Importing a car into Portugal can make sense, especially if you already own a suitable vehicle or find a model abroad that is difficult or expensive to buy locally. But do not assume that bringing a car from another EU country is automatically cheap. There are no customs duties between EU countries, yet Portugal can still charge its own Imposto sobre Veículos (ISV) when the vehicle is first registered here. For some cars, that tax is large enough to wipe out the saving from buying abroad.

The surprise: EU free movement does not mean tax-free Portuguese plates

The EU single market removed customs duties on goods moving between Member States. It did not harmonise national vehicle-registration taxes. The European Commission even uses the example of somebody moving a car from Belgium to Portugal and being surprised by Portugal’s registration tax: Member States remain free to levy such a tax when a car is first registered in their territory, subject to EU-law limits.

So distinguish three things:

  • Customs duty: normally none when a vehicle moves from another EU Member State.
  • VAT: depends particularly on whether the vehicle is “new” for EU VAT purposes and how/where it was bought.
  • ISV: Portugal’s vehicle tax can still be due when an EU vehicle is legalised and receives Portuguese registration.

Practical rule: calculate ISV and the entire legalisation cost before buying the foreign car. “It’s already EU registered” is not a cost estimate.

EU car versus a car from outside the EU

For a vehicle acquired in another EU country, Portuguese tax authorities state that legalisation can involve ISV and, where applicable, VAT. A vehicle imported from a third country can additionally be subject to customs duty, import VAT and ISV. That makes non-EU imports a different calculation altogether.

Before you buy: collect the right documents

Do not buy a foreign vehicle on price alone. Check that you can obtain the paperwork Portugal will need. Depending on the case this can include:

  • purchase invoice or private sale declaration;
  • foreign registration/title documents;
  • proof of transport into Portugal if it did not arrive under its own power;
  • Certificate of Conformity (CoC) or the applicable Portuguese homologation data;
  • technical/homologation documentation required by IMT;
  • inspection documentation for a used imported vehicle;
  • documents proving any tax exemption you intend to claim.

A missing CoC, unusual specification or difficult homologation can turn a seemingly cheap purchase into an administrative project. Verify the vehicle’s technical route before committing to an unusual import.

The Portuguese import/legalisation process

  1. Bring the vehicle to Portugal legally. Make sure its foreign registration, export/temporary plates and insurance remain valid for the journey where applicable, or transport it.
  2. Sort out homologation and inspection. Used imported vehicles can require IMT technical documentation and an inspection (including the relevant Modelo 112 documentation).
  3. Submit the DAV. The Declaração Aduaneira de Veículo is the central vehicle customs/tax declaration. Gov.pt currently says the tax formalities for a foreign vehicle should be handled within a maximum of 20 working days after the vehicle enters Portugal.
  4. Pay ISV and any VAT/customs amounts due, unless an exemption applies. AT says assessed ISV is payable within 10 working days after notification of the assessment.
  5. Receive the Portuguese registration number.
  6. Have Portuguese number plates made and fit them. The foreign plates do not simply become your permanent Portuguese registration.
  7. Arrange Portuguese insurance.
  8. Request the Portuguese registration certificate / DUA and complete the vehicle registration formalities. Gov.pt currently states that after fiscal regularisation you have 60 days to pay the IMT registration fee and request the registration certificate.
  9. Deal with ongoing obligations such as IUC and future IPO inspections. See #102.

AT states that, after ISV has been paid and a Portuguese registration number assigned, the proof of ISV payment showing that number permits unrestricted circulation for 60 days from assignment of the registration number while the registration-certificate process is completed.

How ISV is calculated

ISV is not simply a percentage of what you paid for the car. For ordinary passenger vehicles the calculation can depend on factors including engine capacity and CO₂ emissions, with rules also concerning particulate emissions for relevant diesel vehicles. Used vehicles admitted from the EU have their own age-related treatment under the ISV rules.

This is why two used cars with the same €15,000 purchase price can have dramatically different Portuguese landing costs. Engine size, fuel, emissions, age and homologation data matter. High-emission cars can be particularly painful.

Use the current Portal das Finanças vehicle-tax information and its current calculation tools/rates before agreeing to buy.

Moving to Portugal with a car you already own: check the ISV exemption first

This can completely change the economics. Portugal provides an ISV exemption for qualifying transfers of residence. Current gov.pt guidance includes core conditions that the applicant is over 18, lived abroad for at least six months, is transferring legal residence to Portugal, and had owned the vehicle in the country of origin for at least six months before transferring residence. The full statutory conditions, evidence and restrictions still need to be satisfied.

Evidence can be more substantial than newcomers expect. AT lists, among other things, an exemption request, DAV, vehicle ownership/registration documents, an official residence certificate from the previous country showing registration and cancellation dates, and everyday evidence of actual residence such as rent, utilities, salary receipts or social contributions.

Do this early. If you are moving to Portugal, check the exemption requirements before disposing of old residence evidence, changing ownership of the car, or assuming you can sort everything months later.

Check the current transfer-of-residence ISV exemption on gov.pt.

VAT: “used” in normal speech may still be “new” for VAT

For EU VAT purposes, a car is treated as a new means of transport if it has been in use for no more than six months or has travelled no more than 6,000 km. Both conditions must be exceeded for it to fall on the used side of that EU definition.

If you buy a qualifying new vehicle in another EU country to register in Portugal, VAT is generally due in the country of registration. Do not casually pay VAT twice: tell the seller the vehicle is being taken to another Member State and check the transaction structure before payment. A genuinely used EU vehicle has different VAT treatment. ISV remains a separate Portuguese issue.

A worked example: why the cheap German car may not be cheap

Suppose a used car is €3,000 cheaper in Germany than an equivalent Portuguese car. Your real comparison is not €15,000 abroad versus €18,000 in Portugal. It is:

  • foreign purchase price;
  • travel or transport;
  • export/temporary registration and insurance where needed;
  • CoC/homologation or document costs;
  • inspection;
  • ISV;
  • Portuguese registration/DUA;
  • number plates;
  • professional/legalisation service if you use one;
  • VAT/customs if applicable;
  • your time and the risk of unexpected documentation problems.

Only compare the vehicles after you have that landed-and-legal Portuguese cost. On some cars importing still makes excellent sense; on others the apparent saving disappears.

Can I just keep the foreign plates?

Do not assume so. Temporary use by somebody whose normal residence genuinely remains abroad is different from a resident importing a vehicle for normal use in Portugal. EU rules themselves recognise that permanent movers generally need to register their car and pay the applicable car-related taxes in the new country, subject to national exemptions.

If you have actually moved your normal residence to Portugal, treating a foreign registration as a permanent workaround can create tax, registration and insurance problems.

Should you use a vehicle legalisation agent?

You can handle the process yourself, but commercial legalização automóvel services and customs representatives can be useful where the paperwork, homologation, exemption evidence or non-EU customs process is complicated. Ask for a written breakdown separating government taxes/fees from the provider’s own service charge, and do not accept an ISV estimate as guaranteed unless the underlying vehicle data have been verified.

Import checklist

  • Get VIN, first-registration date, engine and exact CO₂/homologation data.
  • Confirm the CoC/technical documentation exists.
  • Calculate ISV before buying.
  • Check VAT status: over six months and over 6,000 km?
  • If moving residence, check the ISV exemption before importing.
  • Budget transport/export plates/insurance.
  • Keep proof of the vehicle’s date of entry into Portugal.
  • Complete inspection/homologation steps.
  • Submit the DAV within the applicable deadline.
  • Pay assessed taxes on time.
  • Obtain Portuguese registration and plates.
  • Arrange insurance and request the DUA/registration certificate.
  • Diary IUC and IPO obligations.

Useful official links

Related BorderlessAdvice guides

  • #98 Driving in Portugal — road rules and Portuguese driving realities.
  • #99 Foreign driving licences and exchanging a licence.
  • #100 Buying and registering a car — buying a Portuguese car and the ownership-registration process.
  • #102 IPO inspection, IUC and car insurance — next: the recurring obligations once the car is on Portuguese plates.
  • #103 Portuguese toll roads and Via Verde.

Last verified: 2 October 2026. Vehicle taxes depend heavily on the individual vehicle and circumstances. Calculate from current AT/IMT information before buying or importing a vehicle; do not rely on a seller’s generic “EU import” estimate.