B Law & Tax
23 February 2024

New deductions for the purchase of electric vehicles in 2024

In recent months, regulations have come into force that benefit those who have purchased electric vehicles.

Likewise, these tax modifications, in force since last year, will positively affect those who purchase battery recharging systems for electric cars.

Specifically, article 189 of Royal Decree-Law 5/2023, of 28 June, introduces two additional deductions in Personal Income Tax (IRPF) in order to incentivise the purchase of plug-in electric and fuel cell vehicles, as well as the installation of recharging infrastructures by private individuals. 

These deductions will be applied after taking into account the deductions established in Article 68 of the Tax Law, subtracting them from the total state tax liability. 

Through the first deduction, aimed at the purchase of plug-in and fuel cell electric vehicles, taxpayers will be able to benefit from a 15 percent deduction on the purchase value of a new electric vehicle. 

To qualify for the deduction, the vehicle must have been purchased between 30 June 2023 and 31 December 2024.

It is also possible to apply this deduction if, within the same period, at least 25 percent of the acquisition value of the vehicle is paid as an advance payment for its future purchase, with the remaining payment to be completed and the vehicle acquired before the end of the second tax period following the initial payment. 

The basis for this deduction cannot exceed 20,000 euros, and includes the acquisition value of the vehicle together with the costs and taxes associated with its purchase, discounting any amount subsidised through public aid programmes, if any.

Regarding the second deduction, taxpayers will be able to deduct 15 per cent of the amounts paid between 30 June 2023 and 31 December 2024 for the installation of battery recharging systems for electric vehicles in a property they own, provided it is not used for an economic activity. 

The maximum amount deductible annually will be €4,000 and will be applied in the tax period in which the installation is completed, which may not extend beyond 2024.

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