Spain’s electric-car tax exemptions could face pressure after the United Kingdom passed a law introducing a mileage-based charge for zero-emission vehicles from April 1, 2028. The change raises questions about how long Spain’s current policy will hold.
The UK’s new rule, called the ‘Electric Vehicle Excise Duty’ (eVED), will charge battery-powered car owners for every mile they lead. It will be added on top of the current Vehicle Excise Duty (VED), not replace it. Fully electric cars will pay 3 pence per mile, or about 1.85 euro cents per kilometer. Hydrogen vehicles will pay the same rate. Plug-in hybrids will pay less: 1.5 pence per mile, or roughly 0.93 euro cents per kilometer.
UK Treasury materials say electric vehicles will lose their exemption from standard VED from April 2025, before the mileage-based eVED takes effect.
Why are electric cars being singled out? Governments are losing revenue as drivers move away from petrol and diesel. Fuel taxes make up nearly half the price at the pump. Electric cars skip the petrol station, and those taxes. The UK’s new system aims to recoup some of that lost revenue by taxing distance driven instead of fuel consumed. Fully electric cars pay more than plug-in hybrids because hybrids still use some fuel and so pay some fuel tax.
The tax will be based on the odometer, with no GPS tracking or new in-car devices. Officials will check mileage during the annual vehicle inspection, compare it with the previous year’s reading and calculate the bill. Driving 10,000 kilometers in a year would cost 185 euros; 15,000 kilometers would bring the charge to 277.5 euros, and 20,000 kilometers to 370 euros. That would be a real hit for many. British media, citing official analyses, say the basic goal is to make up for lost fuel duty as electric cars take over the roads.
Spain, for now, remains a safe zone for electric drivers. Battery-powered cars face no special taxes, and several fees levied on combustion vehicles are still waived. The UK’s move is already prompting debate in other countries about how everyone should contribute to funding roads and public services. Spain’s car market has also changed significantly, with used-car prices rising as demand and supply shift.
Spain is tightening electric-vehicle subsidies rather than introducing a universal mileage tax, keeping its approach focused on incentives. There is no indication that the country is preparing a version of eVED.
The UK’s move is drawing attention abroad. Tax-free electric driving could eventually end. As more zero-emission cars take to the roads, governments need new ways to fund highways and services. For Spanish drivers, today’s tax breaks could face pressure in the future. Rules are already changing elsewhere in Europe.
