Luxembourg – Buying or Importing a Car

How do I buy a new car in Luxembourg as a foreigner?

Acquiring a brand-new vehicle in Luxembourg is a fairly uncomplicated process once you have established residency. Prospective buyers must appear in the National Register of Natural Persons with a valid Luxembourg address and an accepted identity document. This means that people who are not yet residents generally cannot register a newly bought vehicle in Luxembourg, although cross-border workers and those in the middle of relocating should clarify their particular circumstances with both the SNCA and the relevant customs authority.

One of the highlights of the Luxembourg automotive calendar is the annual Autofestival. Each year at the start of January, close to 30,000 visitors descend on approximately 75 car dealerships across the country; in 2024 the event ran for two weeks, from 20 January to 3 February. The occasion typically features special discounts and exclusive editions, making it a favoured time to make a purchase. Outside this period, dealerships sell both new and pre-owned vehicles throughout the year, with German-manufactured marques — including Volkswagen, BMW, Mercedes, and Audi — consistently topping the sales charts.

When completing a vehicle purchase, buyers must obtain a bill of sale from the retailer. This document, essentially a sales invoice printed on the company’s official headed stationery, serves as proof of ownership. It is worth noting that VAT must always be paid in the country where the vehicle is ultimately registered. Luxembourg’s VAT rate on vehicles stands at 17%, which compares favourably with 20% in France and 21% in Belgium.

If an outright purchase is not feasible, banks and financial institutions in Luxembourg provide car financing options at competitive interest rates, enabling buyers to spread the cost over a set period. That said, expats who have only recently arrived may find access to credit restricted until they have built up a credit history and demonstrated stable income within Luxembourg. Comparing loan terms across several providers before committing is highly advisable. For the most current requirements, speak directly with your chosen bank and consult the Guichet.lu portal.

In most cases, the dealer handling the sale will take care of both the registration process and road tax payment on the buyer’s behalf. Nevertheless, it is essential to hold a valid car insurance policy before a vehicle can be registered. Securing your insurance before finalising the purchase ensures the registration process can proceed without unnecessary delays.

Luxembourg also extends incentives to buyers of low-emission vehicles. Since May 2020, the purchase of a new zero-emission car running on electricity or hydrogen qualifies for a discount of €8,000, provided the vehicle’s electrical energy consumption does not exceed 180 Wh/km. As these schemes are liable to change, always check the latest details via the Guichet.lu portal.

How do I buy a used car in Luxembourg?

Vehicles can be found through a variety of channels in Luxembourg. Beyond traditional dealerships, a number of dedicated automotive websites — including Luxauto, Auto.lu, Automarket, and Bazar.lu — as well as private listings on Facebook groups, offer an extensive range of new and used cars. Regardless of the source, thorough due diligence on any second-hand vehicle is essential before committing to a purchase.

Important checks prior to buying a used car include: reviewing the vehicle’s full service history, confirming that no outstanding finance is secured against it, ensuring there are no unresolved fines or unpaid road tax, and verifying that the seller’s identity matches the details on the registration document. A pre-purchase inspection at an authorised technical centre is strongly recommended.

Before a second-hand vehicle that was last registered outside Luxembourg can be driven legally on public roads, a series of administrative procedures must be completed. The foreign registration document will be needed, and as the incoming buyer, you must ensure you receive all sections of this document from the seller. Many European countries issue a two-part registration certificate, and the document itself will indicate how many parts it comprises.

The seller is required to file a Notice of Transfer of Ownership with the SNCA within 5 days of completing the transaction. The buyer must then register the vehicle in their own name. Before beginning the registration process, prospective owners must apply to obtain a registration number for the vehicle — and it is important to understand that, unlike in many other countries, the assignment of a registration number does not constitute registration, nor does it signify that the vehicle has been automatically accepted onto the register.

Luxembourg does not maintain a centralised public database comparable to the UK’s DVLA vehicle check or Australia’s PPSR (Personal Property Securities Register). Buyers should therefore request a comprehensive vehicle history from the seller, ask for written confirmation that no fines are outstanding, and consider using a professional inspection service to gain additional assurance. The Guichet.lu portal and the SNCA can provide guidance on verifying a vehicle’s status ahead of purchase.

Can I import a vehicle into Luxembourg, and how does the process work?

