3 ms·

You can't drive a foreign car if you are a permanent resident in Denmark, I think. People in my workplace used to try what you suggest, but it doesn't work. If

by nextos 10y ago

You can't drive a foreign car if you are a permanent resident in Denmark, I think. People in my workplace used to try what you suggest, but it doesn't work. If police stops you and they discover you are in fact living in Denmark you will get an enormous fine. Leasing is usually a better deal in this case. You can get a small car for around 1500 kr / month.

gambiting 10y ago
What if you work for a foreign company that gave you a company vehicle? I did the same for about 3 years in UK, and it was fine,even the local police and DVLA confirmed that I'm not braking any laws doing it, even though the law is structured in the same way - if you are a permanent resident you can't drive a foreign vehicle in the UK. Except if you work for a foreign company that gave you a company vehicle to use then yes,you can, and there doesn't seem to be any restriction on it.
- charlesdm 10y ago
  As far as I know, what you just described is the only "loophole" in existence, and it is supposed to work in any EU country because of some weird nondiscrimination rule. There was even some ECJ ruling on it, if I remember right. For example: I know of a Dutch guy who leases a Ferrari through a Belgian company he set up for this, because it would cost him twice as much in the Netherlands. There are also examples of Belgian people driving cars with Luxembourg plates, etc. This is not illegal (though it's obviously a form of tax avoidance)
  - _delirium 10y ago
    The Danish tax authority has this mentioned in their FAQ [1]. They claim that this is true but, 1) "it is a requirement that your vehicle is primarily used for business purposes abroad", and 2) you must "apply to be exempt from registration tax". [1] See the question "Foreign company cars" here: https://www.skat.dk/SKAT.aspx?oId=2068721 https://www.skat.dk/SKAT.aspx?oId=2068721
    - charlesdm 10y ago
      Might just be their interpretation of the law though. It could very well be impossible in Denmark, but if some EU law is making it possible, local law can't block it (even though they might want it to). And even if local law is blocking it, it might be in violation of EU law. Given we're talking a €100-120K tax difference on expensive cars, you can always consult a Danish tax lawyer and if he thinks it's doable do it anyway. If the tax authority has a problem with it then, then you just take it to court. Seems worth investigating.

by nextos 10y ago

gambiting 10y ago

What if you work for a foreign company that gave you a company vehicle? I did the same for about 3 years in UK, and it was fine,even the local police and DVLA confirmed that I'm not braking any laws doing it, even though the law is structured in the same way - if you are a permanent resident you can't drive a foreign vehicle in the UK. Except if you work for a foreign company that gave you a company vehicle to use then yes,you can, and there doesn't seem to be any restriction on it.

charlesdm 10y ago
As far as I know, what you just described is the only "loophole" in existence, and it is supposed to work in any EU country because of some weird nondiscrimination rule. There was even some ECJ ruling on it, if I remember right. For example: I know of a Dutch guy who leases a Ferrari through a Belgian company he set up for this, because it would cost him twice as much in the Netherlands. There are also examples of Belgian people driving cars with Luxembourg plates, etc. This is not illegal (though it's obviously a form of tax avoidance)
- _delirium 10y ago
  The Danish tax authority has this mentioned in their FAQ [1]. They claim that this is true but, 1) "it is a requirement that your vehicle is primarily used for business purposes abroad", and 2) you must "apply to be exempt from registration tax". [1] See the question "Foreign company cars" here: https://www.skat.dk/SKAT.aspx?oId=2068721 https://www.skat.dk/SKAT.aspx?oId=2068721
  - charlesdm 10y ago
    Might just be their interpretation of the law though. It could very well be impossible in Denmark, but if some EU law is making it possible, local law can't block it (even though they might want it to). And even if local law is blocking it, it might be in violation of EU law. Given we're talking a €100-120K tax difference on expensive cars, you can always consult a Danish tax lawyer and if he thinks it's doable do it anyway. If the tax authority has a problem with it then, then you just take it to court. Seems worth investigating.