2026 Subsidy at a Glance
Up to 5,000 Euro
Maximum government subsidy
From 0.68%
Best online loan interest rates
Step 1: Understanding the Subsidy
Germany supports electric car purchases in 2026 with a new, simple system. The subsidy consists of several components:
Base Subsidy: 3,000 Euro
For everyone buying a new electric car. No minimum holding period required.
Family Bonus: +500 Euro per Child
Maximum 1,000 Euro extra (for 2+ children). For families with children under 18.
Low-Income Bonus: +1,000 Euro
For households with annual income below 40,000 Euro.
Income Limit to Note
Your annual income must not exceed 80,000 Euro. This limit increases by 5,000 Euro for each child in your household. A family with 2 children can earn up to 90,000 Euro and still qualify.
Step 2: Additional Financial Benefits
Beyond the direct subsidy, EV owners enjoy additional financial advantages:
Vehicle Tax Exemption
Electric cars are completely exempt from Kfz-Steuer (vehicle tax) until 2035.
Savings: 200-400 Euro/year
THG Premium
Annual bonus for the CO2 savings of your electric car.
Amount: 175-240 Euro/year
What is the THG Premium?
THG stands for Treibhausgasminderungsquote (greenhouse gas reduction quota). As an EV owner, you can sell your CO2 savings to oil companies. Providers like meinetarife24 help you with this - simply register and receive money annually.
Step 3: Choosing the Right Loan
There are several options for financing your electric car. Interest rates vary significantly:
| Loan Type | Interest (APR) | Best For |
|---|---|---|
| Online Loan | from 0.68% | Best choice for most people |
| Bank Loan | 2.5% - 4.5% | Those wanting personal advice |
| Dealer Loan | approx. 2.99% | Quick processing at purchase |
| Leasing | varies | Those wanting to switch every 3-4 years |
Our Tip: Compare Online
Online loans often offer the best rates. Compare multiple providers and pay attention to the APR (effective annual rate) - it includes all costs.
Step 4: How to Apply for the Subsidy
The application process is straightforward. Follow these steps:
Choose and Purchase Your Electric Car
The vehicle must be new and fully electric (BEV). Plug-in hybrids are not eligible.
Submit Application Online
At BAFA (Federal Office for Economic Affairs) at bafa.de. Required: purchase contract, vehicle registration.
Submit Income Verification
Last tax assessment or payslips from the last 3 months.
Receive Your Subsidy
After review, the subsidy is transferred to your account. Processing time: approximately 4-8 weeks.
Required Documents (Checklist)
- Purchase contract or invoice
- Vehicle registration certificate Part I and II
- Income verification documents
- Registration certificate (Meldebescheinigung - important for expats)
- IBAN of a German bank account
Step 5: Example Calculation
Here is what your savings could look like - an example for a family with 2 children:
Electric Car for 35,000 Euro
Save Even More with Smart Financing
On a 30,000 Euro loan (after subsidy), choosing 0.68% instead of 2.99% interest over 48 months saves you approximately 1,400 Euro in interest costs.
Frequently Asked Questions (FAQ)
Can I apply for the subsidy as an expat?
Yes! You need a registered address in Germany (Anmeldung at the registration office), a German bank account, and the car must be registered in Germany. Your nationality does not matter.
Does the subsidy apply to used electric cars?
No, the 2026 subsidy only applies to new vehicles. However, for used EVs you still benefit from the vehicle tax exemption and THG premium.
How long does processing take?
Usually 4-8 weeks after complete application submission. Tip: Submit all documents immediately to avoid follow-up questions.
Can I combine the subsidy with a loan?
Yes, this is the best approach! Use the government subsidy as a down payment and finance the rest with a low-interest online loan.
Summary: Your Action Plan
- 1Check your income eligibility (max 80,000 Euro + 5,000 Euro per child)
- 2Compare car loans - Online from 0.68%, at dealers approximately 2.99%
- 3Buy your EV and apply for the subsidy at BAFA
- 4Register for the annual THG premium