HEALTHPLAN MAGAZINE

The European Union has announced a new regulation stating that starting from 2035, the purchase of new vehicles equipped with diesel or petrol combustion engines will be prohibited. This measure aims to incentivise the adoption of electric cars and other environmentally friendly modes of transportation.

Spain is among the countries that have been slower in embracing electric mobility, highlighting the importance of providing assistance and incentives. To facilitate the affordability of low-emission vehicles, the 'MOVES III' plan has been introduced, allowing individuals to receive financial compensation for trading in their old vehicles in favour of new, eco-friendly ones. This opportunity is currently available until December 31, 2023.

The purpose of the plan is to promote the adoption of electric vehicles by providing financial assistance for both the purchase of the vehicle and the installation of charging points. By offering these grants, the goal is to boost the presence of electric vehicles on Spanish roads, targeting an increase of 250,000 electric vehicles and the establishment of 100,000 charging points across the country.

What is the MOVES III plan?

The MOVES III plan offers a lump sum of money to assist you in buying an electric car, provided that you replace your old car, particularly if it is deemed ready for scrapping. Additional requirements must also be fulfilled.

The amount of financial assistance provided to support the purchase of a low-emission vehicle will differ, contingent upon the specific type of vehicle you decide to purchase.

How much money is the Government allocating to the fund?

Since the beginning of 2023, the Spanish government has bolstered its financial assistance for the purchase of low-emission vehicles with an additional injection of 400 million euros, thereby increasing the total investment to 2.1 billion euros.

These funds will be disbursed on a first-come, first-served basis until the allocation for each Autonomous Community or region in Spain is depleted. In previous years, the allocated amounts have not been fully utilised. However, due to the escalating number of registrations, there is a likelihood that the budget will be exhausted before the conclusion of this year.
The following indicates the allocated budget for this subsidy in each of the Autonomous Communities in mainland Spain, with the possibility for each region to extend its budget if desired.

• Community of Madrid: 83 million euros
• Andalusia: 67 million euros
• Catalonia: 61.1 million euros
• Valencia Community: 42.6 million euros
• Galicia: 40.5 million euros
• Castilla y Leon: 20.2 million euros
• The Basque Country: 18.8 million euros
• Asturias: 18.5 million euros
• Castilla-La Mancha: 17.2 million euros
• Murcia Region: 11.8 million euros
• Aragon: 11.2 million euros
• Navarra: 4.9 million euros
• Cantabria: 4.9 million euros

What criteria must be met to be eligible for the grant?

The subsidies available for private individuals, self-employed individuals, and administrative workers vary depending on the type of vehicle and its category. In the case of commercial vehicles weighing up to 3,500kg (category N1), the subsidies can go up to 7,000 euros.

However, if you trade in a car that is ready to be scrapped, in some cases, the subsidy amount can increase to 9,000 euros.

For passenger cars (category M1), the subsidy amount is capped at 4,500 euros. However, if you choose to scrap your old car, the subsidy can be as high as 7,000 euros.

It's important to note that these subsidies are applicable only to vehicles with ECO or ZERO stickers. This means that plug-in hybrids, electric cars, or hydrogen cars are eligible for the subsidies, while other vehicles do not qualify.

The figures mentioned above have the potential to be raised by 10 percent independently, under the following circumstances.

• Individuals who have been registered (empadronado), for at least two years, in municipalities that have fewer than 5,000 residents.
• Self-employed people with physical activity who use their vehicle as a taxi or ride-hailing vehicle.
• Disabled people who have reduced mobility and an adapted vehicle.
• Adapted light commercial vehicles that are registered in the name of a disabled person who is self-employed.
• For new, leased, or 0 km vehicles (excluding second-hand), their price should not surpass 45,000 euros, excluding VAT, unless they are fuel cell cars. When it comes to the vehicle type, the amounts differ based on the mechanics involved. Specifically for plug-in hybrids, the Government provides varying subsidies depending on the approved electric autonomy of the vehicle.

How much is the subsidy for electric cars?

The subsidy amount for electric cars varies based on factors such as the motorization type and the electric mode autonomy. It is also determined on whether or not a car is being traded in as part of the transaction.

• Plug-in hybrid with between 30 km and 90 km on the clock - 5,000 euro aid with scrap or 2,500 euros without scrap.
• Plug-in hybrid with more than 90 km on the clock - 7,000 euro aid with scrap or 4,500 euros without scrap.
• Pure electric with more than 90 km on the clock - 7,000 euro aid with scrap or 4,500 euros without scrap.

Subsidies for companies to buy an electric car

Under identical criteria as individuals, companies, including Small and Medium Enterprises (SMEs), large companies, and self-employed individuals, are also eligible to receive a subsidy for the acquisition of one or multiple electric vehicles.

