On April 3, 2024, the income tax return campaign begins. This year you will be able to deduct taxes on your electric car, but you have to know the requirements.
There is one day left until the 2024 income tax return campaign begins, which corresponds to the 2023 fiscal year, and will last until July 1. This year, if you have bought an electric car in 2023, you should know that you will be able to deduct it from your tax return in 2024. In this article we tell you all the keys you need to know to be able to do so.
Last July 2023, the Official State Gazette (BOE) approved a 15% deduction (corresponding to 3,000 euros) for the acquisition of new electric vehicles. In this case, this deduction could be subtracted directly from the Personal Income Tax (IRPF).
In this way, the measure is aimed mainly at individuals who make personal use of their electric vehicle and, therefore, who are not linked to an economic activity. Likewise, it must have been acquired between July 2023 and December 2024.
What vehicles can be deducted?
The vehicles that benefit from this deduction are those mentioned in IDEAE, as well as those included for the MOVES III Plan. That is, they are those acquired between June 30, 2023 and December 31, 2024 that meet the following characteristics:
Battery electric BEV Extended range electric EREV Plug-in hybrid PHEV with more than 40 km of approved range Fuel cell electric FCEV Heavy and light quadricycles, as well as an engine larger than 50 cm3, powered exclusively by electricity, as well as approved as EV
In this case, you can apply the deduction for the purchase of a single new electric vehicle as long as you use it for private use. Therefore, to benefit from the deduction:
You cannot acquire the vehicle to allocate it to the economic activity you carry out. If you acquire the vehicle on a private basis and then allocate it to your activity, you will lose the deductions made. What requirements must electric cars meet?
As reported by the Tax Agency, there are four key requirements that affect and, therefore, must meet the electric vehicles you purchase in order to be able to deduct it from your Income Tax Return this 2024.
They may not be involved in an economic activity. They must be registered for the first time in Spain before December 31, 2024 in the case of acquisition or before the end of the second tax period immediately following the one in which the payment of the amount on account. The sale price of the purchased vehicle may not exceed the established maximum amount, that is: 45,000 euros for PHEV, EREV and BEV; 53,000 euros for 8/9-seater BEVs and 10,000 euros for L3e, L4e, L5e BEV type motorcycles. The maximum deductible is 15% of the purchase that will not exceed, as we say, 20,000 euros. Percentage and deduction periods
As reported by the Tax Agency, there are two alternatives:
If the vehicle is purchased between June 30, 2023 and December 31, 2024: you can deduct 15% of the acquisition value. Thus, the deduction will be made in the tax period in which the vehicle is registered. If quantities are delivered, from June 30, 2023 to December 31, 2024, at least 15% of the acquisition value, you will be able to practice the deduction for 15% of the acquisition value
Regarding the payment of the remaining amount, as well as the acquisition of the vehicle, you must do so before the end of the second tax period immediately following the one in which the payment of said amount occurred.
If you make payments in 2023 (From June 30) that represent at least 25% of the purchase price of the vehicle: you will have until December 31 to make the payment of the remaining amount and purchase it If you make payments in 2024 that represent minus 25% of the purchase price of the vehicle: you will have until December 31, 2026 to pay the remaining amount and purchase it If you make payments in 2023 (from June 30) and also in 2024 to reach 25% of the acquisition price: you will have until December 31, 2026 to pay the remaining amount and purchase it
In this case, and unlike the first two cases, in these last three the deduction will be made in the tax period in which the amount paid on account reaches 25% of the acquisition price.
Can I deduct the installation of the electric charging point?
Yes. According to the Tax Agency, you can also deduct 15% of the cost of installing the charging point. It also includes the equipment and possible necessary materials, as well as the cost of the works for its installation and the fee of the installation technicians.
The maximum base is 4,000 euros, that is, the maximum deduction will be 600 euros in the state fee. These are the requirements to benefit from the deduction for the installation of charging points:
The charging point must be for personal use, and not be linked to an economic activity. The payment must not be made in cash. The installation must be carried out between June 30, 2023 and December 31, 2024. It must be carried out in a property owned by the beneficiary Can I also benefit from the MOVES III Plan?
Likewise, it should be noted that the 15% deduction for the purchase of an electric car is directly linked to the aid from the Moves III Plan. That is, if you benefit from MOVES III aid, you can also benefit from the deduction from the Income Tax Return. In this case, the aid received must be declared in the personal income tax as “capital gain.”