Importing a Car from Abroad

Pros and Cons of Importing a Car from Abroad

Are you thinking of importing a car? Importing a car from abroad certainly has a number of advantages, but it’s wise to consider the disadvantages as well.

Benefits

• Lower purchase price than in the Netherlands
• A wider selection of models and versions
• Ability to find unique cars
• Financial Benefits for New or Luxury Cars
• Savings Possible Despite Additional Costs

Disadvantages

• Unexpected costs (BPM, shipping, import duties)
• Time-consuming paperwork and inspections
• Technical modifications required for non-EU cars
• Risk of Hidden Defects
• It's harder to conduct inspections without an in-person visit

Importing a Car from the European Union

You can obtain a Dutch vehicle registration certificate for a vehicle that has previously been registered in a member state of the European Union (EU) or the European Free Trade Association (EFTA). This also applies to vehicles that have previously been registered in Andorra, Monaco, San Marino, or Vatican City.

You can prove this with the vehicle registration certificate from the country where the vehicle is from. However, it must be a standard vehicle registration certificate with no special notes.

Costs of Importing a Car from Abroad

Importing a car involves more costs than just the purchase price of the car. An important factor in calculating the costs is the car’s country of origin: there is, of course, a difference in costs between importing a car from Germany and importing one from the United States.

Not only do transportation costs vary, but so do any import duties and type approval requirements. Are you importing a car from outside the EU? If so, the purchase price also affects the import duties.

1. Tax (VAT) on Imported Cars

When importing a car from abroad, you always pay VAT, but the VAT rate may vary. When importing a car from an EU country, it doesn’t matter whether the VAT is paid in that country or in the Netherlands. However, there is one exception.

If the car is less than 6 months old and/or has been driven less than 6,000 km, the Tax Authority may consider it new. This means you’ll have to pay another 6% VAT, even if you’ve already paid it in the country of origin.

When you import a car from outside the EU, you must always pay 21% VAT on the purchase price, shipping costs, and import duties. For imported cars older than 30 years, a standard VAT rate of 6% applies.

2. Import Duties on Imported Cars

Are you importing a car from an EU country? If so, you don’t have to pay import duties. However, if you’re importing a vehicle from outside the EU, you will have to pay import duties. For a car less than 30 years old, this is 10% of the purchase price and shipping costs. For cars older than 30 years, you do not have to pay import duties. In that case, you only pay 6% VAT on the purchase price.

3. Paying the Tax on Passenger Cars and Motor Vehicles (BPM)

In the Netherlands, you pay a tax on every passenger car or motorcycle that is registered. This is called the BPM. So when you import a car, you must also pay the BPM. You can calculate the amount of BPM you owe yourself.

For a passenger car, you calculate the amount based on your car’s CO2 emissions. Once you’ve calculated the amount, you can report it to the Tax and Customs Administration. In the past, you had to do this through Customs. A car or motorcycle cannot be registered until the BPM has been reported and paid.

4. Transporting an Imported Car

The cost of shipping a car from abroad depends on how you transport it. Will you pick up the car yourself, or will you hire a shipping company to do it? A shipping company usually determines the price based on the following factors:

• The distance the car must travel
• Whether the car is easily accessible by truck or car transporter
• Whether it involves one or more cars
• When the shipment needs to be made

5. Inspection by the RDW

If you want to register a car from abroad in the Netherlands, you must meet a few requirements. One of these is type approval by the RDW. An imported car must always be inspected by the RDW first.

During this pre-purchase inspection, an inspector verifies that the car complies with all environmental and safety regulations so that it is permitted to be driven on Dutch roads. The inspector also collects the information needed to file the BPM tax return.

Technical Condition and APK

When inspecting an imported car from an EU country, the RDW does not check the car’s technical condition. However, if the car is due for an APK inspection (or nearly due), it must meet the APK requirements. Read more about the APK when importing a car.

Importing a Car from Cyprus, the Channel Islands, Ireland, Malta, and the United Kingdom

Was the vehicle previously registered in an EU member state where people typically drive on the left? If so, it must be equipped with low-beam headlights for right-hand traffic in the Netherlands. If the vehicle is equipped with a single rear fog light, it must be mounted on the left or in the center. The RDW charges an additional fee during the inspection to assess this lighting.

