Financial Incentives 2025

Commitment to Clean and Efficient Transport Infrastructure

For the coming year, the government will reinforce its commitment to promoting cleaner and more efficient transport infrastructure for the benefit of all citizens.

Electric Vehicle Incentives

Starting next year, the scheme for purchasing new electric vehicles will be extended. Anyone buying a new electric vehicle, including motorcycles, will be eligible for a grant ranging from a maximum of €2,000 for motorcycles to €8,000 for cars and small vans, subject to certain conditions.

Vehicle Scrappage Incentives

Grants will also be provided for scrapping old vehicles, with €1,000 for cars and vans. An additional €1,000 grant will be maintained for scrapping older vehicles registered in Gozo. This scheme is planned to be funded by European Recovery and Resilience Funds.

Honor Existing Electric Vehicle Contracts

The government will honor contracts for those who ordered a new electric car by October 28, 2024, but are unable to register it in 2024 for some reason. These individuals will be eligible to apply for this year’s grant of €11,000 even if the car is registered in 2025.

Incentives for Pedelecs and E-Kickscooters

The scheme incentivising the purchase of pedelecs and e-kickscooters for personal use will also be extended.

Tax and Licensing Exemption for Electric and Plug-In Hybrid Vehicles

Electric and plug-in hybrid vehicles with an electric range of 50 km or more will remain exempt from registration tax and the annual road license fee for five years from the date of first registration.

VAT Refund for Bicycles and E-Bikes

The scheme offering a VAT refund on bicycles and e-bikes will be extended. This applies to schemes that incentivise the purchase of electric-assisted bicycles and grants for vehicle conversions to run on gas instead of petrol.

Accessible Taxi Scheme Renewal

The scheme for purchasing wheelchair-accessible vehicles, such as taxis used for passenger transport for hire or compensation, will be renewed.

Incentive for Converting Petrol or Diesel Vehicles to Electric

The scheme encouraging the conversion of petrol or diesel vehicles to electric will also be renewed.