Overview of tax benefits for your electric car in 2026

In addition, while it is a direct Government subsidy rather than a tax benefit, you can also receive up to €4,500 under the Auto+ Plan, which replaces the previous MOVES III Plan.

Income tax deduction for buying a new electric car: up to €3,000.

The main deduction available this year is an income tax deduction of 15% of the vehicle's purchase price. However, it is important to note that the maximum amount to which the deduction can be applied is €20,000, including expenses and taxes associated with the purchase.

This means that even if you pay more than €20,000 for your car, the maximum amount you can deduct is €3,000 (15% of €20,000).

What requirements do you need to meet to claim the 15% income tax deduction?

The conditions published by the Spanish Tax Agency for claiming the 15% deduction for buying an electric vehicle in 2026 are as follows:

1. The vehicle must be new and registered for the first time in 2026*.
2. It cannot be used for professional purposes, either now or in the future.
3. It must belong to one of the following vehicle categories: M1 (passenger cars), L6e (light quadricycles), L7e (heavy quadricycles), or L3e, L4e, or L5e (motorcycles).
4. The purchase price must not exceed the maximum amount set under national legislation governing public aid for electric mobility, depending on the model.
5. The model must be eligible for subsidy under the national legislation applicable at the time of purchase or advance payment.

* Or within the following two tax years, provided you make advance payments for at least 25% of the vehicle's value this year and receive it in 2027 or 2028.

Can you claim the 15% deduction if you order your electric car in 2026 and only receive it later?

If you start paying for an electric car in 2026 that will be delivered at a later date, including if you have already made advance payments since 30 June 2023, you can claim a 15% income tax deduction on the purchase in this year’s tax return, provided you meet two requirements:

1. The advance payments made must total at least 25% of the vehicle's total cost.
2. The remaining payments must be made and the vehicle purchased no later than the end of the following two tax years.

Combining the 15% income tax deduction with the Auto+ Plan when buying an electric vehicle

When buying an electric vehicle, a common question is whether you can combine income tax benefits with the subsidy offered by the Auto+ Plan, the successor to the former MOVES III Plan.

In principle, the two benefits can coexist. However, it is important to bear in mind that the Auto+ Plan acts as a direct subsidy on the purchase price, with amounts of up to €4,500 for private vehicles. This affects the 15% income tax deduction, specifically when calculating the maximum €20,000 tax base to which the deduction can be applied. Let's look at two examples:

* €4,500 is the maximum Auto+ Plan subsidy available to private individuals, subject to meeting the requirements of the EEE (European Economic Electric) assessment system.

Income tax deduction for installing a charging point: up to €600

In addition to the tax benefits available when buying an electric vehicle, the 15% deduction for installing a home charging point remains available until 31 December 2026.

In this case, the maximum tax base for calculating the deduction is €4,000 for the purchase and installation of the charger. This means you can claim a deduction of up to €600 on your income tax return.

What expenses qualify for the income tax deduction for installing an electric car charger?

The legislation governing this benefit includes all costs associated with your home charger when calculating the €4,000 tax base:

• The purchase of the charging equipment.
• The purchase of any necessary materials, such as wiring and protective equipment.
• The cost of professional installation.
• Any work required to lay the necessary cabling and commission the equipment.

What requirements must a charger installation meet to qualify for the income tax deduction?

First of all, to qualify for the deduction, you must own the property or parking space.

You should also bear in mind that any additional amounts covered by subsidies from your autonomous community or local council are not included in the tax base used to calculate the 15% deduction.

Finally, you must keep the Electrical Installation Certificate issued once the charging point installation has been completed, and make sure that payments are not made in cash. You may only use the payment methods permitted under the applicable legislation: bank card, bank transfer, named cheque or payment into a bank account.

Maximum amount you can deduct from income tax for an electric car and charger: €3,600

By combining the tax benefits for buying the car and installing the charger, you can claim up to €3,600 in deductions from your taxable income in your tax return this year. What does it depend on?

1. The purchase price of the car and charger, after deducting any direct subsidies received from national, regional or local authorities.
2. The cost of installing the charger and the materials required for the work.
3. Compliance with the requirements set in the applicable legislation for calculating and applying the deductions.

Vehicle registration tax: how much do electric cars pay?

Another saving when buying an electric car comes from the reduction in vehicle registration tax, which can be as much as 100%.

The Excise Duty Act (Ley de Impuestos Especiales) encourages the transition to non-polluting technologies, including hydrogen vehicles, plug-in hybrids and fully electric vehicles. Vehicles that emit no more than 120 g of CO₂ per kilometre are subject to a 0% tax rate when registered.

Therefore, if your car is fully electric, you will not have to pay registration tax. For other vehicles, the rates applied in 2026 are as follows:

Municipal discounts on road tax for electric vehicles

As for the Tax on Mechanical Traction Vehicles (IVTM), the law leaves it up to each local council to decide whether to apply discounts, which can be as high as 75% in some cases.

Depending on your vehicle model, engine characteristics, environmental impact and, above all, the municipality where your vehicle is registered for tax purposes, you may be able to secure substantial discounts on road tax.

