Italy’s path to electric vehicles lies in tax policy
Belgium, the Netherlands and France are leading the way with zero-emission company cars, whilst Italia lags behind
The electrification of cars in Europe is progressing at very different rates, and the sector where these differences are most evident is that of corporate fleets. This is a crucial sector because businesses purchase a significant proportion of new cars and replace them more quickly than private individuals, thereby also fuelling the second-hand car market to a very significant extent.
The latest figures speak for themselves. In the first few months of 2026, electric vehicles accounted for around 59 per cent of new company car registrations in Belgium; in the Netherlands, they accounted for 68 per cent in the final quarter of 2025; and in France, the share is rising sharply. In Italia, however, in the first five months of 2026, electric vehicles accounted for just 5 per cent of company car registrations.
Differences of this magnitude cannot be attributed solely to varying levels of uptake of electric vehicles. In the fleet market, it is the financial considerations – and therefore tax policies – that matter most.
Belgium is the most significant example. The tax deductibility of company cars with emissions is being phased out, whilst for electric cars purchased in 2026 it remains at 100 per cent. Germany has focused on the very favourable tax treatment of electric cars provided to employees, including for private use. France combines tax incentives with obligations for the gradual electrification of large fleets. The Netherlands has long used tax incentives to great effect.
Italia, too, has taken this path. From 2025, for new vehicles allocated for mixed use, the notional value of the benefit will be calculated using coefficients of 10 per cent for electric vehicles, 20 per cent for plug-in hybrids and 50 per cent for other fuel types. The recent amendment to the tax reform has confirmed this approach and, from the 2026 tax year, has simplified the rules, whilst also extending the transitional regime for cars ordered by 2024 and delivered in 2025. However, Italia has introduced a penalty for older vehicles: after the fifth year following first registration, the value of the benefit increases by 50 per cent.