Anyone relocating to Luxembourg on a permanent basis is required to register their vehicle there within 6 months of the date on which they formally declared their arrival at their commune of residence. Since traffic travels on the right in Luxembourg, right-hand drive vehicles — while not explicitly prohibited by law — pose real practical difficulties in day-to-day use, such as reduced visibility when overtaking, using toll booths, or navigating narrow roads. They may also attract closer scrutiny during roadworthiness inspections. Left-hand drive vehicles are therefore strongly recommended.

Vehicles must additionally comply with EU safety and emissions standards. Importing a car from outside the EU is permissible provided it meets European Union requirements, enabling it to pass through Luxembourg customs — including regulations relating to safety, emissions, and environmental impact.

There is a potential exemption available to people moving to Luxembourg. Under certain conditions, customs duties and VAT may not be payable on a vehicle imported as part of a household relocation. This “removal goods” or personal effects exemption generally requires that the owner had the vehicle in their possession and used it in their former country of residence for a minimum period prior to the move. Always verify current eligibility criteria directly with the Administration des douanes et accises (Customs and Excise Agency) — see douanes.public.lu.

The step-by-step import process for a vehicle from outside the EU is as follows:

1. Apply for a Luxembourg registration number from the SNCA before or shortly after importing the vehicle. You can file the application using the MyGuichet.lu assistant or by contacting the SNCA directly.
2. Arrange customs clearance. When a person buys a vehicle in a country outside the EU, they must carry out customs clearance formalities, which may be completed either in Luxembourg or in the EU Member State of first entry.
3. Use the T1 transit procedure if needed. By filing a transit declaration using the T1 form, it is possible to suspend payment of taxes in the Member State of entry and pay them in the Member State of destination.
4. Pay customs duties and VAT at the Customs and Excise Agency. The formalities include payment of customs duties (up to 10% of the purchase price of the vehicle) and VAT (17% in Luxembourg) for new vehicles.
5. Obtain the Vignette 705 sticker. The 705 sticker is a document issued by the Customs and Excise Agency proving that a vehicle that has yet to be registered is in order with regard to VAT. This is a prerequisite for registration.
6. Undergo a technical inspection. If you want to register a vehicle already registered abroad, it must be covered by a valid certificate of technical inspection. A certificate issued by the competent authorities of another EEA Member State or Switzerland remains valid in Luxembourg but no longer than the period allowed under Luxembourg law. If not, you must undergo a technical inspection with one of the approved bodies before registering.
7. Submit registration documents to the SNCA. You must download the application form for obtaining a registration certificate, complete and sign it, and send it to the SNCA with the required documents including ID, vehicle invoice, insurance certificate, the Vignette 705, a valid technical inspection certificate, the European Certificate of Conformity (for vehicles registered from 1 February 2016), the foreign registration document, and tax stamps.
8. Have licence plates made. Once confirmation has been received that a registration number has been reserved, the licence plate must be printed by a licence plate manufacturer.

For vehicles brought in from within the EU, customs duties are not applicable, but VAT formalities and SNCA registration procedures still need to be followed. The key bodies to liaise with are: the Administration des douanes et accises (douanes.public.lu) for customs and VAT matters, and the SNCA (snca.lu) for all registration-related requirements.

What are the costs involved in importing a car to Luxembourg?

Bringing a vehicle into Luxembourg from outside the EU involves several layers of expenditure. Having a clear picture of these costs from the outset helps to avoid unpleasant surprises. All figures below reflect the position as of 2025 — always confirm current rates with the Administration des douanes et accises and the SNCA.

Customs procedures for vehicles acquired outside the EU involve the payment of duties of up to 10% of the purchase price, together with VAT at 17% in Luxembourg for new vehicles. Given that these charges can add up to a considerable sum, it is vital to account for them fully when budgeting for your import.

Relative to some other import regimes, Luxembourg’s approach is reasonably transparent. Unlike countries such as Australia — which operates a dedicated personal import scheme with its own compliance plate requirements and a distinct homologation process — Luxembourg adheres to the shared EU framework. Vehicles that already hold a valid EU Certificate of Conformity (CoC) and were previously registered in another EU or EEA country typically face a considerably simpler and less expensive compliance pathway.

An exemption from customs duties and VAT may be available when a vehicle is imported as part of a household move to Luxembourg. Since the rules governing this “removal goods” exemption are time-sensitive and contingent on prior ownership duration, eligibility should be confirmed in advance with the Administration des douanes et accises, ideally before the move takes place.

In addition to the purchase price of the vehicle and ongoing insurance premiums, chargeable costs include VAT in Luxembourg for any vehicle considered new or originating from outside the EU, a €50 tax stamp required for registration, and supplementary registration and acceptance testing fees for new vehicles purchased outside the EU or for those that have been modified or converted.

