Zero-emission car and van grant
Individuals and companies can get a grant towards a fully electric or hydrogen fuel-cell car or light van newly registered in Iceland.
For 2026, a new car or van first registered in Iceland can receive up to ISK 500,000. An imported used vehicle can receive ISK 400,000 if it is registered in Iceland within 12 months of its first registration abroad. The approved application date determines the grant amount; buying or registering before 2026 does not preserve the earlier amount.
You must keep the vehicle registered only in Iceland while you own it. False or misleading application information, or using the grant for something other than purchasing a clean-energy vehicle, can lead to cancellation, repayment with costs and a police referral. The fund can request purchase, registration and ownership-history information; the National Audit Office can also request supporting information.
Eligibility
- Individuals and legal entities can apply as the vehicle’s registered owner. If there are co-owners, only the registered main owner can apply and receive payment. Each vehicle can receive the grant once.
- Eligible vehicles are M1 passenger cars carrying at most eight passengers and N1 vans weighing at most 3.5 tonnes. They must have no exhaust emissions: fully electric cars and hydrogen fuel-cell cars qualify. M1 taxis and rental cars are included.
- The purchase price must be below ISK 10 million. Imported used vehicles must be registered in Iceland within 12 months of their first registration abroad.
- Apply within 12 months of the vehicle’s new registration in Iceland.
- Exceptions to the ordinary eligibility rules apply to M1 and N1 vehicles specially adapted for a person with a disability. Obtain confirmation from Tryggingastofnun ríkisins (TR), Iceland’s Social Insurance Administration, before applying through Ísland.is.
How to apply
- Status
- Open continuously
- Round restrictions
- Apply within 12 months of new registration in Iceland. Intake is generally year-round but can close depending on the fund’s budget.[^c5][^c13]
After the vehicle is registered with Samgöngustofa, Iceland’s vehicle registration authority, apply through the Ísland.is grant application using electronic identification. The Environment and Energy Agency administers the scheme. Before applying, add a bank account in the settings of My Pages on Ísland.is if you have not already done so; the grant is paid to that account. For a vehicle adapted because of the buyer’s disability, obtain TR confirmation first.