Tax incentives for electric cars

Stay on top of car taxation

As part of the green transition, meeting the objective of reducing greenhouse gas emissions and ensuring the rapid penetration of electric vehicles onto Greece's roads, a series of measures and incentives have been put in place to promote electromobility for both drivers and businesses.

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Electric cars are becoming the dominant choice for increasing numbers of drivers in Greece. There are many reasons for this, such as the exciting driving experience as well as the fact that such cars are eco-friendly. Moreover, many tax incentives are now being offered to users of electric cars. These tax breaks include exemption from vehicle registration fees, lower CO2-based taxation and higher VAT refunds. Using electric vehicles is more affordable than ever and benefits both the environment and the driver.

The new taxes seek to ensure that more people choose cars with low CO2 emissions. All cars, apart from electric cars, are subject to an additional CO2 charge based on CO2 consumption while driving. For petrol and diesel cars with high CO2 emissions, the CO2 charge will make such cars more expensive.

More specifically, the value of a zero-emission vehicle or of a low-emission vehicle releasing up to 50 gr CO2/km, whose retail price before taxes for the user is below € 40,000, where that vehicle is used for any period of time during the tax year, is deductible from income earned from salaried work.

In addition, the amount companies can deduct from their gross income for the cost of leasing a zero-emission company passenger car has been increased by 50%; the requirement being that the maximum retail price before taxes is below € 40,000. If the price is higher than that figure, the amount deductible from the excess is only 25% higher. The corresponding figures for low-emissions vehicles releasing up to 50 gr CO2/km are 30%, and for the excess 15%.

Lastly, electric cars are exempt from the obligation to pay any luxury tax.

Kinoume Ilektrika 3

The Ministry of the Environment and Energy's 'Kinoume Ilektrika 3’ (I move electrically III) scheme seeks to promote electromobility and sustainable mobility. The scheme subsidises the long-term leasing of electric vehicles, the installation of smart chargers as well as the optional scrapping of old vehicles. Both natural and legal persons are entitled to the subsidy. It applies to all leases entered into from 1.5.2024 onwards eligible for inclusion in the scheme.

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Natural persons

There’s a 30% subsidy of up to € 9,000 for long-term leases, without the obligation to purchase the car at the end.
There’s also an extra € 1,000 subsidy for the long-term lease of a car for a person with disabilities.
There’s also an extra € 1,000 subsidy for families with at least three dependent children (€ 1,000 for three dependent children, plus an additional €1,000 per extra dependent child up to a maximum of € 4,000).
There’s also an additional € 1,000 for young people aged under 29 buying or leasing a car.
There’s a € 1,000 bonus for scrapping an old car and € 500 subsidy to purchase a smart charger.
Additionally, there’s a € 1,000 subsidy for buying a car for persons with disabilities.

Companies

There’s a subsidy of 30% of the retail price before taxes (up to a maximum of € 6,000) for long-term leases, without any obligation to purchase the vehicle at the end. This applies for leases of between 1 to 20 vehicles. The subsidy falls to 20% of the retail price before taxes (up to a maximum of € 4,000) where 21 vehicles or more are leased.
There’s a € 2,000 bonus for scrapping an old vehicle and a € 400 charger purchase subsidy per charging point.
There’s also an additional € 4,000 per car for companies operating on the Greek islands.

For more information about the scheme and how you can utilise the benefits available as part of it call +30 2111203930 (Athens) or +30 2310365448 (Thessaloniki).