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Is It Worth Importing an Electric Vehicle?

11 November 2024

Cleuzina Cruz

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.

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Expressions of Interest – New Regularisation Law

14 November 2024

On the 7th of November 2024, Law No. 40/2024 was published, introducing a renewed pathway for non-EU immigrants seeking to regularise their residency in Portugal. This legislation allows foreign nationals who contributed to Portuguese social security within the 12 months preceding the suspension of the expression of interest on the 3rd of June 2024, to reinitiate the regularisation process. This marks an essential first step toward securing a residence permit. Until the 3rd of June 2024, under Law No. 23/2007 of the 4th of July , non-EU immigrants who entered Portugal as tourists—thus without formal residency status—could initiate the regularisation process by submitting an expression of interest. This option was available to individuals with a Portuguese Social Security Number (NISS), a Tax Identification Number (NIF) , and either an employment contract or self-employment, allowing them to take the first steps toward obtaining a residence permit. As of the 3rd of June 2024, Decree-Law No. 37-A/2024 established a transitional regime that suspended the expression of interest mechanism. Under this regime, all foreign nationals wishing to reside in Portugal must now secure an employment contract or job offer before relocating. The decision to end the expression of interest process has sparked some debate. On one hand, this measure has allowed the government to advance its immigration policy goals. According to António Leitão Amaro, Minister of the Presidency, residency applications in Portugal have decreased by 80%, which has significantly reduced the workload of AIMA . On the other hand, ending the expression of interest process has created a gap in legislation, leaving a significant number of people without adequate legal protection and, as a result, in a vulnerable position. With the amendment introduced by Law No. 40/2024, foreign nationals once again have the opportunity to regularise their residency status through this process, provided they have been registered with social security and have made contributions, either as an employed or self-employed worker, for at least 12 months prior to 3rd June 2024. If you meet this requirement and are considering submitting an expression of interest, please reach out to us . We would be pleased to assist you throughout the process.

Traveling to Portugal Simplified: Discover How

13 November 2024

This transformation accompanies the introduction of the Entry/Exit System (EES) across the EU, an automated IT system designed to register non-EU nationals traveling within this region. The EES is a significant step forward in modernizing border management, enhancing both the efficiency and precision of border processing. One of the most notable changes it brings is the end of physical passport stamping. This system will apply solely to short stays, specifically those lasting up to 90 days within a 180-day period. This modernization will enhance the experience for tourists visiting Portugal and other Schengen countries by streamlining border management across the EU. With more efficient and secure entry processes, this initiative aims to provide a seamless and enjoyable journey for all travelers within the Schengen area. The new system strengthens Schengen border security in several ways by: Utilizing biometric data to effectively prevent identity fraud; Enhancing border verification through electronic records and biometric data; Facilitating real-time information sharing, ensuring EU border authorities have timely, accurate data; Improving the tracking of overstayers with precise records of entries, exits, and entry refusals. The EES is scheduled for implementation in 2025. Another forthcoming measure is the European Travel Information and Authorization System (ETIAS) , a document required for entry into the Schengen Area. Available online for a fee of 7 EUR, with certain exemptions, ETIAS will be directly linked to the traveller’s passport. Similar in function to the U.S. ESTA authorization, ETIAS is designed to facilitate secure and efficient entry for travellers, reinforcing the safety standards across all Schengen borders.