“Company cars account for around 60% of new registrations in the EU and tend to be used twice as much as private vehicles before entering the second-hand market,” T&E said.

Nine EU countries, including France, the Netherlands, Belgium and Denmark, offer a tax discount that brings the initial price of a compact EV at least level with a comparable petrol car.

Six countries, including Italy and Finland, have lower tax incentives that cover more than half but not the entire EV price premium.

T&E said 12 countries, including Germany, Poland and Spain, have no effective tax incentives, compensating for less than half of the upfront price gap.

Out of compact corporate car sales, 68% come from countries where the tax difference is lower than the EV price premium, with 49% from countries with no effective tax incentives.

Germany and Poland together account for 52% of all oil-intensive corporate car registrations.

In Germany, a large “E-segment” petrol company car receives a net fiscal advantage of up to €6,190 over four years, outweighing the taxes the company paid.

Belgium’s corporate EV share rose from 8.8% in 2021 to 54.2% in 2025, the EU’s second-highest after Denmark.

The Netherlands, Finland, Sweden and Austria have high corporate EV shares and have started to scale back tax incentives.

Around 20 million new internal combustion engine cars are expected to be registered by EU companies by 2030.