April 5, 2023

Rules for renting and hiring vehicles internationally widened to a limited extent

The rules for renting vehicles without a driver in other EU countries will finally be widened as an additional part of the Mobility Package. This package included the already issued new rules on driving and resting times, cabotage and the mandatory return of the driver and vehicle.

A previously unknown topic in this package related to liberalising the rules on the use of driverless vehicles for road freight transport. The new rules are laid down in Directive 2022/738, which amends the text of the old Directive 2006/1 EC.

Under the old rules, the vehicle still had to be registered in the member state of the lessee, unless the member state of the lessee nevertheless accepted the short-term hire in its national legislation. Belgium thereby accepts the one-off rental of a vehicle rented and registered abroad for a maximum period of six months.

Under the new rules, the vehicle does not have to be re-registered in the Member State of the hirer, but can remain under the number plate of the Member State of the lessor. Of course, one can still choose to register the vehicle in the country of the renter (i.e. a rental by chassis number).

Of course, the hirer does have to use the vehicle in accordance with the provisions of the European licensing regulations, which therefore includes reporting the hired vehicle under the licence.

In addition, some other possible restrictions have been included, notably to accommodate countries that were opposed to full market opening because of the loss of motor vehicle tax revenue. In particular, in case of a rental of a vehicle registered abroad:

- Prohibit the rental for more than 2 months per year
- Require registration in the country of the hirer anyway
- Limit the number of vehicles rented abroad to no more than 25% of the fleet
- Limit the use of vehicles rented abroad for own-account transport

In other words, where a general ban on international hire used to apply unless member states allowed an exception, a general permission now applies unless member states set a restriction. Partly old wine in new bottles, then ...

For Belgium, not much will probably change, now that at present, rentals are already allowed for up to 6 months (although it can now only be done once). However, in some other member states, where at present the rental of vehicles registered abroad is simply banned, this means limited liberalisation.

Related insights

ITL Attorneys once again a leading law firm in transport law according to legal500

We are happy to announce that ITL Attorneys is ranked as “Leading Firm” in the 2024 Legal500: industry focus: Transport

Read more

The trees in the forest of timekeeping part 2: deduction of the pause rule

A few weeks ago, I wrote a blog about correcting hours worked based on standard target times.

Read more

This article previously appeared in Nieuwsblad Transport: fall of Eastern European employment agencies?

The hospitality industry is starting to flourish again. At least, restaurants have been quite in demand in recent weeks. Thank goodness. They have been through a tough period.

Read more