The implementation of the principle of free movement of people, is one of the
cornerstones of our European construction, has meant the introduction a series
of practical rules to ensure that citizens can travel freely and easily to any
Member State of the European Union. Travelling across the EU with one’s car
has become a lot less problematic. The European Commission has set a series of
common regulations governing the mutual recognition of driving licences, the
validity of car insurance, and the possibility of registering your car in a host
country.
Your driving licence in the EU
There is currently no common EU driving licence in place, but the EU Member
States have introduced a “Community Model” driving licence. This common
model ensures that driving licences issued by different EU countries are easily
recognised in other Member States. A principle of mutual recognition is
generally applied. The licence is issued in accordance to national law, but
should incorporate provisions concerning the Community Model, such as the basic
conditions to be granted a licence.
Old driving licences issued before 1996 do not have to be exchanged for the
new Community Model driving licence and remain valid until their expiration.
If an EU citizen takes up residence in another Member State, it is not
necessary to exchange the driving licence, although many often do for practical
reasons. Also, some Member States require that additional data be entered onto
the licence to fulfil certain administrative requirements.
In the event of expiry, loss or theft, a new driving licence can be issued in
the Member State of residence, in accordance to national conditions. Citizens
should contact the competent authorities.
Registering your car in the host country
In the event you reside in another EU Member State and drive your car there
for more that six months, you will be obliged to register the car with the local
authorities and pay the host country’s registration tax.
Car Insurance
EU citizens can insure their car in any EU country, as long as the chosen
insurance company is licensed by the host national authority to issue the
relevant insurance policies. A company based in another Member State is entitled
sell a policy for compulsory civil liability only if certain conditions are met.
Insurance will be valid throughout the Union, no matter where the accident takes
place.
Taxation
Value Added Tax or VAT on motor vehicles is ordinarily paid in the country
where the car is purchased, although under certain conditions, VAT is paid in
the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU
Member State and is intended to be registered in another EU Member State is
available on the link "Motor vehicle tax".
Useful references:
- DGV – Direcção-Geral de Viação
Avenida da República, 16 - 1069-055 Lisboa
Tel:
213 122 100
Fax: 213 555 670
Website
- DGAIEC – Direcção-Geral das Alfandegas e Impostos Especiais de Consumo
Rua da Alfândega, 5, r/c - 1149-006 LISBOA
Tel: 218
813 700
Website
Last updated June 2009
Source: European Union
© European Communities, 1995-2009
Reproduction is authorised.
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