Import Duty

An international move is technically a shipment of goods, which is normally subject to import duties and taxes.

If you are shipping your household goods to your new home in a container by sea or in air freight boxes by plane, you can apply for an exemption from import duties and import VAT. To qualify, you must meet certain requirements.

Tax Exemption

Internationally, you must have lived outside the jurisdiction of your new country for at least 12 months to apply for a tax exemption.

Some countries have stricter requirements. In Brazil, for example, your cumulative stay within Brazil's jurisdiction in the 12 months prior to your relocation there must not exceed 45 days.

A tax exemption for your move can only be claimed if you are either a citizen of your destination country or have a valid residence permit.

You cannot apply for an exemption for temporary stays.

Family reunification is regulated during the immigration process, as is “household reunification”.

You have a time frame to complete your move, which you must strictly adhere to.

After this period, tax exemption is no longer possible.

This time frame is currently, for example, 6 months in Brazil, 12 months in the EU, and 10 years in the USA, extendable to up to 25 years in cases of justified hardship.

In most countries, only used items are eligible for tax exemption. New items are taxed upon import.

The definition of "new" varies from country to country. In the EU, you must have owned the goods for at least 6 months to qualify for import tax exemption as used items. In the USA and Australia, the requirement is 12 months.

In Brazil, for several years now, new items acquired as part of a move have also been exempt from import tax, provided the quantities are consistent with the size of the family. Customs officials may become suspicious of a family of three whose packing list includes 10 televisions.

An international move can be an opportunity to legally ship a recently purchased item. For example, you can import your newly acquired television tax-free, as long as you adhere to the deadlines.

This is particularly advisable if you are moving to a Latin American country, where electronics are considerably more expensive than in Europe.

It's important to note that you are only permitted to ship your family's personal belongings as part of your move. Customs always have discretionary power; if they find indications that a container might contain goods intended for resale in addition to personal belongings, they can tax the relevant items.

The container may be inspected by customs upon import. Therefore, professional packing and loading, following all the rules of the moving industry, are essential! Impeccable packing and loading are strong indicators that professionals were involved, which, along with a meticulous packing list, inspires confidence.

Important note: The legal framework for such regulations is not static; tax laws are known for being subject to frequent and significant adjustments and changes. These laws are highly relevant and crucial for relocation planning.

Unfortunately, not all countries are as flexible as the USA regarding the posterior shipping of your household.

An adventurous family emigration based on the principle, "If it works out, we'll send our household over!" is therefore only possible to a very limited extent.

In the event of taxation, the usual import duties and import VAT tax will apply, depending on the product group.

In many countries, the duties are generally so high that any import would not be practical.

If you are unsure whether you are entitled to an import tax exemption or would like to know what you can do to benefit from a tax exemption, please feel free to contact us. We are happy to assist you.