The 2023 fiscal year faces its final month. Taxpayers have until December 31 to make any adjustments and save on the Income Tax return that will be settled in the spring of 2024. In addition to the usual movements, the Government announced by surprise, in June, new aid for purchasing an electric car, consisting of a 15% deduction in the Personal Income Tax (IRPF).
These aid for the acquisition of a plug-in electric vehicle are applicable to new models and are included in the Executive's strategy to promote the transition towards more sustainable mobility. The measure affects both zero-emission cars and plug-in hybrids (PHEV), as well as hydrogen fuel cell cars, although their weight in the fleet is practically zero.
The validity period of these tax advantages is until December 31, 2024, covering the fiscal years of 2023 and 2024.
This broad coverage of electric vehicles and the duration of the measure offer taxpayers a significant window of opportunity to benefit from the 15% personal income tax deduction, encouraging the adoption of cleaner and more efficient technology in transportation. Now, to benefit from these tax advantages it is necessary to meet a series of requirements that we are going to review below.
These Government aid not only includes exclusively electric cars but also models with the DGT's zero-emission environmental label. Specifically, they are applicable to battery electric (BEV), extendable battery electric (EREV), plug-in hybrid (PHEV) models with more than 40 kilometers of approved autonomy and fuel cell electric (FCEV).
Regarding heavy and light quadricycles, as well as motorcycles over 50 cc, they will have to be powered exclusively by electricity, and be approved as electric vehicles.
The amount that you can deduct in the Income Tax return is 15% of the value of the acquisition of a single electric vehicle on a maximum base of 20,000 euros. Taking into account that the price of any eligible vehicle exceeds that figure - with the sole exception of quadricycles and motorcycles - that amount is 3,000 euros.
The regulations establish that vehicles that can benefit from the deduction must be new and registered for the first time in Spain. This condition explicitly excludes second-hand electric cars, as well as those imported from abroad that have been previously registered in their countries of origin.
Additionally, the Tax Agency establishes as essential requirements to benefit from this tax incentive that the purchased car be registered in the name of the buyer and that its use is exclusively personal, excluding any economic activity.
The price of the vehicle may not exceed the maximum amount established for each type of vehicle established in the Moves III Plan. In the case of cars, the limit is 45,000 euros (53,000 euros in the case of pure electric cars with 8/9 seats). For motorcycles, the ceiling is 10,000 euros.
There are two alternatives and the taxpayer must choose one of them. If you purchase the vehicle from June 30, 2023 to December 31, 2024, you can deduct 15% of the acquisition value in the tax period in which the vehicle is registered. If the purchase is made in installments, you must disburse at least 25% of the final amount until December 31, 2024 and complete the remaining amount in a maximum of two years. In this second case, the deduction is applied in the tax period in which the 25% was advanced.
