Plan RENOVE 2020 - Discounts On Purchase New and Pre-Owned Cars

Posted in: Government, On The Road,
Author: Richelle de Wit
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As announced in the State Gazette on the 6th of July 2020.

The subsidies will be used for direct acquisition or acquisition through financing operations by financial leasing or renting lease (also called operational leasing) of a new vehicle, which must be purchased and registered
in Spain from June 15, 2020, inclusive.
The subsidies will also be used for direct acquisition from that same date of a pre-owned vehicle, which must be previously owned by a dealer and registered in Spain in their name after January 1, 2020.

Budget available
Total budget of 250 million euros. Of this amount, 200 million (80%) will be used to subsidize the purchase of passenger cars. Another 25 million euros will go to vans and trucks of up to 3.5 tons and five million to motorcycles. The remaining 20 million will go to the largest and heaviest vans, trucks and buses.

Beneficiaries
a) Self-employed professionals.
b) Individuals of legal age residing in Spain not included in the section a).
c) Private companies that have an establishment validly constituted in Spain at the time of submitting the application, and other types of legal persons such that their tax identification number (NIF) begin with the letters A, B, C, D, E, F, G, J, N, R or W.

The applicant must be current in the fulfillment of their tax obligations and against Social Security at the time of granting the subsidy.
Likewise, there should be no pending obligation for repayment of aid with the General State Administration and its dependent public entities or linked entities.

The beneficiary must maintain the ownership of the vehicle and its registration in Spain for at least two years from the time the grant is awarded. Individuals may only purchase a car under this plan. Legal entities, up to 30. 

Validity of the program and deadlines for submitting applications.
1. The program will take effect from June 15, 2020, and will end on the 31st of December 2020, or, if earlier, when available amounts are exhausted.
2. The deadline for submission of aid applications will be from the day of activation of the telematics management system for Program grants until 31 December 2020, both inclusive, or until the established budgets are exhausted, in case of occurrence with anteriority.
3. The date and time of activation of the telematic aid management system will be conveniently notified through the RENOVE 2020 PLAN portal.

There will be a strict first applied, first entitled regime.

In the event that the applicant is a natural person, the points of sale may provide them with the electronic means that allow them to process the aid request. For it, they must have an advanced electronic signature certificate. Likewise, the interested party may appoint a representative to carry out the request and manage the
documentation, who must be authorized for this purpose (like a gestor).

What vehicles can benefit from the subsidies?
The cars that are acquired within this plan (and that can be up to nine seats) must emit a maximum of 120 grams of CO2 and have IDAE labels A or B (you can check them here); and C, ECO or ZERO of the DGT. It can be new or self-registered by the dealer this year and will not cost more than 35,000 euros (45,000 if it is Zero emissions or the beneficiary is a person with reduced mobility) before taxes. All technologies are considered: pure electric and with extended autonomy thanks to a combustion generator, hybrids of all kinds, hydrogen, combustion, LPG and natural gas.

In exchange, the car to be scrapped must be over 10 years old (seven in the case of vans), the ITV in force and must have been registered in the name of the beneficiary, or by a first-degree relative, for at least one year. Buyers of motorcycles – combustion or electric motorcycles with more than 70 km of autonomy – vans (with an emission limit of 155 grams of CO2 per kilometer), trucks and buses can also benefit from the subsidies.

Amounts of the benefits?
In the case of passenger cars, schedule below, you will find the help that corresponds to each vehicle based on its labeling. Initially it was said that plug-in hybrids with Zero label (with an electric autonomy equal to or greater than 40 km) would have 4,000 euros, but in the final wording it has been specified that it will be the same maximum aid as in the Moves II delivering a vehicle to scrap. Although in this second plan, the age of the car is seven years (for more than 10 in Renove 2020).

An equivalent discount of the brand must be added to the amounts in the table, with a maximum of 1.000 euros. In addition, another 500 euros are added in the following three cases: if the old car is over 20 years old, the buyer is a person with reduced mobility or the monthly household income is less than 1,500 euros.

That is, adding everything (state part and brands) and considering all the possibilities, the discount that the private or self employed buyer may benefit in the case of a ‘tourism’ vehicle will range between 800 and 5,500 euros.

Note: as with previous plans (PIVE for example) the state-part of the subsidy has to be included in your resident’s income tax declaration RENTA. More info HERE.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.

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