Last April, the Council of Ministers approved the Moves III Plan, aimed at promoting the purchase of electric or plug-in hybrid vehicles, as well as the installation of infrastructure for recharging. We tell you how you can benefit.
Electric mobility is the great commitment of the European Union to combat climate change through the reduction of emissions and, in this context, the Government of Spain approved last April the launch of the MOVES III Plan, which with an initial budget of 400 million euros expandable comes to reinforce the inertia created by its two predecessors.
Currently, both administrations and governments promote the implementation of the electric car as alternative to traditional mobility based on fossil fuels through regulations and decrees that penalize the use of this type of transport, but also by encouraging the purchase and use of electric vehicles.
This incentive consists of the reduction of taxes and the free circulation or parking of this type of vehicles in restricted areas, as well as the subsidy for the purchase of new models and installation of infrastructures that make their use possible.
I want to buy a car, what are the grants?
There are many variables that determine the amount that we can access if we want to buy an electric vehicle. We summarize them here:
- For electric cars: 4,500 euros + 1,000 euros (mandatory discount by the dealer) + 2,500 euros (scrapping of a vehicle older than 7 years) = up to 8,000 euros.
- For electric vans: 7,000 euros + 1,000 euros (mandatory discount by the dealer) + 2,000 euros (scrapping of a vehicle older than 7 years) = up to 10,000 euros.
- For electric cars and plug-in hybrids (with autonomy between 30 and 90 km): 2,500 euros + 1,000 euros (mandatory discount by the dealer) + 2,500 euros (scrapping of a vehicle older than 7 years) = up to 6,000 euros.
- For electric motorcycles: 1,100 euros + 200 euros (scrapping of a vehicle older than 7 years) = up to 1,300 euros.
The acquisition may be direct or through financing operations by financial leasing or leasing by renting.
It must be said that the MOVES III Plan does not establish as a mandatory requirement the scrapping of any vehicle to be able to access the aid, although as we have indicated, an additional subsidy is contemplated for those buyers who decide to cancel a vehicle with more than seven years.
The acquisition may be direct or through financing operations by leasing finance or lease by renting (also called leasing operational) of new vehicles, registered for the first time in Spain in the name of the ultimate recipient of the aid, except in cases of renting in which it may be registered in the name of the company of renting.
Summary table of the aid granted by the MOVES III plan
This table does not include the mandatory discount to be applied by the dealer.
The aforementioned aid amounts can be seen increased by 10% (not cumulative with each other), in the following cases:
- Acquisitions of passenger cars by disabled physical persons with reduced mobility and vehicle that suits your driving. Also in the acquisition of light commercial vehicles by autonomous professionals with disabilities, reduced mobility and a vehicle that is adapted for their driving.
- Acquisitions of vehicles by registered natural persons in municipalities with less than 5,000 inhabitants (the registration must be maintained for at least two years from the date of registration of the application).
- Acquisitions of passenger cars by self-employed natural persons that are intended for the use of Cab already services of Transport Vehicle with Driver (VTC).
What is the deadline for submitting applications?
The MOVES III plan came into force on April 9, 2021 and the corresponding aid requests may be submitted until December 31, 2023, yes, in the form established by the autonomous communities and the cities of Ceuta and Melilla in their respective calls.
This is because it is the autonomous communities that manage the investment distributed by the Government to each of them depending on their circumstances. Therefore, to apply for the grant we must go directly to the autonomous community in which we reside or through the dealer where we purchased the vehicle.
The deadline set by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO) for the autonomous communities to activate the MOVES III plan expired on July 14, 2021 and, for the moment, only 11 of them have met this requirement. This is partly due to the fact that the MOVES II Plan has not yet been exhausted by several of them.
As of today, the autonomous communities that have already activated the current plan are Andalusia, the Balearic Islands, the Canary Islands, Castilla – La Mancha, Castilla y León and the Basque Country, as well as the autonomous city of Ceuta.
Installation of charging points
The MOVES III plan also establishes aid to promote the installation of recharging points, since it is as important to have an electric vehicle as it is to create an energy supply network that makes continuous and efficient use of it feasible.
Thus, said plan establishes the obligation for the public access charging infrastructures supported by the program to guarantee their operation for at least five years. In addition, they must allow timely recharging to users of electric vehicles without the need for a contract with the operator of the recharging point.
Subsidies are also contemplated for the installation of charging infrastructures for individuals, communities of owners and small and medium-sized companies, as well as for fast and ultra-fast charging points.
In the case of the self-employed, individuals, communities of owners and local entities that do not carry out business activity, the aid will cover 70% of the installation cost of infrastructures for recharging electric vehicles or of the actions of pre-installation of recharging in communities of owners, provided that the established limits are not exceeded, set at 800,000 euros per file except for the self-employed, who will have the limit of 200,000 euros of aid under this regime in three fiscal years, and for individuals, who may benefit from aid of up to 5,000 euros per file.
For their part, Business They may cover 35% of the cost of public access charging infrastructures with power greater than or equal to 50 kilowatts (kW) and 30% of the cost of private or public use infrastructures with power less than 50 kW, establishing the same limits. Both amounts would be increased by 5% and 10%, respectively, in the case of actions located in municipalities with fewer than 5,000 inhabitants.
For the installation of public access infrastructures with a power greater than or equal to 50 kW, these amounts can add up to an additional 10% in actions carried out by medium-sized companies and an additional 20% if they are carried out by small companies. A) Yes, a small business could achieve 55% help for the installation of charging infrastructure.
And how are the aid taxed in the Treasury?
The money received by the plan must be included in the rent. To do so, we must declare it as a Capital gains not derived from the transfer of assets, in the rest of salaries and income of the general income tax base.
The percentage of financial aid that must be returned to the Treasury depends on the income level of the taxpayer. As a reference, without other capital gains for an aid of € 7,000 we will return a minimum of € 1,350 in personal income tax. The first € 6,000 are taxed at 19% and thereafter at 21%.
All this with the aim of reaching 100,000 charging points and 250,000 electric vehicles by 2023, which would allow avoiding more than 450,000 tons of CO2, as well as generating employment and activity throughout the entire electric mobility value chain, according to the Government of Spain.