Spain extends electric car subsidies to last over summer

Spain has extended the federal e-mobility funding scheme Moves III by seven months. The subsidies will now be available throughout July 2024 instead of running out this year.

The funding pot of 1.2 billion euros still contains around €290 mn, according to the Spanish Ministry of Ecological Transition and Demographic Challenge (Miteco). The ministry adds that the extension by seven months will also help cover the summer period in which Spain records its annual peak in car sales.

Despite some remaining budget, Miteco also reports exceeding a milestone of 238,000 funding applications for electric vehicles and charging points in 2023, as it registered more than 250,000 requests.

The country targets 5.5 million electric vehicles on the road by 2030.

In order to push these numbers, the Spanish government only in June included pre-owned electric vehicles no older than a year in Moves III. Aid was previously restricted to new electric and hybrid vehicles: up to €7,000 for electric cars, up to €9,000 for an electric van, or up to €5,000 for plug-in or electric hybrids.

Spain launched Moves III in 2021 with an initial 400 million euros and options for another 800 million. This budget may now be fully utilised.

In addition to extending the funding, the Spanish Council of Ministers has also agreed to regulatory changes made to comply with EU law. These include a maximum limit per company and year of 150 million euros and the criterion that AC chargers must have smart features. Miteco estimates that this affects “less than 2% of applications”.

Additionally, last June, a tax deduction of up to 15 per cent was approved related to investments in electric vehicles or charging points that are compatible with the MOVES III program. This tax relief will run through December 2025. The maximum deduction is €20,000.

miteco.gob.es (in Spanish)