Portugal's tax and customs authority (TA) has been ordered to return part of the ISV, the import tax on vehicles, to a taxpayer who had imported a car from Germany. According to the court's decision, the calculation of the tax does not take into account the depreciation of the vehicle and is therefore discriminatory and illegal. This highly criticized tax can sometimes reach crazy sums, much higher than the amount of the vehicle. In addition, Brussels has already fined Portugal for this tax which does not meet the European criteria for free movement of goods and people. Lisbob, the expatriate assistant in Portugal, tells you all about this court decision that may mark the end of the ISV tax in its current form.
For most people who choose to move to Portugal, registering their vehicle is often part of the process. As often during an expatriation, things are not so simple! Indeed, if you have the right to move to Portugal with your favorite vehicle, you also have rules to respect when you register your car if you want to not pay huge ISV tax. Indeed, some people think that legalising a car in Portugal is an easy task, but they discover quickly that it is by far one of the most difficult and complicated thing to do when you go to live in Portugal. A dirty engine, a bit too optimistic on the time needed by portuguese authorities to check documents, there are lot of mistakes and trap that you need to avoid if you want to import you car and ask for ISV tax exemption. In order to import your vehicle to Portugal it is necessary to avoid mistakes that can be fatal. What are the 5 mistakes to avoid when legalising your car in Portugal ? What are the pitfalls to avoid when importing a vehicle ? Lisbob, the expatriate's assistant in Portugal, tells you the 5 mistakes you should not make when registering your vehicle in Portugal.