Government Incentives and Tax Advantages When Buying an Electric Vehicle

Wide-angle view of a white electric car charging at a charging station

If you are thinking of buying an electric vehicle, knowing how much the figure on the price tag can change due to tax regulations makes your job easier. Instead of direct cash grants, Turkey applies a model based on SCT (ÖTV) advantages, motor vehicle tax (MTV) reductions, and domestic production incentives. In this guide, we have compiled the incentives and tax advantages valid as of 2026, also indicating under which conditions you can benefit from them.

SCT (ÖTV): The item that determines the purchase price the most

For electric passenger cars, SCT (ÖTV) is calculated in tiers based on motor power (kW) and the tax-free sales price. Vehicles with motor power of 160 kW or below and a tax-free sales price not exceeding 1,650,000 TL fall into the 25% SCT bracket; if these limits are exceeded, the rate rises to 55%. For performance models above 160 kW, a rate in the range of 65% to 75% applies depending on the taxable base.

To make a comparison, for gasoline and diesel vehicles SCT starts at 80% and can exceed 220%. This difference in electric vehicles creates a serious price advantage compared to internal combustion models in a similar segment.

There is a point to be careful about: there are discrepancies between sources regarding SCT thresholds. While one source reports the tier structure above 160 kW, another source states that vehicles at 85 kW and below have a 10% SCT rate. It is advisable to definitely confirm through the seller and current legislation which bracket your vehicle falls into.

VAT and MTV advantages

A standard 20% VAT is applied to electric cars. Since VAT is calculated on the price including SCT, the low SCT rate indirectly pulls the VAT down as well. In other words, the SCT advantage does not stand alone; it lightens the entire tax burden.

On the annual tax side, electric cars are subject to an MTV tariff with approximately a 75% discount compared to internal combustion vehicles, i.e. at one quarter of the rate. For example, the annual MTV for the Togg T10X is at a level of around 17,500 TL. In 2026, MTV can be paid in two equal installments; the amount is determined according to motor power and model year. When you factor in the long-term total cost of ownership, this advantage is of a size that should not be overlooked.

SCT exemption for the disabled

Individuals with a disability report of 90% or above can purchase electric vehicles by benefiting from the SCT exemption, provided they meet the conditions. As of 2026, the upper limit for purchasing a vehicle with exemption is 2,873,972 TL. However, a critical condition stands out here: a domestic content ratio of at least 40% is required in the vehicle.

Due to this domestic content requirement, with current limits the Togg T10X and T10F may fall within scope, while the majority of imported electric models remain outside the scope. There is also another rule worth knowing: a vehicle purchased with the exemption cannot be sold for 10 years. When this period expires, the entitled person can make a new exemption application.

Credit, financing, and corporate supports

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Although there is no direct cash incentive, options are available on the financing side:

  • Green Vehicle Loan: Offered through public banks with low interest and long terms; in some periods, 0% interest campaigns have also come up.
  • Togg campaigns: It is increasing its market share with zero-interest campaigns; sales incentive mechanisms are also working in periods without direct government support.
  • Corporate purchases: VAT deduction and depreciation advantages apply in companies; SMEs' electric vehicle purchases can be partially financed under KOSGEB programs.

Supports are also continuing on the charging infrastructure side. Under the HIT-30 Program, tax advantages and investment incentives are provided for fast charging station investments. EPDK (EMRA), in turn, has introduced licensing facilities and tariff regulations for fast charging operators in 2025-2026; the number of charging points in Turkey exceeded 40,000 in 2026. Municipalities are also offering free or discounted parking and charging opportunities, and the network is expanding with EV corridor projects in metropolitan cities.

Domestic production and expected regulations

Domestic production models like Togg are exempt from customs duties; this provides price competitiveness compared to their imported rivals. This approach is also at the center of Turkey's incentive model: tax advantages and domestic production support instead of direct grants.

International comparison clearly shows this difference. The United Kingdom offers a direct EV grant ranging from £1,500 to £3,750 and extended the program to 2030; in Germany, the motor vehicle tax exemption for electric vehicles is valid until 2035, while in Ireland, EV tax advantages for company vehicles continue.

The most talked-about topic in Turkey is the Togg scrappage incentive. In the regulation that envisions a high-amount discount or grant for the purchase of a domestic electric car for those scrapping vehicles aged 20 years and over, support of up to 1 million TL is on the agenda in some scenarios. However, this regulation has not yet been enacted into law. Additionally, the expectation of an SCT base update is also on the 2026 agenda; a possible regulation could make prices more advantageous.

Practical suggestions before purchase

The recommended approach to make the best use of incentives is to first calculate the total cost of ownership (TCO). The MTV advantage and the fuel-charging cost difference can, over time, offset the difference in the purchase price. The second suggestion is to prioritize models that stay within the tax base limit with engine power under 160 kW; this bracket gives you access to the lowest SCT rate. Be sure to verify the vehicle's current SCT bracket, the localization requirement in the disability exemption, and the validity period of loan campaigns before purchasing; these regulations may change during the year.

Sources

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