As part of the Recovery, Transformation and Resilience Plan, the Council of Ministers has approved a new decree that strengthens electric mobility in Spain with a budget allocation of €400 million.
The measure extends the validity of the MOVES III program throughout 2025 and introduces a 15% personal income tax deduction (IRPF) for the purchase of electric vehicles and the installation of charging infrastructure.
New incentives for electric vehicles
The new decree includes a 15% income tax deduction for those who purchase new electric vehicles or make an advance payment of at least 25% of the vehicle’s value before December 31, 2025.
The maximum base for applying this deduction is €20,000, and the benefit can only be applied to one purchase per taxpayer.
An additional deduction is also established for the installation of charging points in homes, with a maximum annual base of €4,000. Installations must be completed before the end of 2025 and must not be intended for economic activities.
Summary of the electric mobility decree in Spain
The approved Royal Decree-Law regulates the MOVES III program for 2025, under the following key conditions:
- Validity: From January 1 to December 31, 2025.
- Budget: €400 million, financed by the Institute for Energy Diversification and Saving (IDAE).
- Eligible actions: As defined in Royal Decree 266/2021, including electric vehicle purchases and charging point installations.
- Justification: The deadline to justify actions ends on December 31, 2026, although regional governments may shorten it in their calls.
- Administrative simplification: Subsidies under €100,000 can be justified using simplified accounting.
- Eligible vehicles: Electric cars, motorcycles, quadricycles, and hydrogen vehicles listed in the IDAE database.
The program also removes restrictions linked to the European Union’s Recovery and Resilience Mechanism, providing greater flexibility in implementation.
Fiscal impact and technical conditions
Only those who purchase new vehicles listed in the IDAE database and meet technical requirements such as minimum range, battery type, and price limits will be eligible for the deductions.
Vehicles must also be registered in Spain before December 31, 2025.
With this initiative, the Spanish government aims to consolidate electric mobility, accelerate transport decarbonization, and bring the country closer to its climate and energy goals.
