The 2026 EV grant for the self-employed and freelancers
Self-employed people can get the grant, but only for a car that stays private. What that means for business assets, company cars and profits that go up and down.
Worked through by Radif Partners · Editorial policy · How we calculate
Good year, weak year: what the average gives
Grant on the average
€3,000
| Average of both years | €67,000 |
| Year 1 alone | €0 |
| Year 2 alone | €5,000 |
What counts is always the two newest assessments when you apply; you cannot pick a year.
The self-employed, freelancers and sole traders can apply for Germany’s 2026 EV grant as private individuals. BAFA is clear: the funded car must be held privately and may not be part of business assets (Betriebsvermögen). Companies, associations and local authorities cannot apply, and a car registered to a limited company (GmbH) or another business does not qualify. During the 36-month holding period, the car may not be moved into business assets later either. Otherwise the same rules apply as for everyone: household income from the 2 most recent income tax assessments (Einkommensteuerbescheid), averaged per person. For the self-employed with fluctuating profits, that average matters. A master tradesman with €104,000 in a record year and €52,000 the year after averages €78,000; with two children and no other income in the household he gets €4,000 for a battery electric car. What counts is taxable income (zu versteuerndes Einkommen) after business expenses and all other deductions, not turnover.
Private person yes, business no
The funding guideline is aimed at natural persons. BAFA therefore answers the question about the self-employed with a clear yes and one condition: the funded car must be held privately and not be part of business assets. Everything else follows the same requirements as for employees or pensioners. Excluded are applicants who are not natural persons: companies of any legal form, associations and local authorities.
| Case | Qualifies | Why |
|---|---|---|
| Freelancer, car registered privately and in private assets | yes | natural person, private assets |
| Sole trader, car in business assets | no | business assets |
| GmbH director, car registered to the GmbH | no | the keeper is a company |
| GmbH director, car bought and registered privately | yes | natural person, private assets |
| Employee with an employer’s company car | no | the keeper is the employer |
| Association buys an electric car for a driving service | no | not a natural person |
Private assets and work trips
Tax law draws the line, not the funding guideline. A vehicle is a business asset if it is used mainly for business; it is then a necessary business asset. With business use between a smaller share and half, there may be a choice. If you keep the car in private assets and occasionally drive to clients, you do not lose the grant. If you put it on the balance sheet, claim depreciation or book its costs as business expenses, you have assigned it to the business. That assignment cannot be reinterpreted afterwards for the grant.
Because the dividing line has tax consequences in each case, it is a matter for your tax adviser. This page only describes what the grant requires: registered privately, held privately, for 36 months.
Fluctuating profits and the average
For the self-employed, household income is the taxable income on the assessment, after business expenses, pension and insurance contributions and the other deductions under section 2(5) EStG. Turnover plays no part. Because the average is taken over two years, an outlier up or down only weighs half.
| Case | Year 1 | Year 2 | Average | Children | Grant |
|---|---|---|---|---|---|
| Graphic designer, start-up year and good year | €22,000 | €58,000 | €40,000 | 0 | €5,000 |
| Master tradesman, record year and normal year | €104,000 | €52,000 | €78,000 | 2 | €4,000 |
| Consultant, two similar years | €61,000 | €63,000 | €62,000 | 0 | €3,000 |
| Physiotherapist, parental leave and return | €9,000 | €47,000 | €28,000 | 1 | €5,500 |
On the record year alone, the tradesman would be far above any limit; on the normal year alone, in the second band. The average puts him in the child range above €80,000, where with two children he still gets €4,000. The physiotherapist, on the other hand, benefits from the weak year of parental leave. If a partner lives in the household, their average is added; how is explained on income limit.
Which assessments apply
What counts is the two most recent income tax assessments at the time you apply. With a tax adviser, filing deadlines are longer and assessments arrive later. That is no obstacle as long as each tax year assessed is no more than 3 years back. An advance payment notice only sets instalments and contains no assessed taxable income; it does not replace the income tax assessment.
One idea suggests itself: timing the application so that a weak year counts. Within the deadlines that is possible, because which assessments are the latest is decided on the day you apply. Later assessments with higher income do not change an approval. Conversely, you cannot leave out a newer assessment that has already been issued, since BAFA asks for the latest ones.
Starting out and switching to self-employment
If you have only just become self-employed, you will usually still have assessments from your time as an employee. They count normally, because BAFA asks about taxable income, not the type of work. A founder with €48,000 from the last employed year and €12,000 from the first self-employed year averages €30,000, and living alone gets €5,000 for a battery electric car. A loss in the first year lowers taxable income, possibly to €0; such an assessment is valid proof too. Switching back to employment during the holding period, or the other way round, has no effect, since only the assessments at application count.
Leasing and finance for the self-employed
Whether a car is bought, financed or leased makes no difference to the grant, as long as it is new, registered to you privately and kept for the holding period. A private lease shorter than 36 months is not enough without extending it or buying the car. A business lease through your company is excluded, because the car then belongs to the business. More on this under leasing.
Vehicle tax and quota stay the same
The vehicle tax exemption and the GHG quota payout apply whether the car is held privately or by a business. A company vehicle without the grant keeps those advantages. The tax sum is on the vehicle tax calculator. What happens if the car is sold, deregistered or reassigned before the holding period ends is under holding period and resale.
Checklist before applying
- Car registered to you personally, not to the business.
- Assigned to private assets for tax, with no depreciation in the business.
- Two current income tax assessments for each adult in the household.
- Household income under the limit for your number of children.
- No plan to move the car into the business within 36 months.