The Ministry of National Economy and Finance (YPETHO) is moving toward revising the provisions regarding changes to the taxation of hybrid vehicles, following the strong reactions that emerged during the public consultation on the omnibus bill.
As evidenced by the comments posted during the public discussion, the market is reacting strongly to the proposed regulations concerning both the registration fee and the tax treatment of company vehicles of this type.
At the center of the criticism is the provision for a uniform 50% exemption from the registration fee for all hybrids, regardless of carbon dioxide emissions. Currently, vehicles with emissions of up to 50 grams of CO₂ per kilometer receive a 75% exemption, while for the rest, the rate is 50%.
Impact on Price
The elimination of this differentiation translates into an increase in the retail prices of plug-in hybrid cars. For example, the registration fee for a model that currently costs €5,700 with the 75% discount will rise to €6,650 with the reduction of the discount to 50%, increasing the retail price by approximately €1,000.
The bill does, however, provide for a transitional protection period for vehicles that have already been imported into the country. Specifically, for cars with emissions of up to 75 g per kilometer, which were imported from November 1, 2025, to May 31, 2026, the 75% exemption is maintained so as not to disrupt agreements and orders made under the previous regime.
Fewer benefits for company vehicles
The new provisions of the draft bill under consultation introduce changes to the tax framework for company vehicles, the most significant of which significantly limits the tax benefits that low-emission models have enjoyed to date.
Exemptions from the calculation of taxable income for benefits in kind and allowances related to the use of such vehicles, including charging costs, will no longer apply and will be reserved exclusively for zero-emission vehicles.
At the same time, the special regime that applied to the provision of hybrid company cars to employees, partners, and shareholders is being abolished. Going forward, tax incentives will apply only to fully electric vehicles, while a pre-tax retail price cap of 40,000 euros is set to maintain the relevant exemptions.
Reactions
The proposed changes have sparked reactions from automotive market stakeholders. Importers and industry representatives warn that the reduction in incentives will particularly hurt the plug-in hybrid segment, which has grown in recent years due to tax breaks.
In any case, corrective measures are expected from the government to withdraw the provisions in question, and under pressure from stakeholders, a full return to the existing system cannot be ruled out.
The Ministry of Finance’s final decisions are expected after the conclusion of the public consultation, which ends on June 15.
Market players point out that Greece has one of the oldest car fleets in the European Union, with an average age of about 18 years, and that limiting incentives for modern vehicles will hinder fleet renewal and the reduction of emissions, which is the very goal.