Unlike vehicle registration tax, road tax has the additional advantage that discounts can be applied year after year, allowing you to save throughout the vehicle's lifetime, depending on the local council.

Find out how much of a discount your local council offers on IVTM for electric vehicles

In Madrid, for example, a 75% discount applies to all vehicles with the DGT's CERO and ECO environmental labels. For vehicles with the ECO label, the discount applies only for the first six years, whereas there is no time limit for the CERO label.

In Barcelona, by contrast, the discounts range from 50% for ECO vehicles emitting less than 120 g/km of CO₂ to 75% for zero-emission passenger cars. In both cases, the discount generally applies for the first five years. The local council also offers a 40% discount for electric motorcycles.

We therefore recommend checking your local council's tax regulations on road tax for electric vehicles, as the discounts vary from one council to another.

Additional deductions offered by autonomous communities

In addition to the tax benefits discussed in this article, autonomous communities often offer their own advantages. These include regional income tax deductions, specific incentive schemes and other measures that can provide additional savings when buying a vehicle and installing a home charger.

These subsidies are regularly renewed, amended and expanded over time, and their rates and scope vary. It is therefore worth checking which ones apply to your circumstances at any given time.

Do electric cars pay lower VAT?

This is a common question, and the answer is no: electric vehicles currently remain subject to 21% VAT.

The reason is that European Union legislation does not allow member states to reduce the VAT rate on passenger vehicles.

As a result, subsidies designed to promote electric vehicles are structured around the tax benefits discussed throughout this article, as well as other direct grants.

How do tax benefits change when you use an electric car for work?

Although the 15% income tax deduction requires the vehicle not to be used for professional purposes, this does not prevent self-employed professionals from benefiting from other tax advantages available to them at the national, regional and local level when buying an electric car. 

In these cases, the key is to identify which subsidies are available and any statutory rules on combining incentives.

Similarly, specific rules apply when companies provide an electric car as a benefit in kind. In many cases, this can provide another significant tax advantage. In this respect, the Spanish Tax Agency provides for reductions of up to 30% for certain electric and hybrid vehicles.

Checklist for making the most of all the tax benefits of electric cars in 2026

1. Confirm with the seller that the vehicle is new and is one of the models eligible for tax benefits and any applicable subsidies.
2. Make sure you will not use the vehicle for professional purposes, as this is not permitted under the rules governing the income tax deduction.
3. Check that the home charging point is approved and meets the requirements for the deduction and any applicable direct subsidies.
4. Have the charging point installed by qualified professionals and keep the Electrical Installation Certificate (CIE).
5. Avoid making cash payments and keep proof of payment for all purchases and services, both for the vehicle and the charger.
6. Find out about the different schemes and subsidies in force at the time you make the purchases, register the vehicle and pay road tax, including those offered by the national Government, your autonomous community and your local council.
7. Calculate how any other subsidies affect the tax base used to claim the tax benefits.

FAQs about electric car tax benefits 

How much can you deduct from income tax for an electric car in 2026?

For fully electric cars, you can deduct up to 15% of the purchase price, subject to a maximum tax base of €20,000. This means that the deduction can be as much as €3,000 if all the requirements are met.

How long is the 15% income tax deduction available this year?

Until 31 December 2026. This applies whether the vehicle is paid for in full and received this year, or if make an advance payment of at least 25% and finalise the purchase within the following two tax years.

Can I claim a tax deduction when buying a second-hand electric car?

No. Second-hand vehicles are ineligible for the 15% income tax deduction, as it only applies to newly registered vehicles.

Can the Auto+ Plan be combined with the income tax deduction?

Yes. Direct subsidies under the Auto+ Plan can be combined with the 15% deduction on your income tax return. However, bear in mind that amounts received under the plan must be taken into account when calculating the tax base for the deduction.

Do electric cars have to pay vehicle registration tax?

No, not if the vehicle is fully electric or has a CO₂ emission level of less than 120 g/km. Qualifying vehicles fall within the 0% tax bracket.

Do electric cars have to pay road tax?

Different discounts may apply depending on the municipality, as the Tax on Mechanical Traction Vehicles is regulated by each local council.

Do all local councils offer a 75% discount on IVTM?

No. Each local council sets its own limits and requirements for reducing road tax for electric vehicles, depending on the vehicle models and their emissions levels.

Can I claim a income tax deduction for an electric car charger?

Yes. In 2026, you can claim a 15% deduction on the cost of purchasing and installing a home charger, subject to a maximum tax base of €4,000. Therefore, the maximum deduction is €600.

Do electric cars benefit from a reduced VAT rate?

Not currently. The European Union does not allow member states to reduce the VAT rate for electric vehicles, so they are subject to 21% VAT.

Do plug-in hybrids enjoy the same tax benefits as electric cars?

Not necessarily. Eligibility depends on the type of tax benefit and the requirements relating to vehicle models, emissions and other characteristics established by each authority.

Can I claim the 15% income tax deduction if I use the car for work as a self-employed professional?

No. If the vehicle is used for a business activity, it is not eligible for this specific deduction.