Welcome to our new blog post series "A life under the sun: Moving to Portugal".
In this series, we will give you all the important information and tips to make your move to the Algarve as smooth as possible. Today we start with a particularly important topic that keeps our customers busy: car imports from the EU.
The decision to take your car to Portugal can prove to be quite useful, especially if it has been in your possession for more than half a year and you have gotten used to it. In Portugal, prices for new and used cars tend to be higher than in many other EU countries due to a tax when the vehicle is first registered on Portugal's roads, and the choice is often more limited.
Although importing a car to Portugal can be challenging and a lot of work, the process becomes much easier with the right preparation and steps. Below is a detailed guide on how to import your vehicle from the EU to Portugal as smoothly as possible.
The most important steps are first of all the gathering of the necessary documents and the technical inspection of the vehicle in Portugal.
The first concrete step in the process is the technical inspection of the vehicle to ensure that it complies with Portuguese safety and environmental standards. This first inspection differs slightly from the regular test that follows, but is also carried out at an official test center and costs about 85 €. It is therefore important to indicate directly when booking an appointment that it is an inspection in the course of the legalization of a vehicle to be imported. There are various approved companies that carry out inspections as test centres. You can usually find them online, so it is best to search for "Centro de Inspeção" on Google in connection with your place of residence or the nearest larger town in your area. The documents to be submitted here are:
- Vehicle registration document
- Vehicle registration document
- Form "Modelo 9" from the IMT
- Form of the "Homologação"
After a successful technical inspection, you will receive:
- The document Modelo 9 signed back
- A green receipt for the completed inspection, which must be carried in the car from now on.
- A yellow receipt for the inspection, which is necessary for the further process of legalizing the
cars is required.
By the way: the regular inspection required by law after registration costs about 40€ incl. VAT for a car. After the first registration of a new car, you have to go for a technical inspection for the first time after four years and then every two years until the car reaches an age of 8 years, after which the inspection is required annually.
After gathering the documents and carrying out a technical inspection, you will proceed to customs. You can complete this step online, for which you will need access to the portal of the tax office (NIF / Portuguese tax number and password): https://aduaneiro.portaldasfinancas.gov.pt/jsp/main.jsp
The purpose of this section is to obtain a declaration from Customs (Declaração Aduaneira de Veículo (DAV)) that your vehicle has been registered, the official issue of your new license plate number, as well as information about the tax to be paid Imposto Sobre Veículos (ISV) or confirmation that you are exempt from the tax.
At the above link, you can create a new application at customs ("Criar DAV"), fill in all the necessary data and upload all the documents collected and prepared in the process. In addition to the documents described above, a copy of your ID and your tax number are also required.
Note: Make sure you enter the correct tax category right on the first page, as subsequent pages will align and change accordingly. Alternatively, this step can also be carried out in person at the responsible customs office.
If you cannot be exempted from the one-time tax ISV, you will have to pay the taxes calculated by customs before the next step, the registration of the vehicle in Portugal. A tax exemption can be granted under the following conditions:
Now the vehicle can be registered in Portugal at the registration office (IMT). This step is not possible online. In the Algarve, for example, the only place is in Faro. Due to the large crowds, it is advisable to reserve an appointment. The appointment itself is then handled quite quickly if all documents are carried along. By the way, the documents are retained and filed there.
- Vehicle registration document
- Vehicle registration document
- Document "Modelo 9" from the IMT, which is stamped and signed by the technical inspection.
- Document "Modelo 112" from the IMT, i.e. the yellow / orange document that you receive during the technical inspection.
- Document of the "Homologação"
- Document from the customs "Declaração Aduaneira de Veículo"
- If applicable: Proof that the taxes have been paid.
Before you can enter the road with your new license plates, you still need car insurance. Depending on the value of your vehicle, you should choose the benefits.
There are many larger insurers with mostly similar prices. For example, these would be Fidelidade, Tranquilidade, Allianz, Zurich, etc.
Online insurance seems a bit cheaper according to our comparisons. However, we have not yet had any experience with the regulation of these insurers. Here are examples: SeguroDirect, Ok Seguros etc.
In parallel to step 7, you can have your Portuguese license plates created. This can be done by ordering on the Internet or purchased from a corresponding shop for signs. Approximate costs of approx. 20€ per pair of signs are to be expected.
By the way, the signs have to be screwed on - unlike in Germany - and simply plugging them into a holder is not permitted. Therefore, it may make sense to have this done briefly at a workshop of your choice.
From the registration office described in point 5, the documents will also be sent to the "Instituto dos Registos e do Notariado" (IRN), where you will be officially registered as the vehicle owner for the vehicle. After about 14 -21 days, your receipts can be picked up there.
Now you have done it, your vehicle is successfully legalized in Portugal!
In general, a distinction is made between the one-time import tax (ISV) and the annual motor vehicle tax (IUC):
Imposto Sobre Veículos (ISV): This tax is levied on all imported vehicles and is based on factors such as engine capacity and CO2 emissions. In the case of removal goods, this tax can be waived under certain conditions.
Calculation of ISV
The ISV is divided into two main components:
1. Displacement (Cilindrada): This part of the tax is based on the engine's displacement in cubic centimeters (cm³).
2. CO2 emissions: This part of the tax is based on the vehicle's CO2 emissions in grams per kilometer (g/km).
The tax rates are adjusted annually. Here are the current tax rates for passenger cars in 2024:
https://impostosobreveiculos.info/isv/imposto-sobre-veiculos-isv-2024/
There is also a cost calculator to simulate the cost of your car on the website of the Autoridade Tributária: https://impostosobreveiculos.info/isv/simulador-isv/
The ISV can be considerable, depending on the vehicle model and specifications, from around a minimum of €500 to several thousand euros, which is why it's important to calculate the exact cost in advance. The tax exemption for removal goods can be a significant relief and should be considered if you are taking your vehicle to Portugal.
There is also the Imposto Único de Circulação (IUC): This annual tax must be paid by all vehicle owners in Portugal. The amount varies depending on the vehicle type, age and emissions. You can pay the IUC online through the Autoridade Tributária portal.
Here you can find the current costs: https://www.acp.pt/veiculos/documentos-e-fiscalidade/imposto-unico-de-circulacao
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Importing a car from the EU to Portugal comes with some bureaucratic hurdles, but it also has advantages, especially if you can take your vehicle with you as removal goods. It is important to know all the necessary steps and paperwork and to complete them in a timely manner to avoid unexpected costs and problems.
Please note that this guide is based on our experience and does not constitute legal advice. We recommend that you also obtain information from the responsible authorities, as we cannot assume any liability for the completeness and accuracy of the information.
Follow us for our next posts in the series "A life under the sun: Moving to Portugal", where we will cover other important topics.
Do you have any questions or need support with your move to the Algarve? Contact us, we are happy to help you!