Intending to achieve a complete transition to electromobility by 2050, European countries have launched various benefits and legislations to encourage the adoption of zero-emission vehicles and promote the installation of charging infrastructure.
What are the benefits in Eastern Europe?
Below, Mobility Portal Europe shares information collected from the European Alternative Fuels Observatory.
Estonia
Electric vehicles (EVs) in Estonia benefit from various incentives.
Firstly, they receive discounts on Registration Tax, unlike petrol cars.
The tax rate to be paid depends on the carbon dioxide (CO2) emissions of the unit. This information can be found on the Estonian Tax and Customs Board website.
Additionally, electric cars are exempt from circulation tax, and, at the local level, some municipalities continue to offer free parking in designated areas.
Moreover, for companies owning EVs, there is the possibility of obtaining tax reductions. They should contact the Board for further details.
Regarding direct purchase subsidies, Estonia recently eliminated this benefit. Furthermore, there are no specific VAT reductions for these automobiles.
Lastly, the government is making significant investments in expanding public charging infrastructure nationwide.
Latvia
In Latvia, zero emission cars are exempt from registration tax.
Similarly, if a unit emits less than 50 grams of CO2 per kilometre, whether it’s a passenger car, goods vehicle, bus, or motorcycle, it is exempt from Vehicle Operation Tax.
For companies considering adding sustainable units to their fleets, there are additional tax benefits. For example, battery electric vehicles (BEVs) have a minimum rate of ten euros.
Regarding practical advantages, zero-emission cars can use public transport lanes, allowing them to avoid traffic and reach their destination more quickly.
Additionally, they have the possibility of free parking in cities like Riga and Liepāja.
As if that weren’t enough, they have free access to Jūrmala, a popular coastal tourist area, allowing them to enjoy its beaches and attractions without incurring additional costs.
Despite these numerous advantages, there are no specific VAT reductions for BEVs in Latvia.
Lithuania
Lithuania is another country that exempts users of sustainable cars from the registration fee.
A series of fiscal incentives have also been established for both companies and individuals to encourage the acquisition of such vehicles.
For instance, corporations can receive up to 4,000 euros in bonus for purchasing an M1 EV, with the possibility of an additional 1,000 euros if they scrap a diesel or petrol car owned for at least 12 months, with valid MOT.
The maximum subsidy limit is 400,000 euros per company.
For individuals, there are currently bonuses of up to 2,500 euros for the purchase of used M1 EVs, with an additional 1,000 euros bonus for disposing of a diesel or petrol unit.
In addition, both BEVs and plug-in hybrid electric vehicles (PHEVs) are eligible for specific purchase subsidies, with amounts varying depending on the type of car and its age.
For the former technology, users could access a subsidy of 5,000 euros, and for the latter, a grant of 2,000 euros.
Electric vehicle owners also benefit from an exemption from circulation tax until 2024.
Other advantages include free parking in cities like Vilnius and the ability to travel in bus lanes.
Similarly, subsidies have been implemented for the replacement of old and polluting vehicles with electric units in public tenders.
It’s worth noting that the reduction of VAT for electric cars will be maintained until 2027, providing a long-term perspective for potential buyers.
Regarding charging infrastructure, both private and public, aids are offered to promote their development and accessibility.
For private charging stations, subsidies of up to 1,500 euros are available for wallboxes or charging cables, and up to 3,000 euros for shared systems in multi-party buildings.
On the other hand, public charging points can be subsidized with up to 10,000 euros.
Poland
The exemption from registration tax for BEVs in Poland will be valid until 2029.
Additionally, there are ownership tax advantages, such as tax depreciation, which allows for significant reductions depending on the vehicle’s CO2 emissions.
The country has the “Mój elektryczny samochód” (My electric car) and “Mój elektryczny autobus” (My electric bus) programs, government initiatives that offer subsidies for purchases and encourage the development of charging infrastructure for public transportation.
The first plan offers assistance ranging from 18,750 to 70,000 zlotys (approximately between 4,200 and 15,700 euros) for the purchase of new zero-emission cars and light electric vans.
The amount depends on the vehicle category and price.
Also, this year the Polish government concluded public consultations to boost a subsidy programme for zero-emission heavy-duty vehicles (ZE-HDVs) and their respective chargers.
“Around one billion Polish zlotys are expected to be allocated for the production of HDVs and another two billion for charging infrastructure,“ said Krzysztof Burda, President of the Polish Chamber of Electromobility Development (PIRE), to Mobility Portal Europe.
Companies also benefit from lower tax rates for electric units used for commercial purposes and the ability to reclaim paid VAT.
At the local level, some municipalities offer access to bus lanes, parking with designated spaces, and free or discounted charging.
Slovakia
In Slovakia, while petrol cars are subject to a registration tax ranging from two to five percent, electric vehicles receive a lower rate that can be two percent or less.
Regarding ownership tax benefits, BEVs have a 0 percent annual tax rate, while hybrids enjoy a reduction of up to 50 percent.
Other financial advantages include discounts on parking meters in some locations, along with the introduction of a new depreciation group “0” for electric vehicles since January 1, 2020, allowing for faster depreciation of these units.
Additionally, locally, low-emission zones are being implemented to benefit EV users.
Furthermore, businesses can enjoy a reduced tax rate compared to petrol vehicles.
It’s worth mentioning that while there are no longer subsidies for the purchase of electric cars, a new program is expected to provide additional support.
The government has expressed interest in introducing direct subsidies in the future, although no concrete plans have been announced yet.
Moreover, Slovak authorities are investing in expanding the public charging infrastructure nationwide.
Slovenia
Regarding registration tax, Slovenia offers incentives for low-emission vehicles: those emitting less than 110 g/km of CO2 pay a minimum tax rate of 0.5 percent.
Regarding purchase subsidies, the amount varies depending on the car category.
Zero-emission cars can receive subsidies of up to 6,500 euros, based on the vehicle category and whether it is new or used.
Additionally, there is a maximum vehicle value limit to be eligible for these incentives, which is 65,000 euros.
Slovenia also has the Eco Fund, which offers long-term loans with subsidized rates for the purchase of electric cars, established by the Bank of Slovenia.
These loans, available for both personal and commercial purchases, have repayment terms of up to ten years and competitive interest rates.
