Importing a Car into Portugal: How to Do It and Is It Worth It?

Portugal is a country built for driving.

This is not to say that public transport does not exist here, but travelling without a car is almost always significantly slower, harder, and more limiting.

Road infrastructure is prioritised, and driving is almost always the most straightforward way to explore quieter areas of the country, outside the major metropolises.

If you’re moving to Portugal and already own a car abroad, you may naturally think, “I’ll just bring it with me.” This is especially tempting if you know how expensive it can be to buy a car in Portugal, whether new or second-hand.

This is easier said than done. In this guide, we’ll explain how to import a foreign car into Portugal, making sure that all regulations are followed, all taxes are paid, and all bureaucratic boxes are ticked.

But first, we’ll try and help you decide if it makes enough financial sense to do so.

Of course, some things you just can’t put a price on, but if you don’t have an emotional attachment to your car, it may just end up being cheaper to buy one here.

If you’ve moved to Portugal and aren’t living in the centre of one of the country’s two biggest cities, you’ll definitely need a car.

But you’ll be faced with a classic conundrum: is it better to buy one in Portugal or import one from abroad?

For many reasons, the car market in Portugal, both new and second-hand, is significantly more expensive than many of its neighbours.  

So if you can buy the same car for less in Spain, France, or Germany, why wouldn’t you?

The answer is that while a foreign car will cost less, importing it involves paying a significant tax (ISV) and navigating a complex bureaucratic process.

Here’s why you might and might not want to import a car into Portugal.

It may be worth importing a car if:

It may not be worth importing if:

For many expats, the biggest factor is often whether they qualify for ISV exemption, as this can be the biggest monetary cost associated with importing. Without it, the cost of bringing in a foreign vehicle can quickly outweigh the benefits.

One of the biggest financial hurdles in importing a car into Portugal is the tax known as ISV (Imposto Sobre Veículos, or Vehicle Tax).

This is a one-time payment made when a vehicle receives its first Portuguese licence plate and is calculated based on a combination of the car’s engine displacement and carbon emissions, with additional surcharges for diesel vehicles and those with carbon emissions over 180 g/km.

Electric vehicles are exempt from paying ISV, and there are also exemptions available to those with disabilities and, notably, new residents of Portugal.

To qualify for this exemption for new residents, you must:

If you qualify for this exemption, importing a vehicle into Portugal becomes a much more attractive prospect, as not having to pay the ISV can often save you several thousands of euros.

Note that you can only make use of this exemption for one vehicle. You will need to pay ISV in full on any subsequent vehicles you import, even if you are still within the terms of the exemption.

Before You Start

Actually importing the vehicle can seem like an endless maze of bureaucracy, but it more or less boils down to these four steps:

Before the registration process can begin, you'll need to make sure the vehicle meets Portuguese requirements and that you have all the necessary paperwork in place.

This typically includes obtaining a Certificate of Conformity (CoC), ensuring the vehicle is roadworthy, gathering ownership and registration documents, and confirming you have the Portuguese tax and residency documentation required to complete the process.

Imported vehicles must undergo a Type B inspection to verify their identity, roadworthiness, and compliance with Portuguese regulations.

During the inspection, officials will check the vehicle's condition, documentation, and technical specifications. Once approved, you'll receive the inspection certificates needed to continue with registration.

The next step is to formally declare the vehicle to Portuguese customs and determine whether any import taxes are due.

This involves obtaining a homologation number from IMT, submitting the required customs declaration (DAV), and either paying the applicable ISV vehicle tax or applying for an exemption if you qualify under Portugal's change-of-residence rules.

Once customs clearance has been completed, the vehicle can be formally registered in Portugal.

This final stage includes obtaining a Portuguese registration number, arranging local insurance, fitting Portuguese number plates, completing the registration process with IMT, and receiving the vehicle's Portuguese registration certificate (DUA).

The cost of importing a car into Portugal is often where new residents get a unwelcome surprise. ISV can be substantial, and because it varies by vehicle, it can be difficult to predict without using an official simulator or specialist advice. However, if you qualify for the ISV exemption, importing a car becomes significantly cheaper.

Beyond ISV, costs you are likely to encounter include:

Importing a car to Portugal is often worthwhile for people relocating permanently, particularly those who qualify for tax exemptions.

However, once taxes, paperwork and registration costs are considered, buying a vehicle locally can sometimes be the simpler option.

Understanding the process and costs before you move will help you decide which route makes the most sense for your situation.

If you want to find out more about what to expect when moving to Portugal, contact our team of expert advisors, or if you’re curious about buying property, explore our list of Portuguese properties for sale.