Making life easier for citizens when moving with their cars to another EU Member State

The diversity of rules and the various conflicting requirements for cars registered across the EU still constitute a considerable impediment for the cross border transfer of vehicles already registered in one Member State. These problems also represent a significant barrier for cross-border workers, citizens, car dealers, car-rental companies and all people who buy or sell a car in another EU country. As a consequence EU citizens are frequently faced with cumbersome registration formalities and paperwork when buying a car in another Member State or transferring it due to change of residence. These problems occur also in car rental business, when companies are trying to relocate their fleets from one Member State to another depending on seasonal variation in demand.

This press memo informs on:

• The most important changes the new proposal will bring about
• The current difficulties citizens face when moving with their cars in the EU
• Estimation of the costs of the current system

1. Less paperwork and formalities when moving with a car

There are more than 300 million registered cars, buses, trucks and vans in Europe. Most of these will not be concerned by this proposal which concerns only the cars, buses, trucks and vans that frequently go across the borders within the EU. It is estimated that 3.5 million vehicles are transferred to another Member State per year.

The proposal introduces the principle that a car should be registered in the EU country where its owner lives, and that all other Member States may not ask her/him to register the car with them, even if the car owner spend a longer period there.

For companies, the same principle applies: the cars, buses, vans and trucks should be registered in the EU country where the main office is established.

A few examples:

• People who spend part of the year in a holiday residence in another EU country will not have to re-register their car there.
• People who work in another EU country and use a car registered by their employer there will no longer have to register it in their home country.
• Car-rental companies will be able to transfer cars to another EU country during the holiday periods without re-registration (e.g. keeping the same cars at the sea side during summer and in the Alps during the winter). This should lower the price of car rentals.

The most important changes:

• Moving permanently to another country with car will be easier: Most of the paperwork and the physical controls will be abolished. Car registration offices will get the technical information directly from their counterparts in the other EU country. This will save a lot of time and reduce bureaucracy.
• Six months for registering cars abroad: Citizens will have 6 months to re-register their car after their move to another Member State.
• Easier to buy cars abroad: Citizens who buy or sell a second-hand car in another EU country will not have to face additional technical controls and administrative problems.

• This proposal also introduces a temporary registration of 30 days so that a second-hand car can be easily driven to its new owner.
• There will be no change for selling cars within a Member State.
• Car dealers who like to sell cars in another Member State can use a ‘professional registration’ for short drives across the border.

• Cars will continue to be registered in the home country of the owner. It will not be possible to register a car in any Member State.
• Impossible to register a stolen car: Registration authorities will increasingly cooperate with each other, making it easier to track stolen cars. The vehicle registration authorities of other Member States will be informed that a vehicle is reported as stolen. That will allow them to refuse its registration if the stolen car is presented to them for re-registration. Thus, it will become impossible to register a stolen car in another EU country.
• No new European number plate: Car registration and number plates remain national.
• Registration and circulation taxes: This proposal does not affect registration and circulation taxes.
• Not any wreck on 4 wheels can be registered: When registration authorities have doubt about the roadworthiness of the vehicle, they are fully entitled to refuse the registration and to send the vehicle to a technical inspection station.
• Roadworthiness test for cars from another EU country: If a national rule says that a roadworthiness test is obligatory for the sale of a car, that roadworthiness test will also be obligatory for cars coming from another EU country. However, registration authorities must still take into account the roadworthiness tests made in another EU country.