All destinations

Purchase costs

VAT on new car22%

Registration tax0%

Italy is in the EU — no import duty on EU cars. No registration tax (IPT is €150-200 fixed admin fee only). 22% VAT on new cars. Used car transfer: bollo (stamp duty ~€30) + notary optional.

Annual ownership costs

Road tax€120

3rd party insurance€600

Vehicle inspection€75 / 2 yr

Total/year€795

Fuel prices(2026-Q1)

⛽ €1.82/L🚛 €1.70/L diesel

Used car market

5yr compact (Golf/Corolla)€14k

New equivalent€25k

Market quality✅ Good

Autoscout24.it and Subito.it are the main platforms. Large supply, good quality. Italian cars (Fiat, Alfa Romeo, Lancia) and German brands well represented. Prices reasonable vs. Western EU average.

Driving licence (expats)

EU licences directly exchangeable. Non-EU (RU/BY): valid 12 months from obtaining Italian residence. Exchange to Italian licence required — no driving test but written exam in Italian or with translator. UA: bilateral agreement exists.

Key gotchas

• ⚠Insurance in Southern Italy (Naples, Palermo, Rome) is shockingly expensive — can exceed €2,000/yr for basic third-party
• ⚠ZTL (Limited Traffic Zones) in historic city centres: fines of €80-160 auto-generated by cameras — check before driving in
• ⚠Bollo (road tax) penalties if unpaid: late fee + 30% surcharge — pay by December 31

Italy is medium cost overall but with extreme geographic variation in insurance: Northern Italy (Trentino, Veneto) is affordable, Southern Italy is very expensive. ZTL zones catch many new expats off-guard.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car5%

Registration tax0%

Import duty5%

5% VAT applies since 2018. No registration tax. Excellent supply of new and used cars, competitive pricing.

Annual ownership costs

Road tax€0

3rd party insurance€300

Vehicle inspection€30 / 1 yr

Total/year€330

Fuel prices(2026-Q1)

⛽ €0.55/L🚛 €0.50/L diesel

Used car market

5yr compact (Golf/Corolla)€12k

New equivalent€22k

Market quality✅ Good

Large secondhand market, many expat-owned cars. Japanese and Korean brands dominate. Good condition, air-conditioned indoor showrooms.

Driving licence (expats)

RU/BY/UA licence valid 12 months, then must convert to UAE licence. Process is straightforward via RTA, ~AED 200.

Key gotchas

• ⚠Car is mandatory for daily life — public transport outside Dubai/Abu Dhabi is minimal
• ⚠Summer heat (June–Sep) means AC running constantly: fuel consumption +20-30%
• ⚠Salik toll tags in Dubai add AED 4 per crossing, can reach AED 400+/month for commuters

UAE is one of the cheapest countries globally for car ownership due to near-zero taxes and ultra-cheap fuel. A car is effectively mandatory for daily life outside city centres.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car23%

Registration tax0%

Portugal's ISV (Imposto Sobre Veículos) is a one-time registration tax paid on first Portuguese registration. It is calculated on cylinder capacity + CO2 emissions. For a used car imported from Germany, a 2019 1.4L petrol Euro 6 might incur ISV of €2,000-5,000 depending on emissions. New low-CO2 cars pay less. 2025 reform: 52% depreciation reduction at 6 years (both components). This is Portugal's biggest car ownership trap for expats.

Annual ownership costs

Road tax€60

3rd party insurance€200

Vehicle inspection€30 / 2 yr

Total/year€290

Fuel prices(2026-Q1)

⛽ €1.72/L🚛 €1.58/L diesel

Used car market

5yr compact (Golf/Corolla)€14k

New equivalent€25k

Market quality✅ Good

Standvirtual.com and OLX Portugal are main platforms. Good supply of German, French, Spanish imports. Prices are moderate. Many expats find buying a Portuguese-registered car avoids ISV entirely.

Driving licence (expats)

EU licences directly exchangeable. Non-EU (RU/BY): valid 6 months from getting Portuguese residence. Exchange requires written exam; practical exam may be required. Apply at IMT office.

Key gotchas

• ⚠ISV (first registration tax) can add €2,000-8,000 to a car imported from outside Portugal — always buy Portuguese-registered cars
• ⚠RU/BY licence holders must pass written exam (theory test) to get Portuguese licence — study the Portuguese code
• ⚠Lisbon and Porto parking is expensive and scarce; monthly garage €80-150 often necessary

Portugal is deceptively medium-cost: annual running costs are low, but ISV can blindside expats importing their car from Germany or France. Always buy a car already registered in Portugal to avoid it.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car21%

Registration tax0%

Spain has no registration tax on new cars (abolished for eco-cars, minimal for others). Used car transfer tax (ITP) 4-8% varies by region. Notary and registration fees add ~€200-400.

Annual ownership costs

Road tax€80

3rd party insurance€300

Vehicle inspection€45 / 2 yr

Total/year€400

Fuel prices(2026-Q1)

⛽ €1.70/L🚛 €1.55/L diesel

Used car market

5yr compact (Golf/Corolla)€14k

New equivalent€24k

Market quality✅ Good

Large and active used car market. Wallapop, Milanuncios, Coches.net are main platforms. Spanish-registered cars in good condition. SEAT very popular local brand.

Driving licence (expats)

EU DL directly exchangeable. RU/BY DL: valid 6 months from registration in Spain, then must get Spanish licence — written + practical exam required. UA: specific bilateral agreement, check current status.

