Luxembourg Vehicle Registration Under a Luxembourg Civil Company

Are you planning to import your vehicle (car, motorbike,…) into the Grand Duchy of Luxembourg while you live at your home ? By rule, every circulating vehicle in the country must be fully registered in order for it to be driven legally not only in Luxembourg but in other EU Member States. Whether you are registering a brand-new, second-hand, imported or locally made vehicle, it is important that you go through several administrative formalities and innovative legal solutions that will allow you to drive your car or two-wheeled vehicles all year round even without going through the hassle of obtaining citizenship.

The Benefits of Luxembourg Vehicle Plates Registration

  • No Environmental Penalty

Car owners will not be assessed of environmental tax or tax on high-powered or luxury vehicles leading to a savings up to EUR 30,000.

  • Luxembourg Grey Card

Vehicle registration applicants only need to pay for the issuance of the grey card which costs less than EUR 500 for most car models.

  • 17% Reduced VAT

If you have yet to buy a brand-new vehicle, you will greatly benefit from the significant reduced VAT in Luxembourg compared to your home country.

  • No Loss of Points

Previous parking fines, violations, and speeding documentation are not recorded and will not be relayed to Luxembourg upon your registration.

  • Non-Seizable Vehicles

In the case of a speeding violation, your vehicle will not be seized given it is under your company and not your name.

  • Tax Discretions

Registering high-powered vehicles can be scrutinised by some public offices which can lead to wasting valuable time resources.

Registration Solution for Vehicle Owners in Luxembourg

The flexible economic environment in Luxembourg enables foreign individuals to legally register their vehicles under a non-commercial company. Since you are not operating for commercial reasons, there’s are no accounting, balance sheets, and income states to manage altogether. A civil company will not be assessed under the VAT regime; hence shareholders need not make any declarations. Your registered civil company will solely function as proof of private possession and use of motorised vehicles in Luxembourg.

Since the company you wish to register does not plan to facilitate any commercial activities, you don’t need to invest a starting capital. And since your registered civil company will not generate earnings, you can also bypass the prevailing tax regimen in your country of residence. Additionally, there will be no problems that may arise in the future as the registered company is 100% your property; hence your car will be completely yours.

A fiduciary partner will facilitate the establishment of your civil company to meet the requirements imposed by the Grand Duchy of Luxembourg. Under your registered civil company, you will be able to register two or more vehicles without having the need register a new company or structure altogether.

  • You have 100% right and ownership of your SC
  • No minimum capital requirement for registration
  • Your company structure will not be subject to VAT
  • No monthly accounting to document and maintain
  • You will not be assessed of tax as an individual
  • Short turnaround time (up to one week) for company registration
  • You can own various vehicles and high-priced vehicles under a registered company
  • No residency requirement for a registered company with two or more partners

The Process of Civil Company Registration in Luxembourg

After successful registration of your company with the Trade and Companies Register (RCS), you may then proceed with registering your vehicle under your civil company. The process is simple and straightforward:

  • Management of vehicle documents and other requirements
  • Vehicle clearance issued by Luxembourg Customs
  • Reservation of a standard or personalized plate number
  • Offer request and receipt of your green card through our preferred insurance partner
  • Vehicle pick-up for immediate check-in

Vehicle Registration Solutions

  • Personalized Plates

You can obtain a personalized registration plate (number and letters) for less than EUR 400 HT.

  • Car Lending Options- Loa/Lld

Several leasing solutions are available for you to obtain easy financing solutions via legitimate companies in Luxembourg, France, and Belgium to purchase a new or second-hand vehicle.

  • Transportation and Delivery

Leasing partners will safely transport your car safely to your preferred location in Luxembourg.

  • Company Bank Account

In the case of brand-new vehicle purchase, you are required to have Luxembourg bank account. Damalion experts may assist you for such a bank account opening.

  • Insurance Options

You need to obtain an insurance policy from major Luxembourg insurance policy holders. With local assistance, you may benefit from great offers to ensure you to get adequate coverage at fair rates.

  • Registering Two or More Vehicles

Under one registered company, you can add up to five vehicles  including second-hand and or brand-new vehicles.

More Information About Vehicle Registration in Luxembourg

  • The Transfer of Vehicle Ownership Under a Registered Luxembourg Civil Company

If you are a private individual, you need to create a sales contract between yourself and your Luxembourg company. You need to fill out the sales contract form and a copy of a valid ID to start the registration process.

If the owner is a company, an original sales transaction invoice shall be made between the two companies. Additionally, a certificate of transfer needs to be drawn up for the transaction to proceed.  By rule, SC is not assessed with VAT but the invoice itself will be inclusive of VAT.

