Importing a car to portugal

steve · Post by **steve** » Mon Mar 02, 2009 6:58 pm

From the enquiries I made it seemed that IVA was the killer but it amazes me that it is possible to charge IVA on a product which has already been subject to VAT elsewhere in the Community. Has anybody got chapter and verse on this?

steve · Post by **steve** » Mon Mar 02, 2009 7:17 pm

I have now found the following site which suggests that IVA can be waived if there is proof of payment of VAT in another EU country

http://algarve.angloinfo.com/countries/ ... gister.asp

Post by **Steen Jakobsen** » Mon Mar 02, 2009 7:19 pm

Buy the car for export without VAT and the problem is solved? Anyhow the Imposto automovel is the killer, and the EU member states can charge it as they see fit.

Al Garb · Post by **Al Garb** » Mon Mar 02, 2009 7:20 pm

IVA is not charged in Portugal if your invoice shows it is already paid in an EU country. If you are buying in UK pay the VAT there (Even though you don't have to if you are exporting) because it is a lower rate on a smaller amount.
I've not done a DIY import but have imported using an agent for the paperwork. Provide them with UK reg docs, bill of sale and a certificate of conformity. You will pay agents fees, matric costs, number plates and the Port. car tax but if you are importing anything remotely up market the savings are still worthwhile. If all you need is a small runabout buy locally since it is a competitive market and your agents admin fees will be the same for a Fiat or a Ferrari The car tax is based on engine size with reductions for car age if you plan on importing 2nd hand

shanagarry · Post by **shanagarry** » Mon Mar 02, 2009 7:27 pm

Based on Steen's information I contacted Almancil Servicos to get an indication of price and timing.

Their number for those interested in contacting them is 289 393412

They are very polite and courteous but recommended doing nothing for at least 6 months as the Government is having a complete re-think on the subject. They also advised against doing anything at present due to the excessive cost brought about by the imposition of IVA - regardless of it being paid elsewhere in the community.

The Portuguese have a huge budget deficit - so the money has to come from somewhere

shanagarry · Post by **shanagarry** » Mon Mar 02, 2009 7:36 pm

I am referring to importing a brand new car from the UK to Portugal.

You must have owned the car in the UK for a full 12 months prior to importing it to Portugal - if you hope to avoid the import duty.

You will be required to prove your UK residency by providing utility bills after the 12 month period to confirm your UK status.

This applies to a personal import where your first car can be imported free of taxes. I suspect the other explanations apply to a general import for the second and subsequent import?

Al Garb · Post by **Al Garb** » Mon Mar 02, 2009 8:49 pm

If you buy a new car in the UK and pay VAT on it (and have the documents to prove it) you do not pay IVA in Portugal. I think Almancil Services may have been making reference to the current "tax on a tax" situation.
Portugal has been sent to sit on the naughty step because it imposes IVA on its car tax. i.e you pay €5,000 car tax on a new car and then have to pay an extra €1000 on top as 20% IVA. The EU ruled this illegal some time ago, Portugal resisted the change but now may have to toe the line.

shanagarry · Post by **shanagarry** » Mon Mar 02, 2009 11:51 pm

Hence the advice to wait 6 months or so to see how all this pans out. Fortunately I am not in a hurry - but there could be those who are!

It beggars belief - but as the French have got away with flouting EU rules for years - why shouldn't the others?

EMM · Post by **EMM** » Tue Mar 03, 2009 10:26 am

I am always surprised at the atitude of we brits that it is ok for the UK to flout EU rules but not for anyone else ( if it costs us money ).

The UK has broken the VAT rules since day 1, we have one rate and do not charge on food , childrens clothes etc.

I do not hear any protests that we should come into line !!

shanagarry · Post by **shanagarry** » Tue Mar 03, 2009 11:03 am

I believe there is a world of difference between being charged Vat twice as opposed to not at all - that's the issue here - nothing to do with food and baby clothes.

Can we stick to the car import topic - that's the primary issue here. As I see it a number of people are trying to understand the process while those that do - are advising against even attempting it.

It is clear, to me at least, from the contributions so far - that the process is far from clear cut and that the rules or rather the interpretation of the rules appear to change at will. What is abundantly clear is that there is no uniform 'rule' that applies across the EU - so for those of us who wish to import our car into Portugal - we have to go with the Portuguese 'rule' - as amended from time to time.

In my case - and from what I understand having read and spoken to a number of enlightened people the car I wish to import has to be owned by me in the UK for a period of 12 months before beginning the import process. There is then a little matter of applying for Resedencia (also part of the import process) - for now I will get on and satisfy step one - getting the left hand drive car.

steve · Post by **steve** » Tue Mar 03, 2009 6:37 pm

What Shannagary is now proposing is the normal process for importation of a pre-owned vehicle under the change of residence concession which brings about a waiver of the import charges which would normally arise.

Provided that the conditions of the scheme are met the process will be successful and the monetary saving compared with buying the same vehicle here will be considerable. There are financial costs associated with completion of the process and the rules may change along the way. Anyone who is retired has the time to leap through the various hoops involved provided that they have patience and keep a hold on their sanity!

Good luck

shanagarry · Post by **shanagarry** » Tue Mar 03, 2009 6:52 pm

Steve

I have become aware in recent days that there are two (there maybe more) methods to import a car into Portugal - conventional import by purchasing the car in one EU country - tax free and importing into another EU country and paying the tax and duty.

In my case I am exploring the residence concession process and while I am a fair bit off retirement - I hope that with the help and guidance of everybody who has ever attempted the process to avoid the pitfalls.

I have to say I am not optimistic as nowhere during this exchange of comments and advice has anybody come forward and said - I did it and it was a walk in the park! That's a concern - but I will give it my best shot - after all £25,000 is a lot of money - in any language.

Felix · Post by **Felix** » Tue Mar 03, 2009 7:22 pm

Hi

My attempt was investigated both through non residence and resident.

There are different rates of fees payable for the different approach.

Are you really sure you that you are want to become a resident of Portugal just to try and make your importation easier???

By becoming a resident you will be entering into all sorts of other issues that will frustrate you............tax returns.......health care....etc.....you will find it difficult to then get treatment here.

Not being pessimistic at all....just seeing it from another point of view.

shanagarry · Post by **shanagarry** » Tue Mar 03, 2009 7:45 pm

This is the proverbial 'can of worms' - one issue leads to another that appears innocuous at the outset only to have ramifications further down the food-chain.

Your observation raises a whole new set of thought provoking issues. The main one being is £25,000 a small or large amount to pay for a degree of choice?

In short we want to live in a place with a comfortable climate, among and with like minded people who are not phased by the rigours of modern day living - as we are here in the UK at present. I know Portugal has its problems and difficulties but the pace of life is more accommodating and apart from some woeful bureaucracy - its probably just about right

The issues to do with taxation, health care etc have to be treated with great care. One of the many things I have yet to explore is the best place to be as far as taxation is concerned - as I will continue to work 'in' the UK while living in Portugal.

Time to make a few phone calls

ppashley · Post by **ppashley** » Tue Nov 10, 2009 12:51 am

Hi

were you able to successfully import your car shanagarry?

I have a 1995 Porsche that I bought in the USA and imported to the UK that I would like to import to Portugal.
it's not particularly valuable but I'd like to keep it.

The tax simulator is showing that the cost will be around 15,000 eur!

Is there any way around this?!!

Thanks

Importing a car to portugal

Re: Importing a car to portugal