Purchase of New Electric Vehicles
This financial incentive intends to further promote the use of new electric vehicles in Category L, M and N and pedelecs, and is aimed at:
- Persons residing in Malta;
- Local Councils;
- Voluntary organisations (including NGOs); and
- Undertakings established in Malta.
The Ultimate Beneficiary Owner of the applicant shall be considered as the ultimate beneficiary of any grant issued under these financial incentives.
For a comparison of the average price to drive 100km with an electric vehicle and with a conventional vehicle, check here.
This incentive allows a mix and match of purchase of new electric vehicles and pedelecs, and replacement of old vehicles. The grant shall support the purchase of:
- New passenger cars;
- Goods carrying vehicles;
- Minibuses;
- Coaches;
- Quadricycle;
- Motorcycles; and
- Pedelecs.
The grant includes a scrappage scheme intended to provide further financial support to applicants who, while purchasing and registering a new electric vehicle or pedelec, deregister a vehicle of any category which is older than 10 years from its year of manufacture.
The budgeted funds for this scheme amount to €15,000,000.
The Incentive Details
Grant amounts to be paid for each electric vehicle purchased by eligible persons residing in Malta or Local Councils or Voluntary Organisations which do not carry out any economic activity.
| Category of new Electric Vehicle |
Grant Amount | |
|---|---|---|
| 1 | M1 (Car) / N1 (Van) | €11,000 |
| 2 | M2 (Minibus) / N2 (Small Truck) | 40% of Invoice value, capped at €40,000 |
| 3 | M3 (Coach) / N3 (Truck) | 40% of Invoice value, capped at €250,000 |
NOTE: Invoice value is the value of the vehicle being registered, as indicated in the respective invoice.
The maximum amount of grants that may be issued under this incentive shall vary by type of applicant, as follows:
- Person residing in Malta: 2 grants; and
- Local Councils and Voluntary Organisation that do not carry out an economic activity (including NGOs): 10 grants.
Grant amounts to be paid for each vehicle registered by eligible undertakings established in Malta or Voluntary Organisations which carry out an economic activity.
| Category of new Electric Vehicle | No. of vehicles | 1Small Enterprise | 2Medium Enterprise | 3Large Enterprise | |
|---|---|---|---|---|---|
| 1 | M1(Car) N1(Van) |
Up to 10 | €11,000 per vehicle. * | ||
| 2 | More than 10 | 65% of investment costs, capped at €40,000. ** | 55% of investment costs, capped at €40,000. ** | 45% of investment costs, capped at €40,000. ** | |
| 3 | M2 (Minibus) N2 (Small Truck |
N/A | 65% of investment costs, capped at €40,000. ** | 55% of investment costs, capped at €40,000. ** | 45% of investment costs, capped at €40,000. ** |
| 4 | M3 (Coach) N3 (Truck) |
N/A | 65% of investment costs, capped at €250,000. ** | 55% of investment costs, capped at €250,000. ** | 45% of investment costs, capped at €250,000. ** |
NOTE: Investment costs are the difference between the cost of the electric vehicle being registered and that of an equivalent vehicle with a conventional internal combustion engine.
* De Minimis Regulations apply.
** General Block Exemption Regulation applies, except for undertakings active in the fishery and aquaculture sector in which case the applicable de minimis regulation shall apply.
1 - ‘small enterprise’ means an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed 10 million Euro;
2 - ‘medium enterprise’ means an enterprise which employs fewer than 250 persons and which has an annual turnover not exceeding 50 million Euro, and/or an annual balance sheet total not exceeding 43 million Euro, and which is not a small enterprise.
3 - ‘large enterprise’ means an enterprise which is not a medium or small enterprise.
Each individual applicant may be issued with a maximum of 10 grants under this incentive.
Grant amounts to be paid for each electric Category L vehicle or pedelec purchased by any eligible applicant.
| Type of vehicle | Vehicle Sub-Category | Grant amount | |
|---|---|---|---|
| 1 |
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N/A | €500 |
| 2 |
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€2,000 but not more than 80% of the invoice price. | |
| 3 |
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| 4 |
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| 5 |
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| 6 |
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25% of CIF, capped at €6,000. |
| 7 |
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| 8 |
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The maximum quantity of grants that may be issued under this incentive shall vary by type of applicant, as follows:
- Person residing in Malta: 1 grants for each type of vehicle and up to a total of 3 grants overall;
- Local Councils or Voluntary Organisation that do not carry out an economic activity (including NGOs): 10 grants;
- Voluntary Organisation that do carry out an economic activity (including NGOs): 20 grants; and
- Undertakings established in Malta: 30 grants.
Grant amounts to be paid when a vehicle in scrapped at an authorised destruction facility in conjunction with any other grant for the purchase of an electric vehicle.
| Category of Scrapped Vehicle | Place of Registration of Scrapped Vehicle | ||
|---|---|---|---|
| Malta | Gozo* | ||
| 1 | L (Motorcycles) | €500 | €500 |
| 2 | M1 (Car) or N1 (Van) | €1,000 | €2,000 |
| 3 | M2 (Minibus) | €20,000 | €21,000 |
| 4 | N2 (Small Truck) | €5,000 | €6,000 |
| 5 | M3 (Coach) | €30,000 | €31,000 |
| 6 | N3 (Truck) | €10,000 | €11,000 |
* Vehicle must have been registered, garaged or licensed in Gozo prior to the 11th of October 2021.
NOTE1: The de minimis Regulations and the respective thresholds shall apply when scrappage grants are issued to undertakings established in Malta or voluntary organisations which carry out any economic activity.
NOTE2: In order to be eligible for this scrappage scheme, the deregistered vehicle shall be from the same or lower category as the new Electric Vehicle being registered. However, when an applicant registers a new category L vehicle, the applicant may deregister a vehicle from category L or M1 or N1 and still be eligible for the scrappage scheme grant.
NOTE3: Any scrapped vehicle MUST be registered on the name of the applicant before the date of destruction.
NOTE4: Deregistered vehicles which had benefitted from the provisions of S.L.65.24 shall not be eligible for this scrappage scheme.
GENERAL NOTE: The grant amounts applicable for special purpose vehicles (SP1) shall be established based on the vehicle’s maximum permissible mass and the corresponding limits for Category N vehicles.
Applying for this incentive
An application for a grant under this scheme shall be made either by the agent/dealer/supplier or by the purchaser by submitting application form VEH057 along with any information, details and documents required therein. The purchaser of the vehicle shall be considered as the ultimate applicant in terms of this scheme.
In the case of an application within the scope of the De Minimis State Aid rules explained in section 2, the State Aid Declaration VEH071.
A licensed dealer or car agent purchasing any of these vehicles for showroom and sales purposes may apply for the grant but on re-selling such vehicle, the buyer will not be eligible for any grant, including the used grant.
Applications under this scheme, together with all the relevant documents, shall be submitted by the applicant during working hours or mailed to Transport Malta’s Driver and Vehicle Licensing Unit (DVLU). For opening hours and addresses refer here.
Page last updated: 23/11/2022
