Automobiles and the property relocation exemption

Import duties and taxes on automobiles can, depending on CO2 emissions and the value of your car, entail high costs. Taxation of Passenger Cars and Motor Vehicles (hereinafter referred to as “bpm”) is usually due when importing cars from an EU country. When cars are imported from a non-EU country, one has to pay VAT and import duties, in addition to bpm. If you will soon be moving to the Netherlands from abroad, it will be possible to bring your cars and other vehicles to the Netherlands tax-free. In order to do so, the conditions for the relocation property exemption must be met. Read on below to see if you are eligible for the relocation property exemption.

Relocation property exemption

To take advantage of the relocation property exemption and import your cars and other vehicles exempt of bpm, VAT and import duties to the Netherlands, a number of conditions must be complied with, namely:

In addition to the above overall position, there are also some special situations where, under certain conditions, no bpm, VAT and import duties are due on vehicles. See below if one of these special situations could apply to you.

Car of a foreign employer

You live in the Netherlands and receive a car from your foreign employer that has been registered abroad. The import of the car is exempt from bpm, VAT and import duties if:

Car registered abroad for your own company

You live in the Netherlands and have the use of a car that has been registered elsewhere than in the Netherlands and you are somewhere else besides the Netherlands:

And

Temporary exemption

You are given a car that has been registered abroad for temporary use (up to a maximum of 2 weeks) and you meet the following conditions:

Examples

To illustrate the advantages of the Relocation property exemption you can find three exemplary calculations below.

Brand:Audi
Model:Q5 45 TFSI quattro
Year of manufacturing:2020
Purchase price (net):EUR 48.390
CO2 emissions:162 g/km
VAT (21%):EUR 10.162
BPM:EUR 15.678
Total tax advantage
(VAT + BPM)
EUR 25.840
Brand:BMW
Model:540i Xdrive
Year of manufacturing:2020
Purchase price (net):EUR 54.428
CO2 emissions:163 g/km
VAT (21%):EUR 11.430
BPM:EUR 16.093
Total tax advantage
(VAT + BPM)
EUR 27.523
Brand:Land Rover
Model:Range Rover Sport SVR
Year of manufacturing:2020
Purchase price (net):EUR 114.609
CO2 emissions:294 g/km
VAT (21%):EUR 24.068
BPM:EUR 70.458
Total tax advantage (VAT + BPM)EUR 94.526

Would you like to find out if you could make use of the relocation property exemption and the extent of the tax benefits for you? If so, please don’t hesitate to contact us.

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