BRUSSELS (Realist English). All EU member states now provide tax incentives to encourage electric vehicle (EV) purchases, but the scope of direct subsidies varies sharply across the bloc. According to Euronews Business, the most generous programmes for individuals in 2025 are being launched in Italy, followed closely by Poland and Greece.
Italy’s new scheme, starting in October, will grant up to €11,000 toward the cost of a new EV — roughly 30% of the purchase price — provided the vehicle is priced below €42,700. The amount depends on income levels. Despite this, battery electric vehicles accounted for only 5.2% of Italy’s car market in the first seven months of 2025, well below the EU average of 15%.
Greece and Poland each offer around €9,000 in subsidies, with Athens adding extra benefits: €2,000 for scrapping an older vehicle, €1,000 for buyers under 29, and exemptions from registration and circulation taxes. Warsaw has also waived registration taxes for BEVs, which held a 5.4% market share in January–July.
Other generous national programmes include Slovenia, where buyers can claim up to €7,200 on EVs costing up to €35,000, and Spain, which provides between €4,500 and €7,000 for BEVs alongside tax breaks, such as a 15% income tax deduction and reduced road tax.
In contrast, Nordic states with the highest EV penetration — Norway (94.1% market share) and Denmark (64.3%) — offer no direct subsidies. Instead, they rely on exemptions from VAT, import duties, registration fees, and in Denmark’s case, steep deductions on CO2-based car taxes.
Some countries are scaling back. Austria recently eliminated direct EV incentives for individuals, while Sweden plans to introduce a means-tested subsidy for low-income rural households in 2026. France has cut its budget but will soon add a €1,000 bonus for each EU-made EV under €47,500. Finland is weighing a scrappage scheme worth up to €2,500.
The varied approaches reflect both fiscal realities and political choices, but the EU faces a binding target: by 2030, average CO2 emissions from new passenger car fleets must fall by 55%. For many states, subsidies remain a central — if costly — tool in reaching that goal.
