# Holiday Home - Car Import



## AstonVilla (Jul 16, 2012)

Hi - I've read quite a lot of useful comments regarding the Import Cars, but have possibly a unique situation which I would like help with. My Business Partner and I are buying a Holiday Home, which we require to complete as it is presently a "shell ". I intend to go out in March/April of next year and will oversee such works, which I am hoping will be completed within 3-6 months. I will be "resident" there during this period, and will require a car, and also once the house is completed then the car will be used by whoever is in occupation at the house. I will not be "resident" as I will return to the Uk in the Winter period - although this may change as I get older and approach Retirement?. Ideally I would like to take a car from the UK and leave it out there - is this possible, or will there be Import Tax to pay?


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## canoeman (Mar 3, 2011)

You must be a Registered Resident to import car ISV (tax) free but you must also remain a resident for a further 12 months, otherwise you must repay ISV savings, plus a bit more.

As a Resident you can import and pay ISV, but then you might as well buy a car here, but I don't think the 12 month residence applies.

The catch with all of this is that the car for road tax purposes pays the rate of year of import* not* the year of first registration in UK, which with the wrong car can have a considerable impact.

If your bringing a car with you then you can keep it in Portugal 183 days in any 12 month period, but new implementation of EU Residency laws only allow you to stay in Portugal a maximum of 3 months, when you must register your Residence then as a Resident you cannot legally drive a UK or any other EU registered vehicle.


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## AstonVilla (Jul 16, 2012)

Canoeman - thanks for your help, but I'm afraid it just makes things even more complicated.
Given what I've said about me intending to spend next Summer in Portugal then it would appear that I have no choice other than to become a Resident? If so, then I may as well bring a Uk car as we will not be required to pay ISV as long as we have owned it for 12 months and keep it for a further 12 months - is that correct? Can my business partner register as resident also and bring a second car in the same manner? My main reason for not wanting to buy a Portugese vehicle is that we have a particular requirement as my Partner has 4 children, and we need therefore a "minibus" for airport runs, and I am assuming that if these are thin on the ground, then they will likely be expensive to buy?
The second car would be a smaller "run-around" vehicle

To further complicate matters our current vehicles are owned by our Company - what effect does that have?


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## canoeman (Mar 3, 2011)

If you intend to stay longer than 3 months you should register as a resident this allows you to

a. import and not pay ISV providing you meet the reguired conditions *BUT* you *must continue* to *remain a Resident for 12 months*, if you don't you must *repay* ISV. You also cannot sell, loan, pledge or hire for a period of 12 months following the date on which the Portuguese registration number is attributed. So for example you wouldn't be allowed to provide the car for any house occupant except spouse and parents during this period.

b. If you register as a Resident then you *cannot legally drive* any *UK registered car* unless you've started import (matriculation) process.

Yes your business partner could do exactly the same as you with the same conditions.

Company owned vehicles, simple *you can't do it* as you don't meet required ownership and proof of ownership requirements and also possibly the VAT requirements. 

Minibus's or MPV's thin on the ground hardly, everything available here, just any car is expensive in relation to UK, check out this site Standvirtual - O Nº1 em Carros Usados, Carros Baratos and if your ferrying people or children do you really want a RHD or would they want a RHD car to drive.


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## AstonVilla (Jul 16, 2012)

Canoeman - thanks again for your speedy response. I think we have two options here:

1. Buy in Portugal a Mercedes Vito or similar with 9 seats and luggage space, and also a 7 seat Vauxhall Zafira or similar. I will search for these and try and get an idea as to cost.
This way we don't need to be Resident, and I can deal with the number of days etc by returning home when I need to?

2. Become Resident - what are the advantages/disadvantages?, and purchase UK vehicles, but the clause re the use of the vehicles by others is then a problem, or

3. Cheat! - Not that I'm one to do so, but the system seems that complicated it almost encourages you to do so!

Can you see any better solution to our situation?


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## canoeman (Mar 3, 2011)

I wouldn't recommend option 3 many people are being caught and fined, the system is relativity straightforward it's just when you don't fit parameters in any EU country it appears complicated

2. as your not of retirement age or want to work here then little benefit, and don't understand "and purchase UK vehicles" as a resident you can't unless you import and pay tax which on the type of vehicle your describing little or no saving.

