Cars expenses in the Netherlands impacted by doubling of BPM tax

This article is provided by our partner: SCL Rotterdam

With plans of implementation starting from 2025, the Netherlands is proposing new legislation that would raise the BPM tax (the private motor vehicle and motorcycle tax) by 100%. This would raise the cost of petrol and diesel cars and impact the cost of driving. However, as an international, you could 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 proposes double BPM Tax by 2025 

Driving a petrol or diesel fuelled vehicle in the Netherlands is expected to become more expensive starting next year. The Dutch minister for Climate and Energy has proposed the implementation of two tax increases in order to reach the 2030 climate goals.  

This proposal recommends doubling the BPM tax on new petrol and diesel cars by 2025, resulting in a rise in cost when buying this type of car. The proposal also mandates the mixture of biofuels with cheaper regular fuel, raising the price of petrol to around 5 to 10 cents per litre.  

This is done in an attempt to lower the distribution of petrol and diesel cars and raise the distribution of electrical cars. If implemented, these proposals will increase the cost of driving a non-electrical vehicle in the Netherlands. However, for internationals, certain exemptions may apply. 

Possible BPM-exemption for internationals 

If you are an international moving to the Netherlands from outside the EU, you may be exempt from paying the BPM tax. 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’.  

There are of course certain conditions that need to be met to be eligible for the 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 the 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.  

• You must be able to provide the vehicle’s Original Certificate of Title and the Bill of Sale.  

Want to know more? 

We at SCL Rotterdam are specialists in international vehicle relocation. We will ship your car(s) to your new doorstep, completing all the necessary steps for you to drive your car in the Netherlands. For more information on how we can help, visit SCL Rotterdam | The Hague International Centre, and we will happily answer any questions you may have.