Car registered in Andorra: Can you drive freely in Europe with MT plates?

Andorra, known for its tax advantages, attracts many motorists wishing to register their vehicles at a lower cost. Among the available options, MT plates (Tourist Registration) allow non-residents expatriated outside the EEC to drive with an Andorran registration.

In this article, we will cover:

• What MT plates are and who they are for;
• Driving rules in Europe for a vehicle registered in Andorra;

Before hitting the road, it is best to fully understand the rules that apply to vehicles registered outside the European Union.

Understanding MT plates in Andorra

What is an MT registration?

In Andorra, the MT plate (Tourist Registration) is a registration intended for non-residents and expats outside the EU who purchase a vehicle in Europe and wish to register it in the Principality. Unlike standard plates, they are intended for individuals who wish to use their vehicle primarily abroad (outside Andorra and outside their country of expatriation).

Tax and administrative advantages

One of the main attractions of MT plates lies in their reduced taxation. Here are some advantages:

• Reduced VAT: Unlike EU countries where the purchase of a vehicle includes VAT (20% in France, 21% in Spain), Andorra applies a VAT tax called IGI, amounting to 4.5%.
• Savings on registration: The procedures are simplified and registration costs are much lower than those in neighboring countries.
• Export flexibility: The vehicle can be used outside Andorra, throughout Europe and abroad. Exporting to an EU country is very easy if the person one day returns to live in Europe permanently.

Duration and conditions of use

MT registration is renewed every year, as long as the client is an expatriate. To maintain this status:

• The vehicle must be driven by the non-European resident, who provides proof of tax residence outside the EU.
• It cannot be used for professional purposes in Europe.

Can you drive freely in Europe with an MT plate?

General driving rules in Europe

Cars registered in Andorra, although benefiting from advantageous taxation, are subject to regulations when driving in Europe. As Andorra is not part of the EU, these registrations are considered non-EU, which implies several obligations:

• 6-month limit: A vehicle registered outside the EU, including with Andorran MT plates, can circulate in the Schengen area for a maximum of 6 months (consecutive or not) per year. This is therefore particularly advantageous for expatriates who return to France from time to time to enjoy their vehicle.

What rules must be followed?

If you own a car registered in Andorra with MT plates, you can drive with peace of mind during your travels. Naturally, the rules of the countries concerned must be respected.

Compliance with local regulations

Before driving a vehicle with MT plates in Europe, it is important to:

• Check the driving rules of each country.
• Keep proof of travel: Ferry tickets, parking receipts from different countries, and proof of entry and exit from the territory are essential documents to prove that the vehicle does not exceed the 6-month limit.

Andorran MT plates offer attractive tax advantages, and it is important to strictly follow driving rules and ensure that plate renewal is managed professionally each year.