Simplest is 1 all you reguire is a Fiscal number, no sorry can't, if you want vehicle/s here it's either temporarily bringing in a UK car so drive down instead of fly and not exceeding the 183 days in any 12 month rule, hiring or buying .


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## AstonVilla (Jul 16, 2012)

Yes I think your right. We could buy left hand drive UK cars and make sure they are not there for more than 183 days in a year. That way our Insurance would cover anyone driving them which would otherwise be a problem as well. How would they know how long the car has been in Portugal? If you are caught what is the fine? Earlier on you mentioned that after 3 months you must apply for residency - presumably you can extend that period by returning home and then going back? It would only affect me until the house was complete, and then it would be used for Holidays, until retirement which is somewhat distant just now !


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## canoeman (Mar 3, 2011)

Residency you can holiday in Portugal for a maximum of 3 months as soon as you exceed that time you should register Residence, you can extend it, but it does seem as if you haven't looked at all the different aspects that come into this, so you have two or maybe more issues to consider as well

1. Is the UK reguirements to retain your UK Residence rights for example free NHS

2. Is the tax angle for Portugal you would be considered a Tax Resident if you spend more than 183 days in any 12 months, and if you own a property here at 31st Dec of any tax year and the Portuguese Tax authorities consider it your Primary Residence then even if you spend less than the 183 days they would consider you a Tax Resident.

Yes you could but why buy LHD cars in UK, the garages that specialize in them tend to charge hefty premiums, I'd check your UK insurance first unlike Portuguese insurance that allows me to drive anywhere in EU for as long as various countries regulations allow, the UK insurers don't. 

Whilst your overseeing house I'd just make sure you keep under the 3 months and come back.
How do they know, well these days there are many means, from ferry, plane tickets to passport scans, border cameras, tolls electronic or otherwise, but generally the onus is placed on you to prove you are here legally, caught with a car can get silly really not worth it, a fellow expat got caught last year 13,000€ to legalize car or get it out of country, but he was lucky to get that option and that authorities didn't delve deeper


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## Ruthi2 (Jul 12, 2012)

Hi, this is actually my first 'thread' on the Expat Forum....so I hope I'm using it correctly. I have been following the very informative information put forward by 'canoe man' with regard to the import of a foreign car. Thank you, that has made it a very easy decision to just purchase one in Portugal. However, I have a further query with regard to the residency rule. Our situation is as follows: I currently live in a remotish area of Australia with three children (12, 15 & 17) my husband is based in Trinidad. 
We are contemplating a move to Portugal for a couple of reasons...cost of living, ease of travel, and if it all comes together my husband would start a new contract with a different company that would afford him a more rounded 28/28.....and we would actually get to spend some family time together. This means I would move to Portugal with the kids, rent accommodation, buy a car, put all the utilities in my name etc and become a resident (we all have UK passports). SO, the question is: would we be liable for income tax? My husband would probably only end up coming into the country for three out of every 8 weeks. I, myself, would not be working in Portugal. SO, this brings me to my second question, what are the requirements needed in order to get a rental? Will a certain amount of money in a bank account be sufficient?


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## canoeman (Mar 3, 2011)

Difficult one, from your point as a Resident then you have to make a yearly tax return, unless your below min income levels, but making a return doesn't mean you'd pay tax.
There is a statement with Registering Residence that requires you to say you are financially secure, whether you actually make it very much depends on the place you Register. 

Overall, I think you should investigate your husband also being a Resident but working abroad, I think this would probably make your Social Security and tax status far easier.

General requirements for a a standard rental as opposed to a holiday rental would be a Fiscal number and a bank account.


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## Ruthi2 (Jul 12, 2012)

OK, so let me just re-cap to make sure I understood what you said.

If I, myself, am not working in portugal, then even as a resident I would not need to do a tax return....because I have no income?
If hubby registers as a resident and is working overseas, and IN the country for less than 183 days, then he would NOT be required to pay Portugese tax?
When you say Fiscal number and a bank account, I presume you mean opening a Portugese bank account, and having a certain amount of money in it?
Or do you mean I would need to show how much money I've had go through my overseas account for the whole year?
With regard to Social Security issues...I don't think they will be relevant ( I haven't lived or worked in the UK, or paid into any type of SS for 30 yrs...neither has my husband).

On a different subject (after looking through a couple of other threads): I noticed someone had mentioned applying for a visa....I'm assuming that on UK passports we would not be needing any type of visas...but would just fill out the relevant residency paperwork when the time came.