Key gotchas

• ⚠ITP (used car transfer tax) varies by region: 4% in Madrid, 8% in Catalonia — buy in Madrid if possible
• ⚠ZBE (Low Emission Zones) in Madrid and Barcelona restrict older petrol/diesel cars — check your car's badge
• ⚠Spanish insurance is compulsory; premiums vary widely by province and driver history

Spain is a reasonable country for car ownership with no punitive registration taxes. Regional differences (ITP, ZBE zones) matter significantly. RU/BY licence holders must re-sit driving exam after 6 months.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car19%

Registration tax0%

Import duty10%

Cyprus is in the EU — no import duty on EU cars. Non-EU cars: 10% customs duty + 19% VAT. No registration tax, but first registration fee applies. RIGHT-HAND DRIVE — Cyprus drives on the left.

Annual ownership costs

Road tax~€100

3rd party insurance~€280

Vehicle inspection€30 / 2 yr

Total/year~€395

Fuel prices(2026-Q1)

⛽ €1.55/L🚛 €1.40/L diesel

Used car market

5yr compact (Golf/Corolla)~€11k

New equivalent~€23k

Market quality🟡 Fair

RIGHT-HAND DRIVE only — limits supply. Japanese imports (RHD) popular and plentiful. Used market decent but smaller than mainland EU. Avoid left-hand-drive cars — they are not street-legal.

Driving licence (expats)

EU/EEA licences are directly exchangeable. Non-EU (RU/BY/UA) DL valid 12 months, then must exchange to Cyprus licence. No driving test required for exchange.

Key gotchas

• ⚠RIGHT-HAND DRIVE country — you cannot legally drive a left-hand-drive car; mainland EU cars unusable
• ⚠Annual vehicle registration must be renewed by specific deadlines or fines apply
• ⚠Traffic in Limassol and Nicosia is notably heavy; parking in city centres is difficult and expensive

Cyprus is moderately expensive for car ownership despite no registration tax — the right-hand-drive requirement limits used car supply and keeps prices up. Expats moving from mainland Europe cannot bring their cars.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car7%

Registration tax0%

Import duty80%

Thailand has up to 80% import duty on CBU (fully built) cars + 7% VAT + excise tax 5-50% by engine/CO2. However, most popular cars (Toyota, Honda, Isuzu, Mitsubishi) are locally assembled and priced competitively. RIGHT-HAND DRIVE.

Annual ownership costs

Road tax€35

3rd party insurance€100

Vehicle inspection€20 / 1 yr

Total/year€155

Fuel prices(2026-Q1)

⛽ €0.90/L🚛 €0.80/L diesel

Used car market

5yr compact (Golf/Corolla)€9k

New equivalent€16k

Market quality✅ Good

Excellent used car market. Toyota Corolla locally made, very popular and reliable. Kaidee Auto and Taladrod.com main platforms. Japanese brands overwhelmingly dominant. Good condition cars common.

Driving licence (expats)

Foreign DL + IDP valid 90 days. Long-term residents (visa >1yr) can exchange foreign DL to Thai DL at DLT — must show proof of address, visa, medical certificate. Written test and vision test required; practical usually waived.

Key gotchas

• ⚠RIGHT-HAND DRIVE — European continental cars unusable; must buy Thai-registered or locally assembled
• ⚠Bangkok traffic is among the world's worst — budget 1-3 hours for cross-city commutes during rush hour
• ⚠Annual 90-day reporting for long-stay visa holders: must be done in person or online — not related to car but relevant to licence exchange

Thailand is very affordable for car ownership — locally assembled Toyota and Honda are excellently priced and reliable. Annual costs are minimal. Bangkok traffic is the key quality-of-life concern.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car0%

Registration tax0%

Import duty30%

Malaysia has aggressive protectionist taxes to support Proton and Perodua. Import duty 30%, excise duty 60-105% (by engine size), plus 10% SST. A fully imported Toyota Corolla effectively costs 2-3x Japan price. Locally assembled cars (Proton, Perodua, and CKD Toyota/Honda) are far cheaper. CBU tax calculation method changed in Jan 2025, raising prices further.

Annual ownership costs

Road tax€40

3rd party insurance€150

Vehicle inspection€0 / 999 yr

Total/year€190

Fuel prices(2026-Q1)

⛽ €0.47/L🚛 €0.38/L diesel

Used car market

5yr compact (Golf/Corolla)€7k

New equivalent€12k

Market quality🟡 Fair

Perodua Myvi and Proton Saga dominate the affordable segment. Japanese brands (Toyota, Honda) are respected but expensive. Mudah.my and CarBase.my are main platforms. Drive on LEFT (right-hand drive).

Driving licence (expats)

Foreign DL valid 3 months for visitors. Residents must obtain Malaysian licence — written and practical test required at JPJ.

Key gotchas

• ⚠Fully imported (CBU) cars cost 2-3x their origin price due to stacked import+excise duties — always buy locally assembled
• ⚠Fuel subsidy (RON95 at €0.47/L) only for Malaysians with MyKad — foreigners pay market price ~€0.75/L
• ⚠RIGHT-HAND DRIVE — continental European cars not registerable

Malaysia is cheap for annual running costs and has very affordable locally-made cars. The key trick: never buy a CBU import — the tax structure makes them absurdly overpriced. Fuel subsidy applies only to Malaysians.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car11%

Registration tax0%

Import duty50%

Indonesia has high import duties on fully-built cars (CBU): 50% + 11% VAT + luxury tax (PPnBM) 10-95% based on engine size. Locally assembled (CKD) cars far cheaper. RIGHT-HAND DRIVE country.

Annual ownership costs

Road tax~€50

3rd party insurance~€80

Vehicle inspection€15 / 5 yr

Total/year~€145

Fuel prices(2026-Q1)

⛽ €0.65/L🚛 €0.55/L diesel

Used car market

5yr compact (Golf/Corolla)~€8k

New equivalent~€15k

Market quality🟡 Fair

Toyota, Honda, Daihatsu, and Mitsubishi dominate — all locally assembled. Avanza and Kijang Innova are workhorses. Used market active via OLX Autos, Carmudi. Quality varies.

