La 15% deduction in personal income tax for the purchase of electric cars And the installation of home charging points has ceased to exist in Spain overnight. What was practically a given until 2026 has been blown up after the rejection in Congress of the so-called omnibus decree, leaving buyers and the sector in a state of total uncertainty.
This change is not a simple technical adjustment or a temporary pause: The tax advantage has disappeared from the legal framework.Thousands of citizens, self-employed individuals, and small businesses who were counting on this relief in their next tax return are now facing a very different scenario than the one they had anticipated when calculating the costs of switching to an electric car.
How the 15% deduction in personal income tax worked
Until its abolition, the deduction allowed taxpayers to subtract from their state income tax liability a 15% of the purchase price of a new electrified vehicleThe regulation covered pure electric cars, plug-in hybrids and fuel cell models, provided they were new vehicles and met the conditions set by the Treasury.
The key was in the maximum base of 20.000 euros to which the percentage was applied. In practice, this translated into potential savings of up to 3.000 euros per vehicle on income tax returns, a considerable sum for those already facing the typical higher cost of an electric vehicle compared to a traditional combustion engine car.
This deduction was also compatible with other direct aid such as Moves III plan or regional programs. Many buyers combined the subsidy at the time of purchase with the deferred tax benefit, which allowed them to significantly reduce the total cost of the transaction in the medium term.
In the case of home charging pointsThe scheme was similar: a 15% deduction on the installation cost, with a maximum annual base of 4.000 euros. This represented a theoretical saving of up to 600 euros per taxpayer, provided that the payment was made by bank transfer and that the use was residential, not linked to an economic activity.
For many households, this tax break had become a decisive incentive to install a charger in the communal garage or in a single-family home. facilitating the night recharge and making the switch to electric cars more viable.
The omnibus decree that overturned the deduction
The disappearance of this incentive stems from the non-validation in Congress of Royal Decree-Law 16/2025It was an omnibus bill that brought together a broad package of economic, social, and fiscal measures. These included extending the 15% income tax deduction for the purchase of electric vehicles and the installation of home chargers until December 31, 2026.
The plenary session of the Lower House rejected the decree with 171 votes for and 178 againstThe decree was rejected with negative votes from the PP, Vox, and Junts, among other groups. With the decree falling as a whole, all the measures it contained were removed from the legal framework, including the extension of tax breaks linked to electric vehicles, even though it was not the central point of the political debate.
The deduction, therefore, has not been repealed by a specific and separate decision on electric mobility, but by its inclusion within a much broader legislative packageThe practical result, however, is clear: since the fall of the decree, there is no longer any state deduction in personal income tax associated with the purchase of plug-in vehicles or the installation of charging infrastructure in the domestic sphere.
This situation adds another layer of regulatory uncertainty to a market that was already experiencing frequent changes in the rules of the game. Sectors involved agree that linking key aid to complex decrees that may not pass parliamentary procedures increases the risk of them disappearing overnight.
The blow to the buyer's wallet and the cost of ownership
For an individual considering an electric car costing around 30.000 euros, the combination of direct aid and tax deduction was a significant advantage. It made the difference between balancing the budget or not.With a maximum base of 20.000 euros, the deduction allowed reducing the amount payable in the income tax return by up to 3.000 euros, something especially relevant when the price gap compared to a combustion engine model remains significant.
In the case of the charging point, a typical cost of between €1.000 and €1.500 was offset by a deduction of up to €600, tangibly reducing the initial investment needed to electrify the garage. Without this incentive, the upfront cost of electric mobility becomes much heavier for many households.
With the disappearance of the deduction, the total cost of ownership of the electric vehicle increasesJust when the aim was to accelerate its market penetration, the initial price premium compared to a gasoline or diesel car is increasing again, and the payback period through fuel and maintenance savings is taking longer to recoup the investment.
The impact is not only economic, but also psychological. Many buyers saw the deduction as a clear sign of public support electric mobility offered a sense of confidence and stability. Without that benchmark, the perception is that the rules can change based on current trends, leading to postponed purchasing decisions.
Individuals, the self-employed, and small businesses: who loses the most
The removal of the tax incentive affects both private users and those who use their vehicles as a work tool. Taxi drivers, ride-hailing drivers, delivery drivers, salespeople, maintenance technicians, and installers, among other professional profiles, found in this 15% a a way to offset the extra cost of the electric vehicle compared to the combustion equivalent.
For self-employed and small businesses For those who replace their vehicles every few years, the savings of up to €3.000 per unit weighed heavily in the decision to switch to a plug-in model. The tax deduction directly impacted financial planning, amortization calculations, and the feasibility of investing now or keeping an older vehicle for a few more years.
The disappearance of the incentive forces many professionals to recalculate costs and extend renewal periodsIn scenarios of very tight margins, losing that tax advantage can mean the difference between updating the fleet or continuing to use older vehicles, with higher maintenance costs, fuel consumption and emissions.
The problem isn't limited to new vehicles. A lower volume of electric vehicle registrations today implies, in the medium term, less second-hand supply This is especially true for those who can't afford a brand-new car. It further complicates matters for self-employed individuals with limited investment capacity to access affordable electrified models.
