End of ISV Inequalities for Used Imported Cars

The ISV for imported used cars, coming from other European Union countries, will, from 2025, have the same tax framework as new cars registered in Portugal for the first time. This measure is part of the State Budget proposal for 2025, recently presented to Parliament, and aims to correct a situation that has been the target of many complaints and legal disputes.

Currently, the ISV calculation for imported cars penalizes used cars, as opposed to vehicles purchased directly in the country. This difference has been considered unfair by the courts, both in Portugal and at European level, and has motivated several interventions by the Court of Justice of the European Union (CJEU). Current legislation, in fact, favors national used cars, discouraging the import of similar vehicles, which violates the principles of free movement within the European Union.

The proposed change will harmonize the treatment given to used cars, adjusting the formula that defines the value of the ISV for used imported cars, both in terms of engine capacity and the environment. With this adjustment, cars imported with permanent registration from other EU countries will no longer be affected in the tax calculation, according to PwC experts.