Driving licence (expats)

International DL (IDP) + foreign DL valid for 2 months visiting. Residents (KITAS) must obtain Indonesian SIM. Written and practical exam required.

Key gotchas

• ⚠Jakarta traffic is among the worst in the world — factor in extreme commute times
• ⚠Flooding in Jakarta (Nov–Mar) can trap cars; choose parking wisely
• ⚠RIGHT-HAND DRIVE — mainland European cars cannot be registered

Indonesia is cheap for annual running costs but the right-hand-drive requirement and high CBU import duties mean you must buy locally assembled. Toyota and Honda dominate, prices are reasonable for locally made models.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car24%

Registration tax0%

Greece is in the EU — no import duty on EU cars. First registration tax (Telos Taξiνómisis) based on CO2 and Euro standard: from 0% (Euro 6 low-CO2) up to ~40-50% for high-emission vehicles. Used imported cars get depreciation reduction. 24% VAT on new cars.

Annual ownership costs

Road tax~€130

3rd party insurance~€250

Vehicle inspection€45 / 2 yr

Total/year~€425

Fuel prices(2026-Q1)

⛽ €1.82/L🚛 €1.65/L diesel

Used car market

5yr compact (Golf/Corolla)~€13k

New equivalent~€24k

Market quality🟡 Fair

Car.gr is the main marketplace. German and Japanese brands common. Many cars imported from Germany. Market is decent but prices inflated due to registration taxes on new cars. Greek-registered used cars preferable.

Driving licence (expats)

EU licences directly exchangeable. Non-EU (RU/BY/UA): valid 1 year from receiving Greek residence permit. Exchange requires no driving test but involves bureaucratic process at local KEP offices.

Key gotchas

• ⚠First registration tax on new cars can reach 40-50% for high-CO2 vehicles — buy Euro 6 low-emission cars to minimise
• ⚠Fuel prices among highest in Europe (heavily taxed) — fill up outside Athens or at supermarket stations
• ⚠Island living: car ferries add significant cost if you move a car frequently between islands and mainland

Greece has a notable first-registration tax that can significantly inflate new car prices, but used cars already registered in Greece sidestep this. Annual costs are moderate, fuel is expensive.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car18%

Registration tax0%

Malta is in the EU — no import duty on EU cars. RIGHT-HAND DRIVE (drives on the left). 18% VAT on new cars. Registration tax was abolished; one-time registration fee ~€200-400 applies.

Annual ownership costs

Road tax~€100

3rd party insurance~€350

Vehicle inspection€45 / 1 yr

Total/year~€495

Fuel prices(2026-Q1)

⛽ €1.50/L🚛 €1.40/L diesel

Used car market

5yr compact (Golf/Corolla)~€12k

New equivalent~€23k

Market quality🟡 Fair

Very small market, limited supply. AutoTrader.com.mt is the main platform. Japanese imports (RHD) popular. Road network is tiny — odometer values are misleadingly low.

Driving licence (expats)

EU licences directly exchangeable. Non-EU (RU/BY/UA): valid 12 months from getting Maltese residence. Exchange possible without re-test for non-EU licences in most cases.

Key gotchas

• ⚠RIGHT-HAND DRIVE — mainland Europe's left-hand-drive cars cannot be registered; severely limits supply
• ⚠Malta has the highest car density in the EU — traffic jams are constant, especially Valletta corridor
• ⚠Parking is a major issue in most towns — monthly garage rental €60-120 is often necessary

Malta is surprisingly expensive for car ownership given its tiny size — high insurance, right-hand-drive constraint, and limited supply push costs up. Many expats question whether a car is worth it vs taxi apps.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car22%

Registration tax0%

Estonia is in the EU — no import duty on EU cars. As of 2025, a one-time registration fee applies when registering a car in Estonia for the first time (based on CO2 emissions and mass). Standard VAT 22%.

Annual ownership costs

Road tax€150

3rd party insurance€180

Vehicle inspection€40 / 2 yr

Total/year€350

Fuel prices(2026-Q1)

⛽ €1.62/L🚛 €1.48/L diesel

Used car market

5yr compact (Golf/Corolla)€13k

New equivalent€25k

Market quality✅ Good

Good used car market with a mix of Finnish, German, and Scandinavian imports. German cars (VW, BMW, Mercedes) very popular. Online marketplaces (auto24.ee) well developed.

Driving licence (expats)

EU driving licences exchangeable directly. RU/BY licence: valid 12 months from getting Estonian residence, then must exchange — no driving test required. UA licence same process.

Key gotchas

• ⚠New annual vehicle tax from Jan 2025 — Estonia is no longer tax-free for car ownership; older/cleaner cars pay less
• ⚠One-time registration fee on first registration in Estonia can add €300-1500 depending on CO2
• ⚠Winters are harsh (Nov–Mar); winter tyres legally mandatory — factor in storage and swap costs

Estonia introduced a new annual vehicle tax in 2025, reversing its previous zero-tax status. Overall costs remain among the lowest in the EU. RU/BY licence holders get 12 months to exchange without re-testing.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car21%

Registration tax0%

Import duty10%

Montenegro is not in the EU. Import duty on non-EU cars: 10%. Cars from EU (Serbia, BiH transfers): complex customs situation. 21% VAT. Low bureaucracy, relatively simple process.

