Buyers of an electrified vehicle can benefit from the 15% deduction in personal income tax

You can also deduct up to 15% (with a limit of 4,000 euros) for the installation of a charging point at home.

MADRID, 31 Mar. (EUROPA PRESS) -

Buyers of a battery electric vehicle (BEV), an extended range electric vehicle (EREV), a fuel cell electric vehicle (FCEV) or a plug-in hybrid (PHEV), between July and December 2023 can benefit from the new tax deduction. 15% of the value of the car in the personal income tax (IRPF) in the 2023 income campaign that begins this April 3 and will end on July 1.

This measure, published in the Official State Gazette (BOE) in June 2023, allows 15% of the value of the vehicle to be recovered with a limit of 3,000 euros, since the base of the deduction may not exceed 20,000 euros, and will be constituted by the acquisition value of the vehicle, including acquisition expenses and taxes, and must deduct those amounts that, where appropriate, would have been subsidized through a public aid program.

The vehicles that can benefit from this tax measure are those that belong to the category of Passenger Cars M1, Heavy Quadricycles L7e, Light Quadricycles L6e and Motorcycles L3e, L4e and L5e. These vehicles must be powered exclusively by electricity and be approved as electric vehicles.

Thus, according to data published by the Business Association for the Development and Promotion of Electric Mobility (Aedive) and the National Association of Sellers of Motor Vehicles, Repair and Spare Parts (Ganvam) on electrified vehicles registered in 2023, the estimated number of vehicles that can benefit from this tax measure is 64,400 in Spain.

However, Aedive has detailed to Europa Press that the deduction is only valid when the electric vehicle purchased is intended for a particular use and, therefore, those that are modified or used for other activities such as transporting goods or rent.

In this sense, the association adds that of the total electrified vehicles registered in 2023, 42% were through the individual channel, 50% in companies and 8% for rent.

Likewise, a deduction of 15% of the value of the vehicle can be applied to personal income tax when at least 25% of the purchase value is paid as an advance to purchase the electrified vehicle in the future, as long as the payment is completed and the vehicle is purchased. car before the end of the second tax period following the initial payment.

Likewise, it will be possible to deduct up to 15% (in this case with a limit of 4,000 euros) for the installation of a charging point at home.

On the other hand, the aid granted by the Government for the purchase of new vehicles under the Moves III Plan must be declared to the Treasury as capital gain and, therefore, are subject to tax, as explained in a statement by the Coches.net portal. These amounts entered will increase the tax base, which will be taxed based on the tax brackets.

In this sense, last December the Government clarified that the 15% deduction in personal income tax can be applied to the purchase of electric vehicles purchased in installments as long as they are for private use, more than 25% of the price is paid before the end. 2024 and the car is paid off before 2026, while it can be combined with the aid from the Moves III Plan, extended until July 2024.

This was detailed at the time by the Institute for Energy Diversification and Saving (IDAE), in a guide to which Europa Press has had access, which includes the main doubts in this regard and details that consumers who buy an electric vehicle or that build a charging infrastructure for private use before 2025 will be able to simultaneously benefit from a 15% deduction in personal income tax and Moves III aid.

In this sense, to benefit from the tax incentive approved at the end of June, the taxpayer will have to submit their tax return with the corresponding amount, while the aid received for both vehicles and charging stations will be considered "capital gains."