Spains signs up for e-vehicles

With an injection of 16.6 million euros in 2017, the Plan Movea will continue to finance the purchase of these more environmentally-friendly vehicles.

Worldwide more and more value is being placed on the importance of contributing individually to taking care of the environment. Could e-vehicles be part of the solution?

Ecovis’ team of experts explains this development, particularly in urban areas, as a result of high pollution levels which may lead to severe restrictions by local authorities on petrol and diesel vehicles, making electric models a potential alternative. On a personal level e-cars can mean annual savings of some 2,000 euros while, in 2014, the Spanish government approved the Plan Movea for transport by vehicles using alternative sources of energy. In 2017, this plan will have 16.6 million euros in incentives to encourage the purchase of vehicles using alternatives to traditional fossil fuels, including e-cars, plug-in hybrids, liquefied or compressed gas, e-motorcycles and e-bicycles.

The proportion of electric cars in Spain is still marginal. Governmental incentives are designed to boost the sale of environmentally-friendly vehicles.Juan Carlos Fuentes, senior partner, accountant and tax adviser, ECOVIS Fiscalges, Madrid, Spain

Tax benefits

Although the ultimate objective for Spanish manufacturers is full VAT exemption for the purchase of e-cars, for which they have already presented a request to the European Commission, certain tax benefits already exist. Electric vehicles are exempt from paying registration taxes while, depending on the area, discounts on road tax may be offered (up to 75% in Madrid and Barcelona). There are also discounts for tolls and public parking.

Authors:
Juan Carlos Fuentes,
Aday Muñiz