Commission decides to refer GREECE to the Court of Justice of the European Union for non-compliance with car taxation and registration rules

This article is brought to you in association with the European Commission.

Today, the European Commission decided to refer Greece to the Court of Justice of the European Union for failing to amend its rules on car registration and taxation.

The Greek registration tax, imposed on all vehicles, is higher for certain categories of second-hand vehicles purchased in other EU countries than for similar domestic second-hand vehicles. Moreover, the Greek environmental tax applies only to imported second-hand vehicles of certain categories and not to domestic vehicles of the corresponding categories. The Commission considers that the Greek legislation is not compatible with Article 110 TFEU, given that domestic vehicles face lower taxation compared to vehicles from other EU countries.

Additionally, Greece prohibits the registration of certain second-hand vehicles brought from other EU countries, without imposing a similar prohibition to the corresponding categories of domestic vehicles. This is a clear restriction on the free movement of goods, contravening Article 34 and Article 36 TFEU. The Commission sent Greece a letter of formal notice in September 2021, an additional letter of formal notice in June 2023 and a reasoned opinion in May 2024, asking the Greek authorities to remedy the incompatibility of the Greek rules with Union law. The Commission considers that efforts by the authorities have, to date, been insufficient and is therefore referring Greece to the Court of Justice of the European Union.

Background

Following legislative changes introduced in Greece since 2020, the amount of the registration tax on imported second-hand cars exceeds in certain cases the amount of the residual tax incorporated in the value of similar domestic second-hand cars, in breach of Article 110 TFEU.

In addition to the registration tax applied to all imported second-hand cars, the imposition of an environmental tax only on imported second-hand cars of certain categories (Euro 4, Euro 5a and Euro 5b) and not on domestic cars of the corresponding categories, constitutes another breach of Article 110 TFEU.

The Greek prohibition of registration of second-hand cars (Euro 1, 2 and 3) applies to cars entering the Greek market from other Member States. No similar prohibition is imposed to the corresponding domestic cars. As, the prohibition of registration only applies to vehicles entering the Greek market from other Member States, this measure constitutes a total restraint on import of such vehicles, amounting to a restriction within the meaning of Article 34 TFEU.

More Information

EU infringement procedure

Infringement decisions database

May 2025 infringement package

Infringement procedure Greece (INFR(2020)4001)