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.
More specifically:
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.
Kinoumai Ilektrika - Cycle C
Subsidy Program for Electric Vehicles & Sustainable Mobility
The Ministry of Environment and Energy has launched the third cycle of the “Kinoumai Ilektrika” program, aiming to promote electromobility and sustainable transportation. The program offers financial incentives for the long-term leasing of electric vehicles, the installation of smart chargers, and the optional withdrawal of old vehicles. The subsidy is available to both individuals and companies, and applies to leases that began on or after May 1st, 2024, which are eligible for inclusion in the program.
👤 Individuals 30% subsidy on the vehicle’s value, up to €9,000 for long-term leases (no purchase obligation). Additional €1,000 for long-term leasing of a vehicle by persons with disabilities (PWD). Additional €1,000 for families with at least 3 dependent children, plus €1,000 per additional child, up to a maximum of €4,000. Additional €1,000 for individuals up to 29 years old. €1,000 reward for the withdrawal of an old vehicle. €500 subsidy for the purchase of a smart charger. Additional €1,000 for the purchase of a vehicle by PWD.
🏢 Companies 30% subsidy of the retail price before tax (RPBT), up to €6,000 for 1–20 vehicles. 20% subsidy, up to €4,000 for 21 or more vehicles. €2,000 reward per vehicle for withdrawal of old fleet vehicles. €400 subsidy per charging point. Additional €4,000 per vehicle for companies operating on islands.
📞 For more information about the program and how to benefit from its incentives, feel free to contact us: Athens: +30 211 120 3930 Thessaloniki: +30 2310 365 448