Annual ownership costs

Road tax~€50

3rd party insurance~€120

Vehicle inspection€20 / 2 yr

Total/year~€190

Fuel prices(2026-Q1)

⛽ €1.45/L🚛 €1.35/L diesel

Used car market

5yr compact (Golf/Corolla)~€10k

New equivalent~€21k

Market quality🟡 Fair

Small but active market. Many German and Italian imports. Autopijaca.me and Facebook Marketplace are main channels. Mountain roads demand higher-clearance cars. Quality inspection advisable.

Driving licence (expats)

Foreign DL valid 12 months. Residents must exchange to Montenegrin licence. Written exam may be required. Process at SUZMP offices.

Key gotchas

• ⚠Mountain roads (Lovćen, Durmitor) require confident driving skills — summer tourist traffic makes coastal roads chaotic
• ⚠Car theft in Budva/coastal tourist zones is higher than inland; full insurance recommended
• ⚠Montenegro customs rules for re-registering foreign-plated cars can be complex for long-term residents

Montenegro offers very low annual car ownership costs with minimal taxes and cheap insurance. The used car market is small but functional. Mountain terrain demands capable vehicles.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car20%

Registration tax0%

Import duty10%

Serbia is not in the EU. Import duty on non-EU cars: 10% + 20% VAT. EU cars (from Germany, Austria) can be imported with minimal duty under CEFTA/SAA. No registration tax. Admin fees modest.

Annual ownership costs

Road tax€50

3rd party insurance€130

Vehicle inspection€25 / 2 yr

Total/year€205

Fuel prices(2026-Q1)

⛽ €1.48/L🚛 €1.38/L diesel

Used car market

5yr compact (Golf/Corolla)€10k

New equivalent€20k

Market quality✅ Good

Polovniautomobili.com is the dominant used car platform — one of the best in the Balkans. Large supply of German and Austrian cars. Quality is generally good. Belgrade market very active.

Driving licence (expats)

Foreign DL valid 12 months. Residents must exchange to Serbian licence. No driving test required for exchange in most cases — presentation of foreign DL + residency sufficient.

Key gotchas

• ⚠EU driving licences (but not RU/BY) are accepted without exchange — check your specific licence country
• ⚠Belgrade toll roads (Bubanj Potok, Pančevo Bridge) add costs for daily commuters
• ⚠Vehicle emissions sticker ('eko vinjeta') required in Belgrade city centre

Serbia is one of the best-value car markets in Europe: low annual costs, excellent used car supply from Germany/Austria, and a professional online marketplace (Polovniautomobili). Popular choice for RU/BY/UA expats.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car18%

Registration tax0%

Import duty5%

Georgia (country) has 5% import duty + 18% VAT. From April 2026: excise tax 1.5 GEL/cm³ for cars <6yr old, 4.5 GEL/cm³ for older cars. RHD vehicles: 3× excise multiplier. Cars under 8 years old popular from USA auctions.

Annual ownership costs

Road tax€0

3rd party insurance€60

Vehicle inspection€10 / 2 yr

Total/year€70

Fuel prices(2026-Q1)

⛽ €1.00/L🚛 €0.95/L diesel

Used car market

5yr compact (Golf/Corolla)€8k

New equivalent€22k

Market quality🟡 Fair

Large market of US auction cars (Copart, IAAI) and Korean/Japanese imports. Many salvage-title cars — inspect carefully. Tbilisi has active Car Market (Didube). Good value but quality varies.

Driving licence (expats)

Foreign DL valid 12 months from border crossing. Residents must then exchange to Georgian licence — written exam (multiple choice) required; practical may be waived. RU licence holders frequently do this.

Key gotchas

• ⚠New 2026 excise system: 3× multiplier for RHD cars — importing Japanese RHD cars from Japan just got very expensive
• ⚠Many US auction salvage cars on the market — always check VIN history (Carfax or equivalent)
• ⚠Tbilisi traffic is chaotic; driving style aggressive; accident rates high

Georgia is one of the cheapest countries globally for annual car running costs — no road tax, ultra-cheap insurance. However, the 2026 excise tax reform raised initial import costs, especially for older cars and RHD vehicles.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car20%

Registration tax10%

EU country, no import duty on EU cars. NoVA (Normverbrauchsabgabe) is a one-off CO2-based registration tax: rate% = (WLTP CO2 − 94) ÷ 5, capped at 80%, plus an €80/g malus above 155 g/km. EVs are exempt. A typical mid-emission petrol car pays roughly 5–15%. Standard VAT 20%.

Annual ownership costs

Road tax€650

3rd party insurance€700

Vehicle inspection€70 / 1 yr

Total/year€1450

Fuel prices(2025)

⛽ €1.52/L🚛 €1.54/L diesel

Used car market

5yr compact (Golf/Corolla)€20k

New equivalent€28k

Market quality✅ Good

Austria has among Europe's highest used-car prices: the 2025 market average for a mid-size car was about €26,500. Strong dealer network; willhaben.at and AutoScout24 dominate listings. German and Austrian-market cars are plentiful and well-maintained.

Driving licence (expats)

EU/EEA licences are recognised automatically, no exchange. Non-EU licences (including RU/BY/UA) are usable for 6 months after establishing residence, then must be converted: a practical driving test plus a medical exam are generally required, because Russia, Belarus and Ukraine are not on Austria's full-equivalence exemption list. Conversion admin fee €90.

Key gotchas

• ⚠Annual motorway vignette is mandatory on all autobahns: €103.80 (2025), €106.80 (2026); separate toll sections (tunnels, alpine passes) cost extra
• ⚠NoVA registration tax can add 5–15% (up to 80% for high-CO2 cars) on first registration — price it in when importing
• ⚠Non-EU licence holders get only 6 months before a mandatory conversion that usually includes a practical driving test

Car ownership in Austria is expensive: high used-car prices, a CO2-based NoVA registration tax, a motor insurance tax, an annual motorway vignette, and pricey fuel. Public transport is excellent (the nationwide KlimaTicket and a dense rail network), so many city residents skip car ownership entirely.