The ripple effect on dealerships, workshops and installers
The 15% deduction was not only a relief for the end buyer; it had become a central piece of commercial discourse from many dealerships and specialized car sales companies. Being able to explain to the customer that, in addition to the direct aid, they would enjoy savings on the following year's rent, helped to close deals that without that push would have remained up in the air.
With its disappearance, retailers lose one of their most compelling arguments for swaying undecided buyers. Industry experts warn that every major regulatory change leads to several months of market stagnation as buyers and sellers try to understand the new landscape and await potential revisions or new plans.
The workshops that had invested in training and equipment The electric vehicle sector is also feeling the impact. They had bet on sustained growth in the electric vehicle fleet, relying on stable fiscal signals. A slowdown in registrations is delaying the recovery of those investments and could hinder future technological adaptation decisions.
The charging point installersMany of them self-employed or micro-enterprises are seeing their project portfolios suffer. The tax deduction made it easier for homeowners' associations, small businesses, and individuals to approve the installation of charging stations in garages and premises. Without this incentive, postponements and cancellations are multiplying, especially in areas where there is no additional regional or municipal aid.
The position of the sector: from ANFAC to Faconauto
The main automotive organizations have reacted with concern. ANFAC points out that the Spanish market It closed 2025 with more than 245.000 electrified vehicles registered, reaching for the first time a share close to 18% of the total, a milestone that brought Spain closer to the European average but is still far from the leading countries.
According to the employers' association, this progress was due to a very specific combination of factors: Moves III plan subsidiesThe 15% income tax deduction of up to €3.000 for the purchase of electric and plug-in hybrid vehicles, along with additional tax incentives offered by some autonomous communities, are key factors. The elimination of one of these pillars, and the expiration of another, threatens to halt the progress achieved in recent years.
ANFAC demands that the [program/system] be implemented without further delay. Auto+ Plan The association also calls for the reinstatement of the personal income tax deduction, ideally with retroactive effect from January 1st, to avoid further slowing down purchasing decisions. Furthermore, the association emphasizes that it has been almost two years since any grants were offered for the decarbonization of truck and bus fleets, a key sector for meeting European climate targets.
Faconauto, the association of car dealerships, has been particularly forceful in its statements: removing this incentive, they assert, is “to shoot themselves in the foot with electrification”In a still fragile market, where buyers are more hesitant and comparing than ever, the personal income tax (IRPF) was the final push that helped transform interest into an actual sale.
The employers' association insists that the problem is not so much ideological as practical: one can talk about a green transition and 2030 targets, but if the buyer is deprived of the only clear, quick and easily understandable tax incentive that I had, the market cools down and the operations are postponed.
Regulatory uncertainty and its impact on the Auto 2030 Plan
The decline in deductions is also interpreted as a symptom of a deeper problem: regulatory instability of subsidies for electric cars in SpainIn recent years, there has been a series of late announcements, last-minute extensions, decrees that are not validated, and measures that disappear or change their conditions depending on the political calendar.
This pattern creates a sense of permanent uncertainty. Manufacturers, retail networks, and even investors need stable frameworks to decide where to produce, which models to launch, or how to structure their business plans. When incentives depend on shifting parliamentary majorities, medium- and long-term planning becomes much more complicated.
El Auto Plan 2030The scheme, presented by the government as the great umbrella for the sector's transformation, is not immune to this interpretation either. Although it remains formally in force, the fact that one of the central elements of the incentive program—the income tax deduction—is left up in the air right at the start of a new phase undermines the narrative of an orderly and predictable transition.
The prevailing conclusion in the sector is that electrification is largely due to the regulatory pressure from the European Union And this is driven more by emissions reduction requirements than by a coherent and sustained domestic policy. As long as subsidies remain tied to omnibus decrees and short-term agreements, electric vehicles will continue to be a gamble with too many unknowns for many buyers.
The new gap in aid and the uncertainty surrounding the Auto+ Plan
The timing of this twist adds further complexity. The Moves III plan expired on December 31st And, although the Executive has been talking for months about a new program —the so-called Auto+ Plan— to this day its foundations and its definitive launch date are not known in detail.
Within the Government, it has been suggested that future subsidies incorporate carbon footprint criteria throughout the vehicle's life cycle, aligning with European sustainability requirements. However, the lack of a clear timeline leaves the sector and buyers in limbo: it is unknown what amounts will be offered, which models will be prioritized, or whether any retroactive measures will be applied.
Meanwhile, those who have purchased an electric car or installed a charger since January 1st are navigating uncertain territory. They have no confirmation regarding the aid that they may receive of the future plan and, in addition, they have lost the security of having the 15% deduction in the IRPF that provided a certain financial cushion.
However, previous experience with Moves III demonstrates that the Executive could opt for reconsider the deduction in a specific decree And separate from the other measures, this time seeking a broader parliamentary majority. Until that happens, the tax incentive will remain unavailable and cannot be applied to income tax returns.
The scenario that remains after the disappearance of the 15% personal income tax deduction paints a picture complex outlook for electrification in SpainThe costs of buying electric cars are rising, planning for individuals and professionals is becoming more complicated, and the sector is seeing one of the few clear and simple tax instruments that worked begin to crumble. If a stable and predictable support framework is not restored soon, the risk is clear: the gap with the most advanced European countries in electric mobility will widen again just when it's most necessary to accelerate progress.
