Here’s what you need to know when buying a car in Portugal, from finding car dealerships to getting all your driving documents.

With a warm climate and beautiful scenery throughout the country, Portugal is a great place to travel by car. Many foreigners buy a car in Portugal and it is quite easy to do so if you have the right documents. However, you need to know where to go and what to look out for so you don’t get scammed. You’ll also need to follow certain vehicle registration and maintenance procedures, not to mention having a valid driver’s license.

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Buying a car in Portugal

Buying a car, new or used, is relatively easy in Portugal. You can find English-speaking dealerships in areas where foreigners live. Moreover, as importing foreign cars into Portugal can sometimes be expensive, buying a Portuguese vehicle can sometimes make more sense if you are a keen driver.

You can buy cars in Portugal from dealerships, online brokers or private sellers. There are approximately 530 cars per 1,000 people in the country – slightly more than one for every two people, which is slightly below the EU average. In 2021, 175,427 vehicles were registered in Portugal, 27.6% of which were electric vehicles or hybrids.

Who can buy a car in Portugal?

To buy a car in Portugal, you will need:

  • Proof of residence in Portugal, such as a residence permit or proof that you rent or own a property in Portugal
  • A valid ID, such as a passport
  • NIF number
  • Bank account details if you are not paying the full amount in cash

To drive in Portugal, you must be at least 18 years old – the legal Portuguese driving age – and have a valid driver’s license.

Buying a new car in Portugal

Buying a new car in Portugal is more expensive than buying a used car. However, there are also clear benefits, such as better reliability and a longer vehicle life. In addition to this, dealerships in Portugal usually deal with paperwork such as registration. Many also sell car insurance.

In 2020, the average cost of a new car in Portugal was  €32,483  , which is slightly below the EU average. The best-selling brands are Renault, Peugeot, Mercedes-Benz, Citroën and BMW. Electric and hybrid models are also selling well, thanks in part to ease of use, as Portugal has almost 12,000 charging stations across the country. Among the sales leaders are Tesla, Toyota Prius, Honda Civic and Lexus.

You can pay for a new car in Portugal in full or, if you buy from a dealership, you can pay in installments. This usually involves paying a commission. Portuguese banks and other  loan providers  also offer car loans. Check the interest rates at your bank.

After buying a car, you should receive a sales contract with detailed conditions, an owner’s manual, which is usually produced by the manufacturer, and an  EU certificate of conformity,  which confirms that the car meets minimum road safety standards.

Where to buy a new car in Portugal

Car dealerships in Portugal

You can find dealerships all over Portugal. These are official points of sale of new cars. Accordingly, they usually offer a higher level of support both at the point of sale and after the sale. Dealerships in Portugal will take care of registering the car for you. Many also have garage connections in case something goes wrong.

Most Portuguese dealerships are associated with specific car brands, but you can also find a few multi-brand dealerships. Look for dealerships on websites like  StandVirtual  (Portuguese) or  Páginas Amarelas  (Portuguese Yellow Pages).

Major car brands that have dealerships in Portugal include (link in Portuguese):

If you’re buying a car from a dealership in Portugal, you can usually take the car for a short test drive before buying to make sure you’re happy with it.

Buying a car in Portugal online

The online car market in Portugal, as in other countries, is growing, especially after the start of the COVID-19 pandemic, as fewer people visit showrooms. In terms of the process, it’s pretty similar to buying a car in person at a dealership. However, you will need to submit electronic versions of the documents if you complete the sale online.

While buying online is usually faster and easier, the downside is that you won’t be able to test drive the car first, and you won’t be able to negotiate lower prices. Some dealers may offer discounts on personal sales, for example if you pay in cash.

In some dealerships in Portugal, you can buy new cars online. There are also websites where you can search for deals on different makes and models. They include:

Dealerships often advertise their products on these websites, so you can find the car you want and then visit the showroom to complete the sale and pick it up. However, many websites allow you to do everything online if you prefer. Through some sites, you can even arrange the delivery of the car.

Buying a used car in Portugal

If you want to save some money when buying a car in Portugal, you can always buy a used car (  de segunda mão/usado  ). However, you may not save as much as you hope. Although its new cars are relatively cheap, Portugal was ranked the ninth most expensive country in the 2017 Global Used Car Index – ahead of countries such as Germany, France, the UK and the US. This is because cars depreciate more slowly in Portugal.

