Can You Import a Car to the EU Tax-Free?

How do you know if You Can Import a Car to the EU Tax-Free?

Shipping a vehicle abroad can be expensive, depending on its final destination. As a result, you should always try to find cost savings when shipping your vehicle internationally. Various import laws exist that could result in major savings, but the trick is to take advantage of them.

Given its large size and the free trade, many of those transferring a car to a country within the European Union may wonder if they have to pay import surcharges. The answer is...maybe. Here's what you should know.

You Normally Have to Pay Ship In Duties and Levies

In the European Union, you must pay duties and excise on all vehicles brought in from the United States. The rates that you have to pay depend on the type of vehicle that is being imported. For example, for duties, you will have to pay:

• 10% in import duty fees for regular passenger cars;
• 22% in import duty fees for trucks with a large, commercial-size cargo space;
• 6% in import duty fees for motorcycles with an engine capacity greater than 250cc;
• 8% in import duty fees for motorcycles with an engine capacity less than or equal to 250cc.

Adding to the import costs is an additional value-added tax (VAT) of between 19% and 22%, which is based on the specific country that it is being registered in within the EU.

How to Avoid These Dues

Many countries within the EU have laws in place that could allow you to transfer your vehicle free of import duties and taxes. But it's based on a country-by-country basis, as the laws in one country may not apply to another. You will usually have to meet certain stringent requirements, which can include:

• That you're no longer a resident of the non-EU country;
• That you're intent on becoming a long-term resident of the particular EU country;
• That you have been living outside of the EU for at least 1 year;
• That you are the sole owner of the vehicle for 1 year;
• You have used the vehicle for personal use for at least 6 months before acquiring it.

You will need to provide firm proof of all of the above requirements. Certain countries are stricter than others. Your best bet is to ask your auto transport company about how they can help you.

At A-1 Auto Transport, we do everything we can to save our clients money by avoiding these charges. Because of our extensive background in the international car transport industry, we can inform you of the special requirements for importing vehicles into each country, which are duty-free and due-free. Get in touch with us today for a free, no-risk estimate!