The Spanish Congress of Deputies has rejected, for the second time, a proposal to reinstate a 15% income tax (IRPF) deduction for the purchase of electric vehicles. This decision has sparked strong opposition from the automotive industry, which warns it will slow down the energy transition. Simultaneously, the European Commission has confirmed that Spain's regulations on mandatory V-16 signaling beacons comply with EU law, ending a months-long legal dispute.

Rejection of 15% IRPF Deduction

The Spanish Congress rejected regulations allowing a 15% deduction of electric vehicle purchase costs from income tax.

Confirmation of V-16 Legality

The European Commission ruled that Spain's system of mandatory illuminated V-16 beacons complies with EU law.

Restrictions for 'Zero' Label Cars

The DGT is introducing the first traffic restrictions for vehicles possessing the previously privileged Zero Emissions label.

The Spanish parliament's decision to reject a tax deduction for purchasing electric and plug-in hybrid vehicles is a major blow to the automotive sector. Despite initial hopes and conflicting reports about the possibility of deducting up to €3,000 from taxes, the Congress of Deputies ultimately did not support extending fiscal privileges for buyers of low-emission vehicles. Manufacturers and dealers, represented by major industry associations, are calling for immediate political consensus, pointing out that the lack of stable financial incentives drastically reduces citizens' interest in eco-friendly alternatives. Simultaneously, the Ministry of the Interior, headed by Fernando Grande-Marlaska, is defending the introduction of smart V-16 beacons, which are intended to eventually replace traditional warning triangles. According to official data, these devices are activated in Spain an average of 2,300 times per day, which is said to genuinely improve road safety by immediately notifying emergency services of a breakdown or accident. Although the opposition People's Party raised doubts about privacy protection and compliance with EU competition standards, the European Commission officially sided with Madrid. Brussels ruled that road safety matters remain within the competence of member states and that the V-16 system does not violate community freedoms. However, the situation for electric vehicle users is becoming even more complicated due to new restrictions announced by the General Directorate of Traffic (DGT). For the first time, restrictions have been introduced for vehicles with the "Zero Emissions" label, undermining the previous paradigm of universal privileges for this group of drivers. Experts note that the combination of a lack of financial incentives and new restrictions could significantly set Spain back from achieving the European Union's ambitious climate goals regarding the decarbonization of individual transport. Spain has struggled for years with one of the oldest vehicle fleets in Western Europe, which prompted the government to implement support programs like MOVES III. However, bureaucracy and delays in subsidy payments meant that tax deductions within the IRPF system were seen as the most effective tool for fleet renewal. In response to criticism, the Interior Minister described the opposition's accusations as "fake news" and emphasized that Spain is becoming a European leader in the digitalization of road safety. Nevertheless, for the average consumer, the key question remains about the real operating costs of electric vehicles in the face of expiring fiscal protections. The industry warns that without a predictable support system, electric vehicle sales targets for 2026 will remain merely a theoretical assumption.

„Una vez más, nuestro país se sitúa como referente en sus políticas de seguridad vial” (Once again, our country positions itself as a benchmark in its road safety policies.) — Fernando Grande-Marlaska

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