The Netherlands has long been a leader in promoting electric vehicles (EVs) with generous incentives. However, changes are coming that could make owning an EV more expensive for residents and international expats alike. From reduced subsidies to new taxes on electric vehicles, here’s what you need to know if you’re considering an EV in the near future.
One of the most significant changes involves the reduction of purchase subsidies for electric cars. These subsidies have made EVs more affordable by reducing their upfront costs, but the Dutch government is gradually decreasing these incentives. Further reductions are expected in the coming years, so if you’ve been thinking about purchasing an electric vehicle, now might be the time to act before the financial benefits decrease further.
No more free passes: Electric cars face road tax
In addition to reduced subsidies, another major shift is the upcoming change in motorrijtuigenbelasting (road tax) for electric vehicles. Currently, EV owners in the Netherlands are exempt from paying this tax until the end of 2024. However, starting in 2025, this will change:
- 2024: No road tax for electric vehicles.
- 2025: A 75% discount on road tax will be introduced.
- 2026: All discounts will be eliminated, and EV owners will pay full road tax, similar to gas-powered vehicles.
The exact amount you’ll pay depends on the weight of your car, which serves as the primary factor in calculating the tax. Although specific rates for EV road tax are still unclear, this change will undoubtedly affect the total cost of owning an electric car in the coming years.
For many expats, company cars are a popular benefit. Traditionally, electric company cars have been taxed at a lower rate, thanks to reduced bijtelling (the tax on private use of a company car). However, this is also changing. The tax benefits for electric company cars are being scaled back, making them a less financially attractive option compared to previous years. This means that if you receive an electric company car, expect to pay more in taxes.
Higher costs ahead: What’s the real EV deal?
These changes could be a game-changer when it comes to buying an electric vehicle. With both purchase subsidies and road tax exemptions on the decline, the financial incentives to go electric are shrinking. While electric vehicles still offer long-term savings in fuel, the short-term financial picture may make some potential buyers reconsider.
If you’ve been on the fence about purchasing an electric vehicle, it’s worth weighing the upcoming changes in taxes and subsidies. While the financial benefits are still available in 2024, those looking ahead to 2025 and beyond should be prepared for higher costs.
EV journey isn’t over
Despite the cutbacks in financial incentives, the Dutch government says it remains committed to promoting sustainable transportation. The emphasis is now shifting toward long-term strategies, like expanding EV charging infrastructure and developing a circular economy for electric vehicle batteries.
While subsidies and tax breaks are becoming less generous, the country is still pushing for a future where electric mobility is the norm. The transition to sustainable transportation is far from over, and EVs will continue to play an important role in reducing emissions and supporting green initiatives.
