M04E - Car Importation

Importation/Registration
The easiest way of acquiring a vehicle with valid Portuguese registration documents is to purchase a new vehicle from an authorised agent in Portugal who will register the vehicle for you.  This has the added advantage of having agents close by to provide service, guarantees, and spare parts.  However, importation is an option and there can be tax advantages for new residents who import a vehicle they have owned for more than 6 months.

You cannot have a foreign registered vehicle in Portugal for over 6 months in a year (consecutively or otherwise in one calendar year), after that time you need to legalise the vehicle by importing it.

Individuals who are moving to Portugal and who have resided in another country, for at least 6 months prior to their arrival in Portugal, and who can provide proof of this (utility bills), may be eligible for exemption from ISV (import tax). Severely disabled people may also be eligible whether they are moving to Portugal or already living here.

For new residents in Portugal, the vehicle must have been bought in the country of their previous residence, not have been exempted from any tax, and have been owned for at least 6 months before transfer of residence (the date noted on your cancelation of residency document from the country you’re leaving). When transferring the residence, you must cancel the residence in your country of origin (this must be done before becoming resident in Portugal). Exemption must be requested and completedwithin twelve months of transfer of residence. 

The process for importing a vehicle and also the request for exemption of ISV is done only online by completing the DAV (Vehicle Customs Declaration) and for that you need the password for the Portuguese finance website “Portal das Finanças”. This process can be complicated due to the fact that the finance website is only in the Portuguese language and the procedure of import has many technical terms, so we recommend members to have an agent doing this on their behalf. If the vehicle comes from a non-EU country, it is mandatory to have an agent (import/export agent- in Portuguese called Despachante) involved in the process.

If you import a vehicle with the exemption of ISV, it can only be sold 12 months after completing the importation, otherwise you will have to pay the tax back in full and will also receive a fine.

If you wish to import a vehicle without the exemption of ISV, you must do a registration with the customs within 20 days after vehicle entered into Portugal. 

Portuguese vehicle registration (Matrícula)
The Instituto da Mobilidade e dos Transportes (IMT) is the government department responsible for registering vehicles and vehicle ownership and for issuing registration numbers. 

Portuguese number plates can only be issued for a vehicle previously registered in another country when its technical specifications meet Portuguese and/or European Union standards. This will be stated in a document called “Certificado de Conformidade” (Certificate of Conformity-only issued by EU countries).

If you do not have a “Certificado de Conformidade” for your vehicle, you must apply for a process of assessment to determine whether the model meets these standards, this is known as homologação. 

If the model has not been approved for use in Portugal but the vehicle was registered in another EU country, then the original or a notarised copy of the manufacturer's certificate from that country is required. 

The vehicle will also need a technical inspection at a registered test centre.  For motorbikes this includes a noise level test. The inspection to the vehicle needs to be done to confirm the vehicle's chassis and motor numbers, the number of passengers, and that lights, reflectors and safety equipment meet Portuguese standards, this inspection is done only in Inspection Centres classed as “Centro de Inspecção Classe B”. You can find them here by selecting: categoria>categoria B, then select your concelho (Municipality) and click the  button listar.

Agents
A number of organisations will undertake the registration of vehicles; these include the Portuguese car owners association (Automóvel Clube de Portugal, ACP), import/export agents (Despachante Oficial), and other agencies providing services for foreigners.  Online you can search for agents under "Agências de Documentação" or “Despachante Oficial” and some are also available from the afpop ADvantage Directory on the CONNECT website.

Vehicle tax (Imposto Sobre Veiculos, ISV) 
The vehicle tax (ISV) is a registration tax that is paid only once when the vehicle is first registered in Portugal, whether new or used.

The ISV is calculated on the basis of two criteria: the cylinder capacity and CO2 emissions of the vehicle. For vehicles coming from an EU country, there is a discount whenever a used vehicle is imported. A vehicle is considered used whenever it has more than 6,000 km and is more than 6 months old (in the country of origin) - if only one of these criteria is met, the vehicle is considered new. This discount will depend on the age of the car.

There is an ISV simulator available on the Portuguese customs website (Portal das Finanças ) that can calculate the ISV for a vehicle. You can find the instructions and information on how to do this simulation in our Fact Sheet 21 - ISV Simulator. For this procedure you will need your personal password for the Finance (Finanças) website.

The ISV tax for importation of motor-homes (table B) will remain the same in 2023 with a reduced rate of 30%, but will increase progressively to 40% in 2024, 60% in 2025, 80% in 2026 and 100% in 2027.

