Tax-free allowances: permanent imports of personal property

SUMMARY OF:

Directive 2009/55/EC on tax exemptions applicable to the permanent introduction from an EU country of individuals’ personal property

WHAT IS THE AIM OF THE DIRECTIVE?

Its aim is to codify Directive 83/183/EEC on tax exemptions that apply to the permanent import of individuals’ personal property* from another EU country.

KEY POINTS

This directive provides an exemption for personal property which is permanently introduced from another EU country by private individuals from consumption taxes which would normally apply to such property.

This property must neither have a commercial nature nor be intended for an economic activity. The tools necessary for the exercise of a person’s trade or profession are, however, to be treated as personal property.

Riding horses, motor-driven road vehicles (including their trailers), caravans, mobile homes, pleasure boats and private aircraft may only be granted exemption if the private individual concerned transfers their normal residence* to the EU country of destination.

Motor-driven road vehicles (including their trailers), caravans, mobile homes, pleasure boats and private aircraft must not be disposed of, hired out or lent during the 12 months following their tax-exempt introduction, except in circumstances justified to the satisfaction of the competent authorities in the EU country of destination.

The introduction of the property may be undertaken all at once or in stages, and for any of the following reasons:

in connection with a transfer of normal residence: all of the property must be introduced within 12 months of the transfer of normal residence;
in connection with the furnishing or relinquishment of a secondary residence: the property must correspond to the normal furniture of the secondary residence and the person concerned must be the owner of the secondary residence or be renting it for a period of at least 12 months;
on the occasion of a marriage: the property must be introduced between 2 months before the marriage date envisaged and 4 months after the actual marriage date, and proof of marriage must be provided;
acquired by inheritance: the property must be introduced within 2 years of the date on which the person concerned enters into possession of the property, and proof must be provided that the property was acquired by inheritance.

With the exception of certain goods, EU countries have the right to retain or introduce more liberal conditions for granting tax exemptions than those contained in this directive.

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied since 30 June 2009. Directive 2009/55/EC codifies and replaces Directive 83/183/EEC which had to become law in the EU countries by 1 January 1984.

KEY TERMS

Personal property: property for the personal use of the persons concerned or the needs of their household.

Normal residence: the place where a person usually lives (for at least 185 days in each calendar year) because of personal and occupational ties, or in the case of a person with no occupational ties, because of personal ties which show close links between that person and the place where he/she is living.

MAIN DOCUMENT

Council Directive 2009/55/EC of 25 May 2009 on tax exemptions applicable to the permanent introduction from a Member State of the personal property of individuals (Codified version) (OJ L 145, 10.6.2009, pp. 36-41)

last update 05.11.2018