Italy’s newly introduced temporary motor tax exemption for 2027 carries a mandatory insurance requirement that leaves out more than 5.4 million vehicles, or 20.4 percent of the eligible fleet, according to official Ministry of Infrastructure and Transport data published by Quattroruote. Under decree-law 162/2026, the government aims to eliminate the annual vehicle tax—known as the bollo auto—for a targeted group of lower-powered vehicles, but strict eligibility criteria are cutting off a substantial portion of owners.
Vehicle Power Caps and Eligibility Rules Set for 2027
The temporary exemption applies strictly to automobiles with an engine power output of up to 80 kW. Eligible fuel types include petrol, diesel, dual-fuel, and hybrid systems, alongside motorcycles and mopeds meeting the same powertrain parameters, as Il Messaggero reported. The relief mechanism extends to vehicles owned outright, held under leasing agreements, or operated through long-term rental contracts. However, the legislation restricts the benefit strictly to a single vehicle per physical person. Corporate fleets are entirely excluded from the measure, narrowing the pool of qualifying assets significantly.
Insurance Mandate Excludes Over Five Million Cars
The most restrictive hurdle in the decree is the explicit requirement that qualifying vehicles must be “regolarmente assicurato”—regularly insured. Ministry data updated on October 7 and highlighted by Quattroruote revealed that out of 26,760,175 registered automobiles rated up to 80 kW, exactly 5,451,490 lack active third-party liability coverage. This uninsured segment accounts for 20.4 percent of the total low-power vehicle population. Because corporate vehicles are generally compliant with insurance mandates, the actual uninsured rate among private owners is even higher, directly deflating government projections for the initiative.
Government Projections and Financial Constraints
Official technical reports accompanying the decree reflect awareness of these exclusions. The government estimates that only 13.2 million vehicles will ultimately receive the bollo auto exemption in 2027—roughly half of the total potential pool of low-power vehicles in circulation. Meanwhile, the Automobile Club d’Italia (Il Mattino) has published a detailed series of 25 frequently asked questions on its website, The Automobile, to clarify complex scenarios such as suspended policies, co-owned vehicles, and mid-year vehicle replacements. Policymakers are evaluating whether to make the relief permanent through the upcoming budget maneuver, though funding the measure for the 2028–2029 biennium alone would require 5 billion euros.
Frequently Asked Questions About the 2027 Exemption
Which vehicles qualify for the bollo auto exemption under the 2027 decree?
The exemption applies to cars, motorcycles, and mopeds with a power output up to 80 kW that run on petrol, diesel, dual-fuel, or hybrid systems. Owners must hold the vehicle as private individuals through ownership, leasing, or long-term rental.
How many vehicles are disqualified due to missing insurance coverage?
Ministry of Infrastructure and Transport figures cited by Quattroruote show that 5,451,490 low-power vehicles lack active insurance policies, representing 20.4 percent of the 26.7 million registered automobiles falling under the 80 kW limit.
Can a single taxpayer claim the tax break for multiple cars?
No, decree-law 162/2026 explicitly limits the exemption to one single vehicle per physical person, and entirely excludes company-owned vehicles from the relief program, as reported by Il Mattino.