Thanks for your help....I hope I can ask as many seemingly ignorant questions without you losing patience


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## canoeman (Mar 3, 2011)

_If I, myself, am not working in portugal, then even as a resident I would not need to do a tax return....because I have no income?_
Yes but the way Portuguese Tax system works you would need to make a return because certain allowances are claimed at the end of each year for example schools books, supplies. 

_If hubby registers as a resident and is working overseas, and IN the country for less than 183 days, then he would NOT be required to pay Portugese tax?_
Not necessarily as a Resident he would have to declare worldwide earnings and tax paid, if Portugal has a reciprocal agreement then he wouldn't be taxed twice on same income, also he could be considered a Tax Resident if Tax authorities decide this is his primary residence 183 days or not.

_When you say Fiscal number and a bank account, I presume you mean opening a Portugese bank account, and having a certain amount of money in it?_
Fiscal number (NIF) is your Portuguese Tax number, without it you can do very little, reguired to open bank a/cs, buy a car, utilities etc, living here without a Portuguese bank a/c very difficult, and more so now with D/D reguirements, apart from the cost element of using a foreign based bank. 

_Or do you mean I would need to show how much money I've had go through my overseas account for the whole year?_
Registering Residence and the declaration your financial not a burden to Portugal depends very much on the Camara where you do it. a lot never mention it, others do, and some demand proof of income

_With regard to Social Security issues...I don't think they will be relevant ( I haven't lived or worked in the UK, or paid into any type of SS for 30 yrs...neither has my husband)._
Do you not think that Portugal might not want you to contribute to the Social Security fund for services you and your children will use. You could find yourself in a situation where all medical care would be full price or you and family would require expensive insurance.

_On a different subject (after looking through a couple of other threads): I noticed someone had mentioned applying for a visa....I'm assuming that on UK passports we would not be needing any type of visas...but would just fill out the relevant residency paperwork when the time came._
If you all have UK Passport then you don't reguire a Visa.


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## Ruthi2 (Jul 12, 2012)

Ok thank you canoeman, your input has been most helpful. What are D/D requirements?


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## canoeman (Mar 3, 2011)

Direct Debits reguire a Portuguese Bank Account, I don't believe it's possible to set up D/D with as an example LLoyds UK even if you have an offshore € a/c.

Lot of utilities require D/D as does unlimited Broadband services


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## AstonVilla (Jul 16, 2012)

Canoeman - thanks again for your thoughts.

on reviewing the overall "project", it is likely that I shall require to be in Portugal for approx 6 months - say April to Sept of next year to oversee the house completion.I would require a vehicle during this period for my own use only.

Thereafter it would be a holiday home, to be used by me, my family and friends etc, and we would require a vehicle there to be used by all.

In the longer term I may retire to the Property, but this is too far away to consider just now !

I don't see any advantage in becoming resident in Portugal, but would obviously have to watch my days in the first stage, as I will bring a uk registered car

In the second stage, how do we have a car in Portugal for anyones use? 

Thanks again for your help


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## canoeman (Mar 3, 2011)

You just buy one you only require a Fiscal number, which could just be the easiest option anyway.

Your other option would be to have 2 or 3 UK cars that you rotated so as not to exceed the 183 days in any12 month the only restrictions you should be aware of is

"Vehicles brought into Portugal temporarily may only be driven by their owners, their owner’s spouse or common-law spouse, their owner’s parents or children or their registered keeper, provided none of these individuals are resident, employed or carrying out paid activity in Portugal."


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## AstonVilla (Jul 16, 2012)

I will have a Fiscal number to open a non resident Bank Account, but I think "rotating" is our best option as they would be Company owned - the Company is the Registered Keeper - and the Insurance would cover any driver as it does now. I will take your advice however re making sure the Insurance covers long term driving in Portugal. Does this sound right?


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## canoeman (Mar 3, 2011)

You'd need to check how the Company ownership fits in with the legal aspect I quoted above, just because a drivers insured to drive in UK doesn't necessarily mean they would be entitled to drive same vehicle here.
Any driver, check on minimum ages and provisional licence holders cannot drive in Portugal. 

Is it important yes because there are far more checks being done now than in the past.


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## AstonVilla (Jul 16, 2012)

ok I will check this aspect Thanks again


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