Most EU countries lack strong tax incentives for company electric cars, T&E says
Most EU countries lack strong tax incentives for company electric cars, T&E says
By Mathias de RozarioSun, May 31, 2026 at 10:06 PM UTC
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FILE PHOTO: A Tesla car is being charged at a Tesla electric vehicle charging station on a car park of the A10 shopping center in Wildau near Berlin, Germany, March 20, 2024. REUTERS/Annegret Hilse/File Photo
By Mathias de Rozario
June 1 (Reuters) - Only nine out of the European Union's 27 member states clearly incentivise companies to choose electric vehicles, data published by advocacy organization Transport & Environment, which is explicitly pro-regulation, showed on Monday.
Company cars account for around 60% of new registrations in the EU and tend to be used twice as much as private vehicles before entering the second-hand market, T&E said.
• Nine EU countries, including France, the Netherlands, Belgium and Denmark, offer a tax discount that brings the initial price of a compact EV at least level with a comparable petrol car
• Six countries, including Italy and Finland, have lower tax incentives that cover more than half but not the entire EV price premium
• T&E said 12 countries, including Germany, Poland and Spain, have no effective tax incentives, compensating for less than half of the upfront price gap
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• Out of compact corporate car sales, 68% come from countries where the tax difference is lower than the EV price premium, with 49% from countries with no effective tax incentives
• Germany and Poland together account for 52% of all oil-intensive corporate car registrations
• In Germany, a large "E-segment" petrol company car receives a net fiscal advantage of up to €6,190 over four years, outweighing the taxes the company paid
• Belgium's corporate EV share rose from 8.8% in 2021 to 54.2% in 2025, the EU's second-highest after Denmark
• The Netherlands, Finland, Sweden and Austria have high corporate EV shares and have started to scale back tax incentives
• Around 20 million new internal combustion engine cars are expected to be registered by EU companies by 2030
(Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak)
Source: “AOL Breaking”