Data as of 2025. Not financial advice.

Purchase costs

VAT on new car15%

Registration tax0%

Import duty15%

Mauritius has 15% import duty on most vehicles + 15% VAT. Excise duty also applies varying by engine size. RIGHT-HAND DRIVE (drives on the left). Japanese and Korean imports popular.

Annual ownership costs

Road tax~€80

3rd party insurance~€200

Vehicle inspection€25 / 1 yr

Total/year~€305

Fuel prices(2026-Q1)

⛽ €1.30/L🚛 €1.10/L diesel

Used car market

5yr compact (Golf/Corolla)~€10k

New equivalent~€20k

Market quality🟡 Fair

Decent used car market — Japanese RHD imports (Toyota, Honda, Nissan) dominate. Lexpress Auto and Facebook groups main channels. Quality generally reasonable for the region.

Driving licence (expats)

Foreign DL valid 3 months for tourists. Permanent residents must obtain Mauritian licence — theory and practical test required.

Key gotchas

• ⚠RIGHT-HAND DRIVE — continental European cars unusable
• ⚠Traffic in Port Louis and Grand Baie is heavy during peak hours despite the island's small size
• ⚠Cyclone season (Nov–Apr): keep car in garage if possible; hail and flood damage not uncommon

Mauritius is a mid-tier car market with import duties and right-hand-drive constraints. A car is essential on the island — public transport is limited. Japanese imports offer the best value.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car13%

Registration tax0%

Import duty52%

Costa Rica has one of the highest car import tax burdens in the world. New cars under 3 years: ~52% of CIF value. Cars 5+ years old: 64-79% of CIF. Taxes compound: import duty + selective consumption tax + VAT + specific levies. New residents can apply for tax-free import under Law 9996 (deadline July 2026).

Annual ownership costs

Road tax€120

3rd party insurance€250

Vehicle inspection€50 / 1 yr

Total/year€420

Fuel prices(2026-Q1)

⛽ €0.90/L🚛 €0.85/L diesel

Used car market

5yr compact (Golf/Corolla)€15k

New equivalent€35k

Market quality🟡 Fair

Cars are extraordinarily expensive due to import taxes. A Toyota Corolla that costs $22,000 USD elsewhere may cost $45,000 USD in Costa Rica. Used market is correspondingly pricey.

Driving licence (expats)

Foreign DL valid 3 months for tourists. Residents holding valid foreign DL and residency can drive up to 3 months. Getting a Costa Rican licence requires local exam.

Key gotchas

• ⚠Import taxes are 52-79% of vehicle value — most expensive car market in Latin America by far
• ⚠Marchamo (annual tax+insurance) is 3.5% of assessed value — on a $30,000 car that is ~€1,000/yr
• ⚠New resident exemption (Law 9996) allows one tax-free import — but application deadline is July 2026

Costa Rica is the most expensive car market in Latin America due to stacked import taxes. New residents should investigate Law 9996 tax exemption before it expires in July 2026. Buying locally is the only viable long-term option.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car7%

Registration tax0%

Import duty20%

Panama has 7% ITBMS (VAT) and ~20% import duty on most cars. Colon Free Trade Zone allows some duty-free purchases. Dollarized economy simplifies pricing. Used car market well supplied from the US.

Annual ownership costs

Road tax~€30

3rd party insurance~€150

Vehicle inspection€20 / 2 yr

Total/year~€200

Fuel prices(2026-Q1)

⛽ €0.90/L🚛 €0.85/L diesel

Used car market

5yr compact (Golf/Corolla)~€10k

New equivalent~€20k

Market quality✅ Good

Good supply of US-sourced cars, many with clean titles. Toyota, Honda, Hyundai dominant. CompraVenta Panama and Encuentra24.com are main platforms. Left-hand drive, drive on right.

Driving licence (expats)

Foreign DL valid 3 months. Residents need Panamanian licence — written and practical test. Process manageable but time-consuming.

Key gotchas

• ⚠Panama City traffic is very heavy, especially on Bridge of the Americas — commute times can be extreme
• ⚠Annual number plate change (change fee ~$50) required every few years
• ⚠Flooding in Panama City during rainy season (May-Nov) can damage low-clearance cars

Panama offers low annual running costs and a solid supply of US-sourced cars. The Colon FTZ can offer deals. A car is essential in Panama City given poor public transport.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car16%

Registration tax0%

Mexico has zero import duty on USMCA-origin vehicles. Non-USMCA cars from Europe/Asia face 20-35% duty. 16% VAT. Most popular cars (Toyota, VW, Nissan, Chevrolet) are locally assembled.

Annual ownership costs

Road tax~€40

3rd party insurance~€150

Vehicle inspection€0 / 999 yr

Total/year~€190

Fuel prices(2026-Q1)

⛽ €0.90/L🚛 €0.85/L diesel

Used car market

5yr compact (Golf/Corolla)~€9k

New equivalent~€18k

Market quality🟡 Fair

Large market. Mercado Libre Autos and Seminuevos.com are major platforms. Toyota Corolla, VW Jetta, Nissan Sentra very common. Theft risk is notable — Guadalajara and CDMX have high car theft rates.

Driving licence (expats)

Foreign DL valid 6 months for tourists. Long-term residents need Mexican licence — typically requires written test only, practical exam often waived with foreign DL presented.

