The Spain Government has unveiled a new initiative to promote clean mobility in the country. Economy Minister Nadia Calvino announced Tuesday an up to 15% personal income tax deduction for new electric vehicle buyers until December 31, 2025, Reuters reports.
Spain’s Anti-Inflation Package extends support for EV adoption and sustainable transportation
The government initiative is apparently part of an 8.9 billion euro ($9.7 billion) anti-inflation package. The package also includes the extension of current programs, such as public transport subsidies and value-added tax cuts on basic foods, until December 31.
Minister Calvino emphasized the importance of consolidating ongoing investments in Spain’s automotive industry modernization and positioning the nation as a leader in Europe’s EV rollout.
“The aim is to consolidate the investments underway in our country for the modernisation of the auto industry.”
Economy Minister Nadia Calvino said in a press conference
Under the scheme, EV buyers’ maximum income tax deduction will be set at 20,000 euros ($21,900), providing a significant financial incentive to encourage EV adoption.
Notably, this measure aligns with Spain’s broader commitment to addressing climate change and reducing emissions by promoting cleaner and more sustainable transportation options.
Minister Calvino also highlighted the comprehensive state support, including tax cuts, subsidies, and grants, which have amounted to 47 billion euros since Russia invaded Ukraine in February 2022.
“The macroeconomic situation is favourable and Spain is coping much better than the rest of Europe with the complex international scenario, but the war and the consequent rise in interest rates continues to have its effects … which is why (the package) will allow us to move calmly and confidently through the second half of the year in a context of uncertainty but with the hope that this war will end as soon as possible.”
Economy Minister Nadia Calvino
Uncertain future: Snap general election looms as Spain implements income tax rebate for EV buyers
During a late Monday interview with radio station Cadena SER, Prime Minister Pedro Sanchez alluded to the new government initiative. He affirmed that the policy had already been included in an addendum submitted to the European Commission.
However, Spain is set to have its snap general election on July 23. Consequently, it remains uncertain whether a potential new government led by the conservative People’s Party would retain or repeal the economic policies from Sanchez’s Socialist-led coalition.
See Also:
- Tesla reaches final negotiation for a $4.8 billion Gigafactory in Spain, per a report
- Spain: Plug-in car sales had a record-breaking growth of 63.5%
- Spain in EU top five list with the highest public charging points; Netherlands, Germany at the top
- One in ten new cars sold in Spain in 2022, are rechargeable
- UK to beat Spain in securing Tata’s EV battery factory investment
The introduction of income tax rebates for EV buyers marks a proactive step by Spain to encourage sustainable mobility and expedite the transition to greener transportation.
Hopefully, everything goes well for Spain’s EV industry regardless of the winning party.
