If you are considering purchasing an electric car, you are in luck. The government has extended the deadline until 31 December 2025 to take advantage of a valuable personal income tax deduction. This measure aims to continue encouraging sustainable mobility and support the transition towards more environmentally friendly vehicles.
The deduction allows individuals to claim 15% of the purchase price of a qualifying electric vehicle, provided that it is a brand new model and meets certain technical requirements. The maximum amount eligible for the deduction is 20,000€, meaning that the potential tax saving could reach up to 3,000€.
This tax incentive applies to several types of vehicles, including fully electric passenger cars (BEV), plug-in hybrids (PHEV), extended-range electric vehicles (EREV), and certain electric quadricycles and motorcycles, provided that they are powered exclusively by electric motors. However, the deduction is only available to individuals. Those who intend to use the vehicle for a business or professional activity are not eligible.
It is also important to note that the vehicle’s selling price, excluding VAT, must not exceed the maximum amount set under the MOVES III incentive programme. For instance, in the case of many electric passenger cars, this price may not exceed 45,000€ without VAT. Furthermore, the vehicle must be completely new. You will not be able to apply the deduction if you purchase a vehicle that was previously registered by the dealer, commonly known as a “zero kilometre” vehicle, or if you register a used vehicle imported from abroad.
In addition, the deduction available for the installation of an electric vehicle charging point for personal use has also been extended until the end of 2025. In this case, you may deduct 15% of the total cost of the installation, including equipment, materials, installation services, and any construction work required. As with the vehicle purchase deduction, any public subsidies received must be deducted from the total cost before calculating the tax relief. The maximum annual deduction base is 4,000€, so the maximum relief available is 600€.
To illustrate how this works, consider the following example. In June 2025, you purchase a new plug-in hybrid (PHEV) for 35,000€ and receive a 2,500€ subsidy. You also install a home charging point for 1,900€. The calculation would be as follows:
| Item | Vehicle (PHEV) | Charging Point |
|---|---|---|
| Deductible investment | 32,500 € | 1,900 € |
| Deduction base | 20,000 € | 1,900 € |
| Deduction at 15 percent | 3,000 € | 285 € |
In conclusion, this extension presents a valuable opportunity for those planning to switch to electric mobility. If you are considering making this change, remember that you have until the end of 2025 to benefit from these deductions. Taking advantage of this tax relief will not only be financially beneficial but will also contribute to environmental sustainability.
