Importing a Car to Malta: Is It Worth the Cost?

There are roughly 1.1 billion cars in the world. That is an incredible number, especially when you consider that in large parts of the globe, there is only one car for every 100 people. Malta, however, is not far behind the leaders when it comes to car ownership. We have about 53.5 cars per 100 inhabitants, putting us in fourth place in the EU behind Luxembourg, Italy, and Germany.

And despite the... let's call it "unique" driving style here (the local joke is: "We don't drive on the left or the right; we drive in the shade"), Malta is statistically one of the safest countries for driving in the EU. Per million passenger cars, Malta has a comparatively low rate of fatal road accidents.

Importing a car to Malta triggers Registration Tax

So much for the statistics. What I really want to talk about today is the practical headache of bringing a car with you when you move to Malta. Unlike moving between other EU states, you cannot simply bring your vehicle here without facing some hurdles—much to the annoyance of the EU Commission.

Every used car imported into Malta by a resident is subject to a Registration Tax. This tax is calculated based on the model, the date of first registration, CO2 emissions, and mileage. You can calculate the specific cost for your vehicle on the official government valuation site.

Tax can hit 60% of the car's value

What sounds like a standard administrative fee is often the deciding factor against importing. Let's look at an example: For a standard older diesel hatchback (like a VW Golf TDI) with reasonable mileage, the import tax alone could easily cost around €4,259. That might represent nearly 60% of the car's residual value.

For other models, the registration tax can actually exceed the current market value of the car. In many cases, it is painfully obvious that importing simply isn't worth it.

It almost feels like a protectionist measure designed to encourage residents and investors to spend their money within the local economy—specifically on new cars. When you look at the financing offers frequently available from local banks (like BNF Bank) for new vehicles, buying fresh in Malta often makes more financial sense than paying to import an old vehicle.

The Exemption: Cars owned for over two years

However, it's not all bad news. There is a crucial exemption.

If you have owned and used the vehicle for more than two years prior to moving your residence to Malta, you are generally exempt from paying the registration tax. The authorities view this as bringing your personal belongings, rather than importing goods.

This rule exists to stop people from buying cheap cars abroad just to import them, as car prices in Malta (like many imported goods) tend to be higher than on the mainland. Furthermore, if you do not register as a permanent resident immediately, you may be able to drive the car on foreign plates for a longer period before forced registration becomes an issue.