Russians are obtaining Belarusian residence permits to drive cars with Belarusian registration. What's the point?

Illustrative photo. Photo: AP Photo / David Zalubowski

Car buyers from Russia are looking for ways to save on customs duties and recycling fees when importing a car. Some are considering getting a Belarusian residence permit for this.

Why cars in Belarus cost much less

Despite the fact that Belarus and Russia are in a single customs area, car prices differ significantly, and the Russian authorities are doing everything to make cars only more expensive.

Besides the fact that Belarus has Decree 140, which allows customs clearance of cars for large families and first and second group disabled individuals with a 50% discount, each country has its own recycling fee rates and calculation methods.

In Belarus, the recycling fee for passenger cars for individuals is divided into two categories and depends on the car's age. For cars up to three years old, it is 544 rubles, and for older ones — 1089 rubles.

In Russia, recycling fee rates are divided into preferential (about 125—190 Belarusian rubles) and commercial.

However, the preferential tariff applies only to individuals and cars with an engine capacity of up to 160 hp, and to avoid paying the recycling fee at the commercial rate, such cars cannot be sold within 12 months.

Moreover, for cars with an engine capacity of more than 160 hp, no preferential tariff exists at all.

So, for example, when importing the Chevrolet Equinox crossover, popular in Belarus, with a 1.5-liter engine and 175 hp, Russians have to pay approximately 9600 euros in recycling fees if the car is less than three years old, and almost 15 thousand euros if the car is older than three years. 

That is, Russians have to pay approximately the same amount in recycling fees for such a car as it costs in Belarus, including all expenses. 

Павялічыць

The Chevrolet Equinox crossover, popular in Belarus, with a 1.5-liter engine and 175 hp. Screenshot: av.by

If you take a car with a more powerful engine, the recycling fee figures in Russia look astronomical.

For example, for a three-liter gasoline BMW X5 with a 340 hp engine, Russians have to pay about 30 thousand euros in recycling fees. And if such a car is older than three years, it's more than 42 thousand euros.

Because of this, the price of the same car, cleared through customs in Belarus and Russia, differs by tens of thousands of euros. For example, a three-to-five-year-old BMW X5 with a three-liter engine can be cleared through customs in Belarus for 9000 euros at the full tariff or for 4500 euros at the preferential one.

Together with the recycling fee and other expenses, it will amount to 9500 or 5000 euros respectively. Customs clearance of the same BMW X5 in Russia will exceed 53,000 euros.

Belarusian residence permit turnkey

Due to such a large difference, Russian motorists have started looking for ways to drive cars with Belarusian license plates in Russia by obtaining a residence permit in Belarus. It's notable that the difference is so large that even bothering to find a beneficiary is not necessary.

Some dealers who import cars on order saw potential in this and began offering new services, such as obtaining a residence permit in Belarus and turnkey car import. Moreover, such services are offered by both Russian and Belarusian intermediaries.

The interest is likely fueled by the fact that from April 1, Russia will close the last loophole that allowed to save twice at least on customs payments (by clearing expensive cars up to three years old through Belarus at a preferential rate of 24% of the cost instead of 48%). 

After April 1, there will be no point in this, as when importing from Belarus to Russia, the buyer will have to pay not only the draconian recycling fee but also the difference in customs duty.

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