The 2020 Vehicle Renewal Program (Plan RENOVE 2020), with a budget of €250 million, is part of the Automotive Industry Value Chain Support Plan presented by the Government on June 15, 2020. The Plan aims to incentivize the purchase of vehicles to replace older models with cleaner and safer ones through subsidies, while also incorporating environmental and social criteria. Applications for these subsidies will be accepted from the activation date of the RENOVE 2020 Program's electronic management system until December 31, 2020, inclusive, or until the allocated budget is exhausted, whichever comes first.
The Royal Decree-Law 25/2020, on urgent measures to support economic recovery and employment, which regulates the 2020 Vehicle Renewal program (Plan RENOVE 2020), endowed with €250 million, was published in the Official State Gazette (BOE) on July 6, 2020. It is part of the Automotive Industry Value Chain Boost Plan presented by the Government on June 15, 2020.
In the first phase, €230 million will be allocated to renewing the fleet of passenger cars (€200 million), commercial vehicles (€25 million), and motorcycles (€5 million). Meanwhile, the acquisition of industrial vehicles and buses will be promoted with €20 million.
The program, which is not compatible with the Efficient and Sustainable Mobility Incentive Program (MOVES), seeks to replace the oldest vehicles in circulation, which are more polluting and less safe, with more modern ones, following the criterion of technological neutrality.
To access the aid, it is mandatory to hand over a car that is at least ten years old, or seven years old if it is a commercial vehicle.
They will also have to have a valid vehicle inspection certificate (ITV) and the final recipient of the aid must have owned the scrapped vehicle for at least twelve months prior to the date of application for the aid.
The aid will be used for the direct acquisition or through financing operations by financial leasing or renting (also called operating leasing) of a new vehicle registered from June 15th onwards (inclusive).
In addition, the beneficiary of the aid must maintain ownership of the vehicle and its registration in Spain for at least two years from the time the subsidy is granted.
The plan also includes pre-owned models, starting from January 2020, as a measure to help dealerships sell off vehicles registered during the lockdown period.
The program will be launched through the activation of an online aid management system. The date and time of its launch will be published on the plan's website, and it will close on December 31, 2020, or when the funds are exhausted. Dealerships may also provide buyers with the electronic means to submit their applications.
The Ministry of Industry's website will announce the opening date of the electronic management system well in advance. Its initial functionality, for reserving the subsidy, is expected around September. To make a reservation, you must have already placed an order for the vehicle at the dealership.
See: Frequently Asked Questions from the RENOVE 2020 Guide
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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