Buying an electric car in another EU country

Is it worth switching to an electric car?

Not least because of steadily rising fuel costs, tax exemptions and lower maintenance costs (according to the ADAC cost comparison, available in German), buying an electric vehicle seems attractive to many consumers.

However, whether switching is worthwhile ultimately depends on personal circumstances, particularly driving habits, charging options and the associated electricity costs.

High prices, long waiting times – buying an electric car abroad?

It may be worth looking across the border when buying a new car. Waiting times for electric vehicles can be long, but depending on the country and model, you may find a good deal abroad more quickly.

The European single market makes it easier to buy a car in another EU country. Under EU rules, dealers generally cannot discriminate against customers simply because of their nationality or place of residence. However, this does not necessarily mean that a dealer must deliver a vehicle to another country.

Anyone considering buying an electric car abroad should be aware of the specific requirements involved in cross-border car purchases. For new vehicles, VAT is generally payable in the country where the car is registered. You should also factor in the cost of transporting the vehicle.

Buying an electric car abroad – costs versus benefits

Whether buying an electric car abroad is financially worthwhile depends on the individual case.

Manufacturers sometimes set lower net base prices in countries with high registration or luxury taxes in order to remain competitive. Depending on the model, savings of up to 30 per cent of the purchase price may be possible.

If you buy a brand-new, unregistered car for export, you do not pay VAT in the country of origin. VAT is instead payable in the country where you register the vehicle. In addition to the purchase price, you should also take into account transport and registration costs.

Legal warranty for electric cars

You can also exercise your legal warranty rights when buying an electric car abroad. For new vehicles, the legal warranty generally lasts two years. For used vehicles, the period may be reduced to at least one year under certain national rules.

In addition, most manufacturers offer a commercial guarantee on new vehicles. Sellers may also offer an additional used-car guarantee for an extra fee.

Please note the difference between legal warranty and commercial guarantee!

The legal warranty is regulated by law and provides consumers with statutory rights. The precise scope of these rights depends on the applicable law. Individual vehicle components, such as batteries, are not automatically excluded.

For example: If a defective battery is covered by the legal warranty, the seller may be responsible for the costs of repair or replacement, including material, labour and transport costs.

Under EU consumer rules, defects that become apparent within the applicable period are presumed to have existed at the time of delivery, unless the seller can prove otherwise. The length of this period and the precise rules depend on the national law that applies.

The commercial guarantee is subject to the conditions set out by the seller or manufacturer.

Up to 8 years’ warranty on the electric car battery

The battery is one of the most expensive parts of an electric car. Replacing it can cost more than a quarter of the price of a new car. This makes it all the more important that consumers are well protected.

Although sophisticated battery management systems help prevent batteries from deteriorating too quickly, battery defects can still occur.

For this reason, manufacturers often guarantee the battery for a certain period of time, usually up to eight years or around 160,000 kilometres. They often also specify a minimum capacity that the battery must retain throughout the warranty period, typically around 70 per cent.

Please note: Incorrect charging may result in loss of the commercial guarantee.

The same may apply if the car is left unused for a long period. This can lead to deep discharge and, as a result, irreparable battery damage.

Our advice

• When buying a used electric car, consider having the battery checked by a specialist testing organisation. In Germany, for example, TÜV SÜD and DEKRA offer relevant services.

• Follow the manufacturer’s charging recommendations

• If the battery is defective, do not rely solely on the commercial guarantee. Check whether you can also claim under your legal warranty rights. Depending on the applicable rules, the seller may have to prove that the defect was not already present at the time of delivery.

• Sellers often confuse the meaning of commercial guarantee and legal warranty, as well as the corresponding regulations. Do not let this confuse you.

Legal warranty on digital elements of the electric car

With all its control systems, an electric car is like a computer on the move. This makes it all the more important to keep the software up to date and ensure that it works properly.

As a buyer, you should install the necessary updates recommended by the manufacturer. Failure to do so may affect your rights in certain circumstances. Manufacturers and sellers may also have legal obligations to provide necessary updates and ensure that the vehicle’s digital elements function as agreed.

