Is It Worth Importing an Electric Vehicle?

 Cleuzina Cruz | Paralegal

The growing environmental concern has boosted demand for electric cars in Portugal.

Here we will explore the process of legalizing this type of vehicle and the associated taxes to be paid.

Vehicles imported from the EU countries are exempt from paying (ISV- Vehicle tax) and VAT (Value Added Tax) in Portugal, as long the VAT was paid in the origin country, on the other end, for vehicles imported by non-EU countries, the tax amount to be paid will depend on the origin country, but won’t pay ISV.

A car that is exclusively electric won´t pay ISV and IUC (road tax), whether it is new or used. To avoid paying VAT in Portugal, a car imported from an EU country must have paid VAT in the country of origin and be considered used. To be considered used, the vehicle must have been registered for more than 6 months and have more than 6,000 kilometers on the clock.

If you import a vehicle from outside the European Union, you won't pay ISV and IUC, but you will pay customs duties and VAT. When importing vehicles from outside the EU, the fact that the car is new or used is the same, there is no differentiation whatsoever.

As an incentive for sustainable mobility, many municipalities in Portugal make it easier to park electric cars. The most advantageous conditions vary depending on the municipality, from total exemption from parking costs to discounts.

For example, in Lisbon, a 100% electric car can apply for the Dístico Verde (Environmental Sticker), with an annual cost of 12 euros, and use any parking space managed by the Empresa Municipal de Mobilidade e Estacionamento de Lisboa (EMEL) without paying. Electric vehicle parking also has free solutions in municipalities such as Guimarães, Oeiras, and Póvoa de Varzim, for example.

In addition to the free parking for electric cars, there is also a great advantage in having reserved spaces with access to charging points. These spaces are always clearly marked with signs indicating that they are reserved for electric cars. It's important to note, however, that parking regulations can vary depending on the city or municipality, so it's always a good idea to check the specific rules in your area. In addition, it's important to ensure that, when parking, you don't block access to charging stations or obstruct the passage of people and/or vehicles.

Despite these enormous facilities, especially when it comes to parking in large urban areas, it's important to note that electric car parking in Portugal is also generally allowed in the same places as traditional vehicles. Nevertheless, the rules can vary, so it's important to consult them beforehand.

So, if you decide to go through a legalization process, these are a few steps to follow:

• Customs Clearance: The vehicle must go through customs clearance where you will find the amount of taxes and duties to be paid. 
• Inspection and Documentation: The vehicle must pass an inspection to verify that it meets the required environmental and safety standards.
• Application for Portuguese License Plate: Once the vehicle is cleared and all documentation is in order, you can apply for a Portuguese license plate.
• Environmental Label (Dístico Verde): Depending on the vehicle's environmental performance, it may be eligible for a Green Sticker, which grants access to low-emission zones and can result in lower road taxes.
• Payment of Taxes and Fees: After completing the necessary paperwork, you'll need to pay any applicable taxes, including road tax (Imposto Único de Circulação) and registration fees.

Importing an electric vehicle to Portugal offers numerous benefits, including reduced fuel costs, a smaller environmental footprint, and various tax incentives and government subsidies. Nonetheless, the process of legalizing an imported car does involve some bureaucracy, it’s a smart choice that aligns with Portugal’s sustainability goals. By following the necessary steps, you’ll be contributing to a more energy-efficient and eco-friendly future.

Although the process can be complex, it is manageable with the right documentation, if you need more personalized assistance or further details, feel free to contact us.