In our country, the automotive industry accounts for 10% of GDP and generates more than two million direct and indirect jobs, which is why we are in a key moment for the automotive sector in Spain, one of the most affected by the COVID-19 crisis.
As you know, the Government has recently approved a plan to boost the automotive industry (link to the BOE) with the aim of stimulating the demand for vehicles, activating production in Spain and promoting the replacement of older and more polluting cars. short and medium term.
The high budgetary allocation assigned for this purpose reveals the notoriety of the plan, with a total of 3,750 million euros, of which 1,535 million will be mobilized in 2020 and 2,215 million from 2021. For the benefit of users, this will translate into significant aid to change cars.
The incentives for users grouped within this macroplan of the government are divided into two types of aid: the MOVES II Plan and the Renove 2020 Plan, the latter being the most interesting for most buyers because it includes traditional internal combustion mechanics among its conditions.
The Renove 2020 Plan has a budget of 250 million euros aimed at encouraging the renewal of the automobile fleet in our country through the replacement of older vehicles with cleaner and safer models.
He Renove 2020 Plan vs. the MOVES II Plan
If you are considering applying for any of the aid to change your car, you should be clear about differences between the Renove 2020 Plan and the MOVES II Plan. Although it is true that both incentives are based on environmental criteria, the main difference between the two lies in the type of vehicles that can benefit from each of them.
He MOVES II Plan it has been designed only for pure electric vehicles, extended range vehicles, plug-in hybrids (PHEV) and fuel cell ones; as long as they are new models or are less than 9 months old, and when the owner is the dealer or point of sale.
It is important to bear in mind that the aid of the Renove 2020 Plan is incompatible with the aid of the MOVES II Plan.
The budget allocation is much lower, with a total of 100 million euros distributed among the different Communities and Autonomous Cities according to the Population Register published by the INE. Car change aids vary between 1,900 and 5,500 euros, with conditions similar to those of the Renove 2020 Plan.
In the Renove 2020 Plan, however, they include:
- Automobiles with ZERO label (electrical [BEV]fuel cell [FCEV] or plug-in hybrids [PHEV] with autonomy greater than 40 km) from the DGT.
- Automobiles with ECO label (hybrids [HEV], micro-hybrids[[mild hybrid]or liquefied petroleum gas / compressed natural gas [GLP/GNC]) of the DGT.
- Automobiles with label C (diesel or gasoline) from the DGT, although these must have an energy rating of IDAE class A or B.
Aid conditions in the Renove 2020 Plan
If you are interested in availing the aid to change cars of the Renove 2020 Plan you will have to meet a series of requirements in terms of emissions and administrative:
- As we have seen, the vehicle must have a sticker ZERO, ECHO or C of Traffic, as well as having an energy rating of IDAE class A or B.
- The emissions of the model in question must be less than 120 g / km of COtwo -155 g / km of COtwo for light commercial vehicles-, or be alternative energy vehicles.
- The car has to be new or registered from January 1, 2020, so they are included in the aid to change car models in stock and pre-owned.
- The car price limit has been set at 35,000 euros, except in vehicles with a ZERO label or adapted for people with reduced mobility, in which case we are talking about 45,000 euros.
- You have the obligation to scrap a vehicle at least 10 years old (in the MOVES II Plan it is optional). Said vehicle must have the current ITV and the ownership must be of the beneficiary of the aid, or of a first-degree relative (father, son or spouse), and has not changed in the last year (it is no longer worth buying a scrap metal and send it to the junkyard).
- Aid to change cars is limited a beneficiary in the case of a natural person, or 30 users in the case of legal persons.
- The automaker must provide the same amount of aid as the government.
Are renting and leasing included?
As stated in the BOE, aid to change cars will go to the direct acquisition or to acquisition through financing operations by leasing financial or lease for renting (also called leasing operating) of a new vehicle, which must be purchased and registered in Spain from June 15, 2020, inclusive.
Amount of aids to change cars
The amount of aid to change cars of the Renove 2020 Plan have been established following criteria of vehicle efficiency, favoring cars with low emissions. Aid ranges from 300 to 4,000 euros for freelancers and individuals, but SMEs and large companies can also benefit:
What about people with little income or reduced mobility?
Additionally, the BOE establishes that all these figures may be increased in other 500 euros if a number of conditions are met:
- If the car to be scrapped is over 20 years old.
- If the buyer has reduced mobility (vehicle adapted or adapted for driving).
- If the buyer’s monthly income is less than 1,500 euros (requires accreditation by means of a responsible declaration in the application questionnaire).
Dates and deadlines to apply for the Renove Plan grants
The aid to change cars of the Renove 2020 Plan are managed directly by the Government through the Ministry of Industry, Commerce and Tourism, taking effect from the June 15, 2020. In other words, the date of purchase must be at least June 15, 2020 or later.
The term will end on December 31, 2020, or, if it occurs before, when the available amounts established for this purpose are exhausted. For its part, the deadline for submitting aid applications will include activation day of the telematic system aid management until December 31, 2020, both inclusive, or until budgets are exhausted.
The date and time of activation of the telematic aid management system will be conveniently notified through the RENOVE 2020 PLAN portal.
It is estimated that this program will have a economic impact for Spain of 1,104 million euros throughout the entire value chain and associated services, while contributing to the maintenance of 7,400 jobs in the sector.
How to order the aids to change cars
You can request the grants of the Renove 2020 Plan through two ways, but in any case, the requests will be answered by rigorous order of presentation:
- At the dealership in person or through an accredited representative, in which case they will provide you with the relevant electronic means to process the application (you will have to have an advanced electronic signature certificate).
- Submission of applications and additional supporting documentation can also be done by advanced electronic signature in the computer application developed for this purpose ..
Be careful with the Treasury if you benefit from the Renove 2020 Plan!
Remember that government aid and subsidies are subject to Income Tax, unless otherwise indicated in the specific regulations of said incentive. This implies that, when they exceed the amount of 1,000 euros, we must pay them in the declaration of income as capital gain, even if we are exempt from doing it.