Estonians Registering SUVs as Motorhomes to Avoid Higher Vehicle Tax
Since Estonia's Motor Vehicle Tax Act took effect in January 2025, some SUV owners have been reclassifying their vehicles as motorhomes to pay a lower registration fee, exploiting a legal loophole.
Tax Optimization Through Motorhome Classification
Estonia's Motor Vehicle Tax Act, which came into force in January 2025, imposes a high registration fee on passenger cars. However, vehicles registered as motorhomes are taxed like vans, with weight not factored into the fee. This has created an opportunity for tax optimization: some SUV owners have begun registering their vehicles as motorhomes to save thousands of euros.
Example: BMW X7
For instance, the registration fee for a BMW X7 is nearly €6,000, but when registered as a motorhome, the fee drops to €2,400. According to the Transport Administration, several dozen such vehicles have been registered so far.
Ethical and Commercial Concerns
Silver Havamaa, head of used car dealer Mobile Autokeskus, notes that this is primarily an ethical issue, as these vehicles are not actually used as motorhomes. From a business perspective, if the state cannot ensure a level playing field, customers will choose the cheaper option, potentially reducing tax revenue.
Transport Administration's Position
The Transport Administration says it cannot intervene because the law allows vehicle conversions. It registers vehicles that meet EU requirements for motorhomes, including a weighing procedure. "If those requirements are met and we have verified them, we register it as a motorhome," said Jürgo Vahtra, head of the vehicle technical department.
Former Finance Minister's Call for Action
Former Finance Minister Mart Võrklaev (Reform Party) argues the situation needs addressing. He suggests the Transport Administration should apply common sense, amend regulations if necessary, and inspect reclassified vehicles. Owners should be billed for any unpaid fees. If legal changes are required, the administration can raise the issue with the ministry.
Finance Ministry's View
The Ministry of Finance has not identified a loophole and, based on open data, says there is no evidence of a surge in motorhome registrations since the fee was introduced.
