Global Electric Car Market Growth in Iceland
One of the key drivers behind the growth of electric cars in Iceland is the government''s strong support and incentives for EVs. The Icelandic government has implemented various
reykjavik electric vehicle incentives
The Labor Government launched its first ever electric vehicle strategy in September 2022, and in November 2022, the Treasury Laws Amendment (Electric Car Discount) Bill passed through the
Iceland | Accelerating to Zero Coalition
The Icelandic government has committed ISK 1 billion to subsidies for car rental companies to electrify their fleets. The Medium-term Fiscal Strategy Plan 2024-2028 earmarked ISK10.2 billion in 2023 and
Plug-in electric vehicles in Iceland
The adoption of plug-in electric vehicles in Iceland is the second highest in the world after Norway, and fully supported by the government. As of 2022, the market share of electric vehicles in Iceland is
Electric car grants
The Energy Fund shall provide grants to individuals and companies for the purchase of electric cars newly registered in Iceland after 1 January 2024.
Subsidies for electrical vehicles — Orkustofnun
A new subsidy system for the purchase of electric vehicles will come into effect on January 1, 2024, when it will be possible to apply for a subsidy for the purchase of an electric vehicle from the Energy
Electric cars: Tax benefits and incentives (2025)
Most European country offer fiscal support to stimulate market uptake of electric cars, but these tax benefits and incentives differ widely.
Reduced Incentives for Electric Vehicle Ownership
The government has revoked the VAT exemption for electric vehicles and introduced a new per-kilometre charge, affecting electric, plug-in hybrid, and hydrogen vehicles.
Incentives and Legislation | European Alternative Fuels Observatory
As of 2025, the kilometer-based road tax, which was introduced for electric and hybrid vehicles in 2024, will be expanded to include all vehicles, including those powered by diesel and petrol.
Macroeconomic effects of fiscal incentives to promote electric vehicles
The scenario analysis reveals the impact of different fiscal policy incentives on consumer decision behaviour and the implications of fiscal-induced EV promotion for vehicle ownership costs,