Brief analysis - Exemption of Vehicle Tax (IA) to individuals by occasion of the transfer of residence to Portugal
An exemption of Vehicle Tax (Imposto Automóvel/IA) is available for vehicles belonging to individuals who hold a valid driving licence for it and transfer their residence from a European Union member state to Portugal.
The exemption will only be approved when the following conditions are met:
a) The vehicle has been acquired at home and exported without benefiting of exemption or tax relief;
b) The vehicle belongs to the current owner during, at least, six months before the transfer of the residence to Portugal.
The exemption will be conceded to one vehicle by beneficiary, and it might be used only once every ten years.
In what concerns residence requirements, the exemption shall be granted if it is shown that the normal residence period in the other member state was equal or superior to 185 days per civil year.
Those who abode in another member state for studying or fixed duration missions are not deemed as residents in that state.
The request of exemption shall be presented at the customs, at the latest 12 months after transfer of residence.
The documents required are:
a) Vehicle document(s), title of registration of property or equivalent document;
b) Certificate issued by the competent authority from the country of origin certifying the registry at the registration of inhabitants and the dates of beginning and cancellation of the residence in that country;
c) If there is no authority for the control of residents, the cancellation will be attested by a consular entity;
d) Certificate issued by the tax department of the area of residence of the interested party by which are attested the earnings received in Portugal in the last three years.
After the beginning of the process, circulation of the vehicle in Portuguese territory might be authorized by the customs for a period anticipated sufficient to the closure of the process.
The vehicles introduced into the consumption with exemption of the vehicle tax cannot be transferred at any title in the 12 months following introduction in Portugal and can only be driven by the owner and by members of his direct family during that period.
©José Pedro Magalhães - last update on 19 November 2006