PHEV Tax Incentives in Europe 2025: Country-by-Country Guide

Various tax incentives and discounts are available for plug-in hybrid vehicles in European countries. This guide summarizes current incentives by country as of 2025.

Germany:

• Environmental Bonus: €4,500 (for vehicles under €25,000)
• Environmental Bonus: €3,000 (for vehicles under €65,000)
• Car Tax: CO₂-based, advantageous for PHEVs
• Company Vehicles: %0.25 tax advantage

France:

• Bonus Écologique: €2,000 (PHEVs under €47,000)
• Prime à la Conversion: Up to €5,000 for old vehicle replacement
• City Center Access: Free or discounted

UK:

• Plug-in Car Grant: Removed (from 2022)
• Benefit-in-Kind (BiK): 8% company car tax rate
• Road Tax: Free first year, then €10/year

Netherlands:

• BPM Discount: 50% discount for PHEVs
• MRB Tax Discount: Due to low CO₂ emissions
• Company Vehicles: 14% tax advantage

Belgium:

• Federal Bonus: €5,000 (CO₂ < 50 g/km)
• Regional Discounts: Additional discounts in Flanders, Wallonia, and Brussels

Spain:

• MOVES Plan: Up to €4,500 discount
• Old Vehicle Replacement: Additional €1,000 discount
• City Center Parking: Free

Italy:

• Ecobonus: €3,000-6,000 discount range
• Scrappage Bonus: For old vehicle replacement
• City Traffic: Free access in ZTL zones

Sweden:

• Super Green Car Bonus: 60,000 SEK (approximately €5,500)
• Company Vehicles: 20% tax discount

Norway:

• VAT Discount: 25% VAT discount
• Road Tax: Free
• Ferries and Tunnels: Free or discounted

Denmark:

• Registration Tax: CO₂-based, advantageous for PHEVs
• Company Vehicles: 25% tax discount

Important Notes:

• Incentives are frequently updated, check before purchase
• Most incentives depend on CO₂ emission levels
• Additional advantages available for corporate fleets
• Regional differences in some countries

These incentives significantly reduce the cost of PHEV ownership and are particularly advantageous for corporate fleets.