There is a growing trend of Spanish cyclists traveling to Portugal to purchase bicycles. These enthusiasts wake up before dawn, cross the border, and return home with new “machines.” But why is this happening?
The reason is tied to VAT rates. In Portugal, the VAT on bicycles has been just 6% since 2023, compared to 21% in Spain.
Social media videos depict cyclists who start their journeys at 5:42 AM, cover 799 kilometers, spend 70 euros on fuel, and return home with bicycles such as the Van Rysel.
“I traveled to Portugal to buy a Van Rysel. Price in Portugal: 3,800 euros. In Spain: 5,499 euros. Savings: 1,700 euros,” one cyclist posted on social media.
This trend has surged recently as tax differences significantly impact final prices. For instance, the Decathlon AG2R La Mondiale Team RCR Pro is priced at 9,000 euros in Portugal, while the same model costs 10,000 euros in Spain.
Is it really savings?
However, research reveals that negotiating prices might offset VAT savings. The Spanish outlet notes, citing industry sources, that Spanish shops sometimes offer better deals than Portuguese counterparts.
“Some stores purchase in bulk and receive discounts. During negotiations, they lower prices to be more competitive than smaller Portuguese shops, despite lower VAT,” sources indicate.
The tax advantage mainly affects fixed-price items, which is uncommon in bicycle shops.
The current price war, driven by excess stock and fewer post-pandemic customers, forces stores to sell at low prices, often without success. This indicates that the 6% VAT in Portugal isn’t the core problem.
Following the pandemic boom, the bicycle sector is now experiencing an excess of stock. Many brands have unsold bicycles from 2022 and 2023, leading to regular discounts of 15%, 20%, or more.
“Currently, it’s rare to find a shop selling a bicycle without a significant discount,” industry sources explain. As a result, traveling to Portugal often isn’t financially beneficial.
Several Spanish shops have opened branches in Portugal to compete more equally. For those living in Galicia, Extremadura, and Castile and León, crossing the border takes just minutes, making the trip worthwhile.
The employer association AMBE has warned that if this trend continues, approximately 24,000 jobs in Spain could be affected.
On social media, cyclists frequently share stories of saving hundreds of euros by crossing the border for bicycle purchases. Due to its reduced VAT, Portugal has become a tax haven for Spaniards compared to their home country’s 21% rate.
