Buying a car in Spain as a non-resident

Many British owners of a Spanish holiday home assume they cannot own a Spanish-registered car, because they are not resident. They can. Spanish vehicle rules let a non-resident register a car with a passport, a NIE and proof of a Spanish address, and owning the home counts as that proof. What follows is the full process, and what it costs.

Can a non-resident buy and register a car?

Yes. The traffic authority (DGT) accepts for non-residents:

• Irish and other EU citizens: their national ID card or passport;
• British, American and other non-EU citizens: a passport plus NIE;
• for everyone: a document proving a Spanish address, such as the deed of the home you own or a rental contract.

In practice the NIE is needed by everyone, also because the tax return on the purchase asks for a Spanish tax number. See what is a NIE number.

Buying second-hand from a private seller

The change of owner has two deadlines:

• the seller notifies the DGT within 10 days;
• the buyer applies for the transfer within 30 days of the purchase.

The DGT fee for a change of owner is €55.70. It will not issue the new registration certificate unless the ITV (roadworthiness test) is valid and the previous year's road tax has been paid, so check both before paying.

Transfer tax: the buyer pays

On a private sale, the buyer pays transfer tax (ITP) to the region. The base is the car's market value, or the price paid if that is higher. The tax agency publishes a table of values for each model, reduced by age: 100% in the first year, down to 10% for cars over 12 years old. The rate depends on the region; where the region has set none, it is 4%.

• The general deadline is 30 working days. Andalucía allows two months, with its own form.
• Murcia charges a fixed amount on cars over 12 years old: nothing up to 1,000 cc, then €30, €50 or €75 by engine size.

Buying from a dealer is different: VAT is included in the price and the dealer usually handles the transfer.

Road tax and ITV

• Road tax (IVTM) is collected by the town hall of the address on the registration certificate. It falls due on 1 January for the whole year and is not split when a used car changes hands, so agree with the seller who pays the current year.
• ITV: none for the first four years, then every two years until ten years, then every year.

Bringing a UK car to Spain

A British-registered car can stay in Spain for at most six months while you are a visitor. Once you are resident, it has to be registered in Spain, which from the UK also means clearing customs as an import from outside the EU. Two taxes apply:

• Registration tax on first registration in Spain, new or used, based on official CO2 emissions: 0% up to 120 g/km, 4.75% up to 160, 9.75% up to 200 and 14.75% above that (lower rates on the Canary Islands). A car without proven CO2 falls in the top band.
• Customs duty and import VAT, unless the moving-house relief applies.

The moving-house exemption from registration tax requires 12 months living outside Spain, at least six months' use of the car at the old home, registration within 60 days, and not selling the car for 12 months. The customs relief has similar conditions. The deadline to register runs from the first use of the car in Spain: 30 days, or 60 with the exemption.

Spanish residents driving on foreign plates beyond that can have the car immobilised. Between registration tax, customs and VAT, importing can cost more than expected, so run the numbers before shipping the car.

Questions we get

Do I need a Spanish driving licence to own a car?
No, ownership and licence are separate. For driving as a resident, see the Spanish driving licence.

Can I register the car at my holiday home address?
Yes, and the road tax then goes to that town hall.

Can someone handle the transfer for me?
Yes, with a power of attorney. See Spanish power of attorney.

Why Buenaley?

Buenaley is a Spanish law firm working with international property owners. For owners who want a car at their Spanish home there are two things we take off your hands, in this order.

The first is the NIE, which the DGT and the tax office need. We arrange it through our NIE service.

The second is the home that proves your Spanish address: buying it, and keeping its obligations in order.

• NIE application, from abroad
• Property purchase support
• Power of attorney for Spanish formalities
• Annual property taxes and IBI kept in order
• One contact for your Spanish paperwork

Own a home in Spain and want a car there? Start with the NIE application, or tell us what you have and you will hear what is missing.