Tax incentives for electric cars

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.