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.
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.
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.
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.
In this case, the aid available is…
Aid available for SMEs...
Aid for large companies...
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.
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.
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