Driving & Transportation

For US citizens relocating abroad, driving privileges hinge on three documents: a valid US state license, an International Driving Permit (IDP), and — after establishing residency — a local license. The IDP is a translation of a US license into 10 languages, issued under the 1949 Geneva Convention on Road Traffic; in the US it is sold only by AAA ($20) and the American Automobile Touring Alliance, is valid for one year, and must be obtained before departure (US State Department, 2024). The 1968 Vienna Convention IDP, recognized by many European and Latin American countries, is not issued in the United States, which creates friction in countries like Brazil, Portugal, and Hungary that have increasingly cited Vienna-only recognition. License-exchange rules vary sharply by country and by US state. Germany recognizes full reciprocity for licenses from 28 US states (including Alabama, Arizona, Colorado, and Texas) and partial reciprocity for others, which may require written or practical testing; drivers must exchange within six months of establishing residence (German Federal Ministry of Transport, BMDV, 2024). France signed reciprocity agreements with 19 US states, allowing exchange within one year of residence. The UK lets US license holders drive on their US license for 12 months, after which a full UK test is required. Japan requires nearly all US license holders to pass both a written and practical test (the gaimen kirikae) regardless of driving history. EV adoption, congestion charging, and Low Emission Zones (LEZs) are reshaping expat transport choices. As of 2025, more than 320 European cities operate LEZs, including London's ULEZ (£12.50/day for non-compliant vehicles), Paris's Crit'Air zones, and expanded Umweltzonen in over 70 German cities. Americans importing vehicles face strict homologation rules in the EU and 25%+ import duties in many Latin American countries. Public transit and ride-hailing frequently outperform car ownership in dense expat hubs like Lisbon, Mexico City, Bangkok, and Singapore, where annual transit passes run €40–€120 (European Commission Mobility Data, 2025).

Key Points

• 1IDPs from the US cost $20 at AAA, are valid 1 year, and cannot be obtained outside the US once you've departed (US State Department, 2024).
• 2Germany's Category B license-exchange list covers 28 US states in full; non-listed state drivers face theoretical and/or practical tests, with a 6-month exchange deadline (BMDV, 2024).
• 3Japan mandates the gaimen kirikae practical test for most US license holders; pass rates on the first attempt are reported below 35% at Samezu and Fuchu test centers (Japan National Police Agency, 2024).
• 4London's ULEZ charges £12.50/day for non-compliant vehicles across all 32 boroughs since August 2023; Paris will ban all non-Crit'Air 1 diesel vehicles from the ZFE by 2026 (TfL; Mairie de Paris, 2025).
• 5Mexico allows US citizens to drive on a US license as tourists, but permanent residents must obtain a state-issued Mexican license; CDMX fees run MXN $900–$1,600 with no road test for equivalency holders (SEMOVI CDMX, 2025).
• 6Portugal requires license exchange within 185 days of residency; medical certification is mandatory for drivers 50+ and processing via IMT currently runs 3–6 months (IMT Portugal, 2025).
• 7Importing a US-spec vehicle into the EU typically costs €3,000–€8,000 in homologation, VAT (19–25%), and registration taxes; many US models cannot be homologated due to headlight and bumper standards (European Commission TAXUD, 2024).