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E-Auto Invest-Booster

30% Degressive Depreciation for EVs 2025-2027

Vehicle Details

Your Invest-Booster

Benefits of Degressive Depreciation (Year 1)

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Linear Comparison

Cars are normally depreciated linearly over 6 years (approx. 16.6%). The Invest-Booster front-loads these costs.

0.25% Benefit Rule

Additionally, you benefit from flat-rate taxation. The price cap was raised to €100,000 in July 2025.

Why Degressive Depreciation?

Degressive depreciation (AfA) is a massive incentive for electric mobility. Instead of spreading the loss of value evenly over 6 years, the law allows up to 30% of the book value to be deducted from taxes in the first year.

Especially for freelancers and SMEs, this means an immediate liquidity boost. A €60,000 EV reduces profit by €18,000 in the purchase year, yielding savings of €6,300 with a 35% tax rate.

Legal Framework (July 2025)

Introduced by the Investment Acceleration Act to strengthen Germany as a business location. Applies to new and used battery electric vehicles (BEV) in business assets.

  • Pure BEV only
  • Purchased mid-2025 until late 2027
  • 0.25% private use rule applies up to €100k

Frequently Asked Questions (FAQ)

How does degressive depreciation (AfA) work?

Unlike linear depreciation, where costs are spread evenly, degressive AfA allows for a higher deduction initially. From July 2025, you can claim 30% of the book value, generating immediate tax savings.

Which vehicles qualify for the Invest-Booster?

New and used pure electric vehicles (BEVs) in business assets are eligible. Since July 2025, the gross list price limit for the 0.25% rule has been raised to €100,000.

Who can use the Invest-Booster?

All commercial investors, freelancers, sole proprietors, and SMEs in Germany who purchase an eligible electric company car.

When is the best time to purchase?

The regulation applies to purchases between July 2025 and the end of 2027. As the percentage is fixed, you benefit most by purchasing as early as possible in the fiscal year.

What does the integration with the 0.25% rule mean?

When you activate Company Car mode, the tool calculates not only the special depreciation but also your private tax savings. As an EV driver, you only pay tax on 0.25% of the gross list price monthly as a non-cash benefit, compared to 1% for combustion cars. This saving is added to your total benefit.

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