Sample Calculation: Importing a Car from Germany

In this example, we’re importing a 2016 Volkswagen Golf with 80,000 kilometers on the odometer from Germany. The asking price there is €15,000, while a comparable car in the Netherlands costs about €20,000. That seems like a significant savings, but there are additional costs to consider.

• Travel expenses (public transportation to Germany and fuel for the return trip): €150
• Temporary insurance and one-day license plate: €100
• BPM (Tax on Passenger Cars and Motorcycles): €2,000
• RDW inspection: €140
• License plates: €50
• Tolls and vignettes (depending on the route): €30

The total cost of the car, including additional expenses, is €7,470. The initial savings appeared to be €5,000, but the actual savings after import are €2,530. Decide for yourself if it’s worth it.

Documents Required for Importing a Car from Abroad

To have an imported vehicle inspected, you must be able to present the following vehicle documents:

• If the vehicle was previously registered within the EU: the foreign vehicle registration certificate.
• If the vehicle has not previously been registered in a member state of the European Union (EU) or the European Free Trade Association (EFTA): the foreign registration certificate and a certificate of conformity.
• If the vehicle has never been registered before: a certificate of conformity and proof that the vehicle has never been registered.

If the vehicle does not have a registration certificate from an EU or EFTA country, you must demonstrate that it meets the registration requirements. You can do this by providing a declaration of conformity. In this declaration, the manufacturer states that the vehicle was built in accordance with a valid type approval and lists the technical specifications.

Has the vehicle been registered in an EU or EFTA country before? If so, it has already been inspected there to meet these requirements. In that case, you only need to show the foreign registration certificate.

Submitting a Certificate of Vehicle Type Approval (CVO)

For the inspection, you must submit the original and complete vehicle registration certificate from the country of origin. Was the car manufactured in 1995 or later? If so, you can also submit a CVO.

When you submit a CVO, all relevant (environmental) technical data will be entered on the Dutch vehicle registration certificate and/or in the vehicle registration database. You can request a CVO from the vehicle manufacturer or a representative in the Netherlands.

Keep the purchase contract for the imported car in mind

A sales contract for an imported car is important for legal certainty. It includes information about the buyer and seller, details about the car (such as make, model, year of manufacture, VIN, and mileage), the price, any warranties, and agreements regarding delivery.

Always verify that the information matches the car’s documentation, and have the contract translated if it is written in another language. Preferably, buy from a certified dealer and obtain copies of relevant documents, such as the foreign registration certificate and maintenance history, to avoid problems during import.

Apply for a Dutch license plate for a foreign car

Has the vehicle been approved by the RDW? If so, you can then apply for a Dutch license plate from the RDW. You are not allowed to drive the car on Dutch public roads without a Dutch license plate.

Do you still need to drive the imported car to an RDW inspection station? If so, you can apply for a one-day license plate. You can apply for the one-day license plate right away when you schedule an inspection appointment with the RDW. Keep in mind that it may take a few days for the application to be processed.

How to Arrange Car Shipping When Importing

There are a number of options for bringing your new car to the Netherlands:

Drive Yourself

You can drive the car to the Netherlands yourself, but you'll need valid liability insurance. Dutch insurers often don't offer this for foreign license plates.

Shipping by a carrier

With a car transporter or transportation company, you can have your car transported without having to drive it yourself or purchase insurance.

By sea or by plane

For cars from the United States, for example, you can choose to ship them in shipping containers (individual or shared). Air freight is faster, but more expensive.

Rent a ramp

With a car transporter, you can transport a car yourself. Be sure to carefully check the driver's license requirements and the car's weight.

Shipping from Spain, Italy, or Germany

If you pick up the vehicle yourself, you'll need to factor in costs such as fuel, tolls, vignettes, lodging, and travel time. Transport from Germany is easier because of the short distance.

The Cost of Car Shipping

Costs vary depending on distance, accessibility, and type of transportation. Prices often start around €90 at moving companies. Request a quote for an exact price.