Estonians registering SUVs as motorhomes to access lower vehicle registration fee
Motorhomes are not subject to the same high registration fee as ordinary passenger cars. As a result, some SUV owners have begun registering their vehicles in the new category to avoid paying the tax.
Estonia's Motor Vehicle Tax Act, which took effect in January 2025, comes with opportunities for tax optimization. Recently, car owners have begun registering their SUVs as motorhomes to save thousands of euros. Under the law, vehicles classified in the traffic register with the body type "motorhome" are taxed similarly to vans, meaning their weight is not factored into the registration fee calculation.
"The first issue here is an ethical one: It's simply not right, because these vehicles are not actually being used as motorhomes — at least in most cases. From a business perspective, if the state cannot ensure a level playing field and the exact same vehicle is available for sale in Estonia or ordered from abroad, the end customer will compare the final price. If one seller can offer it for several thousand euros less, it's not difficult to make that purchasing decision. That's where a chain reaction affecting tax revenue begins," said Silver Havamaa, head of used cars dealer Mobile Autokeskus.
For example, while the registration fee for a BMW X7 is nearly €6,000, registering it as a motorhome reduces the fee to just €2,400. The Transport Administration says it cannot intervene because the law allows vehicle conversions. So far, several dozen such vehicles have been entered into the register.
"We register vehicles that comply with European requirements. The EU has a common regulation establishing the requirements for motorhomes and if those requirements are met and we have verified them — including weighing the vehicle as required under the conversion procedure — we register it as a motorhome," said Jürgo Vahtra, head of the Transport Administration's vehicle technical department.
Former Finance Minister Mart Võrklaev (Reform) — who introduced the motor vehicle tax — said the situation needs to be addressed.
"I think the Transport Administration should apply common sense and, if necessary, amend its regulations. If it is clear that SUVs are being registered as motorhomes, then those conversions should not be accepted. Vehicles that have already been reclassified should be inspected. In my view, owners should also be billed for any unpaid registration fees. If that requires amending a ministerial regulation or the law, the Transport Administration has every opportunity to raise the issue with the ministry. Whether the minister acts or the parliament amends the law, we should start by applying common sense," Võrklaev said.
The issue has not yet reached the Ministry of Finance, which says it does not see a loophole in the regulations. Based on open data, the ministry also says there is no evidence that the number of motorhomes has surged since the registration fee was introduced.
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Editor: Marcus Turovski