How do I register a vehicle in Luxembourg?

Every vehicle driven on Luxembourg’s roads must be registered, whether purchased locally or abroad, new or second-hand. Registration is handled exclusively by the Société Nationale de Circulation Automobile (SNCA). The procedure can be carried out at any of the three SNCA locations — Sandweiler, Esch-sur-Alzette, and Fridhaff — and applicants are encouraged to book an appointment either online or by telephone on (+352) 26626-400.

Anyone who relocates permanently to Luxembourg is required to register their vehicle within 6 months of formally declaring their arrival at their commune of residence. The six-month period begins from the date you officially register your address with your local commune, not from the date you physically set foot in the country.

The documents typically needed to register a vehicle — whether purchased locally or imported — include:

• A completed and signed application form for a vehicle registration certificate (downloadable from snca.lu or via Guichet.lu)
• A valid identity document (passport or national identity card)
• Proof of a Luxembourg address (for resident applicants)
• Vehicle purchase invoice or bill of sale
• Certificate of Conformity (CoC) — required for vehicles registered from 1 February 2016
• Valid insurance certificate (evidence of RC Autos / civil liability cover)
• Customs clearance document (Vignette 705) — for vehicles imported from outside the EU
• Valid technical inspection certificate (where applicable)
• €50 tax stamp (timbre de chancellerie)
• Foreign registration document (for imported vehicles)

A point that frequently catches newcomers off guard: unlike registration systems in many other countries, the allocation of a registration number does not mean that the vehicle is registered, nor that it has been automatically accepted for registration. Applying for a number plate is an early step in the overall process, not the final confirmation that the vehicle may legally use public roads.

With regard to roadworthiness checks before registration: any vehicle previously registered in another country must be accompanied by a valid technical inspection certificate. A certificate issued by the competent authorities of another EEA Member State or Switzerland is recognised in Luxembourg, but only for as long as is permitted under Luxembourg law. If no valid certificate exists, the vehicle must undergo a technical inspection before registration can proceed. The SNCA website at snca.lu provides a list of all currently approved inspection bodies.

With certain exceptions, every vehicle registered in Luxembourg and used on public roads is liable for road tax. The registered owner receives notification of the amount due by post and makes payment to the Customs and Excise Agency; the permanent road tax receipt is subsequently delivered by post.

What insurance do I need to drive legally in Luxembourg?

To drive a motor vehicle on a public road in Luxembourg, the owner must hold a civil liability insurance policy — known as RC Autos (Responsabilité Civile Automobile) — taken out with an approved Luxembourg insurer. This is the statutory minimum and is functionally equivalent to the compulsory third-party liability coverage required in most EU member states — comparable in principle to mandatory TPL cover in Germany or France, and distinct from jurisdictions that permit drivers to satisfy liability requirements through a bond or self-insurance arrangement.

In Luxembourg, insurance must be in place before a vehicle can be registered. This means that obtaining a policy is not simply a post-registration obligation — it is a prerequisite for completing the registration process itself. As soon as you have the vehicle’s chassis number and a reserved registration number, arrange your insurance policy without delay.

Once future owners are in a position to provide their insurer with the vehicle’s chassis number and Luxembourg registration number, they can request an international insurance card (green card) along with a sticker confirming that civil liability insurance has been taken out for the vehicle.

Insurance in Luxembourg is provided entirely by private-sector companies — there is no state insurer. Major providers operating in the Grand Duchy include AXA Luxembourg, Lalux, Foyer, and Baloise. Expats with an established insurance history in another country may find that their no-claims record carries some weight. Some Luxembourg insurers will take into account the number of years of uninterrupted insurance in another European country when calculating a fair premium for a new resident. It is worth asking each prospective insurer directly how they handle foreign no-claims certificates before deciding on a policy.

Beyond the mandatory third-party cover, drivers may choose broader protection, such as comprehensive (tous risques) or third-party fire and theft policies. In Luxembourg, winter tyres are a legal requirement due to seasonal weather conditions, and some insurers may enquire about seasonal tyre compliance. To verify the current minimum coverage requirements and obtain a list of approved insurers, consult the Commissariat aux Assurances (the insurance supervisory authority) at caa.lu.

What driving licence do I need in Luxembourg as an expat?

