Spanish cyclists are increasingly traveling hundreds of kilometers across the border into Portugal to purchase bicycles, driven by significant VAT differences that make identical models considerably cheaper.
The phenomenon, reported by the Spanish newspaper Marca, highlights Spain’s 21% Value Added Tax on bicycles compared to Portugal’s much lower 6%. This disparity creates substantial price gaps for consumers.
One rider, cited in the report, undertook a nearly 800-kilometer journey to Portugal and back in a single day, spending approximately $75.60 on fuel. The trip resulted in savings of around $1,836 on a new Van Rysel bicycle.
Marca has dubbed this trend a “bicycle exodus,” noting that Spanish cyclists are making dedicated trips to Portuguese retailers.
For example, the Van Rysel RCR Pro AG2R La Mondiale Team model, sold at Decathlon stores in both countries, costs about $9,720 in Portugal but approximately $10,800 in Spain.
An industry source told the Spanish newspaper that some larger Spanish shops are beginning to offer discounts. These retailers, leveraging high-volume purchases, can sometimes negotiate prices that compete with smaller Portuguese stores, despite the higher Spanish VAT.