Sales of battery-electric cars are rising in Europe, and analysts expect the trend to continue as higher petrol prices, influenced by the war in Iran, encourage consumers to shift away from fuel-powered vehicles.
European countries have long supported EV sales, but the latest energy crisis linked to the war in Iran has underscored the role of incentives in reducing reliance on fossil fuels.
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France is one of the latest examples. Europe’s second-largest economy will nearly double support for electrification, raising spending to €10bn per year through 2030 from €5.5 bn currently, Prime Minister Sebastien Lecornu said on 10 April 2026 during a televised address. The plan includes further incentives for electric cars and charging infrastructure, with a target for two out of three new vehicles to be electric by 2030. It also includes a social leasing programme covering 100,000 EVs for low-income drivers and those travelling long distances for work.
Battery-electric car sales are already rising across the bloc, accounting for 17.4% of the EU market in 2025, up from 13.6% a year earlier. In the first two months of 2026, this increased to 18.8%, according to the European Automobile Manufacturers’ Association (ACEA).
The joint US–Israel strikes on Iran and Tehran’s response have shaken energy markets. European countries are also seeking to cut fossil fuel dependence, with many backing a shift to electric cars to reduce emissions and promote renewable energy.
According to ACEA’s latest report on tax benefits and incentives for electric vehicles and charging infrastructure, all but one EU member state offers some form of tax benefit at the acquisition or ownership stage, with Latvia the exception. Schemes vary widely.
The report, covering the 27 EU member states as well as Iceland, Norway, Switzerland, and the United Kingdom, also shows that six countries do not offer purchase incentives.
Countries with the strongest support for buying an electric car in 2026
According to ACEA, European countries offer four main types of incentives: purchase grants, measures linked to acquisition taxes, ownership tax benefits (including exemptions), and support for private charging.
“Monetary and fiscal incentives are essential to driving the adoption of battery-electric vehicles (BEVs). When governments act, the results are immediate,” an ACEA spokesperson told Euronews Business.
Countries apply one or more of these incentives, while some offer no support at all.
How much support do buyers receive?
Income level and scrappage conditions influence purchase incentives for individuals.
Among the countries offering the highest purchase incentives, Italy provides up to €11,000 depending on income and scrappage conditions, while Cyprus offers up to €9,000 for a vehicle and up to €20,000 for specific groups. Slovenia provides up to €7,200, and Malta offers between €6,000 and €8,000, plus a scrappage bonus.
Germany provides up to €6,000 in income-based subsidies, while France offers up to €5,700 depending on the scheme and income. Spain offers up to €4,500 for EU-made cars, and Portugal provides a maximum of €4,000.
Tax incentives for electric car buyers come in two stages: at the purchase stage (acquisition) and during ownership. Some countries offer multiple exemptions, creating significant tax advantages.
The strongest overall tax advantage system for individuals has been recorded in Norway. The country offers full VAT exemption (up to NOK 300,000, or €25,890) plus exemption from purchase tax. Although the country has already reached a 95.9% market share of battery electric vehicles for the full year of 2025.
EU countries with zero registration tax and full exemption from ownership-related levies such as circulation or road tax on BEVs include Bulgaria, Cyprus, Portugal, Greece and Hungary. At the same time, Italy offers a 5-year exemption from ownership tax, and Romania grants a very low fixed annual tax for BEVs.
In Germany, buyers also benefit from a 10-year exemption from vehicle tax and support for home charging installation. An ACEA spokesperson said that in March 2026, the country recorded its strongest month for BEV registrations since the “Umweltbonus” purchase subsidies ended in 2023, adding that a new purchase incentive introduced at the beginning of the year was likely a key driver.
Poland offers purchase incentives of up to PLN 40,000 (€9,440) and exempts electric vehicles from excise duty. An ACEA spokesperson said the country’s “NaszEauto” programme doubled BEV registrations within months.
Other countries provide a mix of tax exemptions and targeted support. For example, Belgium applies very low registration and annual taxes for zero-emission vehicles, while Bulgaria exempts electric vehicles from taxation but offers no additional support. Spain provides a 15% income tax deduction of up to €3,000 and road tax reductions of up to 75%, alongside support for home charging.
“Affordability is the keystone of the transition: without it, even the best infrastructure and the widest range of models can’t sustain the mass market demand needed to reach climate neutrality,” the ACEA spokesperson said.
He added that “incentives lower the barrier to entry, create confidence, and make clean mobility attainable for more segments of the population”.