If the software is faulty, for example because of a programming error, you may be able to make a claim under your legal warranty rights.

Unlike the general statutory liability for defects, the obligation to provide necessary updates is not necessarily limited to two years. Depending on the circumstances, updates may have to be provided for as long as consumers can reasonably expect, taking into account the type and purpose of the vehicle.

If continuous provision of digital content or services has been agreed, the seller’s obligations depend on the contract and the applicable consumer protection rules.

Support programmes for electric vehicles in other European countries

Many European countries offer government support for electric mobility. In France and Ireland, for example, this can take the form of purchase grants. Countries such as Bulgaria and Denmark also encourage the purchase and use of electric cars through tax incentives.

In some countries, several measures are combined. In Finland, for instance, tax incentives have been supplemented by time-limited scrappage schemes. Spain offers direct purchase assistance through the Auto+ programme, as well as tax incentives.

It is worth checking the current status of subsidies when buying an electric car, as programmes may be changed, withdrawn or replaced.

In many European countries, purchase grants require the vehicle to be registered for road use in the country providing the subsidy.

Foreign subsidy schemes may therefore be particularly relevant to people who are moving to another EU country or live there permanently and register their vehicle there. Some countries may have special rules for people with temporary residence or a second home.

Financial consequences when moving abroad

If you have received a government subsidy for your electric car, whether in Germany or another EU country, you may be required to keep the vehicle registered in your name and in the country where you received the grant for a specified period.

If you move abroad and take your car with you before this period has ended, this may affect your eligibility for the subsidy. In some cases, you may have to repay it.

Please note the following regarding government subsidies in Germany

The environmental bonus previously available in Germany has been replaced by a new, income-based subsidy scheme. Since 19 May 2026, private individuals have been able to apply to the Federal Office for Economic Affairs and Export Control (BAFA) for the new electric car subsidy. Vehicles newly registered in Germany from 1 January 2026 onwards may qualify for a grant of up to €6,000. Eligibility depends on taxable annual household income, and households with an income exceeding €90,000 are not eligible.

Electric cars in Germany exempt from vehicle tax until 2030

In Germany, electric cars also benefit from tax incentives. Purely electric vehicles first registered before 1 January 2031 are exempt from vehicle tax for up to ten years. However, the exemption ends by 31 December 2035 at the latest. After this date, motor vehicle tax for electric cars will be reduced by 50 per cent.

For example, an electric vehicle first registered on 1 January 2022 will be exempt from tax until 31 December 2032.

Plug-in hybrids are not exempt from this tax. As with internal combustion engine vehicles, their tax rate is based on engine capacity and CO₂ emissions. As a result, the tax rate for plug-in hybrids is generally lower than that for conventional petrol or diesel cars.

Good to know

Regarding the tax it does not matter whether the electric vehicle was purchased in Germany or abroad. The regulation applies to all vehicles registered in Germany.

Greenhouse gas quota trading: selling your saved emissions

Owners of electric cars in Germany can sell their greenhouse gas reduction quota (GHG quota) and receive an annual payment. The amount is not fixed by the government but depends on market prices and the provider. Some providers are offering more than €300 per electric car in 2026.

The idea is that oil companies, whose fuels cause CO₂ emissions, are legally required to reduce their emissions over time. Companies that fail to meet the prescribed quotas may face penalties or purchase emissions credits.

Since 2022, private individuals in Germany have been able to sell the GHG quota associated with their electric vehicles on the open market. Plug-in hybrids are excluded. Income from the quota is tax-free for privately used electric cars under the applicable German rules.

How can you participate in GHG quota trading?

To participate, you need to contact an intermediary. The intermediary collects quotas from many electric-car owners and sells them to companies that need additional credits to meet their obligations.

To receive payment, find an intermediary online, register your electric car and submit a copy of the vehicle registration document, for example as a scan or photo.

More information is available from the ADAC (website in German language). The German comparison site verivox has drawn up a comparison of intermediaries.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.