There are many places to buy used Portuguese cars, including dealerships, where things are a little safer. You can also buy from private sellers or at events like car shows and car auctions.

Dealerships will take care of most of the necessary documents related to the purchase. If you are buying privately, you will need to make sure everything is in order. You should receive the following from the seller:

  • Transfer of ownership/registration application form (  Requerimento de Registo Automóvel  ). This must be completed and signed.
  • Registration certificate (  documento único automóvil  ).
  • IPO test certificate (  Inspecção Periódica Obrigatória  ) if the vehicle is more than four years old, and details of the next IPO inspection. An IPO is the equivalent of an IPO in the UK.
  • A sales contract detailing the terms of the purchase, vehicle information and buyer/seller details.

You can check the validity of any documentation and the correctness of all information at the Portuguese Institute of Mobility and Transport (  Instituto da Mobilidade e dos Transportes  – IMT  ). You can also check the Vehicle Identification Number (VIN) to check accident history, mileage, and more. There are several VIN decoding portals on the Internet where you can find information by typing in the VIN.

Where to buy a used car in Portugal

Car dealerships in Portugal

In Portugal, you can find car dealerships that sell both new and used cars. There are also dealerships that only sell used vehicles, as well as car dealers that specialize in certain types of vehicles, such as vintage and classic cars.

The obvious advantage of buying a used car from a dealership is that it takes the risk out of the purchase. For example, dealers offer a minimum warranty of one year on used vehicles. They will also take care of a lot of paperwork such as registration and checking that the car has passed all the necessary IPO tests. You can ask for a car report if you are unsure about something. However, since dealerships provide more general services, they tend to charge slightly higher prices.

Many brand name dealerships sell new, used, and near-new cars, so it’s worth checking out if you’ve got your eye on a certain fresh model and want to save a few bucks. You can also search for local dealers on  StandVirtual  or  Páginas Amarelas  (both in Portuguese).

Buying a used car in Portugal online

There are several websites where you can search and buy used cars in Portugal. Some of the main ones are:

Buying a car in Portugal from a private owner

Buying a car from a private seller in Portugal can save you money. Sellers may be willing to negotiate and may lower the price if you pay cash. However, you will not be able to pay in installments. In addition, you will not receive a guarantee and will have to decide on your own registration.

Private sellers must still provide the necessary documents – the existing registration forms, the IPO report and the date of the next MOT (if the car is older than four years), as well as the transfer of ownership form. It’s also a good idea to ask for a sales contract with details such as the car’s age, mileage, maintenance history and number of previous owners. At least try to find out this information before buying.

If the seller asks you to put down a deposit on the car, make sure you use an escrow account or another third-party storage service. This is a good way to protect both the buyer and the seller during the exchange of funds.

You can find many private sellers on the used car sites listed above. You can also find them using:

  • Advertisements in local and national newspapers
  • Car magazines such as  Turbo  or Carros
  • Membership sites such as  ACP
  • Notice boards or shop windows of local communities
  • Community forums or social networks
  • Used car fairs and auctions, usually advertised in magazines and newspapers

Car registration and other documents in Portugal

All cars in Portugal must be registered with  the IMT  , whether new, used or imported. If your vehicle is not registered, the authorities can confiscate it. If you buy from a dealership, they usually do the registration for you. Otherwise, you will need to register your vehicle within 60 days of purchase. This can be done through the Institute of Registers and Notaries (  Instituto dos Registos e do Notariado  – IRN  ).

You can register  online  , at  the IRN vehicle registration office  (in Portuguese) or at a citizen shop (  Lojas do Cidadão  ) in Portugal. Bring the following documentation with you (or get an electronic copy if registering online):

  • Your ID, such as a passport
  • Your NIF number
  • Proof of residency in Portugal, such as a residence permit or proof of address
  • Completed and signed registration form or transfer of registration to the new owner if it is a used car (  Requerimento de Registo Automóvel  ).
  • EU Certificate of Conformity  or equivalent safety certificate if the vehicle is not EU
  • IPO inspection ticket if the car is older than four years. If your car needs an IPO check, you can find a list of registered inspection centers  here  (in Portuguese).

