Hybrid vehicles benefit from reduced autonomous taxation rates, in accordance with energy efficiency criteria set out in current legislation.
For Plug-in Hybrid vehicles with an electric-only range of over 50 km and CO₂ emissions below 50g/km, the following benefits apply:
.Purchase price up to €37,500.00 – tax rate of 2.5%
.Purchase price between €37,500.00 and €45,000.00 – tax rate of 7.5%
.Purchase price above €45,000.00 – tax rate of 15%
