If You Decide To Own A Car…

We’ve cautioned you previously in this program against the idea of keeping a car of your own in your new place of residence overseas. Owning a car anywhere is a liability, an expense, and a hassle, so consider first whether you really need one.

Some places, it’d be foolish to invest in your own vehicle. We lived for years in Paris happily car-free. This is a city easily navigated on foot and where anyone who does own a car spends a not insignificant amount of time figuring out where to park it.

On the other hand, if you’re settling in a village in Southern France, you’re likely to want a vehicle of your own to get out and about… otherwise your life in a small town would be pretty limited.

In that case, you’ll have an additional checklist of administration to address…

First on this list is a driver’s license.

In fact, you should keep a valid driver’s license no matter where you live and whether or not you decide to invest in a car of your own. You’ll need one to rent a car, and a valid driver’s license is a good alternative form of identification anywhere in the world.

Depending where you’re going and how often you’ll be driving, you could be OK using your current driver’s license, rather than going through the trouble of obtaining one from your new country of residence. Regardless of your plan, we recommend that you renew your current driver’s license as close as possible to the date of your foreign move, allowing you the maximum time before expiration. This way, at least for some extended initial period, you can drive on your existing license and not have to worry about applying or qualifying for a new one.

Most EU countries require you to exchange your foreign license for a local one after two years of formal residency.

And in Ireland, for example, you can’t simply exchange your old license for an Irish one if you aren’t relocating from a left-side-drive country. If you’re coming from a country where they drive on the other (that is, the right) side of the road, you’ll have to take both the written and the physical tests like any new Irish driver—even if you’ve been driving in your home country for many years.

Most countries, however, allow you simply to exchange your current license for a local one or, in some cases, to drive on your home country license as long as it is valid.

In addition, if you invest in a car of your own in your new home overseas, you’ll have to register it. Buy through a car dealership, and they should take care of this for you. If you buy from an individual, you can ask them to help you transfer the title and registration.

In addition to registering your car, you’ll also need to insure it. Car insurance works differently in different countries. Insurance agencies in Ireland offer what they call a “no-claims bonus.” The longer you insure the car without making a claim, the bigger your no-claims discount. This exists in the United States, too, but isn’t quite as formalized. To get this discount as a new resident (and first-time car-owner) in Ireland, you need a letter from your previous insurance company in your home country.

If you keep a car in your new home overseas, know what you need to keep in it. In France, you’re required to carry a yellow reflective vest in your vehicle at all times, for example.