After registration and payment of the registration fee, you will receive a certificate of registration (  Documento Unico Automóvel  – DUA)  . This is valid until you sell the car or decide  to deregister it  . You should always keep your DUA in your car with your car insurance certificate.

Unlike some other European countries, you do not need to change your number plates if you move to another part of Portugal.

You can read more about vehicle registration in Portugal on  the government’s online portal  .

The cost of a car in Portugal

In addition to the initial costs of buying a car, you’ll need to budget for a number of other costs when you buy a car in Portugal:

  • The registration fee  is about €55-65. You can save around 15% by registering online.
  • Taxes  – You must pay a one-off vehicle tax (  Imposto Sobre Veículos  – ISV) when you buy a new car or import a car into Portugal. You also pay an annual traffic tax that renews your license plates and allows you to drive on Portuguese roads (  Imposto Único de Circulação  – IUC). Taxes depend on the type of car and CO2 emissions. You can check the costs in this  simulator  (in Portuguese) and learn more about ISVs and IUCs  here  .
  • Car insurance  – You will need to purchase at least third party insurance. Costs depend on the value of the car, type of insurance and your own risk profiles. Most policies cost between 150 and 600 euros.
  • Maintenance  – An IPO review costs approximately €30. You’ll need to have this when your car is four years old, then every two years for cars 4-8 years old, and then annually.
  • Fuel costs  . If you have a petrol car, the cost of fuel in Portugal is currently €1.71 per liter for petrol and €1.55 for diesel.
  • Toll roads  – you will have to pay to travel on the motorways in Portugal. On some roads it can be almost 25 euros. However, you can purchase prepaid subscriptions from providers such as  Via Verde  , starting at just over €5 per year.

In addition to this, you will need to plan for costs such as general maintenance, parking and membership of any car club you may subscribe to. According to  the 2021 Car Cost Index  , the average cost of owning a car in Portugal is €1,127 per month – the second highest in Europe.

Car import to Portugal

Of course, it is not necessary to buy a car in Portugal. Another option is to import a car from another country. However, this can be a time-consuming process involving a lot of paperwork. Also, although it’s cheaper than buying a new car, most vehicles come with registration and tax fees. Plus shipping costs, which can exceed €1,000 depending on where the car comes from.

You need to import your car through the Portuguese Tax and Customs Administration (  Autoridade Tributária e Aduaneira  ). The process (and cost) depends on your country of origin. The total costs are:

  • Import Vehicle Tax (ISV) is usually a maximum of 10%. You can calculate the costs in this  simulator  (in Portuguese).
  • VAT, currently 23%

However, if you are importing from an EU/EFTA country, you do not need to pay ISV. In addition, you only pay VAT if the car is brand new or you have owned it for less than six months, but you can claim it back if you have already paid VAT on the vehicle in another Member State.

Non-EU nationals moving to Portugal can claim an  ISV exemption  if they have owned the car for at least six months and lived outside Portugal during that period.

To import a car to Portugal, you must provide:

You can complete most import documents online  by creating an account  with the Portuguese authorities (in Portuguese).

You will also need to register the imported vehicle within 60 days of arrival. However, EU/EFTA residents can bring their cars to Portugal for up to six months within a 12-month period if they are registered in another member state.

You can read more information on  the government’s online portal  .

Selling a car in Portugal

You can sell your car in Portugal through dealerships, online sites, car fairs and auctions or through a private sale. Useful used car listing websites include:

If you sell through dealers, websites, or car sales events, you’ll usually have to pay a commission as a one-time payment or as a percentage of the sale price. However, you will have less support with the necessary paperwork if you are selling privately.

When you sell a car in Portugal, you are responsible for providing:

In addition, it is advisable to draw up a sale or purchase agreement to protect the rights of both the buyer and the seller. If you use a dealership, they usually provide a standard template.

The equipment you need for your car in Portugal

To avoid a fine if you are stopped by the police, in Portugal you must keep the following in your car at all times:

  • Certificate of registration
  • Car insurance certificate
  • Driver’s license
  • A warning triangle that must be placed behind the car in case of an accident
  • At least one safety vest

Useful resources

Buying, importing and selling a car in Portugal. How to buy a car in Portugal? Sites for selling and buying cars in Portugal.