3 Apr, 2025 @ 08:00
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Spain brings back electric vehicle subsidies of up to €7,000 in new green drive

€4 billion electric car battery factory to be built in Spain- promising to cut costs for vehicle owners

The Spanish government has reactivated its EV-subsidy scheme ‘MOVES III’. It has done so retroactively, meaning that the programme restarted at the beginning of 2025.

It will run until December 31 of the current year.

Battery-electric and hydrogen cars and plug-in hybrids with an electric range of more than 90 kilometres are subsidised up to €7,000.

PHEVs with an electric range of 30 to 90 kilometres are still eligible for up to €5,000.

Electric vehicle sales rose by 49% in Spain in 2023 but continue to lag way behind European average
The government wants to boost the sale of EV’s

READ MORE: Spanish mayor slams Costa del Sol toll road which rakes in €30m a year while offering ‘no discounts for drivers’ – Olive Press News Spain

Commercial vehicles are eligible for grants of up to €9,000.

What’s important to note is that the grants are for cars whose price does not exceed €45,000.

The tax break for electric vehicles that was instituted in 2023 will also be extended.

This only applies to private individuals and includes a deduction of 15% of income tax on the purchase of electric vehicles.

The maximum deduction that can be claimed is for an amount of €20,000. 

As mentioned earlier, the programme is retroactive. This means that people who have bought an electric car so far this year, will also be able to apply for a subsidy.

The government will allocate €400 million to maintain support for the purchase of electric vehicles and the maintenance and construction of charging infrastructure.

READ MORE: British ‘Spiderman’ tourist is rescued by firefighters after getting trapped on shop sign in Spain’s Benidorm – Olive Press News Spain

MOVES III initially launched in 2021 to strive for a further electrification of the Spanish car park.
The programme came to an end in late 2024, and due to initial successes, the government has restarted it.

They did so while actively working to get rid of ‘systematic weaknesses’ in the programme.

With the €400 million increase in budget, the total funds allocated to MOVES III come to €1.7 billion. 

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