With plans of implementation starting from 2025, the Netherlands is proposing new legislation that would raise BPM tax by a staggering 100%. This would raise the cost of gas and diesel cars to extraordinary amounts and make driving nearly impossible for many people. However, as an expat, you can be exempt from paying the BPM when you move your car as part of your household goods upon your relocation to the Netherlands. Read on to find out whether you qualify for the BPM exemption.
Dutch government to double BPM Tax by 2025
Driving a gas or diesel fuelled vehicle in the Netherlands is expected to become a lot more expensive starting from next year. Dutch MP Jetten for Climate and Energy has proposed the implementation of two tax increases in order to reach the 2030 climate goals. MP Jetten is proposing a mandate where more expensive biofuels are mixed with cheaper regular fuel. If this proposal is implemented, the price of fuel will rise by around 5 to 10 cents per litre.
Aside from that, there is talk of doubling the BPM on new gas and diesel cars by 2025. This would mean an exponential rise in cost when buying this type of car. On some occasions, by as much as tens of thousands of euros. Especially larger cars would become nearly unaffordable, were these regulations to be implemented.
All this is an attempt to lower the distribution of gas and diesel cars, and raise the distribution of electrical cars. Overall, these proposals, if implemented, will raise the cost of driving a non-electrical vehicle in the Netherlands considerably. Thankfully, for expats, there are some possible exemptions.
Possible BPM-exemption for expats
If you are an expat moving to the Netherlands from outside the EU, you may be exempt from paying the BPM. By importing your vehicle as part of your household goods upon your relocation to the Netherlands, you might be eligible for the ‘Exemption Permit for Removal Goods’. This can save you a considerable amount of money.
There are of course some conditions which need to be met in order to be eligible for this BPM exemption.
• You have lived outside The Netherlands for at least 12 months.
You will need to present proof of residency in the country from which you are relocating to the Netherlands. The period of residency outside the Netherlands needs to exceed a minimum of twelve consecutive months.
• You have had possession of the goods for at least 6 months and they have been in use.
You must have owned and used the vehicle for a minimum of six months prior to your relocation to the Netherlands. This requirement ensures that the vehicle is not imported for the purpose of sale.
• You may not lend, hire, pawn or sell the goods within 12 months after import.
The BPM exemption is aimed at people importing their vehicle for personal use. It is therefore not allowed to extend the use of said vehicle to others in a way that may be interpreted as commercial use. You may however lend the vehicle to another licensed person living at the same address.
Beside the aforementioned conditions, you must be able to provide the vehicle’s Original Certificate of Title and the Bill of Sale.
SCL Rotterdam can help with your relocation
The international relocation of your vehicle(s) may seem like a daunting task. Fortunately, there are parties who can make this process manageable for you. As a specialist in international vehicle relocations, SCL Rotterdam is your one-stop-shop when importing your vehicle to the Netherlands. SCL Rotterdam can help with shipping and registering your car.
We assist with anything from local and overseas transport, to getting your vehicle registered and ready to drive. We will ship your car(s) to your new doorstep; take care of customs regulations and paperwork; adapt your car according to EU-regulations in our in-house garage; and register your car for Dutch license plates.
For more information on how SCL can help you relocate your car to the Netherlands as part of your household goods, or to request a free quote visit our website. Or call us directly on: +3110 427 77 20 and we will happily answer any questions you may have.