You Could Get Up To 9,000 Euros Off An Electric Vehicle If You’re Living In Spain

The electric vehicle market is a rapidly growing sector, and one that the European Union is investing in heavily in a bid to reduce fuel consumption and promote environmentally friendly transport options.

In fact, the focus on moving away from diesel and petrol powered vehicle is so significant within the EU that the purchase of new vehicles equipped with diesel or petrol combustion engines will be prohibited from 2035: Just 12 years away.

Despite this looming deadline, and the economic impact that it may have, Spain has been one of the slower countries to promote the move to electric vehicles amongst it citizens. However, that will all change, as the country has now introduced a new programme, known as MOVES III, which will financially incentivise some Spanish citizens to trade their older traditional vehicles for new, electric ones.

Here’s everything you need to know about this programme, and how it might help you:

What is MOVES III?

MOVES III is a programme that has been introduced by the Spanish government and will be available from now until 31st December 2023. The aim of the scheme is to both promote and financially incentivise the use of electric vehicles.

There are specific requirements you must meet that will determine the amount of financial assistance you will be eligible for, but at the highest level, the scheme will offer a lump sum to assist the purchasing of an electric care when an old diesel or petrol car is being replaced.

The Spanish government’s ultimate aim is to increase the presence of electric vehicles on Spanish roads to 250,000, whilst also installing at least 100,000 electric charging points.

What Is The Value of The Subsidy Available?

The main question that most potential electric car owners will have about this scheme is ‘how much subsidy will be available to me?’

The subsidies available will be determined by factors such as the type of electic car you choose, and whether or not you are trading an old petrol or diesel car as part of the deal. Preference will be given to petrol and diesel cars that are old enough to be scrapped. 

  • If you want to buy a plug-in hybrid with between 30 km and 90 km on the clock then you could be eligible for 5,000 euro aid with scrap or 2,500 euros without scrap.
  • If you want to buy a plug-in hybrid with more than 90 km on the clock then you could be eligible for 7,000 euro aid with scrap or 4,500 euros without scrap.
  • If you want to buy a pure electric with more than 90 km on the clock then you could be eligible for 7,000 euro aid with scrap or 4,500 euros without scrap.

What If I Want to Buy an Electric Car for My Business?

 The subsidies are not only available to individuals: they can also be used help businesses to purchase electric vehicles. Businesses of all sizes, including Small and Medium Enterprises (SMEs), large companies, and self-employed individuals can acquire either one or multiple electric vehicles, depending on their business needs.

To be eligible the vehicle you choose must have a minimum range in electric mode of 30 km and a price of less than 45,000 euros (excluding VAT) or, in the case of vehicles with more than 8 seats, a price of less than 53,000 euros (excluding VAT).

 The subsidy available to you will range from 2,900 euros to 9,000 euros depending on the size of your business, the type of electric car you choose, and whether or not you are scrapping a vehicle at the same time as securing your new electric car.

 How Much Will MOVES III Cost the Spanish Government?

The Spanish government has allocated a total of 2.1 billion euros to subsidise the purchase of electric and other low emission vehicles by those living in the country. This is because of an additional cash injection of 400 million euros that was allocated to the fund at the beginning of the year.

 If you are interested in securing a subsidised electric car,  than you are advised to research and submit your application as soon as possible. This is because the available funds will be allocated on a first-come first-served basis, and when the money is gone, it’s gone. Each autonomous community in Spain will have its own budget, so whilst the fund may run out quickly in one region, it may last longer in others.

The budgets that have been allocated per region are:

  • 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

 Will My Charging Point Be Subsidised Too?

When you own an electric vehicle you will need to charge it regularly. You can do this either at a public charging station or by having a charging point installed in your own home. One of the aims of MOVES III is to install a total of 100,000 charging points across Spain by 2023.

That means that, if you purchase an electric car, it is likely that the installation of your charging point will also be subsidised. The percentage of the subsidy will be determined by your location and the reason for your installation. 

  • Individuals, Neighbourhood communities, Autonomous administration - The government will cover 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 - The government will pay 40 percent of the installation cost for companies in municipalities with fewer than 5,000 inhabitants and 30 percent of the installation cost in all other locations.

 Are you thinking of moving to Spain? Whether you want to travel from spot to spot and enjoy everything is culturally diverse location has to offer, or you’re just looking for somewhere quiet and warm to enjoy your retirement, our locally based property experts can help. Why not get in touch today to find out more about how we can help you find the home of your dreams.