When importing a non-EU vehicle – IVA and customs taxes
When importing a vehicle from a non-EU country, you are also charged IVA and customs taxes (taxa aduaneira). 

While the ISV does not take into account the value of the vehicle, as it is only calculated based on the cylinder capacity and CO2 emission, the amount to be paid for customs fees and IVA is directly linked to the value of the vehicle, because the tax calculated is a percentage of the value.

The amount shown on the purchase invoice is the value considered for the IVA calculation and customs fees. If purchased from a private person, it is the value shown on the sales declaration. If you do not have a sales declaration, in principle, proof of payment should be sufficient (bank transfer record). If it was in cash, you can state that, but if the customs (Alfandega) judges the value to be too low they can decide to give it the market value.

For example:

If the invoice or sales declaration indicates that the vehicle cost 10.000 euros it is calculated like this:

Customs Fees 10% = Vehicle 10,000 euros x Fee 0.1 = 1,000 euros

IVA 23% =  (Vehicle 10,000 euros + Customs Fees 1,000 euros)  x Tax 0.23 = 2,530 euros

The IVA amount is always 23%.

The value of customs fees can vary between 0% and 10% depending on the type of vehicle and country of origin.

It is important to note that customs fees and IVA are calculated on the sum of all costs, not just the cost of the vehicle. For instance if the vehicle came by truck and paid for this transport or if you paid for transport insurance, these expenses are also included when calculating customs fees and IVA.

If you are importing a vehicle from a non-EU country as a new resident in Portugal and you are applying for the ISV exemption, you can also apply for an exemption of the IVA and customs taxes.

Documents generally needed to import motor-vehicles by foreigners for Alfandega and IMT:  

• European certificate of conformity (COC)

• Technical Inspection performed at a “classe B” inspection centre

• Original vehicle papers  

• Document “DAV” (Vehicle Customs Declaration) 

• Contribuinte Number NIF (Fiscal number)

• Passport 

• Driving license 

• Residency Certificate/Card (if applicable)

For those applying for exemption of ISV you will also need:

• Document proving the official cancellation of residence (from the country of origin or their consulate in Portugal)

• Vehicle purchase invoice showing amount of km driven at the purchase and value 

• Certificate from “Finanças” proving that you didn’t earn any money in Portugal, during the last 3 years.

• Vehicle Registration Document (in your name for more than 6 months)

• Utility bills in your name from the country where the vehicle was registered for the past 6 months

• Authorisation allowing the customs to verify your fiscal and Social Security situation in Portugal. 

Below is an example of such an authorisation in the Portuguese language:

Eu (name) abaixo assinado, residente em (address), contribuinte nº (fiscal number), portador do      BI/Passaporte nº (passport number) autoriza a Alfândega de ..... (town where your local customs is, for Algarve = Faro) a proceder à consulta da minha situação tributária e contribuitiva nos termos da Dec. Lei nº 114/2007 de 19 de Abril.

Data: (date)

Assinatura : (signature)

Electric cars (100% electric)
If the electric car is imported from an EU country, it is completely exempt from ISV, that is, it does not pay any tax in Portugal as long as it has paid IVA in the country of origin and is considered used.

You will only pay the expenses related to the legalisation process.

If imported from a country outside the EU, the cost of taxes depends on the country of origin. You do not pay ISV, but you will pay customs fees and IVA. 

Hybrids, plug-in Hybrids, Natural gas vehicles (NG/CNG/LNG) and 7 seaters can in some circumstances also benefit from a tax reduction.

Large families only pay 50% ISV if you meet the criteria below* and people with a degree of incapacity equal to or greater than 60% are exempt from paying ISV.

To be able to benefit from the exemption, the car:

• Must have more than 5 seats.

• Has to be a light passenger vehicle.

• NEDC vehicles' CO2 emissions must be less than 150g/km.

• WLTP vehicles' CO2 emissions must be up to 160g/km for diesel or up to 180g/km for gasoline.

• The family needs to consist of more than 3 dependents or 3 dependents with 2 of them under the age of 8.

• The exemption cannot exceed €7,800 (anything exceeding needs to be paid). The request must be made in advance.

• Only one vehicle per family.

• The vehicle can't be sold during the first year.

• If the car is sold before 5 years, the ISV for the remaining time will have to be paid.

• The exemption can only be requested every 5 years (except if the car has been stolen or in an accident).