  • Brand-New Vehicle Purchase Through a Luxembourg Registered Civil Company

The purchase of a second-hand vehicle is relatively simple in Luxembourg in relation to the VAT regime. As stated in Article 4 of Luxembourg VAT Law, the VAT applicable for a used vehicle is that which is applied from its country of origin. For instance, if you purchase a used car in France, the VAT will be paid in France at a rate of 20%. A vehicle needs to show proof of invoice and other pertinent documents to obtain Luxembourg’s 705 Customs Clearance sticker. The rest of the registration process is similar to transferring ownership to a company.

  • Sticker Issuance and VAT Payment for European Vehicles

RULES & MECHANICS

Luxembourg Customs will be responsible in regulating various importation proceedings to ensure compliance and quality of goods, as well as the submission of import taxes and VAT on imported vehicles and goods.

In the case of motorised vehicles, the Luxembourg Customs will be in charge of imported vehicles from European and non-European countries.

  • New and Second-Hand Vehicles Imported from European Countries

It is crucial that European vehicles-both used and brand-new- go through Customs in order to obtain proper documentation such as the clearance sticker 705.

BRAND-NEW VEHICLE DOCUMENTS

A brand-new vehicle must have the following:

  • Original invoice including tax from car purchase
  • Import declaration for VAT payment
  • Certificate of conformity

A second-hand or used vehicle must have the following:

  • Original invoice including tax from car purchase
  • Grey card and old registration
  • If bought from a private individual, a sales contract instead of an invoice, as well as other proof of identification will be required.

For VAT payment, you can proceed with payment up to EUR 10,000 in cash, credit card, or wire transfer. In the case of a wire transfer, it will take up to four days before Luxembourg Customs can issue the sticker 705. Please be informed that you will have to comply with anti-money laundering rules.

In the case of an intra-community acquisition with a recognized VAT number, no VAT payment will be required. This is due to the fact that VAT will be liquidated by co-contractors instead.

Luxembourg Vehicle Sale Process

For a buyer to successfully register the vehicle in his country of residence, you need to provide him with the following:

  1. Sales invoice if the vehicle is owned by your civil company, a few modifications will need to be made. If you are in partnership with a professional company, you will be provided with a template specifying that the sale is VAT inclusive. The invoice should clearly state that the VAT cannot be recovered from the sale.
  2. Grey export card will be issued if the vehicle to be sold is fully decommissioned by Luxembourg transportation office. There are associated fees associated with obtaining grey export cards. They are similar with a standard Luxembourg registration card, but with a non-registered vehicle inscription stamped on them.
  3. Certificate of conformité and Logbook should be attached along with the vehicle’s logbook indicating all previous maintenance services. These documents functions as a guarantee to the seller.

Once the car has been fully decommissioned, you will need to cancel the care insurance policy. There is a possibility that you may receive a refund on road tax in relation to the remaining period before the upcoming policy renewal.  For legal Luxembourg residents, you only need to suspend registration to proceed with a car sale.

  • Vehicle Registration Change

You will need the original car registration document to proceed with the change. Depending on the country of origin, the grey card may come as a single document (such as in France) or in several documents (Belgium, Germany, Austria, etc.). In other countries, certification of de-registration is a requirement to change car registration in Luxembourg. For example, Italy issues a certification of radiation (PRA), while in Monaco, you must obtain an export certificate from its principal location.

  • Certificate of Conformity (COC) Submission

The Certificate of Conformity (COC) is a required document if you wish to register your vehicle in Luxembourg. Without a COC, you may need to obtain documentation from your vehicle manufacturer. It is important to note that the COC is usually held by the prefecture of French vehicle registration office, so Luxembourg shows leniency in the absence of a COC for used vehicles originating from France.

  • Sticker Issuance and VAT Payment for European Vehicles

RULES AND MECHANICS

Luxembourg Customs is in charge of regulating imported vehicles and other goods to ensure compliance of goods and payment of import taxes and VAT. The Customs Department will intervene for imported cars from non-European countries as well.

  • Provisions for Cars Originating Outside Europe

For vehicles coming from non-EU Member States, we highly recommend using a freight forwarder that specialises in importing vehicles as the process is complicated in nature. If you are importing from another country, you will need to pay 10% import tax. The amount will be based on the actual value of the invoice plus transportation costs to bring the vehicle to Luxembourg. An additional 17% VAT is added on top of the total price. The Customs Department will be assessing the value of import tax and other costs that need to be paid in order to cleared through customs.

If you need to register your vehicle from another country under a Luxembourg civil company, Damalion will be more than happy to help you through this process. Contact us today for more information.