e-mobility in Greece
Preparing for an e-mobility revolution, Greece grants subsidies up to 40% of the value for the purchase of EVs, promotes the establishment of new charging points and gives tax motives to potential owners.
Greek Parliament introduced Law 4710/2020 (Greek Government Gazette 142/23-7-2020 on Promotion of E-mobility, which enters into force on January 1st 2021. The Law aims for a drastic reduction of average CO2 emissions, improvement of the quality of air and life of citizens. Also, through this Law, the ever aging fleet of vehicles can be renewed.
The main points of its provisions focus on:
- Providing tax motives in order to limit the costs of the use of electric vehicles.
- Creating new charging spots that will be effective and capable of supporting the needs across the country.
- Incorporating new vehicles of electric technology in the public sector by setting a quota on public procurement of “clean” vehicles in order to modernize the vehicle fleet.
- Providing motives that aim to attract new investments on the field of new technologies and e-mobility, especially on regions where the production of coal is particularly high.
Incentives To promote e-mobility, the Government confers tax benefits to owners of electric vehicles. Specifically, it has established an exception of presumptions, if the vehicle’s estimated value is up to 50.000 €. Regarding electric vehicle whose value is higher than 50.000€, the presumption is set at 4.000€.
In addition, from the day that Law 4710/2020 enters into force and for two years, the owners of electric vehicles will be able to use the charging-parking spots installed in each municipality for free.
Apart from the motives given by the State to citizens in order for them to buy an electric vehicle, tax benefits are also conferred to the ones that already own vehicles with zero or low emissions. In particular, expenses for the purchase of a vehicle as well as for the purchase and installation of charging equipment are calculated and result to the reduction of the taxable income.
Furthermore, on private vehicles and trucks with a gross weight of up to 3.5 tones which
comply with the European emission standards Euro 4 and Euro 5a is imposed an environmental fee, in addition to the registration fee, amounting to three thousand (3,000) euros, and one thousand (1,000) euros respectively. The importation of vehicles of the same categories which however comply with the Euro 3, 2 and 1 standards or do not comply with them at all, is prohibited.
“Move Electric” Strategy
To promote this new, green energy law the Greek State has already undertaken a subsidization strategy. This subsidization process regards the purchase of electric vehicles and the installation of chargers in each household. It concerns not only natural persons but also legal entities. Specifically, the new law gives significant incentives for the purchase of electric cars or plug-in hybrid vehicles, scooters and bicycles, especially to taxi-drivers.
The amount of the subsidy for natural persons is estimated around 20% and up to 6,000 euros for vehicles with Retail Value before Taxes no more than 30,000 euros and up to 15% and up to 6,000 euros for the purchase or rental of an electric vehicle with Retail Value before Taxes over 30,000 euros, by 20% and up to 800 euros for the purchase of an electric motorcycle and by 40% or up to 800 euros for the purchase of an electric bicycle. At the same time, a subsidy of 500 euros is provided for the purchase of a smart home charger and a subsidy of 1,000 euros for the replacement of an old vehicle.
For Taxi owners the subsidies are higher and in particular a discount of 25% and up to 8,000 euros for the purchase or rental of an electric vehicle, by 15% and up to 5,500 euros for the purchase of a hybrid vehicle with external charging and emissions up to 50grCO2 / km and reward with 2,500 euros for the mandatory replacement of the old vehicle.
For legal entities such as companies and users of corporate vehicles, there is a 15% discount or up to 5,500 euros for the purchase or rental of an electric vehicle, by 15% or up to 4,000 euros for the purchase of a hybrid commercial vehicle with external charging and emissions up to 50grCO2 / km. At the same time, the purchase of an electric motorcycle is subsidized with a rate of 20% and up to 800 euros, while the option of replacing an old vehicle is also rewarded with 1,000 euros.
The applications’submission for participation in the program “Move electrically” through which the subsidies will be provided, is conducted through the online platform http://kinoumeilektrika.ypen.gr .
Our team will be glad to advise you in the fields of energy law, electromobility and renewable energies in Greece.