• Vehicles with a minimum range in electric mode of 30 km.
• Vehicles with a price of less than 45,000 euros (excluding VAT) or, in the case of vehicles with more than 8 seats, with a price of less than 53,000 euros (excluding VAT).

In this case, the aid available is…

• Fuel cell - 7,000 euros with car scrapping or 5,500 euros without scrap.
• Plug-in hybrid and pure electric, with between 30 km and 90 km on the clock - 5,000 euros with car scrapping or 2,500 euros without scrap.
• Plug-in hybrid and pure electric, with more than 90 km on the clock - 7,000 euros with car scrapping or 4,500 euros without scrap.
• Hybrid and electric vans, with more than 30 km on the clock - 9,000 euros with car scrapping or 7,000 euros without scrap.

Aid available for SMEs...

• Fuel cell - 4,000 euros with car scrapping and 2,900 euros without scraping.
• Plug-in and pure electric, with between 30 km and 90 km on the clock - 2,300 euros with car scrapping and 1,700 euros without scraping.
• Plug-in hybrid and pure electric, with more than 90 km on the clock - 4,000 euros with car scrapping and 2,900 euros without scrap.
• Hybrid and electric vans, with more than 30km on the clock - 5,000 euros with car scrapping and 3,600 without scrap.

Aid for large companies...

• Fuel cell - 3,000 euros with car scrapping and 2,200 euros without scrap.
• Plug-in hybrid and pure electric, with between 30 km and 90 km - 2,200 euros with car scrapping and 1,600 euros without scrap.
• Plug-in hybrid and pure electric with more than 90 km on the clock - 3,000 euros with car scrapping and 2,00 euros without scrap.
• Hybrid and electric vans with more than 30km on the clock - 4,000 euros with car scrapping and 2,900 euros without scrap.

Are electric motorcycles subsidised by the Moves III Plan aid?

Yes, the plan covers both electric motorcycles and electric three and four-wheel vehicles.

To be eligible for the Plan, the vehicles must be priced below 10,000 euros without VAT or 12,100 euros with VAT, and they should have an electric mode autonomy of 70 km or more.

The subsidy amount is 1,300 euros, if another motorcycle is traded in for scrapping, or 1,000 euros without the requirement of scrapping.

How much aid is available for charging points

The primary goal of this assistance program is to achieve a total of 100,000 charging points by 2023.

The subsidy percentage varies depending on the applicant and the location of the installation.

• Individuals, Neighbourhood communities, Autonomous administration - 80 percent of the cost for municipalities with fewer than 5,000 inhabitants, 70 percent of the cost in all other locations.
• Companies that are going to install a public charging point of P greater than or equal to 50kW - companies within a municipality with fewer than 5,000 inhabitants 60 percent for small, 50 percent for medium and 40 percent for large. In all other locations 55 percent for small companies, 45 percent for medium and 35 percent for large companies.
• Companies that are going to install a public or private charging point of P below 50 Kw - 40 percent of the cost for companies in municipalities with fewer than 5,000 inhabitants and 30 percent in all other locations.

Applying for Financial Aid through the MOVES III Plan

When purchasing a new vehicle that falls under the subsidy framework, the responsibility of handling the bureaucratic procedures with the Ministry of Ecological Transition and Demographic Challenge lies with the car dealer themselves.

Once you have completed the vehicle purchase and registration processes, it is advisable to seek assistance from a solicitor to aid you in applying for the grant. Once your application is submitted, it will be forwarded to the Ministry, which will be responsible for reimbursing the corresponding subsidy amount. It is important to note that this subsidy will need to be declared and taxed in your annual income tax return.

The deadline for submitting applications is currently set for December 31, 2023. However, considering previous extensions, there is a possibility that the deadline might be further extended into 2024.

The government is responsible for allocating the budget, and it is then managed by the Autonomous Communities. So if you are interested in applying for this assistance, you will need to reach out to the relevant authority in your specific Community.

What are the benefits of investing in an electric car: subsidies, assistance, and money-saving opportunities

There are several reasons why investing in an electrified vehicle is a good idea, they are…

• Electric vehicles do not pay registration tax.
• The cost of fuel is much cheaper.
• In some municipalities, a part of the vehicle taxes is subsidised, (up to 75 percent of the total), such as the tax on mechanically-tracked vehicles.
• There are insurance providers available who offer reduced premiums based on the specific type of electric vehicle you own and its unique features.
• In many cities, such as Madrid, parking an electric vehicle on the street is completely free.
• Pure electric vehicles experience significantly fewer breakdowns compared to conventional combustion vehicles due to their simpler operation.
• Numerous cities across Spain provide free charging stations for electrified vehicles (both pure electric and plug-in hybrids) that are powered by renewable energy sources, such as solar panels.