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Government incentives 2023
Purchase subsidies
The 2023 car eco-incentives have been redistributed, thanks to the allocation of a total of €630 million for state contributions aimed at the purchase of non-polluting vehicles of category M1 (motor vehicles), L1e-L7e (motorcycles and mopeds) and N1-N2 (commercial vehicles).
Regarding the requirements:
> vehicles (M1)cannot have an emission class lower than Euro 6 and the list price cannot exceed €35,000 plus VAT for those that produce up to 135 g/km of CO2, with a maximum cost ceiling that rises to €45,000 for vehicles with emissions between 21and 60 g CO2/km;
> motorcycles (L1e-L7e) must be new and of at least Euro 5 class;
> commercial vehicles (N1-N2) must be electric and purchased by SMEs that carry out transport activities on their own or on behalf of third parties.
> New car (M1)
- €190 million in the 0-20 g CO2/km range (electric vehicles)*
- €235 million in the 21-60 g CO2/km range (plug-in hybrids)*
- €150 million in the 61-135 g CO2/km (low emissions)
*5%is reserved for purchases of legal entities for commercial car sharing or rental activities.
Ownership tax benefits
> Electric vehicles are exempt from the annual ownership tax for a period of five years from the date of their first registration.
> After this five-year period, they benefit from a 75%reduction of the tax rate applied to equivalent petrol vehicles in many regions.
Company tax benefits
Starting from 2020, fringe benefit cars emitting up to 60 g/km CO2 are taxed at a lower rate (25%on conventional parameters related to an average journey and cost per km) compared to the previous taxation (30%applied to all vehicles on the basis of the abovementioned parameters).
At the same time, the new legislation introduces different rates based on car emissions:
30%for cars emitting from 61to 160 g/km CO2; 40% for cars emitting from 161to 190 g/km CO2; 50%for cars emitting from 191g/km CO2 upwards.
VAT benefits
4%reduced VAT for disabled persons who purchase cars.
Other financial benefits
Free access to the limited traffic zone (LTZ) and free parking in many urban centres for hybrid/electric cars.
