While Europe and the world simulates and subsidizes electric cars, Albania does the opposite.
Until now, electric cars in Albania were promoted as exempt from duties, but with the new formula they will face a fixed annual tax of 15,000 lek (and 1,000 lek for electric motorcycles).
No one from the Government has provided any explanation for this measure, which goes against the global trend.
Electric cars are subsidized, incentivized, and financially supported in many countries in Europe and around the world. This is done as governments aim to reduce pollution, reduce dependence on oil, and accelerate the transition to low-emission transportation.
How electric cars are subsidized around the world:
1. Direct subsidy for purchase
The state gives the buyer a sum of money or deducts it from the price of the car. For example, a car that costs €30,000 may receive a subsidy of €5,000, costing the buyer €25,000.
2. Tax exemptions or reductions
The car may be exempt from VAT, registration tax or annual vehicle tax, or may benefit from a reduction in them. This can represent a significant saving even without receiving any money directly.
3. Ease for businesses
Companies can benefit from tax breaks when purchasing electric cars for employees, lower taxes on company cars, or accelerated depreciation.
4. Charging subsidy
The state covers part of the cost of installing a charger in a home, public parking lot, or business.
5. Ease of use
There may be free or reduced-price parking, lower road tolls, and ease of movement in areas with environmental restrictions.
These instruments are used in different combinations by European countries.
How it works in Europe
Germany : Subsidy of up to €6,000 for eligible buyers, as well as vehicle tax exemptions.
Italy : Subsidies that can reach up to €11,000, depending on income and the scrapping of the old car.
France: Income-related support and programs for renting electric cars on favorable terms.
Norway : Large benefits from purchase taxes and VAT, although the benefits have been gradually limited.
Spain: Purchase subsidy programs and fiscal incentives, including charging measures.
United Kingdom : A grant scheme for eligible electric models was reinstated in 2025, with a budget of £650 million.
The amounts above are maximum limits for certain programs, not the amount that every buyer automatically receives. The benefit depends on the price and model of the car, family income, program terms, and available funds.
What about outside Europe?
China
It has used tax exemptions, subsidies for replacing old cars, and support for domestic production. In 2025, the vehicle replacement program provided up to 20,000 yuan for buyers who replaced their old car with a new electric vehicle. In 2026, the full exemption from the purchase tax has been replaced with a 50% relief.
United States
There have been federal tax credits for purchasing electric cars, but the credits for new and used vehicles ended after September 2025. This shows that the subsidies are not permanent and can change with government policies.
South Korea
It has supported the purchase of electric cars through subsidy programs and policies to expand the use of zero-emission vehicles.
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