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.
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".
Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.
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