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Italy

Capital: Rome
Population: 60,359,546
Total land area (km2): 301,339 km2
Passenger cars: 39,018,170
Highway (km): 6,943 km
Category Description
Purchase Subsidies

Italy - Purchase Subsidies

Incentives are granted to consumers who purchase cars emitting up to 60 g/km of CO2 (so the measure actually supports the purchase of BEVs and of few PHEVs models which are the only compliant with the 60 g/km treshold). The amount of the incentive depends on whether the beneficiary ensures the scrapping of a car from Euro 0 to Euro 4. 

Without scrapping: 
- vehicles emitting from 0 to 20 grams per kilometre of CO2 receive an incentive of 4.000 euros; 
- vehicles emitting from 21 to 60 grams per kilometre of CO2 receive an incentive of 1.500 euros. 

In case of scrapping: 
- vehicles emitting from 0 to 20 grams per kilometre of CO2 receive an incentive of 6.000 euros; 
- vehicles emitting from 21 to 60 grams per kilometre of CO2 receive an incentive of 2.500 euros. 

Temporary increase from August 1, 2020 to December 31, 2020: 
The increase in premiums will apply from August 1 until the end of 2020 for electric and hybrid vehicles up to a gross list price of 61,000 euros. Specifically, without scrapping purely electric vehicles will be subsidised with 6,000 euros during this period instead of the previous 4,000 euros. Anyone who scraps their old combustion engine in connection with the purchase of the electric vehicle will even receive 10,000 euros (previously 6,000 euros).

Hybrids with CO2 emissions of between 21 and 60 grams per kilometer will be subsidized with 3,500 euros or 6,500 euros if an old car is decommissioned at the same time. These rates were previously 1,500 and 2,500 euros respectively. The increased incentives are financed partly by the state and partly by the car manufacturers.

Ownership Tax Benefits

Italy - Ownership Tax Benefits

Electric vehicles are exempt from the annual ownership tax for a period of five years from the date of their first registration. After this five‐year period, they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles in many regions.
Infrastructure Incentives

Italy - Infrastructure incentives

Tax credit granted to taxpayers who install EV charging infrastructures up to 22 kW. It amounts to 50% of the purchase and installation cost up to EUR 3.000, to be split into ten equal annual tranches.
Company Tax Benefits

Italy - Company Tax Benefits

"Starting from 2020 fringe benefit cars emitting up to 60 g/km of CO2 are taxed at a lower rate (25% on conventional parameters related to average journey and cost per kilometre) compared to the previous taxation (30% applied to all vehicles on the basis of the abovementioned parameters). At the same time, the new legislation introduces different rates based on car emissions: - 30% for cars emitting from 61 to 160 g/km; - 40% for cars emitting from 161 to 190 g/km; - 50% for cars emitting from 191 g/km upwards. In 2021, the percentages will be partially reviewed as follows: - 50% for cars emitting from 161 to 190 g/km; - 60% for cars emitting from 191 g/km upwards. "
VAT Benefits

Italy - VAT Benefits

4% reduced VAT for disabled persons who purchase cars
Other Financial Benefits

Italy - Other Financial Benefits

Free access to the LTZ and free parking in many urban centers for hybrid/electric cars.

Local Incentives

Italy - Local Incentives

Free access to the LTZ and free parking in many urban centers for hybrid/electric cars.
Procurement

Italy - Public procurement

According to Italian budget law for 2020, public administrations when renewing their fleet have to reserve a 50% quota for the purchase or rental of electric, hybrid or hydrogen vehicles.

Category Description
Purchase Subsidies

Italy - Purchase Subsidies

Incentives are granted to consumers who purchase cars emitting up to 60 g/km of CO2 (so the measure actually supports the purchase of BEVs and of few PHEVs models which are the only compliant with the 60 g/km treshold). The amount of the incentive depends on whether the beneficiary ensures the scrapping of a car from Euro 0 to Euro 4. 

Without scrapping: 
- vehicles emitting from 0 to 20 grams per kilometre of CO2 receive an incentive of 4.000 euros; 
- vehicles emitting from 21 to 60 grams per kilometre of CO2 receive an incentive of 1.500 euros. 

In case of scrapping: 
- vehicles emitting from 0 to 20 grams per kilometre of CO2 receive an incentive of 6.000 euros; 
- vehicles emitting from 21 to 60 grams per kilometre of CO2 receive an incentive of 2.500 euros. 

Temporary increase from August 1, 2020 to December 31, 2020: 
The increase in premiums will apply from August 1 until the end of 2020 for electric and hybrid vehicles up to a gross list price of 61,000 euros. Specifically, without scrapping purely electric vehicles will be subsidised with 6,000 euros during this period instead of the previous 4,000 euros. Anyone who scraps their old combustion engine in connection with the purchase of the electric vehicle will even receive 10,000 euros (previously 6,000 euros).

Hybrids with CO2 emissions of between 21 and 60 grams per kilometer will be subsidized with 3,500 euros or 6,500 euros if an old car is decommissioned at the same time. These rates were previously 1,500 and 2,500 euros respectively. The increased incentives are financed partly by the state and partly by the car manufacturers.

Ownership Tax Benefits

Italy - Ownership Tax Benefits

Electric vehicles are exempt from the annual ownership tax for a period of five years from the date of their first registration. After this five‐year period, they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles in many regions.
Infrastructure Incentives

Italy - Infrastructure incentives

Tax credit granted to taxpayers who install EV charging infrastructures up to 22 kW. It amounts to 50% of the purchase and installation cost up to EUR 3.000, to be split into ten equal annual tranches.
Company Tax Benefits

Italy - Company Tax Benefits

"Starting from 2020 fringe benefit cars emitting up to 60 g/km of CO2 are taxed at a lower rate (25% on conventional parameters related to average journey and cost per kilometre) compared to the previous taxation (30% applied to all vehicles on the basis of the abovementioned parameters). At the same time, the new legislation introduces different rates based on car emissions: - 30% for cars emitting from 61 to 160 g/km; - 40% for cars emitting from 161 to 190 g/km; - 50% for cars emitting from 191 g/km upwards. In 2021, the percentages will be partially reviewed as follows: - 50% for cars emitting from 161 to 190 g/km; - 60% for cars emitting from 191 g/km upwards. "
VAT Benefits

Italy - VAT Benefits

4% reduced VAT for disabled persons who purchase cars
Other Financial Benefits

Italy - Other Financial Benefits

Free access to the LTZ and free parking in many urban centers for hybrid/electric cars.

Local Incentives

Italy - Local Incentives

Free access to the LTZ and free parking in many urban centers for hybrid/electric cars.
Procurement

Italy - Public procurement

According to Italian budget law for 2020, public administrations when renewing their fleet have to reserve a 50% quota for the purchase or rental of electric, hybrid or hydrogen vehicles.