UAE to Portugal Car Import: ISV Tax, IVA at 23%, and IMT Registration Complete Guide

Portugal applies ISV (Imposto sobre Veículos), a first-registration tax banded by both engine displacement and CO₂ emissions. Combined with 23% IVA, ISV can add 15% to 50% to the landed cost. This guide covers the process end-to-end.

Portuguese import taxes

• Import duty: 10% of customs value
• Portuguese IVA: 23% of customs value plus duty
• ISV: two-component vehicle tax (displacement + CO₂)
• IUC (Imposto Único de Circulação): annual road tax

ISV formula 2026

ISV has two additive components:

Displacement component

• Up to 1,000 cc: 0.99 EUR per cc
• 1,001 to 1,250 cc: 1.09 EUR per cc
• Above 1,250 cc: 5.11 EUR per cc (heavy scaling)

CO₂ component

• Under 99g CO₂/km: linear low rate
• 99 to 115g: moderate
• 116 to 145g: increased
• 146 to 175g: high
• 176 to 195g: very high
• 196g+: maximum bracket, up to 220 EUR per gram/km above threshold

A car with 3.0L engine and 200g CO₂/km typically attracts 15,000 to 20,000 EUR in ISV.

DAV vehicle declaration

Every imported vehicle requires a DAV (Declaração Aduaneira do Veículo) filed with Portuguese customs (Autoridade Tributária e Aduaneira). This declares the vehicle for tax assessment. Time: typically 5 to 15 working days for DAV processing.

Registration process

1. Sines or Lisbon port arrival and customs clearance
2. DAV filing and ISV assessment
3. Payment of duty, IVA, and ISV
4. IMT (Instituto da Mobilidade e dos Transportes) technical inspection
5. Registration and Portuguese plates issued

IMT inspection

Cars with EU CoC pass IMT quickly (administrative). Non-CoC cars require an individual homologation process:

• Cost: 400 to 900 EUR
• Time: 3 to 8 weeks
• Failure rate: 15 to 20% first attempt

Real landed cost example

Example: 2024 Mercedes-Benz EQS 580 sourced in Dubai for 95,000 EUR (BEV, 0g CO₂).

• Purchase price: 95,000 EUR
• Sourcing fee: 3,600 EUR
• Inspection: 550 EUR
• Container shipping via Sohar to Sines: 4,300 EUR
• Marine insurance: 380 EUR
• Import duty (10%): 10,383 EUR
• Portuguese IVA (23%): 26,281 EUR
• ISV (BEV, displacement 0 cc, CO₂ 0g): approximately 100 EUR (nominal)
• IMT + registration: 350 EUR
• Total landed: approximately 140,944 EUR

Same EQS 580 at Portuguese Mercedes dealer: 165,000 EUR. Saving: 24,000 EUR on BEVs.

Where Portugal works for imports

• BEVs (nominal ISV, no CO₂ component)
• Efficient hybrids and PHEVs under 99g CO₂/km
• Small-displacement performance cars (Ford Fiesta ST, Peugeot 208 GTi era cars)
• Historic vehicles (30+ years) with reduced ISV

Portugal Golden Visa and residency considerations

Portuguese residency programmes (Golden Visa era buyers) often included vehicle import considerations. As of 2026, ISV applies uniformly regardless of residency status. Some tax residency benefits (NHR, non-habitual resident) do not extend to vehicle registration.

Common Portuguese import mistakes

1. Not accounting for two-component ISV (displacement + CO₂ add together)
2. Missing DAV filing window (attracts penalties)
3. Assuming EV zero ISV extends to PHEVs (PHEVs pay reduced but non-zero ISV based on CO₂)

How we handle Portuguese imports

Sines is our primary Portuguese landing port. Our Portuguese partner handles DAV filing, ISV assessment coordination, IMT booking, and registration. Start your brief.

FAQ

Why source through Big Boy Whips

Every EU car import involves navigating a country-specific tax code, homologation process, and shipping logistics. Get any one of them wrong and the maths turns against you. Get them right and the savings can be substantial. We handle all of it, end to end.

• We advise before you buy. We tell you exactly which cars work economically for your country and which do not, before you spend a euro. Every quote we issue includes country-specific tax projections so there are no surprises.
• We negotiate on the UAE side. UAE-side purchase price is where most of the value is created. Our dealer relationships, auction access, and sourcing volume unlock pricing individual foreign buyers cannot access.
• We inspect every car ourselves. 248-point pre-purchase mechanical, cosmetic, and diagnostic inspection with full photo and video documentation. You approve before we pay the seller.
• We handle every document. Mulkiya transfer, UAE export certificate, bill of lading, marine insurance, customs entry, destination-country tax filings, and homologation coordination. You never touch a form.
• We ship with tracked, insured freight. Enclosed container for high-value cars, RoRo for volume. Sohar routing coordinated on every shipment given current Strait conditions. Marine insurance to full declared value.
• We deliver to your door. Registered plates, cleared paperwork, keys in your hand. Anywhere in Europe.

Ready to see the true landed cost of your dream car for your country? Send us your brief and a senior advisor comes back within 24 hours with a full landed-cost projection and honest recommendation.