The MOVES III Plan, designed with the aim of encouraging the purchase of electric vehicles or certain hybrid models and the installation of charging points, has been extended by the Government of Spain until July 31, 2024. Originally, the end of this program was scheduled for December 31 of this year.
According to the Ministry for the Ecological Transition and Demographic Challenge, 290 million of the 1,200 reserved for this program are still available –whose number has increased a couple of times in recent years–. MITECO also claims to have exceeded 250,000 applications since the beginning of MOVES III.
The extension of this aid has not been accompanied by any change in its criteria or management. The MOVES III Plan will continue to be managed by the Autonomous Communities and the requirements to benefit from it remain intact.
The big problem with MOVES III is still valid
This invariance is bad news for the sector, which calls for substantial changes, above all, in the way in which files are managed. Obtaining aid entails the beginning of a tedious bureaucratic process that can take more than a year until the aid is credited to the buyer’s bank account. The procedures to be carried out and the waiting periods also vary in each Autonomous Community.
On the other hand, the aid from the MOVES III Plan computed as capital gain in the income tax return for the year in which they are received – not the year in which they are requested. Therefore, a part of the aid is always returned in the form of a tax. The problem, however, is not that the aid is subject to withholding based on the economic situation. The problem is that this represents one more step in a process that should be, as is the case in other countries, much simpler.
Some voices in the sector claim that aid is applied at the time of purchase, instead of months and even years after purchasing the vehicle. This, according to experts, could help encourage sales of electric vehicles in Spain, which continue to lag behind many European countries.
What requirements must be met?
The MOVES III plan offers aid for the purchase of electric, plug-in hybrid or fuel cell cars, although the installation of charging points or the purchase of electric motorcycles is also subsidized.
In the case of purchasing cars, the main requirements and aid are the following:
Maximum purchase amount (before VAT) | Help without scrap | Help with scrapping | |
---|---|---|---|
Electric (BEV) or plug-in hybrids with more than 90 km of autonomy (PHEV) | 45,000 euros | 4,500 euros | 7,000 euros |
Plug-in hybrid with a range between 30 and 90 km (PHEV) | 45,000 euros | 2,500 euros | 5,000 euros |
Fuel cell (FCV or FCHV) | Unlimited | 4,500 euros | 7,000 euros |
On the other hand, the Government announced during 2023 a new measure that allows part of the price of an electric vehicle to be deducted from the income tax return, always meeting a series of requirements. This aid is complementary to the MOVES III Plan.