Tax benefits & incentives
Learn about the incentives that could influence the shift to electric mobility in 2026
Stay on top of car taxation
Taxes are a fact of life but we know that keeping up with taxation regulations isn't a hobby for everyone. On this page we breakdown how vehicles are taxed, the differences in taxes depending on the fuel type and the incentives on offer for low and zero CO2 emission vehicles.
Environmental Fund Incentive Program
The 2026 State Budget is characterized by a certain degree of continuity in vehicle taxation, with no changes to the rates or brackets of the main taxes. Nevertheless, the update to emissions standards—which has made CO2 tests more reflective of real-world driving conditions—has resulted in a widespread increase in emissions from plug-in hybrids (PHEVs). In response, the government raised the emissions limits from 50 g CO2/km to 80 g CO2/km. This measure has a significant impact on the market, as it expands the range of PHEV models that can continue to benefit from the incentives provided for this type of powertrain.
IRC
Corporate Income Tax
Separate taxation continues to play a central role in companies’ decision-making. The lack of changes to tax rates maintains the tax penalty on internal combustion engine vehicles, while the revision of emissions criteria for plug-in hybrids expands the range of models that qualify for more favorable corporate income tax treatment.
For leasing, this factor has a direct impact on the effective tax burden borne by companies, making many electric and partially electric solutions more competitive in terms of total cost of ownership (TCO), even when the base lease payment is higher.
Autonomous Tax Rates
Data from 2026
| Purchase Price (€, excluding VAT) | Diesel / Petrol / LPG | PHEV / CNV | BEV | Light goods vehicles with up to 3 seats |
| < /> | 8% | 2,50% | 0% | 0% |
| Between 37.500€ and 45.000€ | 25% | 7,50% | 0% | 0% |
| Between 45.000€ and 62.500€ | 32% | 15% | 0% | 0% |
| > 62.500€ | 32% | 15% | 10% | na |
VAT - Deduction of acquisition values and other charges:
- Light passenger and mixed vehicles
- VAT on the purchase price and lease rents is not deductible;
- Other charges do not deduct VAT, except fuel which has a 50% deduction if the vehicle is diesel, LPG or natural gas.
- Light commercial goods vehicles
- VAT on the purchase price and rental income is not deductible;
- Other charges deduct VAT in full, except fuel which has a 50% deduction if the vehicle is diesel, LPG or natural gas (petrol does not deduct VAT).
- Electric, plug-in hybrid, LPG and CNG vehicles
- Deduction of 100% of VAT on energy used for electric mobility;
- It is also possible to deduct VAT for acquisition, operational leasing and transformation expenses with electric vehicles or plug-in hybrids, and 50% for vehicles powered by LPG or CNG, provided that the acquisition cost does not exceed the following limits:
100% electric vehicles with an acquisition value excluding VAT of up to €62,500 Plug-in hybrid vehicles with an acquisition value excluding VAT of up to €50,000 Vehicles powered by LPG or CNG with an acquisition value excluding VAT of up to €37,500
- Other charges such as maintenance, tires, repairs, among others, do not deduct VAT.
