Transport Malta has announced a new grant scheme, the Purchase of New Electric Vehicles - 2024 Scheme, with a total budget of €15,000,000 to encourage the purchase of new electric vehicles.
The electric vehicles eligible for aid under this scheme are the following:
- Passenger cars;
Goods carrying vehicles;
Minibuses;
Coaches;
Quadricycles;
Motorcycles; and
Pedelecs.
The scheme is available to:
- Persons residing in Malta;
- Voluntary organisations (including NGOs); and
- Undertakings established in Malta.
A scrappage scheme is also applicable when the buyer of the new electric vehicle or pedelec simultaneously scraps a vehicle of any category which is older than 10 years from the manufacturing date.
De Minimis Rules vs General Block Exemption Regulation (GBER) applicants
The grant scheme is being offered under two different state aid regulations, being De Minimis and GBER.
Under the De Minimis Rules, the total aid granted in Malta to any single undertaking (as defined) from all De Minimis schemes cannot exceed €300,000 (€20,000 and €30,000 for undertakings operating in the agricultural and fisheries and aquaculture sectors respectively) over a rolling period of 3 years.
Undertakings may apply for this grant under the De Minimis State Aid Rules if:
They have not yet received or applied for grants or other public funds to approach or exceed the applicable threshold as set out above; and
The grant(s) for which they are applying will not cause them to exceed the applicable threshold.
Undertakings that cannot apply for the grant under the De Minimis Rules as they have exceeded the applicable thresholds or because the grant(s) being applied for will cause the thresholds to be exceeded, may apply for the grant under GBER.
Grant calculations under the De Minimis State Aid Rules
The grant for applicants registering a new electric vehicle or pedelec under the De Minimis State Aid Rule is calculated as follows:
Type of vehicle |
Grant amount |
Pedelecs |
€500 per vehicle |
Cargo Pedelecs L1e-A/B - Powered cycles & Two-wheel mopeds L3e-A1/A2 - Low & Medium performance motorcycle L4e-A1/A2 - Low & Medium performance two-wheel motorcycle with side-car |
€2,000 per vehicle (capped at 80% of the selling price) |
L2e - Three-wheel mopeds; L3e-A3 - High-performance motorcycle; L4e-A3 - High-performance two-wheel motorcycle with side-car. L5e - Powered Tricycles. L6e - Light quadricycles or quadri-mobile. L7e - Heavy quadricycles or quadri-mobiles |
25% of Cost, Insurance and Freight Value, capped at €6,000 per vehicle; minimum €2,000 |
M1 - Car N1 - Vans |
€11,000 per vehicle |
M2 - Minibus N2 - Small Truck |
40% of the selling price, capped at €70,000 per vehicle |
M3 - Coaches N3 - Trucks |
Grants for these vehicles may only be issued under GBER |
Grant calculations under GBER
Under GBER, there are no thresholds and the grant amounts are not fixed but are calculated at a percentage of the ‘investment cost’ depending on the size of the applicant, as follows:
Size of single undertaking |
Small enterprise | Medium enterprise |
Large enterprise |
Basic incentive as percentage of investment cost |
60% |
50% |
30% |
“Investment cost” is defined as the difference between the cost of the new vehicle and that of a conventional new vehicle. Moreover, the size of the enterprise is determined in accordance with the European Commission’s Recommendation concerning the definition of micro, small and medium-sized enterprises (2003/361/EC).
Scrappage Scheme
Incentives to be paid when a vehicle which is at least 10 years old is scrapped in conjunction with any other grant for the purchase of an electric vehicle:
Category of Scrapped Vehicle |
Place of Registration of Scrapped Vehicle |
|
Malta |
Gozo |
|
L (Motorcycles) |
€500 |
€500 |
M1 (Car) or N1 (Van) |
€1,000 |
€2,000 |
M2 (Minibus) |
€30,000 |
€31,000 |
N2 (Small Truck) |
€15,000 |
€16,000 |
M3 (Coach) |
€50,000 |
€51,000 |
N3 (Truck) |
€25,000 |
€26,000 |
Application requirements
Applications under the De Minimis Rules shall be submitted after the new electric vehicle is registered through an online form along with any information, details and documents required therein.
Applications under GBER shall be submitted either by the purchaser after the new electric vehicle is ordered or registered by submitting a paper application form and any information, details and documents required therein.
A licensed dealer or car agent purchasing any of these vehicles for showroom and sales purposes may apply for the grant but on re-selling such vehicle, the buyer will not be eligible for any grant, including the used grant.
How can we help?
PwC Malta is available to support you with any additional information and guidance you may require in relation to this scheme and to assist you with the application process and compilation of required documentation including application submission and follow up support.
Contact us
