Country detail incentives | EAFO

European Alternative Fuels Observatory

Filter

Hungary

Capital: Budapest

Population: 9,772,756

Total land area (km2): 93,030 km2

Passenger cars: 3,638,374

Highway (km): 1,936 km

Category	Description
Ownership Tax Benefits	Hungary - Ownership Tax Benefits Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
Registration Tax Benefits	Hungary - Registration Tax Benefits Cars with green plates (environmentally friendly cars) have environmental classifications of "5E" (100% electric), "5N" (plug-in hybrid), "5P" (100% electric for at least 50 km), or "5Z" (zero emission cars), which are exempt for paying registration tax. For other cars, the system is progressive, with different levels of technical properties (engine capacity and environmental classification) that pay different amounts of registration tax. Registration tax for regular hybrids is € 209.
Local Incentives	Hungary - Local Incentives Free Parking: - Parking benefits - Free parking while charging Low / Zero Emission Zones - Traffic allowance during smog alert
Company Tax Benefits	Hungary - Company Tax Benefits Environmentally friendly cars are excluded from the scope of the law for company car tax.
Purchase Subsidies	Hungary - Purchase Subsidies Since May 2017, Hungary has opened three different purchase subsidy calls for natural and private persons (companies, public organisations, etc.). For 2020 the subsidy amounts for electric passenger cars that meet the conditions are: New electric passenger car for sale or private lease (private usage): € 6.950 or 50% of purchase price, if it is between € 2.800 and € 30.500 New electric passenger car for sale or private lease (business purposes): max. 55% of purchase price, if it is between € 2.800 and € 41.700. Conditions: - 100% electric passenger or light freight car. - The list price (original new price) is not lower than € 2.800 and not higher than € 41.700. - Eligible vehicle categories are "M1" (passenger car), "N1" (freight transport) and "N2" (not higher than 4,25 tonnes) - New cars must be purchased through a specialist dealer, listed to the database of the IFKA agency - Test car mileage must not exceed 6.000 km and registration date can be no older than 180 days - Subsidy condition for business purposes is "de minimis" Budget The budget is allocated for each of the subsidy calls. The total available budget for the subsidy programme (ZFR-D-Ö-2020) in 2020 is € 15,15 million. The budget for new electric cars for business purposes (passenger transport) is € 6,06 million. The funds for the different call for proposals are usually subsequently replenished. Budgets for next the call is expected to be announced early 2021.
Ownership Tax Benefits	Hungary - Ownership Tax Benefits Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
VAT Benefits	Hungary - VAT Benefits With regard to VAT, the same rules apply to these vehicles as to any other passenger car (50% of the operating VAT is deductible).
Other Financial Benefits	Hungary - Other Financial Benefits From 01.01.2017, a tax credit can be used in the corporate tax for the acquisition of assets for energy efficiency purposes. The tax credit does not constitute de minimis aid and can be claimed for 6 tax years, up to a maximum of 70% of the calculated tax. The tax benefit is differentiated progressively based on the geographical region and size of the company, but no more than € 15 million.
Infrastructure Incentives	Hungary - Infrastructure Incentives Total cost of electric charging stations is deductible from the corporate tax (since 2017). Total cost of electric charging stations is deductible from the income tax base of energy suppliers .
Announced policy changes	Hungary - Announced policy changes Support of the electric vehicles: reduction of the outdated import vehicles + continuously providing the non-monetary incentives (like green license plate) until 2030 Development of electric car support system for local governments until 2025 Development of charging infrastructure 2025 – NO special requirement for home charging 2025 – Installation of home charging equipment only with qualified professional 2030 – Support the spreading of CCS-Type 2 and CHAdeMO

Category	Description
Ownership Tax Benefits	Hungary - Ownership Tax Benefits Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
Registration Tax Benefits	Hungary - Registration Tax Benefits Cars with green plates (environmentally friendly cars) have environmental classifications of "5E" (100% electric), "5N" (plug-in hybrid), "5P" (100% electric for at least 50 km), or "5Z" (zero emission cars), which are exempt for paying registration tax. For other cars, the system is progressive, with different levels of technical properties (engine capacity and environmental classification) that pay different amounts of registration tax. Registration tax for regular hybrids is € 209.
Local Incentives	Hungary - Local Incentives Free Parking: - Parking benefits - Free parking while charging Low / Zero Emission Zones - Traffic allowance during smog alert
Company Tax Benefits	Hungary - Company Tax Benefits Environmentally friendly cars are excluded from the scope of the law for company car tax.
Purchase Subsidies	Hungary - Purchase Subsidies Since May 2017, Hungary has opened three different purchase subsidy calls for natural and private persons (companies, public organisations, etc.). For 2020 the subsidy amounts for electric passenger cars that meet the conditions are: New electric passenger car for sale or private lease (private usage): € 6.950 or 50% of purchase price, if it is between € 2.800 and € 30.500 New electric passenger car for sale or private lease (business purposes): max. 55% of purchase price, if it is between € 2.800 and € 41.700. Conditions: - 100% electric passenger or light freight car. - The list price (original new price) is not lower than € 2.800 and not higher than € 41.700. - Eligible vehicle categories are "M1" (passenger car), "N1" (freight transport) and "N2" (not higher than 4,25 tonnes) - New cars must be purchased through a specialist dealer, listed to the database of the IFKA agency - Test car mileage must not exceed 6.000 km and registration date can be no older than 180 days - Subsidy condition for business purposes is "de minimis" Budget The budget is allocated for each of the subsidy calls. The total available budget for the subsidy programme (ZFR-D-Ö-2020) in 2020 is € 15,15 million. The budget for new electric cars for business purposes (passenger transport) is € 6,06 million. The funds for the different call for proposals are usually subsequently replenished. Budgets for next the call is expected to be announced early 2021.
Ownership Tax Benefits	Hungary - Ownership Tax Benefits Cars with green plates are exempt from paying vehicle tax and property transfer tax. Other cars pay vehicle tax and transfer tax regressively, based on the age of the vehicle, and its engine power.
VAT Benefits	Hungary - VAT Benefits With regard to VAT, the same rules apply to these vehicles as to any other passenger car (50% of the operating VAT is deductible).
Other Financial Benefits	Hungary - Other Financial Benefits From 01.01.2017, a tax credit can be used in the corporate tax for the acquisition of assets for energy efficiency purposes. The tax credit does not constitute de minimis aid and can be claimed for 6 tax years, up to a maximum of 70% of the calculated tax. The tax benefit is differentiated progressively based on the geographical region and size of the company, but no more than € 15 million.
Infrastructure Incentives	Hungary - Infrastructure Incentives Total cost of electric charging stations is deductible from the corporate tax (since 2017). Total cost of electric charging stations is deductible from the income tax base of energy suppliers .
Announced policy changes	Hungary - Announced policy changes Support of the electric vehicles: reduction of the outdated import vehicles + continuously providing the non-monetary incentives (like green license plate) until 2030 Development of electric car support system for local governments until 2025 Development of charging infrastructure 2025 – NO special requirement for home charging 2025 – Installation of home charging equipment only with qualified professional 2030 – Support the spreading of CCS-Type 2 and CHAdeMO