Grants in Spain for New Cars 2021

A new grants programme for the purchase of new cars has been launched in April 2021. Anyone who is legally resident in Spain is eligible to apply, read on for more details.

The Spanish Government has set aside 400 million euros for grants in a scheme called Plan MOVES III and this amount could be increased by up to 800 million euros. Plan MOVES III includes, amongst different options, a grant of up to 7000€ for the purchase of an electric car (category M1).

Grants are awarded on a first-come, first-served basis until funds last, however it is expected that they should be available until the end of 2023.

Who can request a grant?

In order to be eligible you need to be legally resident in Spain and have a NIE number. Self employed people or those with a company in Spain will have to supply additional paperwork to show that they are up-to-date with their fiscal obligations.

To be eligible for up to 7000€, you’ll have to scrap your used vehicle, which must be at least 7 years old. If you don’t have a used car, or don’t want to get rid of it, the grant is limited to 4500€.

Car dealers should be able to arrange all the paperwork and, depending on the region, they may be able to check whether funding is still available.

What type of vehicles are included?

For cars, all four-wheeled vehicles that include up to a total of 9 seats (driver +up to 8 passengers), are included in the M1 classification.

What about a home charging point?

The grants also cover up to 70% of the cost of installation of a home charging point. These grants would be separate to the amount awarded for the purchase of a new vehicle. As the average cost of a charging point is around 800€ to 1200€ the grant represents a considerable saving.

If you live in a flat or apartment, in accordance with the Horizontal Property Law clause 17.5, you only need to inform the Housing Community about the installation of a personal charging point for your vehicle – in other words you do not require permission. The law also highlights that you will be responsible for all electricity consumption related to the charging point which would require a separate meter to be installed too.

More grants need-to-knows

For anyone who lives in a village with a population below 5000 people you’ll be eligible for up to 10% additional grant, ie up to 7700€. The same increase is also available for anyone with a disability who would need to get a new car adapted.

The terms of the grant also include an additional discount of at least 1000€ to be offered by the car dealership. This means it’s a good idea to shop around as some dealers may be willing to offer a bigger discount.

Bear in mind that if you receive a grant the amount must be included in your annual Spanish tax return under the Capital Gains section.