In the new decade, the Netherlands remains at the forefront of electrification. With its progressive EV policies and extensive network of EV chargers, it retains its status as the global leader in electric vehicle adoption and charging infrastructure density per 100 km. Forecasts suggest that the EV charging infrastructure market will exceed 200 thousand units by 2025.
Furthermore, Dutch incentive policies have proven highly effective, to the extent that owning an electric car now costs the same as owning a diesel or gasoline car. Here’s a brief summary of the key incentives available:
EV Incentives in the Netherlands
National EV Incentives
Introduced on June 4, 2020, the Netherlands rolled out a new subsidy program for electric vehicles. State Secretary for Infrastructure and Water Management, Van Veldhoven, underscores the scheme’s aim: to promote clean driving by incentivizing the purchase of new or used electric cars over Internal Combustion Engine (ICE) vehicles. This initiative is geared towards enhancing air quality and curbing greenhouse gas emissions.
Under this scheme, electric vehicles purchased from June 4, 2020 onwards are eligible for a subsidy, which can be applied for through the Netherlands Enterprise Agency (RNO). Here’s the latest update on these incentives:
Subsidies
- €4,000 for purchasing or leasing a new EV
- €2,000 for purchasing or leasing a used EV
Conditions, details & application information:
- EV must have an original value of €12,000 to €45,000
- EV must have a minimum range of 120 km
- EV must be purchased or leased on or after 4 June 2020
- A list of eligible cars can be downloaded here
- The subsidy scheme runs from 1 July 2020 to 1 July 2025, unless the budget of €17.2M is used up earlier
- For more information and to apply, click here
Tax Benefits
- Purchase tax (Belasting van personenauto’s en motorrijwielen; BPM): BPM is the tax you pay when buying a passenger car or motorcycle. EV owners receive the following BPM tax benefits:
- Purely electric vehicles:
- Until 2024: fully exempt from purchase tax
- 2025: you’ll pay a purchase tax fee of €360 per car
- After 2025: purchase tax fee will increase with inflation every year
- PHEVs (Plug-in Hybrids)
- BPM rates are based on the World Harmonized Light Vehicle Testing Procedure (WLTP) CO2 testing method; use this table to calculate your BPM rate
- Purely electric vehicles:
- Motor Vehicle Tax (MRB): MRB is an annual tax you pay on the possession of a car, motorcycle or truck. EV owners receive the following MRB tax benefits:
- Purely electric vehicles:
- Until 2024: fully exempt from motor vehicle tax
- 2025: 75% discount on MRB
- 2026 onwards: full MRB applies
- PHEVs:
- Until 2024: 50% discount on motor vehicle tax
- 2025: 25% discount on MRB
- 2026 onwards: full MRB applies
- Purely electric vehicles:
Business Benefits:
If you’re an entrepreneur or business owner, take advantage of the following benefits when you invest in company EVs:
Emission-Free Commercial Vehicles subsidy scheme (SEBA)
- 10% of list price when purchasing or leasing new EV (capped at €5,000); valid from 15 March 2021 to 31 December 2025.
Tax benefits
- VAT exemption: companies who promote electric driving don’t have to pay the 21% VAT, however the 2.7% VAT private correction applies.
- Environmental Investment Allowance (MIA): Using the MIA, companies can receive an investment deduction of up to 36% of the amount invested into the EV. EVs on the Environmental List 2020 are eligible for this.
- Bijtelling: this is a type of tax that applies if you use the company car privately. Basically, depending on the emissions of your vehicle, a percentage of its list price is added to your taxable income base. EV owners receive the following Bijtelling benefits:
- 2021: discounted rate of 12% (instead of 22%)
- 2022-24: discounted rate of 16% (instead of 22%)
- 2025: discounted rate of 16% (instead of 22%)
- 2026 onwards: full rate of 22% applies
Eco-tax
- Punitive measures: high-emitting CO2 vehicles that are more than 12 years old have to pay another 15% on top of existing ownership tax as of 2019.
- Taxes for gasoline and diesel will be increased by one cent per liter this year and will see another one-cent increase in 2023.
Banning Gasoline/Petrol Cars
- From 2030, only emissions-free vehicles will be allowed to be newly registered in the Netherlands.
Municipality EV Incentives
It’s advisable to explore potential incentives provided by your local municipality, as some may offer additional subsidies. To find out more about EV incentives in your municipality, a simple internet search using the term “EV stimulansen + [name of your area]” should guide you to relevant resources. Alternatively, you can refer to a government webpage listing all municipalities, along with their official contact details and useful links. Many municipalities facilitate online applications, utilizing either your DigID (for residents) or e-Identification (for organizations).
For instance, here’s an example from Amsterdam:
Amsterdam:
- Subsidy for EVs & scrapping scheme:
- New subsidies from 5 December 2019 provide a max €3,000 for a taxi up to €40,000 for a van, truck or bus (depending on their vehicle classification, size and weight). Both new and used emission-free vehicles can be subsidized. For more info & how to apply, click here.
- A scrapping subsidy of €500 is available if you scrap an old diesel. For more information & how to apply click here.
EV Charging Incentives in the Netherlands
For Private Individuals:
Currently, there are no national or local incentives in the Netherlands for purchasing and installing private charging points. Instead, the government directs its efforts towards supporting companies and the development of public charging infrastructure.
