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EXPLAINED: How you can claim Italy’s auto bonus for a new car

You could get a discount worth thousands of euros if you buy a car under Italy's new auto bonus. Here's how it works.

EXPLAINED: How you can claim Italy's auto bonus for a new car
You could claim thousands of euros towards a new car with Italy's auto bonus. Photo by Obi - @pixel6propix on Unsplash

The Italian government announced on April 6th that it had approved additional funds for the next three years to encourage the purchase of new cars under its ‘auto bonus’ discount scheme.

You can apply for the new bonus to purchase older models of petrol and diesel cars within a certain limit of CO2 emissions, as well as low-emission electric or hybrid vehicles and motorbikes.

READ ALSO: Italian government announces new car discounts of up to €3,000

Between 2022 and 2024, the Italian government has allocated €650 million per year for the scheme, with a maximum of €5,000 allocated for every new car bought.

Full details of the bonus were made available as the Italian government published the decree last Monday (which you can find here, in Italian).

Based on the decree text, here’s how the scheme works and how much you can claim towards the purchase of a new vehicle.

Which cars does the bonus apply to?

The law takes two parameters into account: carbon dioxide (CO2) emissions, which cannot exceed 135 g/km, and the list price.

The maximum limits are broken down as follows:

  • €35,000 for cars in the 0-20 g/km CO2 range
  • €45,000 for the 21-60 g/km range
  • €35,000 for the 61-135 g/km range

To know how much bonus you can claim, you’ll need to be aware of the exhaust emissions – both of the car you’re buying and potentially, a car you may scrap.

The bonus refers to the six classes of vehicle emissions: Euro 1, 2, 3, 4, 5 and 6. Each class gives an emissions standard based on the registration date of the car and how much CO2 the car produces per kilometre.

You can check Italy’s Ministry of Infrastructure and Sustainable Travel website here to find out the environmental class of your vehicle.

The bonus can be used for both purchasing and leasing of cars.

Do I have to scrap a car to get the bonus on a new car?

No. You only need to scrap a car at the same time if you want to buy hybrid and thermal cars (petrol or diesel) with emissions between 61 and 135 g/km.

If you want to buy an electric car (0-20 g/km) or plug-in hybrid (21-60 g/km) scrapping is not mandatory.

READ ALSO: ‘Expect the unexpected’: What you need to know about driving in Italy

In these two situations, however, those who have a car to be scrapped can get an extra €2,000 bonus.

You don’t have to be the owner of the car to be scrapped either – but they must be living with you in the same household.

Overview of funds available

So, how much you can claim depends on the carbon dioxide emissions and whether you scrap a car at the same time.

Here’s a rundown:

  • Without scrapping
    – 0-20 g/km CO2: €3,000
    – 21-60 g/km: €2,000
  • With scrapping
    – 0-20 g/km: €5,000
    – 21-60 g/km: €4,000
    – 61-135 g/km: €2,000

Let’s look further into how that works out for different car types.

Italy’s auto bonus incentivises electric cars. AFP PHOTO / GABRIEL BOUYS

Electric car incentives up to €5,000

You can claim €3,000 for M1 category vehicles with a price of up to 35,000 euros + VAT.

According to the European Commission, M1 means a vehicle designed for the carriage of passengers and has no more than eight seats in addition to the driver’s seat – for private, non-commercial use.

The vehicle must be at least Euro 6 classification in the European exhaust emissions standard.

You can claim the full amount of €5,000 if you scrap a car at the same time as purchasing a new one.

READ ALSO: ‘How we used a government bonus to buy an electric car in Italy’

However, to be eligible for the extra €2,000, the law allows cars below Euro 5 to be scrapped. This means Euro 0, 1, 2, 3 and 4 classes.

As already indicated, it must have been registered in the name of the purchaser of the new car (or a cohabiting family member) for at least 12 months.

Hybrid car incentives up to €4,000

For the purchase of plug-in hybrid cars with a price of up to €45,000 + VAT, you can claim €2,000 if the vehicle is a Euro 6 class.

A further €2,000 may be added if you scrap a car in a class lower than Euro 5 at the same time.

Car scrapping incentives

To encourage drivers to move towards more ecological private transport, the government is incentivising scrapping older cars with poor exhaust emission ratings in favour of newer, lower emission cars.

