Norway leads the global transition towards electric vehicle (EV) adoption with its innovative approach since the early 1990s. Achieving a world record, 69% of all cars sold in Norway in 2020 were electrified. Unlike the direct subsidies common in other countries, Norway opts for significant tax reductions for EV owners, making electric driving more financially appealing.

The nation also invests in EV infrastructure, providing generous grants for public EV facilities, showcasing its commitment to creating a supportive environment for EV adoption. This strategic blend of tax incentives and infrastructure development underscores Norway’s success in establishing a leading position in the EV market.

EV Incentives

National Tax Benefits

Exemption from Purchase Tax and VAT: Buyers of new or used EVs don’t pay purchase tax or VAT.

• No Purchase Tax or VAT: Drivers buying or leasing new or pre-owned EVs are exempt from both purchase tax and VAT.
• No Road Traffic Insurance Tax: EV owners do not have to pay the annual road traffic insurance tax.
• Company Car Tax Discount:EV owners are eligible for a discount on company car tax, which varies based on the vehicle’s year of manufacture. A tool is available to calculate the specific tax discount for your company car.

Local Incentives:

• Reduced Tolls: Under Norwegian law, EV owners are entitled to a reduction, paying no more than 50% of the usual toll rates on roads and ferries.
• Discounted Parking:Currently, parking fees for EVs vary by municipality. However, new legislation mandates a cap at 50% of standard parking rates for EV owners, with regulations to formalize this coming into effect soon.
• Access to Bus and Taxi Lanes:EV drivers generally have the privilege of using bus and taxi lanes, although there are exceptions. It’s recommended to heed any road signs indicating restrictions for EVs.

Regional Local EV Incentives:

Oslo

• Free parking: EVs can park and charge for free at select city charging stations. A map detailing these locations is available for consultation.

Fredrikstad

• Free parking: EVs and hydrogen vehicles (excluding hybrid electric vehicles) can park for free in designated green zones. Maps showing these specific parking spaces are accessible for EV drivers.

Baerum

• Free parking: Public parking, including spaces with charging stations, is complimentary for EVs and hydrogen vehicles, not including hybrids. An overview of these parking spaces is provided.

Trondheim

• Free parking: The city offers free parking areas for both EVs and plug-in hybrid electric vehicles (PHEVs). Guidance on identifying these areas, along with a comprehensive parking map, is available.

EVSE Grants for Housing Associations

Norway’s strategic investment in Electric Vehicle Supply Equipment (EVSE) includes targeted grants for housing associations, enhancing the infrastructure for electric vehicles.

Oslo

• Offers grants covering up to 20% of EVSE purchase and installation costs, with a limit of NOK 5,000 (€450) per charging point and a total of NOK 1,000,000 (€91,000) per association.

Skedsmo

• Provides grants for up to 20% of the costs for buying and setting up EVSE, including professional consultation fees, up to NOK 5,000 (€450) per charging station and NOK 250,000 (€23,000) per association.

Asker

• Grants can cover up to 50% of the purchase and installation costs of EVSE, capped at NOK 5,000 (€450) per point and NOK 50,000 (€4,500) per association. EV charging is offered free, with parking fees applicable, accessible via Asker’s parking app.

Baerum

• Awards a grant of up to NOK 50,000 for the expenses involved in acquiring and installing EVSE, promoting the adoption of electric vehicles within communities.

Trondheim

• Offers grants up to 20% of the EVSE purchasing and installation expenses, with a maximum of NOK 5,000 (€450) per charging point, encouraging the expansion of EV charging infrastructure.

Additionally, the Electric Car Association provides consultation for installing EVSE in housing associations, currently available for Oslo and Viken regions, supporting the widespread adoption of electric vehicles.

Norway’s Electrification Success

Norway is a global frontrunner in electric vehicle (EV) adoption, transforming its transportation with a long-standing commitment to EV incentives and infrastructure. The country has successfully shifted from diesel to electric, notably with the VW Golf transitioning from 90% diesel to 97% electric in just a decade. Due to policies like the ‘polluter pays’ principle, EVs are now more affordable and have become the standard mode of transport in Norway, leading the way towards complete electrification.