Spain Sets Ambitious Electric Vehicle Goals and Incentives for 2030
Spain aims to reach 5.5 million electric vehicles by 2030. Yet in the first five months of the year, registrations exceeded 404,000, with only 18,419 fully electric cars (4.5%) and 43,633 plug-in hybrids (10%). To accelerate adoption, the government expanded a personal income tax deduction of 15% for eligible new vehicle purchases, up to a maximum of 3,000 euros. This incentive is meant to stimulate demand as the market evolves and charging infrastructure expands. The tax relief applies to purchases reported since the program’s publication in the official state gazette, BOE, and will influence buyers across the country. The plan initially runs through December 31, 2024, with possible extensions under meetings of the European Union’s Improvement Plan framework, as confirmed by several sources including the Prensa Ibérica group via EL PERIÓDICO. The measure could extend through December 2025 if the related annex gains final approval from EU authorities.
Beyond a straightforward deduction, buyers can choose other payment pathways that still qualify for the tax relief. For example, a buyer can provide at least 25% of the vehicle’s purchase price directly to the seller, with deductions adjusted accordingly. The maximum deductible base remains 20,000 euros, which encompasses the vehicle price, associated costs, and taxes, resulting in a 3,000-euro maximum deduction after the 15% rate is applied. This structure gives buyers flexibility in how they finance the purchase while preserving the tax incentive’s overall value. A purchaser may also pursue complementary subsidies offered through the national Movement Programme, which incentivizes replacing older vehicles with newer models. When an original vehicle is scrapped, subsidies can range up to 7,000 euros for electric cars and 5,000 euros for plug-in hybrids. These subsidies are administered by autonomous communities and were set to be available through December 31, 2023, though industry reports note that processing times and tax implications have been common concerns among applicants.
In parallel, Spain is expanding charging infrastructure with a focus on home and business installations. A 15% personal income tax deduction applies to qualifying installations that add charging points at private properties, and this incentive becomes effective after the BOE publication. Buyers must complete the installation by December 31, 2024, and the deduction is not limited to users with commercial activity. For businesses and self-employed individuals, a corporate tax incentive applies, supporting both private and public charging facilities. Early repayment options for these installations will be considered on a case-by-case basis, and the benefit persists alongside existing depreciation allowances in corporate tax for electric vehicle purchases.
The government is also fine-tuning the administrative process for charging infrastructure, including high-powered public stations. In particular, facilities with charging power above 3 megawatts are subject to revised approvals, increasing the maximum permitted charging capacity and simplifying approvals across autonomous communities. This administrative simplification is part of ongoing efforts by the Electric Vehicle Charging Infrastructure Working Group and is supported by the Ministry of Ecological Transition and the sector.
Looking ahead, the overall strategy centers on a balanced blend of incentives, streamlined administration, and accelerated charging readiness. By coupling consumer rebates with corporate tax relief and robust infrastructure development, Spain seeks to create a more attractive landscape for electric mobility. Observers note that while the initial uptake has been slower than hoped, coherent policy design, timely funding, and reliable payment pathways can help convert interest into large-scale adoption in the coming years. Sources: government policy notes, official BOE publications, and industry reporting from EL PERIÓDICO via the Prensa Ibérica network.