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Germany
| Category | Description |
|---|---|
| Ownership Tax Benefits |
Germany - Ownership Tax Benefits For initial registrations from 1 January 2016 until 31 December 2025, there is a tax exemption of 10 years for electric vehicles (purely electric or fuel-cell vehicles, not hybrid vehicles). After the exemption, the car tax will amount to 50% of €11.25 (up to 2,000kg), €12.02 (up to 3,000kg) or €12.78 (up to 3,500kg) for each 100cc or part thereof. |
| Company Tax Benefits |
Germany - Company Tax Benefits The private use of a company car is treated as taxable income in Germany and normally measured at a flat monthly rate of 1% of the vehicle's gross list price. However, the preferential tax treatment for electric vehicles and plug-in hybrids introduced in 2018 and initially limited to three years is extended in two stages until 2030: From 2022 to 2024, only electric and hybrid vehicles with a minimum range of 60 km or a maximum CO2 emission of 50 g/km with a purely electric drive will benefit; in the period from 2025 to 2030, the required purely electric minimum range will increase to 80 km. Purely electric cars with a gross list price of a maximum of 60,000 Euros (increased from € 40.000 to € 60.000 in June 2020) will receive greater support, with only a quarter of the monetary advantage being taxed (0.25%). The increased list price means more models qualify for the lower taxation. The tax exemption for the free recharging of electric vehicles and plug-in hybrids in the employer’s company was also extended until 2030. |
| Local Incentives |
Germany - Local Incentives BEV benefits : |
| Purchase Subsidies |
Germany - Purchase Subsidies Per june 2020, for electric vehicles up to a net list price of up to € 40.000, the environmental bonus is increased. - For purely electric and fuel-cell vehicles the total bonus (federal share + manufacturer share) is € 9.000 and for plug-in hybrid and range-extended electric vehicles it's € 6.750. - The cost of these bonuses (federal share + manufacturer share) is equally shared between the government and the manufacturer. |
| Other Financial Benefits |
Germany - Other Financial Benefits "As part of the package of financial incentives approved in 2016, private owners of plug-in electric vehicles that charge their cars in their employer premises are exempted from declaring this perk as a cash benefit in their income tax return.Employers who provide this perk are allowed to discount from their income tax a 25% of the lump sum value of the cash benefit. These two fiscal benefits apply only from 1 January 2017 until the end of 2020. To reduce the tax disadvantages of electric vehicles provided as company cars, the German government has implemented a tax adjustment for electric company cars that applies to both the 1% regulation and the driver’s logbook method. For practical reasons, this is implemented as standard, in the form of a flat-rate deduction. For electric vehicles that are handed over to an employee for private use for the first time after 31 December 2018, only half of the gross catalogue price will serve as taxation base. As a result, for users of an electric company car the taxable amount is 0.5% of the gross catalogue price per month. The halving of the tax base also applies to the distance between the residence and the office of the employee. Under certain circumstances the same applies to journeys to the employee's home base. The regulation will apply for ten years, ie until 31 December 2030. In addition, externally rechargeable hybrid vehicles, ie plug-in hybrids (PHEVs), will also benefit from the tax reduction if the PHEV emits a maximum of 50g of CO2/km or has an electrical range of at least 40km. This range requirement applies until 31 December 2021, subsequently it will be increased to 60km. From 1 January 2025 it will increase to 80km. For all other PHEVs, the existing deduction continues to apply. For electric vehicles with a gross list price of up to €40,000 only one quarter of the gross catalogue price will serve as taxation base. In this case, the taxable amount is 0.25% of the gross catalogue price per month. The regulation does not apply only to new cars. Used cars can also be covered if they are handed to the employee as a company car for the first time from January 2019." |
| Infrastructure Incentives |
Germany - Infrastructure Incentives There will be a 2.5 bn. € fund to speed up the ramp-up of charging infrastructure and facilitate research in e-mobility and battery cell manufacturing. The federal government plans to invest 500 million euros in the establishment of private charging points. Another 1.5 billion euros will be used to set up a battery cell production facility, and the remaining 500 million euros will be used for research and development. The exact incentives for charging infrastructure differ per federal state (Bundesland), but not all federal states have published their incentives yet. Nordrhein-Westfalen (NRW) Non-public charging infrastructure (wallbox and charging station) # Local authorities and municipal companies Controllable, non-public charging infrastructure (wallbox and charging station) # Local authorities and municipal companies Public charging infrastructure # Municipalities and municipal enterprises, companies, private individuals Bonuses and requirements for charging infrastructure # Bonuses
