Electric cars: Tax benefits and incentives (2025)

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

This 2025 edition offers a comprehensive look at the tax benefits and incentives for electric vehicles and charging infrastructure in the 27 EU member states, Iceland, Norway, Switzerland, and the United Kingdom.

Top insights

• While all EU member states offer some form of tax benefit (either acquisition or ownership) for electric vehicles, there is significant disparity and fragmentation between the schemes in each country
• Tax benefits for electric company cars are becoming more common, with 19 member states offering them
• Some purchase incentive schemes are gradually being discontinued and are now not offered in eight member states (up from six last year):
  • Bulgaria
  • Denmark
  • Finland
  • Germany
  • Italy
  • Latvia
  • Romania
  • Slovakia
• Only around half of EU member states (14) offer incentives for charging infrastructure

Disclaimer

This information was presumed to be correct at the time of publication, and changes may have occurred since. However, ACEA is not responsible for any inconsistencies or errors in the data.