Electric Vehicles: Tax Benefits & Purchase Incentives in the European Union (2022)

In a recent update to its survey of 2022 electric vehicle tax benefits and purchase in the European Union (E.U.), the European Automobile Manufacturers' Association (ACEA) reports nearly all E.U. member states now offer some form of fiscal support to stimulate the EV market.

The nature and the comprehensive monetary value of such tax benefits and purchase incentives, however, continues to differ widely across the E.U.

ACEA’s survey update details the fiscal measures for buying electric vehicles currently available in the 27 E.U. member states, looking at tax benefits (related to vehicle acquisition and ownership, as well as company cars) and purchase incentives, such as bonus payments or premiums for buyers.

New observations from the update include:

• Today, 21 E.U. member states (four more than in 2021) offer incentives for the purchase of electric vehicles.
• Six countries (four less than 2021) provide no purchase incentives, most of these countries only grant tax reductions or exemptions for electric vehicles:
  • Bulgaria
  • Denmark
  • Estonia
  • Latvia
  • Malta
  • Slovakia
• Estonia is the only member state without any fiscal stimuli at all.
• Denmark offers minimum rate taxes on acquisition and ownership.
• Bulgaria exempts electric vehicles from ownership-related taxes.

A complete list of countries and their respective tax benefits and incentives is available on the ACEA website.

Further Reading: