Import car to Portugal: ISV vehicle tax on used imports

How the age of the car reduces ISV

Used cars from other EU states pay ISV reduced by a percentage that grows with the car's age, set out in article 11 of the ISV Code. The reduction reflects the depreciation of the car, so that a used import is not taxed as if it were new.

How the reduction applies to each component is set in the Code as amended by recent State Budgets, so use the tables in force on the date of the declaration. In practice:

• a car a few years old still pays a substantial part of the new-car ISV;
• the reduction grows year by year as the car gets older;
• the CO2 value from the CoC or registration documents remains the key input, because the environmental component dominates for many diesels.

Hybrids, plug-in hybrids and electric cars

Fully electric cars are exempt from ISV, which is why used EVs are among the most attractive imports for Portugal and why their price gap with Germany is small. Hybrids and plug-in hybrids can benefit from reduced ISV, subject to conditions on electric range and CO2 emissions. Check the electric range and CO2 value in the CoC before assuming the reduced rate applies.

Customs declaration, inspection and registration

Importing a used car into Portugal involves three authorities. The usual sequence:

1. Customs vehicle declaration (DAV). Filed with the tax and customs authority (Autoridade Tributária e Aduaneira) after the car arrives, within the statutory deadline. Dealers usually file it electronically or through a customs agent.
2. Payment of ISV. Assessed on the DAV and paid before the car can be registered.
3. Technical inspection at an approved inspection centre to confirm the car's identity and technical data for the allocation of a Portuguese registration number.
4. Registration number issued through the Institute for Mobility and Transport (IMT).
5. Registration of ownership at the vehicle register (Registo Automóvel).
6. Annual circulation tax (IUC) from then on, a separate yearly tax.

Documents normally needed are the foreign registration certificate (all parts), the invoice, the certificate of conformity, ID or company documents, and proof of address. Foreign documents may need translation.

How long it takes to register an import in Portugal

With complete documents and a CoC, the customs declaration, ISV payment, inspection and plates can usually be completed within a few weeks; the formal deadlines are short, but appointment availability at inspection centres and processing at IMT set the real pace. Plan for the car to stand for that period, and do not promise a delivery date before the DAV has been accepted.

Which cars make sense when you import a car to Portugal

The ISV bill decides. Before bidding on a car for a Portuguese buyer:

1. Get the CO2 value and engine capacity from the CoC.
2. Run the ISV simulator with the first registration date.
3. Compare purchase price + ISV + transport + registration costs with the Portuguese market price for the same model, year and mileage.

As a rule of thumb, electric cars and small petrol engines leave the most room after tax, plug-in hybrids that qualify for the reduced rate can work well, and large diesels rarely do once ISV is added, despite their high Portuguese prices. The general steps for buying the car abroad are in our guide to importing a car from Germany, and car transport costs in Europe gives typical prices for the long route to the Iberian Peninsula.

MyCarDealer shows the market price of a car from comparable listings in your country and the margin after VAT, transport and other costs you enter, such as ISV. You can value one car for free. For a wider comparison of registration taxes, see car registration tax in Europe.

VAT on cars imported into Portugal

ISV is not VAT. A used car bought from an EU dealer under the margin scheme arrives without further VAT, and a Portuguese dealer resells it under its own margin scheme. A VAT-qualifying car invoiced net to a Portuguese VAT number is an intra-Community acquisition on which the buyer accounts for Portuguese VAT. A car under six months old or with no more than 6,000 km is a new means of transport and is always taxed in Portugal.

Frequently asked questions

How is ISV calculated on a used car imported into Portugal?

ISV adds a cylinder component based on engine capacity and an environmental component based on CO2 emissions, with steeper tables for diesel. For used cars from other EU states the result is reduced by a percentage that depends on the car's age. The tax authority's ISV simulator gives the exact figure.

How does the age of the car reduce ISV?

Article 11 of the ISV Code reduces the tax on used EU cars by a percentage that rises with age, so older cars pay a smaller share of the new-car ISV. A young car still pays a substantial part of it.

Do electric cars pay ISV in Portugal?

No. Fully electric cars are exempt, which is why used EVs are among the most viable imports. Hybrids and plug-in hybrids that meet the range and CO2 conditions pay reduced ISV.

Which inspection and documents are needed for Portuguese plates?

After the customs declaration and ISV payment, the car is inspected at an approved centre so that IMT can issue a Portuguese registration number. You need the foreign registration certificate, invoice, CoC, ID and proof of address.

How long does it take to register an import in Portugal?

Usually a few weeks with complete documents and a CoC. The pace is set mostly by inspection appointments and IMT processing rather than by the legal deadlines.