The applicable rules depend on whether your driving licence was issued within or outside the European Economic Area (EEA). If your licence was issued by an EEA country, it is automatically recognised in Luxembourg and no mandatory action is required. However, you may choose to voluntarily exchange it for a Luxembourg licence by submitting an application to the SNCA.

Holders of a driving licence issued by a non-EEA country must have it converted within 12 months of taking up residence in Luxembourg. During that initial year, driving on the strength of a foreign licence is permitted. Once the 12-month window has passed, however, continuing to drive without a converted Luxembourg licence constitutes a legal offence.

The conversion — also referred to as transcription — for non-EEA licence holders involves submitting an application to the SNCA along with the following: a recent 45×35 mm identity photograph, a medical certificate no more than 3 months old prepared on the approved form by an authorised practitioner in Luxembourg, a criminal record extract no more than 3 months old from the country of origin covering the preceding 5 years, a €30 tax stamp, a legible photocopy of both sides of the foreign driving licence, a legible photocopy of a valid identity document, and criminal record No. 4 from Luxembourg.

Depending on the category of the foreign driving licence, Luxembourg authorities may require the applicant to sit a driving test. Not all categories are automatically accepted without examination, so it is advisable to confirm your specific situation with the SNCA before submitting your application.

Both the exchange fee and the conversion fee stand at €30 (as of 2025). Even if you intend to retain your home-country licence, registering it with the SNCA after your move is worth considering — in the event of loss or theft, this will allow a duplicate to be issued promptly. Registering an EEA licence in this way is free of charge.

All driving licence matters are administered by the SNCA at snca.lu, and applications can be submitted through the online portal at Guichet.lu. Applications for an International Driving Permit are handled by the Automobile Club Luxembourg (ACL).

Luxembourg operates a points-based driving licence system, with every licence beginning on 12 points. Traffic offences result in deductions ranging from 1 to 6 points, depending on their seriousness. If you retain a driving licence issued by another EU country and commit a traffic violation in Luxembourg, points are deducted from your Luxembourg “virtual licence” rather than from your home-country licence.

How do I sell a car in Luxembourg?

Selling a vehicle in Luxembourg requires the completion of several administrative steps to formally transfer ownership and protect yourself from any ongoing liability once the sale has taken place. The process is administered through the SNCA.

The key steps for the seller are as follows:

1. Gather the necessary documentation: Assemble the vehicle’s registration certificate (carte grise), service history, and any current technical inspection certificates. Ensure that all outstanding road tax has been settled at or before the point of sale.
2. Agree terms and sign a purchase contract: Even in a private sale, drawing up a written agreement identifying both parties, the vehicle (by chassis number and registration), and the agreed sale price is strongly advisable as a record of the transaction.
3. File a Notice of Transfer of Ownership: The seller must submit a Notice of Transfer of Ownership to the SNCA within 5 days of completing the sale. This step is critical — until the transfer is formally recorded, the seller may retain residual liability for the vehicle’s use on public roads.
4. Transfer all parts of the registration certificate to the buyer: Hand over the complete registration document so that the buyer can re-register the vehicle in their own name.
5. Notify your insurer and cancel or reassign your policy: Inform your insurance provider of the sale and arrange for your cover to be cancelled or transferred with effect from the date of the transaction.
6. Check whether a road tax refund is due: If road tax has been paid in advance, you may be entitled to a proportional refund from the Customs and Excise Agency for the unexpired portion. Consult current procedures at douanes.public.lu.

If road tax on a vehicle remains unpaid for more than 60 days, Grand-Ducal Police and customs officers are empowered to immobilise it on public roads. It is therefore in both the seller’s and the buyer’s interest to ensure that any outstanding tax obligations are resolved promptly at the time of sale.

Regarding tax implications: Luxembourg does not impose a general capital gains tax on the private sale of a personally used vehicle by an individual. However, if a vehicle is sold in the context of a business activity, different tax rules may apply. If you are uncertain about your specific circumstances, seek advice from a Luxembourg tax professional or contact the Administration des contributions directes at impotsdirects.public.lu.

Are there any ongoing costs or obligations for vehicle ownership in Luxembourg?

With certain exceptions, all vehicles registered in Luxembourg and used on public roads are subject to road tax (taxe de circulation). The amount payable is calculated according to the vehicle’s CO2 emissions — the more polluting the vehicle, the higher the charge levied on its owner. This emissions-based structure echoes the logic behind Vehicle Excise Duty (VED) in the UK and the malus écologique in France. The registered owner receives a tax demand by post and makes payment to the Customs and Excise Agency. Always check the latest rates at douanes.public.lu.