The scrapped car, again, must be owned for at least 12 months and must be in an emission class lower than Euro 5.

There are higher discounts on offer, the lower emissions your new vehicle produces:

  • Cars 0-20 g/km CO2 (up to €35,000 + VAT): €3,000 without scrapping – €5,000 with scrapping
  • Cars 21-60 g/km CO2 (up to €45,000 + VAT): €2,000 without scrapping – €4,000 with scrapping
  • Cars 61-135 g/km CO2 (up to €35,000 + VAT): €2,000 with scrapping

There are discounts on offer for those buying mopeds and motorbikes in Italy too. Photo by Lachlan Gowen on Unsplash

Motorbikes and moped bonus

There are also funds available for those looking to buy two wheels, rather than four.

The decree provides incentives for the purchase of electric and hybrid mopeds and motorbikes (categories L1e, L2e, L3e, L4e, L5e, L6e, L7) from 2022 to 2024.

Here’s what you can claim:

  • a 30 percent discount on the purchase price of an electric or hybrid motorbike or moped, granted up to a maximum of €3,000. Or 40 percent up to €4,000 if you scrap a motorbike in an emissions class from Euro 0 to 3.
  • For brand new mopeds and motorbikes, on the other hand, you can get a a 5 percent discount from the dealer, a 40 percent discount on the purchase price and up to €2,500 with scrapping of a motorbike up to class Euro 3.

What else do I need to know?

As with all bonuses, there are some conditions you need to be aware of before claiming the auto bonus.

The vehicle purchased with the incentives must be registered within 180 days of claiming. However, this could change following calls to extend the deadline. That’s because the delivery time is not always less than 180 days, especially for cars in the 21-60 g/km emissions range.

You also can’t sell on a vehicle bought with the bonus until you’ve owned it for at least 12 months.

The bonus is in force now following its publication in the new decree. However, be aware that not all computer systems may have caught up yet should you rush to the dealer ready to sign on the dotted line today.

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For members


Revealed: The most expensive places in Italy to buy a house in 2022

Many factors are at play when deciding where to purchase a home in Italy. To help you decide, here are the most expensive and sought-after locations in Italy, according to the latest data.

Revealed: The most expensive places in Italy to buy a house in 2022

Searching for the right property in Italy involves a balancing act of location, price, convenience and how much, if any, restoration work needs to be done.

Budget usually tops the list for house-hunters, narrowing down the number of potentials for making your move to or within Italy.

If the entire country is your blank slate, here are the areas in Italy that rank as the most expensive – and desired – according to data from property portal Idealista for the first quarter of 2022.

The report ranks the top 100 municipalities according to popularity, based on those listings generating the most leads (email contacts and shares) and those where the average final sale price is highest.

READ ALSO: How bargain homes made one Italian town €100 million in two years

Taking the top spot for the most expensive place to buy in Italy is Pietrasanta in Versilia, in the province of Lucca, which the researchers also state holds first place in the top 100 most expensive places to rent a house too.

This area includes the playground of the rich, Forte dei Marmi, where the average selling price of a house is over half a million euros (€541,351).

The table below shows the full ranking.

In second place is Alassio, in the province of Savona, where homebuyers will on average shell out €467,019 for a residential property (again, valid for the first quarter of 2022).

Venice comes in at third place, where the average asking price is €433,640.

READ ALSO: EXPLAINED: The hidden costs of buying a home in Italy

In the top 10 spots, the report noted that the most expensive properties are in tourist resorts, possibly driven by those wanting second homes in popular locations.

Such locations include Lerici, Riccione, Desenzano del Garda, Camaiore and Cervia, while the cities of Florence and Milan, where average sale prices exceed €350,000, have also made the top 10.

The study revealed that the final average price of a house for sale in Rome is €273,341.

Researchers also looked at popularity of locations, based on pressure of demand on supply across Italy.

Bologna topped the charts, making it the city with the highest number of contacts per advert (4.7) of houses for sale published on idealista. Cagliari followed in second with 3.8 contacts per advert and Milan (3.4 contacts per advert). Trieste, Naples, Rome, Salerno, Brescia, Verona and Lecce also made the top 10.

READ ALSO: 15 insider tips to make living in Bologna even better

Here’s a selection of the most popular places to buy in Italy based on the report data, narrowed down to the top 20.

See more in The Local’s Italian property section.