More and more Latvians registering their cars in Estonia to avoid tax

Rush hour traffic on Pirita Road.
Rush hour traffic on Pirita Road. Source: Siim Lõvi /ERR

More and more Latvians are taking advantage of the fact that Estonia is the only country in the European Union that doesn't have a car tax and therefore, they are registering their cars here, daily newspaper Postimees writes.

"We have quite a lot of Latvians here, especially recently," Head of the Road Administration's Valga Bureau, Aivar Tumanov told Postimees (link in Estonian) specifying that every week, two or three Latvians register their cars, especially the more expensive varieties, in the border town of Valga.

Tumanov said that individuals usually first form a company in Estonia, through which they then register their car.

However, Spokeswoman of the Latvian Ministry of Transport Baiba Gulbe, told Postimees that on January 1, legal amendments should enter into force under which Latvians whose cars are registered in Estonia will need to pay the exact same tax that is paid by other Latvian car owners.

Whereas in July, the car tax entered into force in Lithuania and in Poland, this tax is paid according to the engine capacity; Estonia is now the only EU member state where there is no such car tax, Postimees wrote, referencing the European Automobile Manufacturers' Association (ACEA).


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Editor: Roberta Vaino

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