Key gotchas

• ⚠Hoy No Circula in CDMX: your car cannot be driven 1 weekday/week based on plate — plan around it
• ⚠Car theft rates in CDMX, Guadalajara, Tijuana are very high — full insurance and tracker strongly recommended
• ⚠Most insurance policies exclude theft coverage by default — read the policy carefully

Mexico is affordable for car ownership with low taxes, but security concerns (theft) make comprehensive insurance a practical necessity. CDMX driving restrictions (Hoy No Circula) catch many new expats off guard.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car9%

Registration tax0%

Singapore has zero import duty and 9% GST on cars, but the COE (Certificate of Entitlement) system adds S$100,000-130,000 (~€68,000-89,000) to EVERY new car purchase. COE is a 10-year licence to own a car, auctioned twice monthly. Jan 2026: Cat A (≤1600cc) = S$109,501; Cat B (>1600cc) = S$121,634. On top of COE: Additional Registration Fee (ARF) = 100-220% of Open Market Value. Singapore is the most expensive car market in the world.

Annual ownership costs

Road tax€350

3rd party insurance€800

Vehicle inspection€60 / 2 yr

Total/year€1210

Fuel prices(2026-Q1)

⛽ €1.80/L🚛 €1.65/L diesel

Used car market

5yr compact (Golf/Corolla)€45k

New equivalent€110k

Market quality✅ Good

sgCarMart.com and Carro.co are main platforms. Prices are extraordinary by global standards. A 5-year-old Toyota Corolla can cost S$80,000-100,000 (~€55-68k) because the COE is embedded. Japanese brands dominate.

Driving licence (expats)

Foreign DL valid 12 months after getting Singapore residency/long-term pass. Must then convert to Singapore DL — theory test (BTT) + practical test required. No exemptions for experienced foreign drivers.

Key gotchas

• ⚠COE adds S$100,000-130,000 (~€68-89k) to EVERY car purchase — this is non-negotiable and applies to used cars too
• ⚠ERP toll gantries in city centre charge dynamically — commuter costs can reach S$300+/month
• ⚠COE expires after 10 years: either pay COE renewal (Prevailing Quota Premium) or scrap the car — no free extensions

Singapore is the most expensive car market in the world by a wide margin. The COE system alone adds €68-89k to any car purchase. Most expats rely on excellent public transport (MRT) and ride-hailing apps — owning a car in Singapore is a luxury choice.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car22%

Registration tax0%

Import duty23%

Uruguay has ~23% import duty on most vehicles from non-Mercosur countries + 22% VAT. No registration tax. Brazilian-origin cars may have preferential rates. Used car market is active but prices high by LatAm standards.

Annual ownership costs

Road tax~€80

3rd party insurance~€200

Vehicle inspection€25 / 1 yr

Total/year~€305

Fuel prices(2026-Q1)

⛽ €1.40/L🚛 €1.25/L diesel

Used car market

5yr compact (Golf/Corolla)~€12k

New equivalent~€25k

Market quality🟡 Fair

Gallito Luis and MercadoLibre Uruguay are main platforms. Good selection but prices higher than Argentina. Toyota, Chevrolet, Renault, VW common. Older European models also circulate.

Driving licence (expats)

Foreign DL valid 6 months. Residents must obtain Uruguayan licence. Process at SUCIVE — theory and practical tests required.

Key gotchas

• ⚠Uruguay has the highest fuel prices in South America — state monopoly (ANCAP) keeps prices elevated
• ⚠Annual patente based on car value means newer cars pay significantly more — factor into total cost
• ⚠Montevideo parking is increasingly scarce in central areas; paid parking zones expanding

Uruguay is the most expensive car market in South America for running costs, driven by the highest fuel prices on the continent (state fuel monopoly) and import-duty-inflated purchase prices. Quality of life is high but the cost is real.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car20%

Registration tax0%

Import duty10%

Albania has 10% customs duty on most imported vehicles plus 20% VAT. Many old cars (pre-2000) circulate freely.

Annual ownership costs

Road tax~€40

3rd party insurance~€80

Vehicle inspection€20 / 2 yr

Total/year~€130

Fuel prices(2026-Q1)

⛽ €1.55/L🚛 €1.45/L diesel

Used car market

5yr compact (Golf/Corolla)~€8k

New equivalent~€20k

Market quality⚠ Poor

Market dominated by old imported European cars (Italian, German). Quality control is poor; inspecting carefully before buying is essential.

Driving licence (expats)

Foreign DL valid 1 year, then exchange to Albanian licence required. Process manageable but bureaucratic.

Key gotchas

• ⚠Road quality varies widely — many rural and mountain roads are in poor condition
• ⚠Old car stock means higher maintenance costs and reliability issues
• ⚠Green card insurance required for border crossings; Albanian MTPL not always accepted abroad

Albania is extremely cheap for car ownership costs, but the used car market quality is poor. New residents often import a reliable car from Italy or Germany.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car27%

Registration tax0%

Hungary has 27% VAT (highest in the world) on new cars. No registration tax. EU cars can be imported duty-free. One-time registration admin fee minimal.

Annual ownership costs

Road tax€60

3rd party insurance€160

Vehicle inspection€25 / 2 yr

Total/year€245

Fuel prices(2026-Q1)

⛽ €1.55/L🚛 €1.45/L diesel

Used car market

5yr compact (Golf/Corolla)€11k

New equivalent€22k

Market quality✅ Good

hasznaltauto.hu is the main used car platform. Large supply of German, Austrian, and Czech cars. Hungary is a transit country for Eastern European car trade — good supply and competitive prices.

Driving licence (expats)

EU licences directly exchangeable. RU/BY DL valid 1 year after getting Hungarian residence, then exchange required. UA: bilateral exchange possible. No re-examination typically needed.

