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Sudden scrapping of EV tax benefit sparks wave of outrage

Unexpected developments await: the removal of the IRPF deduction could reshape Spain's property market, challenging buyers and redefining investment strategies

What’s happening with electric vehicle support in Spain? The abrupt cancellation of the tax benefit for purchasing new electric cars and charging stations has cast doubt on the plans of thousands of families and businesses. Why did this decision cause such an outcry and what consequences await the market? We break down the details.

Spanish families and businesses have been hit by an unexpected change in government policy for eco-friendly transport. The Congress’s decision not to approve a key support package, which included tax deductions for electric vehicle buyers, came as a real shock to the market. For many, it not only means the loss of financial benefits but also a need to rethink their plans to switch to green mobility.

The rejected package

At the center of attention was the so-called omnibus decree, which combined over twenty different initiatives from the government. Among them was the now-cancelled provision allowing buyers to get back 15% of a new electric vehicle’s cost through an IRPF tax deduction. The maximum savings could reach €3,000, and up to €600 for charging stations. These measures aimed to encourage a mass shift to eco-friendly vehicles and spur the development of charging infrastructure.

However, after the vote in Congress, all these incentives are now at risk. Neither individuals nor companies will be able to benefit from tax breaks when purchasing an electric car or installing a charging point. This move came as a surprise for many, as authorities had previously promoted the transition to clean energy and emission reduction.

Terms and conditions

The previous regulations were quite clear: the deduction applied only to new electric vehicles, plug-in hybrids, and hydrogen fuel cell cars. The car had to be purchased for personal use, not for business purposes, and be registered within the established timeframe. There were also restrictions for charging stations—they could not be used for commercial purposes.

These conditions helped prevent abuse and ensured support was provided to those who truly wanted to switch to eco-friendly transport. Now, with the decree repealed, all these rules have lost their validity, and buyers have been left without the promised benefits.

The market holds its breath

By the end of 2025, Spain had registered about 220,000 electrified vehicles—almost double the number from five years earlier. Growth was remarkable, and many attributed it to government incentives. Now, however, the situation could change drastically: without tax deductions, buying an electric car is less attractive to a broad audience.

Fuel savings and zero emissions—the main arguments in favor of electric cars—are losing some of their weight. For many families and companies, switching to eco-friendly transport once again becomes more a matter of budget than of principle.

Impact on the future

The government explained the cancelled measures as a necessary step to follow its strategy for developing road transport and tackling climate change. However, without new incentives, the market may experience slower growth, putting emissions reduction plans at risk. The question of when and in what form tax benefits will return remains unresolved.

For now, Spaniards have to wait for new decisions and reconsider their plans. For many, this came as an unpleasant surprise, and for the market, it signaled possible shifts in state policy supporting eco-friendly transport.

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