Buying a Car

Buying a Car in Portugal: 2026 

If you're relocating to Portugal on a D7 visa (or similar) and wondering about getting a car, public transport is excellent in cities like Lisbon and Porto, but a car is often essential for rural areas, day trips, or family life. Importing your car can be expensive due to ISV taxes so most people buy locally. Here's our practical guide updated for 2026.

New vs. Used: What's Best?

  • Used cars: Often the smartest choice. Prices hold value well in Portugal, and used cars from dealerships come with a mandatory 1-2 year warranty.
  • New cars: Easier paperwork (dealership handles it), full warranty, and strong incentives for electric/hybrid vehicles (ISV exemptions or reductions, plus IUC exemptions for pure EVs).

Recommendation for most expats: A low-mileage used car from a reputable dealership—reliable, warranted, and often better value than private sales (which have no warranty and more risks).

Where to Search

The top platforms in 2026 (all in Portuguese—use Google Translate or browser extensions):

  • Standvirtual.com – The #1 site with the most listings (dealers + private).
  • OLX.pt – Great for bargains from private sellers.
  • Auto.sapo.pt – Excellent filters and reliable listings.

Dealerships for major brands (Toyota, Renault, Peugeot, VW) are widespread—many in the Algarve, Lisbon, and Silver Coast have English-speaking staff.

Step-by-Step Buying Process

  1. Get your basics sorted: You'll need a Portuguese NIF (tax number) and proof of address (from your residency or rental contract).
  2. Search and view: Filter by price, mileage, fuel type, and location. Always test drive!
  3. Inspect thoroughly: For used cars, check service history and get an independent mechanic's check if possible. Verify no liens via the IMT website.
  4. Buy and register:
    • Dealership: They often handle registration, insurance quotes, and transfer.
    • Private sale: Both buyer and seller go to a Loja do Cidadão or IMT office (transfer within 60 days, ~€65 fee).
  5. Insurance: Mandatory third-party cover before driving. Shop around—annual costs €300–€600+ depending on the car and your profile.

Taxes and Ongoing Costs (2026)

  • ISV: One-time tax on new/imported cars (high for petrol/diesel, exempt for pure EVs, reduced for qualifying hybrids).
  • IUC (annual road tax): €10–€500+ based on engine/CO₂. In 2026, all payments are due by the end of February (fixed window for everyone). For amounts over €100, option to pay in two instalments (February and October). Pure EVs remain exempt.
  • IPO inspection: Required after 4 years, then every 2 years until 8 years, then annually.

Financing Tips

If not paying cash, dealerships and banks (e.g., Millennium BCP, ActivoBank) offer loans. As a new resident, you'll need proof of income/residency—rates around 9-11% TAEG.

Final Tips from Our Community

  • Avoid importing unless it's a special vehicle—local buying saves thousands.
  • Popular expat choices: Reliable diesels/hybrids/EVs like Toyota, Renault Clio, or Peugeot 308.
  • With EV incentives strong in 2026, consider electric for tax savings and lower running costs.
  • Join expat groups for recent recommendations and warnings about scams.

Safe driving and enjoy exploring Portugal's beautiful roads!  🚗🇵🇹

Updated: December 2025 (for 2026 rules)

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