Incentive Program for Efficient and Sustainable Mobility of the Government of Spain (Moves III)

Initially scheduled to end in 2023, the plan has been extended until July 31, 2024. However, and this is the most important point, the Government confirmed the continuation of the aid during 2025, integrating it into a new support framework that will maintain the structure of MOVES III until a permanent successor is defined.

The MOVES III Plan (Program of Incentives for Efficient and Sustainable Mobility) is an initiative of the Government of Spain, managed through the IDAE (Institute for Diversification and Energy Saving) and transferred to the Autonomous Communities, which are responsible for its application and payment.

Its main objective is to encourage the purchase of alternative energy vehicles and the installation of charging points in order to advance the decarbonization of transport.

Who can apply for the aid?

The plan is aimed at a wide range of beneficiaries:

• Individuals and self-employed.
• Homeowners associations.
• Private companies.
• Public administrations.

Amount of aid for the purchase of vehicles

The amount of aid varies depending on the type of vehicle and whether an old car is being scrapped. The car to be scrapped must be more than 7 years old and have been registered in the buyer's name for at least 12 months.

Note: For self-employed individuals (taxi drivers, VTC drivers) who use the vehicle as a work tool, the aid for cars and vans is increased by 10%.

The other big advantage: the 15% deduction in income tax

Regardless of the direct aid from MOVES III, private buyers can benefit from a deduction in their Income Tax Return (IRPF) of 15% on the purchase value of the vehicle (including taxes), with a maximum base of 20,000 euros.

This provides an additional tax benefit of up to €3,000 . It is compatible with the MOVES subsidy, but it is important to remember that the direct MOVES subsidy is taxed as a capital gain in the following year's tax return.

How do I apply for the MOVES III Plan?

This is a key point that often causes confusion. The general process is as follows:

1. Purchase and registration: The buyer acquires the vehicle from a dealership participating in the plan. The invoice must be issued after the program begins.
2. The dealership handles the application: Typically, the dealership itself is responsible for completing all the necessary paperwork to apply for the subsidy on behalf of the customer with the relevant regional government. The dealership is also legally obligated to apply an additional, direct discount of €1,000 to the invoice .
3. Payment by the Administration: Once the application is approved, the Autonomous Community deposits the amount of the aid directly into the buyer's bank account.

Attention! The main drawback of this plan is the payment delay . Depending on the Autonomous Community, the buyer may have to wait between 6 and more than 18 months to receive the money, so they must pay the full amount upfront at the time of purchase.

Assistance for Charging Points

The MOVES III Plan also subsidizes the installation of electric vehicle charging points. For individuals, the self-employed, and homeowners' associations, the subsidy covers 70% of the installation cost (including equipment and labor). This subsidy increases to 80% if the installation takes place in a municipality with fewer than 5,000 inhabitants.

In summary, the MOVES III Plan, together with the income tax deduction, represents a very powerful ecosystem of incentives that can significantly reduce the cost of acquiring an electric or plug-in hybrid vehicle in Spain. Its current validity makes it the main promotional argument for these types of cars.