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Germany Extends Electric-Car Motor Vehicle Tax Exemption to 2035

Drivers who register an e-car this year can still lock in the full ten-year tax break.

Overview

  • The federal cabinet approved a five-year extension on October 15, moving the statutory end of the exemption to December 31, 2035 while keeping a maximum ten-year period for eligible new registrations or conversions.
  • Under prior rules the benefit would have ended for new registrations from January 2026, and the government plans the updated law to take effect on January 1, 2026 to maintain continuity.
  • Only vehicles registered or converted by December 31, 2025 can use the full ten-year exemption, with later registrations limited by the 2035 cutoff.
  • The coalition confirmed a €3 billion purchase-support program through 2029 for low- and middle-income households, funded by the Climate and Transformation Fund and the EU Climate Social Fund, with eligibility details still to be specified.
  • Business incentives include the already decided Investitionsbooster allowing a 75% first-year write-off for company e-cars up to €100,000, and the Finance Ministry estimates citizen relief at about €50 million in 2026 rising to up to €380 million by 2030.