Discover Netherlands’ EV Incentives

The Netherlands remains at the forefront of electrification into the new decade, thanks to its progressive EV policies and an extensive network of EV chargers, holding the global lead in electric vehicle and charger density per 100 km. Projections indicate that the EV charging infrastructure market will exceed 200,000 units by 2025. Furthermore, the effectiveness of Dutch incentive policies has equalized the cost of owning an electric car with that of diesel or gasoline vehicles.

EV Incentives in the Netherlands

National EV Incentives

On June 4, 2020, the Netherlands unveiled a new subsidy program for electric vehicles (EVs). According to Van Veldhoven, the State Secretary for Infrastructure and Water Management, the initiative aims to democratize clean driving by encouraging the acquisition of both new and pre-owned electric cars over internal combustion engine (ICE) vehicles. The goal is to enhance air quality and cut down on greenhouse gas emissions.

From that date forward, buyers of electric vehicles can apply for a subsidy through the Netherlands Enterprise Agency (RVO). Below are the most recent updates on the incentives:

Perks

• €4,000 for purchasing OR leasing a new EV
• €2,000for purchasing OR leasing a used EV

Conditions, details & application information:

• EV must have an original value of €12,000 to €45,000
• EV must have a minimum range of 120 km
• EV must be purchased or leased on or after 4 June 2020
• A list of eligible cars can be downloaded here
• The subsidy scheme runs from 1 July 2020 to 1 July 2025, unless the budget of €17.2M is used up earlier

Tax Benefits

• Purchase tax (Belasting van Personenauto’s en Motorrijwielen; BPM): BPM is the tax levied on the acquisition of a passenger car or motorcycle. Owners of electric vehicles (EVs) benefit from the following exemptions and reductions in BPM tax:
  • For Pure Electric Vehicles:
    • Up to 2024: Completely exempt from the vehicle purchase tax (BPM).
    • In 2025: A fixed vehicle purchase tax of €360 per vehicle will be introduced.
    • Beyond 2025: The purchase tax will be adjusted annually in line with inflation.
  • For Plug-in Hybrid Vehicles (PHEVs):
    • The BPM rates are determined according to the CO2 emissions measured by the World Harmonized Light Vehicle Testing Procedure (WLTP). Refer to this specific table for calculating your BPM rate.
  • Motor Vehicle Tax(MRB): It is a yearly tax applicable to the ownership of cars, motorcycles, or trucks. Owners of electric vehicles enjoy the following MRB tax incentives:
    • For Pure Electric Vehicles:
      • Through 2024: Complete exemption from motor vehicle tax.
      • In 2025: A 75% reduction in MRB.
      • From 2026: The standard MRB rates apply.
    • For Plug-in Hybrid Vehicles (PHEVs):
      • Until 2024: A 50% reduction in motor vehicle tax.
      • In 2025: A 25% discount on MRB.
      • Starting in 2026: The full MRB rate is applicable.

Business Benefits

Leverage these advantages when incorporating EVs into your company fleet:

Emission-Free Commercial Vehicles Subsidy Scheme (SEBA):

• Receive 10% off the list price when purchasing or leasing new EVs, up to a maximum of €5,000. This scheme is in effect from March 15, 2021, until December 31, 2025.

Tax Benefits:

• VAT Exemption: Businesses promoting electric driving are exempt from the standard 21% VAT, although a 2.7% VAT correction for private use applies.
• Environmental Investment Allowance (MIA):** Through the MIA, companies can deduct up to 36% of their investment in an EV from their taxable income, provided the EV is listed on the Environmental List 2020.
• Bijtelling (Company Car Tax): A portion of the car’s list price is considered taxable income if the company car is used for personal purposes, with EVs benefiting from reduced rates:
  • 2022-2024: A discounted rate of 16% (instead of 22%).
  • 2025: Continuation of the discounted rate of 16%.
  • 2026: The standard rate of 22% applies.

Eco-Tax Initiatives:

• Punitive Measures for High CO2 Emitters: Vehicles over 12 years old emitting high levels of CO2 must pay an additional 15% on top of the existing vehicle ownership tax, effective from 2019.
• Fuel Tax Increase: Taxes on gasoline and diesel are set to rise by one cent per liter this year, with another one-cent increase scheduled for 2023.

Banning Gasoline and Diesel Cars:

• By 2030, the Netherlands will permit only the registration of new vehicles that are emissions-free.

Municipal EV Incentives:

-Local municipalities may offer additional subsidies for electric vehicles. For detailed information on the incentives available in your area, conduct a search using “EV stimulansen + [your area’s name]” or visit the government page that lists municipalities, their contact details, and relevant links. Applications for these subsidies can typically be made online through DigID (for residents) or e-Identification (for organizations).

Example of Local Incentives – Amsterdam:

• Subsidies for Electric Vehicles and Scrapping Schemes:
  • As of December 5, 2019, Amsterdam offers subsidies ranging up to €3,000 for taxis and up to €40,000 for vans, trucks, or buses, based on the vehicle’s classification, size, and weight. This subsidy is available for both new and used emission-free vehicles. For more details and application procedures, click here.
  • A €500 scrapping subsidy is available for those who decommission an old diesel vehicle. For further information and application details, click here.

EV Charging Incentives in the Netherlands

For Private Individuals:

Currently, there are no national or local incentives available in the Netherlands specifically for private individuals to purchase and install personal EV charging stations. The government’s approach prioritizes incentives for businesses and the expansion of public EV charging infrastructure.

For Businesses:

• Environmental Investment Allowance (MIA): Businesses can benefit from the MIA by deducting up to 36% of their investment in EV charging stations from their taxable income.
• Random Depreciation of Environmental Investments (VAMIL): VAMIL allows businesses to write off 75% of their investment costs in EV charging stations at a time of their choosing, enhancing financial flexibility.

Public Charging Point System

The Netherlands boasts over 58,000 public and semi-public EV charging stations. To locate a charging point near you, utilize this convenient map. If your area lacks a charging station, you can request the installation of a public charging point at no cost for the purchase, installation, or usage of the charger—only the energy consumed during charging is charged.

City-Specific Charging Point Programs:

• Amsterdam:
  • Free charging points in public spaces
    • The application and installation are complimentary.
    • Energy consumption charges apply when using a charge card at these points.
  • Eindhoven:
    • Free charging points in public spaces
      • The application and installation of new public charging points in public spaces are free, with charges for energy consumption.
    • The Hague:
      • Free charging points in public spaces
        • Free application and installation with a timeline of 2-4 months for new public charging points. Charges for energy usage apply.
      • Rotterdam:
        • Free charging points in public spaces
          • Offers free application and installation for new public charging points in public spaces. Usage is based on energy consumption.
        • Utrecht:
          • Free charging points in public spaces
            • Utrecht provides free application and installation for new public charging stations, with a pay-per-use model based on energy consumption.