For Businesses:
- Environmental Investment Allowance (MIA): Businesses can receive an investment deduction of up to 36% for the amount invested in a charging point.
- Random depreciation of environmental investments (VAMIL): This scheme allows companies to depreciate 75% of the investment costs for a charging point.
Public Charging Point System:
The Netherlands boasts over 58,000 public and semi-public EV charging points. Residents can easily locate nearby charging points using a convenient map. If there’s no charging point nearby, individuals can request a free public charging point installation. While users must cover energy consumption costs, there are no charges for purchasing, installing, or using the charger.
Overview of Charging Point Schemes in Major Cities:
[Details could be provided separately for each major city, if needed]
Amsterdam:
Free public charging points:
Applying for and installing a new public charging point is free of charge.
For more details and application procedures, click here.
Users can access these public charging points with a charge card and pay based on energy consumption.
Eindhoven:
Free public charging points:
The application and installation of a new public charging point come at no cost.
For further information and application guidelines, click here.
Public charging points can be utilized with a charge card, with payment based on energy usage.
The Hague:
Free public charging points:
Applying for and installing a new public charging point are free of charge. Installation typically takes between 2-4 months.
For additional information and application instructions, click here.
Users can utilize public charging points with a charge card and pay according to energy consumption.
Rotterdam:
Free public charging points:
The application and installation of a new public charging point are free of charge.
For more information and application procedures, click here.
Public charging points can be accessed using a charge card, with payment based on energy usage.
Utrecht:
Free public charging points:
Applying for and installing a new public charging point is free of charge.
For further details and application guidelines, click here.
Users can access public charging points with a charge card and pay based on energy consumption.
Government Electrification Initiatives & Policies in the Netherlands
Since 2010, the Dutch Government has been actively pursuing an electrification initiative as part of its strategy to exclusively permit emission-free vehicles to register by 2030. The government aims for an average of 400,000 electric vehicles (EVs) on the roads annually by 2030. Starting as early as 2020, the Netherlands, along with specific municipalities like Amsterdam, Rotterdam, The Hague, and Utrecht, has embarked on a comprehensive implementation of both European and National Green Deal plans.
Mission Zero
The Mission Zero initiative, driven by Holland’s commitment, delineates the country’s vision to spearhead a transition towards a zero-emission future. Here are some key ongoing and new initiatives:
Buses: By 2030, all buses will be 100% emission-free, with new buses entering service from 2025 mandated to be zero-emission from the outset. The energy for these battery-electric and hydrogen-electric buses will primarily be sourced from wind and solar panels.
Car sharing: Currently, around 400,000 Dutch citizens engage in car sharing. The Green Deal targets 100,000 shared electric cars by 2021. Pilot projects for electric car-sharing are underway in select municipalities (including Amsterdam, The Hague, Rotterdam, Utrecht, Amstelveen, Amersfoort, and Apeldoorn). Under the City Deal, approximately 5,000 residences are equipped with solar panels to power around 200 shared EVs. Car sharing not only promotes efficient use of vehicles but also optimizes parking space and facilitates better management of EV charging.
Taxis: In Amsterdam, roughly 13% of taxis are fully electric.
Charging stations: The government aims to install 1.8 million public, semi-public, and private charging points nationwide by 2030 to accommodate the increasing demand for EVs. Several tenders have already been issued for the construction of thousands of public charging stations.
Infrastructure: A focused strategy was established for 2018-2020 to enhance urban accessibility, develop innovative transportation concepts, and reduce CO2 emissions. As part of its smart mobility plan, the Ministry of Infrastructure and Environment has allocated 6.2 billion euros to infrastructure investments. Since 2018, this has included expanding the road network by 268 km of new lanes to manage traffic flow effectively.
Target group transport: Transport options for individuals unable to travel independently due to physical or mental disabilities will also transition to 100% emission-free by 2025.
Formula E-Team
Established several years ago, the Formula E-Team (FET) aims to propel advancements in electric transportation. It operates as a collaborative effort between the government, businesses, and educational institutions (such as Energy Netherlands and the Nature Environment Foundation). The FET is instrumental in realizing the commitment for 100% of new vehicle sales to be zero emissions by 2030. Aligned with the Climate Agreement, the FET focuses on:
- Strengthening the consumer market
- Developing the logistics sector and heavy transport
- Enhancing and expanding the charging infrastructure
- Integrating sustainably generated energy
- Harnessing the international potential of electric transportation companies
- Fostering innovation
Responsibilities of the FET include executing the objectives outlined in the Green Deal Electric Transport 2016-2020. This involves aiming for 50% of newly sold cars to have an electric drivetrain (including plug-in hybrid electric vehicles) by 2025, with at least 30% of these being fully electric.
The Netherlands: Continuing Major Growth in EVs
In addition to its commitment to the international Climate Agreement, the Netherlands signed a National Agreement in June 2019, illustrating its dedication to domestic electrification. This agreement allocates a budget of €250 million to incentivize electric driving until 2025, with no additional subsidies planned beyond this period.
While the reduction in incentives may pose a challenge to EV adoption, the Netherlands has witnessed significant growth thus far, partly due to local subsidies. Despite the incentive cap for the next five years, the Netherlands’ proactive approach positions it well to achieve its zero-carbon objectives by 2030, thanks to collaborative efforts, knowledge advancement, and regional integration.