Key gotchas

• ⚠27% VAT is the highest in the world on new cars — buy used from Germany/Austria for much better value
• ⚠Hungarian road vignette (e-matrica) required for motorways: ~€40/month or €140/year
• ⚠Budapest parking (resident permits vs street parking) can be complex and expensive

Hungary has the world's highest VAT on cars (27%) but no registration tax and cheap annual costs. The used car market from Germany and Austria is excellent value. Buying new here is financially irrational.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car12%

Registration tax0%

Import duty35%

Brazil has cascading taxes on imports: 35% II + 25% IPI + 11.6% PIS/COFINS + ICMS 17-20%. Effective total on foreign cars can exceed 100%. Locally assembled cars (Toyota, VW, GM, Fiat) are the only practical option.

Annual ownership costs

Road tax~€80

3rd party insurance~€200

Vehicle inspection€30 / 1 yr

Total/year~€310

Fuel prices(2026-Q1)

⛽ €1.10/L🚛 €0.95/L diesel

Used car market

5yr compact (Golf/Corolla)~€10k

New equivalent~€20k

Market quality🟡 Fair

Large active market. Locally assembled Corolla and Civic are popular. Ethanol flex-fuel cars common and cheaper to run. Used market prices are high for the quality.

Driving licence (expats)

Foreign DL valid 6 months. Residents must exchange to CNH (Brazilian licence). Process involves medical check and practical test.

Key gotchas

• ⚠IPVA (vehicle tax) is 3-4% of car value annually — on a BRL 80,000 car that is ~€500/yr
• ⚠Brazil is one of the most expensive new car markets globally due to cascading import taxes
• ⚠Traffic in major cities (São Paulo, Rio) is extreme; car maintenance costs are high

Brazil's car market is self-contained and expensive by global standards, driven by massive import taxes. Locally made cars are the only realistic option. Annual ownership costs moderate but fuel is pricier than LatAm neighbours.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car10%

Registration tax0%

Import duty5%

Paraguay has among the lowest car import duties in South America: 5% for new cars, 10-25% for used (by age). 10% VAT. No registration tax. Cheapest new car market on the continent.

Annual ownership costs

Road tax~€30

3rd party insurance~€80

Vehicle inspection€10 / 2 yr

Total/year~€120

Fuel prices(2026-Q1)

⛽ €1.10/L🚛 €0.95/L diesel

Used car market

5yr compact (Golf/Corolla)~€8k

New equivalent~€16k

Market quality🟡 Fair

Cheapest new car market in South America. Toyota Yaris, VW Gol, Chevrolet Onix widely available. Asuncion has active used car market. Many smuggled/unregistered cars exist — check documentation.

Driving licence (expats)

Foreign DL valid 6 months for tourists/visitors. Residents need Paraguayan licence — written test required; practical often waived with foreign DL. Process at MOPC.

Key gotchas

• ⚠Asuncion traffic is disorganized; lane discipline is minimal; pedestrians unpredictable
• ⚠Many cars lack proper documentation — always verify VIN, titles, and tax payment history
• ⚠Road quality outside Asuncion is poor; flooding in Chaco region can cut routes for days

Paraguay offers the cheapest car ownership in South America. New car prices are the lowest on the continent due to low import duties. Annual running costs are negligible. Infrastructure quality is the main trade-off.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car10%

Registration tax10%

Import duty70%

Vietnam has very high import duties on CBU cars: 70% from most countries (0-50% for ASEAN under AFTA). Special Consumption Tax (SCT) 35-150% based on engine size. Registration tax 10% of selling price. Locally assembled cars (Toyota, Hyundai, Kia, Vinfast) are far more affordable. LEFT-HAND traffic (left-hand drive cars).

Annual ownership costs

Road tax~€30

3rd party insurance~€60

Vehicle inspection€15 / 2 yr

Total/year~€105

Fuel prices(2026-Q1)

⛽ €0.85/L🚛 €0.75/L diesel

Used car market

5yr compact (Golf/Corolla)~€10k

New equivalent~€18k

Market quality🟡 Fair

Chotot.com and Bonbanh.com are main platforms. Toyota Vios, Hyundai i10, Vinfast Fadil common in affordable segment. Vinfast (local brand) growing rapidly. Motorcycles overwhelmingly dominant in actual traffic.

Driving licence (expats)

IDP + foreign DL valid 3 months for visitors. Residents need Vietnamese DL — theory test (can take in English), practical exam. Process at local PC. Russian nationals can exchange without full test in some provinces.

Key gotchas

• ⚠Ho Chi Minh City and Hanoi traffic is motorbike-dominated and chaotic — driving a car requires extreme patience and skill
• ⚠Import taxes mean a Toyota Corolla can cost $35,000+ USD while locally assembled alternatives are $18,000-22,000
• ⚠Parking in HCMC is scarce and often unofficial; monthly parking fees can be significant

Vietnam is cheap to run a car once purchased, but the purchase itself has high taxes on imports. Locally assembled brands (especially Vinfast) are affordable. In practice, most expats use motorbikes or ride-hailing (Grab) for daily transport.

Data as of 2026-Q1. Not financial advice.

Detailed data for this country is still being verified. General notes below.

Argentina's car market is functional but volatile — prices shift with the exchange rate and inflation. Locally assembled cars (Toyota, VW, Renault) are the sensible choice. Ownership costs are very low in EUR terms.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car20%

Registration tax0%

Import duty10%

Turkey has 10% import duty on most cars from non-FTA countries + 20% VAT + ÖTV (special consumption tax) 10-220% based on engine capacity and price band. ÖTV is the biggest cost: a 1.4L basic car pays ~45% ÖTV; luxury models pay 220%. Local assembly (Renault, Fiat, Ford, Toyota) avoids import duty.