Periodic roadworthiness inspections are also a mandatory ongoing obligation. These are carried out by the Société Nationale de Contrôle Technique (SNCT) — snct.lu. The inspection schedule is as follows:

• The first roadworthiness test for passenger cars, motorcycles, and trailers weighing more than 750 kg but under 3,500 kg falls 4 years after first registration. The second test occurs 2 years later — that is, 6 years after first registration. From that point, inspections must be repeated every year without exception.

This timetable differs from the MOT-style systems used in countries such as Ireland or the United Kingdom, where annual testing typically commences at an earlier stage in a vehicle’s life. In Luxembourg, the requirement for yearly checks only kicks in after the 6-year mark, granting newer vehicles a somewhat longer interval before annual inspections begin.

Any vehicle registered in Luxembourg must always be covered by a valid roadworthiness certificate. Driving without one can result in financial penalties and may also jeopardise your insurance coverage. The SNCT operates inspection centres throughout the country; consult their website for up-to-date pricing and booking information.

Many communes now require vehicle owners to hold a residential parking permit for the area in which they live. These permits are issued by individual communes upon presentation of the vehicle’s registration certificate. This is a local, commune-level requirement rather than a national obligation — check the specific rules with your own commune of residence.

Finally, the use of winter tyres is compulsory in Luxembourg due to seasonal weather conditions. Unlike some countries where such rules are advisory in nature or restricted to specific mountain zones, this requirement applies nationally across Luxembourg. Make sure your vehicle is fitted with compliant winter tyres during the appropriate season in order to remain both legally protected and fully insured.

Frequently asked questions

Do I need to be a Luxembourg resident to buy and register a car there?

To register a vehicle in Luxembourg, buyers must be listed in the National Register of Natural Persons with a valid Luxembourg address and an accepted identity document. Non-residents may purchase a vehicle but will need to register it in their own country of residence. If you are in the process of moving to Luxembourg, registering at your commune as early as possible is advisable so that the six-month registration window begins without unnecessary delay.

How long do I have to register my imported vehicle after moving to Luxembourg?

Anyone relocating permanently to Luxembourg must register their vehicle there within 6 months of formally declaring their arrival at their commune of residence. Missing this deadline may result in financial penalties. Check the current enforcement provisions with your commune and the SNCA.

Are right-hand drive vehicles allowed in Luxembourg?

Traffic in Luxembourg flows on the right, and while there is no explicit legal prohibition on right-hand drive vehicles, they create considerable practical safety challenges — including reduced visibility for overtaking, at toll booths, and in drive-throughs — and may require specific modifications to pass the technical inspection, particularly regarding headlight beam alignment. Left-hand drive vehicles are strongly recommended for daily use.

Is there a relocation exemption for import duties when moving to Luxembourg?

Under certain conditions, an exemption from customs duties and VAT may apply when a vehicle is imported as part of a household relocation to Luxembourg. This typically requires that the vehicle was owned and regularly used in the previous country of residence for a minimum period before the move. Contact the Administration des douanes et accises before relocating to confirm whether you meet the current eligibility criteria.

How much does it cost to exchange or convert a foreign driving licence in Luxembourg?

Both the exchange fee and the conversion fee amount to €30 (as of 2025). EEA licence holders may exchange their licence voluntarily or register it with the SNCA at no cost. Non-EEA holders are required to convert their licence within one year of establishing residence in Luxembourg. Always verify the latest fees directly with the SNCA at snca.lu.

Can I use my foreign no-claims insurance history in Luxembourg?

Some Luxembourg insurers will take into account a proven period of insurance in another European country when calculating a premium for a new resident, potentially resulting in a more favourable rate. Ask each insurer specifically whether they accept foreign no-claims certificates, in what format, and for how many years — practices differ considerably between providers.

How often does a car need a roadworthiness inspection in Luxembourg?

The first inspection falls 4 years after initial registration, the second 6 years after initial registration, and annual inspections are then required every year thereafter. The SNCT conducts these checks — consult snct.lu for current fees and a list of approved inspection centres.

What happens if I sell my car and the new owner does not re-register it promptly?

The seller must file a Notice of Transfer of Ownership with the SNCA within 5 days of the sale. Submitting this notice promptly provides the best protection against residual liability for any fines, road tax obligations, or incidents that involve the vehicle after it has changed hands. Retain a copy of the signed transfer notice and your proof of submission. If you have concerns about a delayed re-registration, contact the SNCA at snca.lu.