|
| Category | Description |
|---|---|
| Ownership Tax Benefits |
Germany - Ownership Tax Benefits For initial registrations from 1 January 2016 until 31 December 2025, there is a tax exemption of 10 years for electric vehicles (purely electric or fuel-cell vehicles, not hybrid vehicles). After the exemption, the car tax will amount to 50% of €11.25 (up to 2,000kg), €12.02 (up to 3,000kg) or €12.78 (up to 3,500kg) for each 100cc or part thereof. |
| Company Tax Benefits |
Germany - Company Tax Benefits The private use of a company car is treated as taxable income in Germany and normally measured at a flat monthly rate of 1% of the vehicle's gross list price. However, the preferential tax treatment for electric vehicles and plug-in hybrids introduced in 2018 and initially limited to three years is extended in two stages until 2030: From 2022 to 2024, only electric and hybrid vehicles with a minimum range of 60 km or a maximum CO2 emission of 50 g/km with a purely electric drive will benefit; in the period from 2025 to 2030, the required purely electric minimum range will increase to 80 km. Purely electric cars with a gross list price of a maximum of 60,000 Euros (increased from € 40.000 to € 60.000 in June 2020) will receive greater support, with only a quarter of the monetary advantage being taxed (0.25%). The increased list price means more models qualify for the lower taxation. The tax exemption for the free recharging of electric vehicles and plug-in hybrids in the employer’s company was also extended until 2030. |
| Local Incentives |
Germany - Local Incentives BEV benefits : |
| Purchase Subsidies |
Germany - Purchase Subsidies Per june 2020, for electric vehicles up to a net list price of up to € 40.000, the environmental bonus is increased. - For purely electric and fuel-cell vehicles the total bonus (federal share + manufacturer share) is € 9.000 and for plug-in hybrid and range-extended electric vehicles it's € 6.750. - The cost of these bonuses (federal share + manufacturer share) is equally shared between the government and the manufacturer. |
| Other Financial Benefits |
Germany - Other Financial Benefits "As part of the package of financial incentives approved in 2016, private owners of plug-in electric vehicles that charge their cars in their employer premises are exempted from declaring this perk as a cash benefit in their income tax return.Employers who provide this perk are allowed to discount from their income tax a 25% of the lump sum value of the cash benefit. These two fiscal benefits apply only from 1 January 2017 until the end of 2020. To reduce the tax disadvantages of electric vehicles provided as company cars, the German government has implemented a tax adjustment for electric company cars that applies to both the 1% regulation and the driver’s logbook method. For practical reasons, this is implemented as standard, in the form of a flat-rate deduction. For electric vehicles that are handed over to an employee for private use for the first time after 31 December 2018, only half of the gross catalogue price will serve as taxation base. As a result, for users of an electric company car the taxable amount is 0.5% of the gross catalogue price per month. The halving of the tax base also applies to the distance between the residence and the office of the employee. Under certain circumstances the same applies to journeys to the employee's home base. The regulation will apply for ten years, ie until 31 December 2030. In addition, externally rechargeable hybrid vehicles, ie plug-in hybrids (PHEVs), will also benefit from the tax reduction if the PHEV emits a maximum of 50g of CO2/km or has an electrical range of at least 40km. This range requirement applies until 31 December 2021, subsequently it will be increased to 60km. From 1 January 2025 it will increase to 80km. For all other PHEVs, the existing deduction continues to apply. For electric vehicles with a gross list price of up to €40,000 only one quarter of the gross catalogue price will serve as taxation base. In this case, the taxable amount is 0.25% of the gross catalogue price per month. The regulation does not apply only to new cars. Used cars can also be covered if they are handed to the employee as a company car for the first time from January 2019." |
| Infrastructure Incentives |
Germany - Infrastructure Incentives There will be a 2.5 bn. € fund to speed up the ramp-up of charging infrastructure and facilitate research in e-mobility and battery cell manufacturing. The federal government plans to invest 500 million euros in the establishment of private charging points. Another 1.5 billion euros will be used to set up a battery cell production facility, and the remaining 500 million euros will be used for research and development. The exact incentives for charging infrastructure differ per federal state (Bundesland), but not all federal states have published their incentives yet. Nordrhein-Westfalen (NRW) Non-public charging infrastructure (wallbox and charging station) # Local authorities and municipal companies Controllable, non-public charging infrastructure (wallbox and charging station) # Local authorities and municipal companies Public charging infrastructure # Municipalities and municipal enterprises, companies, private individuals Bonuses and requirements for charging infrastructure # Bonuses
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