Annual ownership costs

Road tax~€50

3rd party insurance~€120

Vehicle inspection€20 / 2 yr

Total/year~€190

Fuel prices(2026-Q1)

⛽ €1.30/L🚛 €1.20/L diesel

Used car market

5yr compact (Golf/Corolla)~€12k

New equivalent~€20k

Market quality✅ Good

Sahibinden.com is one of the best used car platforms in the region. Large supply, well-photographed listings. Domestic production (Renault, Fiat, Toyota, Ford) means good local availability. TRY pricing creates EUR volatility.

Driving licence (expats)

Foreign DL valid 6 months. Residents must obtain Turkish licence — theory test required, practical may be needed. Apply at Emniyet (traffic police) / e-devlet. Russians often find the process straightforward.

Key gotchas

• ⚠ÖTV can add 45-220% to a car's pre-tax price — Turkish market prices seem reasonable until you see the tax breakdown
• ⚠TRY inflation means annual costs in EUR fluctuate significantly — budget in EUR, not TRY
• ⚠Istanbul traffic is one of the worst in Europe/Middle East — Bosphorus bridges toll applies daily for commuters

Turkey has moderate car ownership costs in EUR terms despite high ÖTV purchase taxes. The used car market is excellent. TRY inflation means budgeting in EUR is essential. Istanbul traffic is a significant lifestyle factor.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car25%

Registration tax5%

Croatia is in the EU. First registration tax on used cars imported from EU: ~5% of value. 25% VAT (highest in EU) on new cars. No duty on EU-origin cars.

Annual ownership costs

Road tax~€90

3rd party insurance~€220

Vehicle inspection€35 / 2 yr

Total/year~€345

Fuel prices(2026-Q1)

⛽ €1.52/L🚛 €1.40/L diesel

Used car market

5yr compact (Golf/Corolla)~€13k

New equivalent~€24k

Market quality🟡 Fair

Njuškalo.hr is the main used car marketplace. German, French, and Italian cars dominate. SUVs popular in coastal areas. Market has improved since EU entry in 2023.

Driving licence (expats)

EU licences directly exchangeable. Non-EU (RU/BY/UA): valid 1 year from getting Croatian residence. Exchange requires no re-examination. Apply at Police station (MUP).

Key gotchas

• ⚠25% VAT is among the highest in the EU — new car prices are notably elevated
• ⚠Coastal area toll roads (autoceste) add significant costs for those living on the Dalmatian coast
• ⚠First registration tax of 5% applies to EU cars brought from abroad — factor in when importing

Croatia is mid-tier for car costs — 25% VAT is punishing on new cars, but used car market is solid. Annual running costs are reasonable. EU membership simplified cross-border car imports.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car15%

Registration tax0%

Import duty25%

South Africa has 25% import duty + 15% VAT on imported vehicles. EU-origin cars have 18% duty under EU-SA trade agreement. Ad valorem (luxury) tax applies to high-value cars. Local assembly (Toyota, VW, Ford, BMW) avoids import duty. LEFT-HAND DRIVE but drives on LEFT (RHD cars).

Annual ownership costs

Road tax~€20

3rd party insurance~€200

Vehicle inspection€0 / 999 yr

Total/year~€220

Fuel prices(2026-Q1)

⛽ €1.05/L🚛 €0.95/L diesel

Used car market

5yr compact (Golf/Corolla)~€9k

New equivalent~€18k

Market quality🟡 Fair

Cars.co.za and AutoTrader.co.za are main platforms. Good supply of locally assembled Toyota Corolla, VW Polo, Ford Fiesta. Rand volatility affects EUR-equivalent prices. RIGHT-HAND DRIVE country.

Driving licence (expats)

Foreign DL + IDP valid 12 months in SA. Permanent residents must obtain SA licence — theory (K53 test) and practical test required. K53 is notoriously difficult by international standards.

Key gotchas

• ⚠RIGHT-HAND DRIVE — European continental left-hand-drive cars cannot be registered
• ⚠Car theft and hijacking rates in Johannesburg and Cape Town are very high — tracker and immobiliser essential
• ⚠K53 driving test is extremely difficult by international standards — budget for multiple attempts and lessons

South Africa has low annual running costs in EUR terms (cheap road tax, moderate fuel) but security risks (theft, hijacking) make comprehensive insurance a practical necessity. The right-hand-drive requirement limits car choice.

Data as of 2026-Q1. Not financial advice.

Purchase costs

VAT on new car19%

Registration tax0%

Import duty35%

Colombia has ~35% import duty on most vehicles. Locally assembled cars (Renault, Chevrolet, Mazda) are cheaper. Registration and notary fees add ~2-3%.

Annual ownership costs

Road tax~€50

3rd party insurance~€120

Vehicle inspection€20 / 2 yr

Total/year~€190

Fuel prices(2026-Q1)

⛽ €1.00/L🚛 €0.85/L diesel

Used car market

5yr compact (Golf/Corolla)~€9k

New equivalent~€18k

Market quality🟡 Fair

Active market in Bogotá, Medellín, Cali. Renault Logan, Chevrolet Spark very common. Security risk — car theft is significant in major cities.

Driving licence (expats)

Foreign DL valid 3 months only. Residents must obtain Colombian licence — requires written and practical test.

Key gotchas

• ⚠Pico y Placa restrictions in Bogotá limit driving by plate number on weekdays — check schedule
• ⚠Car theft rates in Bogotá and Cali among highest in LatAm — full insurance mandatory in practice
• ⚠Altitude in Bogotá (2600m) reduces engine power by ~20% — check AC and engine performance

Colombia is affordable for car ownership in EUR terms, but security concerns (theft, carjacking) mean comprehensive insurance is practically mandatory. Locally assembled Renault and Chevrolet models offer best value.

Data as of 2026-Q1. Not financial advice.