In full transition towards a more sustainable mobility model, tax deductions linked to transport are acquiring an increasingly relevant role. The institutional commitment to electric cars and personal mobility vehicles (PMVs) not only seeks to reduce emissions but also to alleviate citizens' pockets through incentives in income tax returns. This is highlighted by the consultancy TaxDown, consulted by Demócrata.
In this context, this Spanish company Spanish, specialized in digital tax advice, and with an international presence highlights that the expenses derived from the purchase of electric vehicles, bicycles, or public transport passes allow numerous taxpayers to reduce the amount to pay in their declaration.
At the state level, there are currently two notable deductions: one for the purchase of plug-in hybrid or fuel cell electric vehicles and another for the installation of charging points. Both allow you to deduct up to 15% of the amount invested, with a maximum limit of 3,000 euros in the case of vehicles and 600 euros for charging infrastructure.
The limit of the tax benefit
These tax benefits are applicable to purchases and works carried out between June 30, 2023, and December 31, 2025, provided that the acquired goods are intended for exclusively private use and not linked to economic activities.
“Although they are largely unknown or unusual, there are deductions related to sustainable transport and mobility at both the state level and in several autonomous communities. We want to help taxpayers know and apply these deductions so they can enjoy real savings opportunities on their tax return,” explains Aitor Fernández, tax expert at TaxDown.
The autonomous communities expand incentives
Along with state deductions, several autonomous communities have begun to reinforce their tax policies regarding sustainable mobility.
The Region of Murcia has incorporated this year a new deduction for expenses derived from the acquisition of electric vehicles, including passenger cars, motorcycles, and mopeds. The deductible percentage ranges between 15% and 30% of the purchase value, depending on the taxpayer's taxable base.
In addition, Murcian regulations contemplate that the acquisition may occur through leasing or renting formulas. In these cases, the purchase value is considered the sum of the amounts to be paid according to the contract. The region has also added a new deduction of up to 100% for expenses in the installation of charging infrastructure for electric vehicles, with a limit of 4,000 euros.
For its part, the Principality of Asturias already had a tax benefit for the acquisition of new or zero-kilometer electric vehicles, whether plug-in or fuel cell. The deduction reaches 15% of the amount invested.
In Castilla y León there is also a deduction for the purchase of new electric vehicles, with a maximum limit of 4,000 euros per vehicle, both in individual and joint taxation.
La Rioja also contemplates two deductions of 15% related to sustainable mobility. The first affects the acquisition of new electric vehicles and also includes electric motor-assisted pedal bicycles. The maximum deductible amount is 300 euros for cars and mopeds and 225 euros for electric bicycles.
The second La Rioja deduction applies to the purchase of traditional bicycles, without electric assistance. In this case, the limit is 50 euros per bicycle, with a maximum of two per family unit.
Meanwhile, the Generalitat Valenciana incentivizes the acquisition of sustainable vehicles through a 10% deduction on the purchase of personal mobility vehicles, such as scooters, and urban bicycles, both conventional and electric.
In all these cases, just as happens with state deductions, the acquired vehicle must be intended exclusively for private and not professional use.
Tax benefits linked to public transport
Beyond the purchase of electric vehicles, some autonomous communities have incorporated deductions related to the use of public transport.
Asturias allows residents in municipalities classified as at risk of depopulation or in demographic crisis to deduct 100% of the expenses corresponding to personal and nominal public transport passes. The general limit is 100 euros per taxpayer.
In Baleares, there is a deduction for those who face additional expenses for occupying positions declared difficult to fill. This aid includes 40% of the air or sea transport expenses between islands.
The maximum deductible amounts to 2,000 euros if the income does not exceed 33,000 euros in an individual return or 52,800 euros in a joint return. The limit is reduced to 1,000 euros when the income does not exceed 52,800 euros in an individual return or 84,480 euros in a joint return.
The Canary Islands also have a 100% deduction for expenses related to non-university studies of descendants. These expressly include transportation expenses necessary to attend the educational center, such as transport passes or school routes.
The limit of this deduction is 133 euros for the first descendant or adopted and 66 additional euros for each extra child or adopted.
Public aid also pays taxes
From TaxDown they recall, however, that there is a fundamental aspect that many taxpayers are unaware of: public aid and subsidies received are not exempt from taxation and must be included in the Income Tax return.
This affects, for example, those who have received aid from the MOVES Plan or other incentive programs for the purchase of electric vehicles or the installation of charging points. These amounts are considered capital gains and must be declared as such.
Consequently, the aid received must be deducted from the amount on which the tax deduction is subsequently applied. The only exception is extraordinary aid linked to natural disasters, such as that granted to those affected by the DANA, which is exempt from taxation.
In this regard, Aitor Fernández warns that, “it is important that taxpayers know this to avoid surprises: if you have received a subsidy, the Treasury considers it income and you have to include it in the declaration”.
TaxDown is a Spanish company specialized in digital tax advice, which uses a platform that allows the Income Tax return to be filed in a simple and optimized way for the taxpayer. The company has recently expanded its service offering to include different tax procedures aimed at accompanying citizens at different stages of their lives and reducing administrative bureaucracy.