Exporting Cars to Malta.

Over the last year we have been exporting cars to Malta. The reason we started doing this was due to the rise of the Euro. In Malta the used car market was nearly nonexistent, the reason for this is the way the Maltese government tax the vehicles. When buying a car you have to pay an import tax, which is dependent on the age and Co2 emissions etc.

            

Malta has among the highest registration taxes for most types of vehicles in the world. Some concessions were made in the 2008 budget, effective from 01/01/2009, which reduced the tax on some small- and medium-sized vehicles but, increased  for larger ones (similar to the system we now use in the UK). The new system was introduced to encourage the Maltese to purchase/import more environmentally-friendly cars, so the calculations involve the registered value (RV), car length, Co2 emission volumes and particulate matter volumes (diesel only). Also, under the new system comes a useful exemption – private individuals relocating to Malta will be able to bring in a car they’ve owned for two or more years without having to pay vehicle registration tax here. This exemption is limited to one vehicle per person relocating. Vehicle registration tax rates have long been a contentious issue, among both local Maltese and incoming residents, the latter often left facing a nasty tax shock when their six months temporary vehicle permit (tourist stay period on the vehicle) is up. It can still be the case, when the RV calculations are done, that you face car registration taxes that are higher than the real value of the car. But, fortunately used car prices hold up well in Malta, you might end up selling it there and not losing out too much, of corse depending on vehicle type and its demand.

This meant that most people would buy a brand new vehicle (pay the registration tax) and keep it for a very long time. With the rise of the Euro, the Maltese have started importing cars from the UK as the registration tax isn’t as high on a used car as that on a new car. As the Euro grew in strength against the Pound the cheaper our used cars became to the Maltese. We quickly created a web site and advertised all our stock priced in Euro’s, offered a delivery service and with the help of a local Maltese dealer had a place of correspondence on the island itself, and the rest is history. We know this business won’t last forever but you’ve got make the most of every opportunity don’t you.