Not all countries support electric cars in the same way. The availability of funding varies from country to country. For example, Norway, the Netherlands, Germany, France and many other European countries provide many incentives for electric vehicles. In the US, availability of funding depends on the respective state. It is therefore advisable to research the current funding programmes in a particular country, as they may change over time.

Typical types of electric car subsidies include:

  • Subsidies or grants: Financial incentives, such as the GHG quota in Germany
  • Tax advantages: Tax benefits, car tax exemptions and VAT refunds
  • Parking privileges: Free parking or improved access to parking spaces
  • Toll discounts: Lower or no toll charges
  • Public charging infrastructure: Expansion of public charging stations

Germany has so far offered a variety of incentives for electric cars, including the following:

  • Purchase premium/environmental bonus: From 2024, the subsidy for vehicles with a list price of up to EUR 45,000 will be limited to EUR 3,000. Vehicles with a list price above EUR 45,000 will no longer receive subsidies from this date.
  • Motor vehicle tax exemption: Buyers of electric cars will benefit from a car tax exemption up to 31 December 2030. This exemption comes into force when the new or used electric vehicle is registered. After the tax exemption has expired, the motor vehicle tax for electric cars is not charged at the full rate as for vehicles with combustion engines, but only at up to 50 percent.
  • Greenhouse gas reduction quota (GHG quota): In Germany, electric car owners have been able to sell the CO2 savings achieved by the environmentally friendly electric vehicle since 2022. This opens up potential GHG premiums of several hundred euros per year.

Note: This list is not exhaustive. Promotional programmes may change over time.
Find out more here: bafa.de

The e-car subsidy measures in Italy include:

  • Purchase premium and scrappage premium: Italy is promoting the purchase of electric and hybrid cars. The maximum premium requires the old vehicle to be scrapped.
  • Motor vehicle tax exemption: Private owners of electric cars (BEVs) and hybrids (HEVs) benefit from a full exemption from motor vehicle tax for the first five years from first registration. Subsequently, BEVs receive a tax reduction of 75 percent, while HEVs will no longer receive a discount.
  • City toll exemption: Electric cars are exempt from city tolls in cities such as Milan, Palermo or Bologna.

Note: This list is not exhaustive. Promotional programmes may change over time.
Find out more here: temi.camera.it

France offers financial incentives to make electric cars more attractive. This includes:

  • Purchase premium/environmental bonus: The “bonus écologique” is a government bonus that buyers receive when they choose an environmentally friendly vehicle. This premium is granted for the purchase of both new and used vehicles.
  • Exchange premium: The “prime à la conversion” is a financial subsidy that can be granted in conjunction with the “bonus écologique”. It is paid out when a vehicle is purchased that has little to no impact on the environment.
  • Retrofit premium: The French government has supported conversions of combustion-engine vehicles since June 2020. Specific, often obsolete vehicle parts are replaced by new components. In this context, the combustion engine is removed from the vehicle in order to convert it into an electric car or a plug-in hybrid.

Note: This list is not exhaustive. Promotional programmes change over time.
Read more here: French Ministry of Ecological Transition

In Switzerland, individual cantons and municipalities offer various promotional programmes, including:

  • Purchase premiums: Switzerland has no nationwide purchase premium for electric vehicles. Subsidies for purchase of electric cars are regulated at regional level. Irrespective of cantonal regulations, certain municipalities or regions in the catchment area of certain electricity plants continue to have separate regulations regarding the promotion of electric cars.
  • Tax benefit by canton: In some cantons of Switzerland, electric car owners can benefit from reduced annual motor vehicle taxes.

Note: This list is not exhaustive. Promotional programmes may change over time.
Find out more here: Swiss Federal Roads Office ASTRA