Importing a Car
Property & Living
Bringing a car from another country into Portugal is a process that involves paperwork, taxes and a vehicle inspection, and while it is perfectly feasible, many expatriates conclude that selling their car at home and buying one in Portugal is simpler and sometimes cheaper. Understanding the process and costs involved helps in making an informed decision.
EU citizens who establish residency in Portugal have the right to bring one personal vehicle from another EU member state free of ISV (Imposto sobre Veiculos, the vehicle tax) under the change of residence exemption. To qualify, the vehicle must have been owned and registered in the previous country for at least six months before the move, the owner must have been resident in that country for at least six months, and the application must be submitted to the Portuguese customs authority (Autoridade Tributaria) within six months of registering as a resident in Portugal. The vehicle cannot be sold or transferred for 12 months after importation.
The application process involves submitting a declaration to the customs authority, accompanied by proof of previous residence, proof of current Portuguese residency, the vehicle registration document, proof of insurance and a technical inspection certificate. The application can be submitted online through the Portal das Financas or in person at a customs office.
If the change of residence exemption does not apply, or if the vehicle is being imported for commercial purposes, ISV is payable. The amount of ISV depends on the engine capacity and CO2 emissions of the vehicle, and can be substantial: for a typical mid-range petrol car, ISV might amount to 3,000 to 8,000 euros. For larger, higher-emission vehicles, the tax can exceed 15,000 euros. This is the main reason that importing a car without the exemption is often uneconomical.
Once the customs formalities are complete, the vehicle must be re-registered in Portugal. This involves obtaining a Portuguese registration certificate (titulo de registo) from the Instituto da Mobilidade e dos Transportes (IMT). The vehicle will need to pass a Portuguese technical inspection (inspecao periodica obrigatoria, or IPO) at an approved inspection centre. The inspection covers the same areas as an MOT in the UK: brakes, lights, tyres, steering, emissions and structural integrity. Any modifications that do not meet Portuguese standards will need to be rectified before the vehicle can pass.
Right-hand drive vehicles can be driven legally in Portugal, but they are at a disadvantage on Portuguese roads, where driving is on the right. Overtaking is more difficult, visibility at junctions is reduced, and toll motorway equipment (such as Via Verde readers) is positioned for left-hand drive vehicles. Some owners choose to convert their vehicle to left-hand drive, though this is expensive and may not be worthwhile for older vehicles.
Insurance for an imported vehicle can be arranged with Portuguese insurance companies once the vehicle is registered. Some UK insurance policies provide temporary cover for driving in EU countries, but this is limited to short stays and does not cover permanent importation. Portuguese motor insurance is compulsory and covers third-party liability at minimum.
The process typically takes two to four months from start to finish, and many people find the paperwork daunting. Hiring a despachante (a Portuguese bureaucratic agent who specialises in paperwork) to handle the process costs 200 to 500 euros but can save considerable time and frustration. Several despachantes in the Algarve specialise in vehicle importation and are familiar with the common issues that arise.