Should UAE expats ship their car home when they relocate?

For UAE residents relocating to their home countries, a big decision can be whether to take their car with them or sell before they go.

According to ServiceMarket.com, choosing the best option financially comes down to the countries you are shipping to.

“Some countries have regulations that do not allow the importing of certain types of cars,” says Obed Suhail of ServiceMarket. “For example, left-hand cars cannot be exported to India.”

While shipping a car with GCC specifications to any country within the GCC should not cause any issues, Mr Suhail says shipping to European countries can be complicated.

“Your car would have to go through a process to determine if it complies with the rules and regulations of that country. Your registration approval also depends on other factors, such as the acceptable exhaust emission levels in Europe.”

One of the biggest factors to consider for all shipments is the import taxes and duties that could be applied.

According to ServiceMarket, there are hefty expenses applied in some countries such as India, where foreign residents have to pay more than 125 per cent of the value of their car in taxes and duties. Those shipping to the Philippines pay up to 150 per cent of the value, while Pakistan attracts fees of between 15 to 80 per cent.

Graphic by Alvaro Sanmarti
Graphic by Alvaro Sanmarti

Tax rates are very low in countries such as the United States (2.5 per cent) and Kuwait (5 per cent).

“What’s more, many people don’t know that no taxes and duties will be applied if they are relocating to Europe,” says Mr Suhail. “Taxes and duties are not applied if you are relocating to Europe and taking your car as a relocation good. However, should you ship your car without moving to Europe yourself or if a European is importing a car from the UAE, taxes and duties will be applied.”

Many shipping companies that handle relocations from the UAE allow cars to be loaded into a crate with the household items.

This was the route taken by Shaun Mahoney, an engineer from the UK, who divides his time between the UK and Abu Dhabi. He shipped a 2013 Range Rover Sport to the UK in January 2017, along with the contents of his former home in Dubai at a cost of Dh20,000.

source – https://www.thenational.ae/business/money/should-uae-expats-ship-their-car-home-when-they-relocate-1.733242

Leave a comment