Extension of favorable tax deductibility for hybrid cars: Europe puts on the brakes

For hybrids ordered in 2026, a maximum deductibility of up to 100% will apply for the entire lifespan, decreasing to 57.5% for orders in 2029. From 2030, the deductibility will disappear. The deduction percentage will still depend on CO₂ emissions: up to 40 grams per kilometer entitles to full deduction; between 50 and 75 grams, this will be limited to 75%.

The limit for so-called “fake hybrids” has also been relaxed: from 50 to 75 grams of CO₂ per kilometer. This should prevent many models from being excluded under the stricter Euro 6e bis standard, which will come into effect in 2026 and estimate CO₂ emissions more realistically – but also significantly higher.

European objection

In early June, the European Commission indicated that this relaxation contradicts Belgium’s climate commitments. Without adjustment, there is a risk of losing up to 282 million euros in European subsidies. The measure is therefore being reviewed.

In response, the federal government decided to limit the tax relaxation to self-employed individuals with a sole proprietorship. Employees and company directors are excluded from the favorable regime.

What does this mean for you as an entrepreneur?

The federal government has tried to make the transition to plug-in hybrids more attractive through a tax relaxation. However, due to the intervention of the European Commission, the measure was scaled back to sole proprietorships only, significantly limiting the scope of the plan.

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This article was written by Ytse Vergote.