Subsidy scheme for electric and hybrid vehicles
Since 1994, the Government has been encouraging the use of clean energy vehicles in the Principality, in particular by granting purchasing subsidies. The scheme introduced in 2019 reflects the Government’s desire to make changes to subsidy levels in order to refocus on the most eco-friendly vehicles and to take account of developments in technology. With this in mind, subsidies for buying electric/petrol hybrid vehicles will now be based solely on CO2 emissions.
Subsidies for four-wheel vehicles that emit less than 21g/km of CO2, which amount to 30% of the basic price including tax, are capped at €10,000.
Hybrid vehicles attract a fixed payment of €6,000 for vehicles emitting 21–50g/km of CO2, €5,000 for those with emissions of 51–60g/km and €3,000 for emissions of 61–110g/km.
Furthermore, in a bid to encourage taxi drivers and chauffeur-hire companies to use more eco-friendly vehicles for their businesses, they will now be able to claim a supplementary subsidy of €3,000 in addition to the payments described above.
A subsidy for unregistered electric bikes with power of 250W or lower which are owned by residents of the Principality has also been introduced, and is set at 30% of the purchase price including tax, up to a maximum of €400.
Registered electric bikes with power of more than 250W are eligible for the same subsidies offered for electric two-wheel vehicles, tricycles and quadricycles: 30% of the basic price including tax. This subsidy is capped at €3,000. Hybrid two-wheel vehicles emitting a maximum of 45g/km of CO2 will continue to attract a payment of €800.
In the case of vehicles on which VAT can be reclaimed, the subsidy will be calculated using the basic price excluding tax.
Electric vehicles also enjoy unique advantages such as free charging at charging points in public car parks and on public roads. Eligible vehicles can be identified by their VE number plate, which allows access to free parking on public roads and no charge for the annual car registration sticker.
Further information and requests for subsidies: How to obtain a subsidy for buying a clean energy vehicle