Electric cars: Tax benefits and purchase incentives (2023)

Electric cars: Tax benefits and purchase incentives (2023)

ACEA — 2023-07-05

Automotive Industry

Many European countries offer fiscal support to stimulate market uptake of electric cars, but these tax benefits and purchase incentives differ widely.

Each year, ACEA provides an updated overview of fiscal measures for purchasing electric cars in the 27 EU Member States. The expanded 2023 edition now includes Iceland, Switzerland, and the United Kingdom.

The overview details information on tax benefits (related to acquisition and ownership, including company cars), purchase incentives, such as bonus payments or premiums for buyers, and stimuli for developing or installing charging infrastructure.

Key findings

• 20 EU member states offer incentives for purchasing electric cars
• Seven countries do not provide any purchase incentives; however, most of them grant tax reductions or exemptions:
  • Belgium
  • Bulgaria
  • Denmark
  • Finland
  • Latvia
  • Slovakia
  • Sweden

• Estonia has introduced purchase incentives for battery-electric cars
• Denmark offers minimum-rate taxes on acquisition and ownership
• Bulgaria and Romania exempt electric vehicles from ownership-related taxes