How to buy a car in Spain

Unless you are moving to a big city, you will almost certainly need access to a car when living in Spain. The process of buying a vehicle may be a little different to that of your country of origin, so here's an overview of what to do. Read on to find out the pros and cons of buying from a dealer or dealership versus a private seller, what paperwork you need, fees and taxes to pay, and how to purchase a vehicle if you are a non-resident.

Perhaps you've decided to bring your existing car from your home country when you move to Spain. If so, you will need to formally import it and have Spanish number plates assigned to it. You can find out what to do in our article How do I re-register my car when I move to Spain?

Buying a car from a dealer or dealership

Most drivers in Spain buy their cars from a dealer, or trade premises selling different makes of second-hand vehicles, or from a dealership (concesionario), which sells most models of a specific brand, including brand-new cars straight from the factory.

Advantages of buying from a dealer or dealership

Purchasing from a registered motor trade business means all the paperwork will be taken care of, normally within the price paid for the vehicle, and you are usually entitled to a guarantee of a minimum of one year. This covers defects arising that cannot be considered as the result of wear and tear. Many dealerships will also include a set of the items you are legally required to carry in your car, including red warning triangles and first aid kit. You can find out more about these in our article Rules for driving in Spain.

Additionally, if you already have a car and are changing it, dealers and dealerships may offer you a part-exchange, which saves trying to find a buyer for your existing vehicle. These can be quite generous, and may even allow you to exchange a car that is no longer roadworthy, for its scrap value.

Disadvantages of buying from a dealer or dealership

The main downside to using a dedicated car-sales business is that you will typically pay a higher price. This price will include value-added tax (IVA), currently 21%. Although second-hand goods do not attract IVA, this exemption does not apply to pre-owned cars sold by a dealer or dealership. However, for drivers registered as disabled due to reduced mobility, or buying an adapted car, the IVA applicable is only 4%.

What paperwork do you need to buy a car from a dealer or dealership?

• All non-Spanish buyers will need to produce their NIE, or personal identity number, whether or not they are resident in Spain. NIE numbers must be acquired by any non-Spaniard who intends to carry out transactions in Spain, even if they do not intend to live there permanently.
• You will also need to show your official identification (ID), which contains a photograph. This could be either an identity card from your home country, your passport
• If you are resident in Spain and come from a non-European Union (non-EU) country, you can show your foreigners' identity card (TIE).
• You will normally need to show proof of where you live or, if you are not a resident in Spain, where you are staying. Residents can show a copy of their certificado de empadronamiento, which proves they are on the population census (padrón) of their town. This certificate must have been issued less than three months earlier. Residents and non-residents can prove their address by showing the title deeds to their property, or their tenancy agreement.

What paperwork will the dealer or dealership give you?

• You and the seller must sign a legal document agreeing to the transaction, and you will receive a copy of this, along with an invoice as proof of purchase. The contract signed will include details of any guarantee offered.
• If the car is four years old or more, it must have an up-to-date ITV (have passed its official technical inspection). A sticker on the windscreen shows the date this expires. As well as the sticker, you should be given the most recent ITV inspection report document. You should only be sold a car with an expired ITV if you have formally agreed this with the dealer, since you will not be able to drive it until it has passed its inspection.
• You will be given the original log book (permiso de circulación) for the car, complete with the document confirming its technical specifics (ficha técnica). These are on pale-green card and are kept together inside your vehicle at all times. The permiso de circulación will be in your own name if the dealership or dealer has already carried out the transfer of ownership with the Spanish traffic authorities (Dirección General de Tráfico, or DGT).
• All manufacturers whose cars are sold in European Union (EU) countries must supply a European Certificate of Conformity (CEC). This will be in the dealer's or dealership's possession, and they must pass it to you along with the vehicle.
• You should receive the official manual for the make and model of your car. This serves as an essential guide to ownership and maintenance, including, for example, the type of fuel to use, and the level of air-pressure needed for your tyres.

What other costs are involved in owning a car in Spain?

The first thing you must do before you drive your purchased vehicle for the first time is arrange for it to be insured. In Spain, all vehicles, without exception, must be covered by third-party liabilty (responsabilidad civil) insurance as a minimum. This is even the case where the vehicle is parked and not in use. You may decide to include cover for fire and theft, or take out a fully-comprehensive policy which covers both of these plus accidental damage which you cause, or which is caused by a third party who cannot be traced. Note that motor insurance does not cover repairs needed due to wear and tear or the normal ageing of the vehicle and its parts. Also, motor insurance policies are personal and non-transferable; when a car changes owner, the original policy is cancelled and fresh one must be contracted in the new owner's name.

You will need to pay an annual tax for your vehicle, whether or not it has been used in the past year. Tax is payable to the local council of the town where your car is kept and, as it is charged once a year, payment is due from whoever owned it at the start of that year. This means that if you sell your car after a few months, you will still be liable for that year's tax; however, if the tax has already been paid when you buy it, you will not need to do so until the following year. Vehicle tax is, effectively, a tax on the owner, or on vehicle ownership, rather than tied to the individual vehicle.

Once the car has been transferred into your name, the DGT will automatically notify your local council for tax purposes, so you do not need to take any further action until you receive your bill.

Although the amount of the tax varies according to the type of car and its emissions levels, each town is responsible for setting its own rates. These can differ considerably between towns, ranging from over €200 in larger and more expensive municipalities down to even single-figure sums in very small villages.

Buying a car directly from a private owner

Private car sales are fairly rare in Spain, although more common between foreign residents. The main reason for buying from or selling to an individual is cost: You may get a better deal when selling, and pay a much lower price when buying, since no profit margins are involved. Also, second-hand vehicles sold by private individuals are not subject to IVA.

There are, however, disadvantages: You will have to arrange to transfer ownership into your own name, which can be costly and time-consuming. You will need an official sales and purchase agreement signed by both buyer and seller, and you will each need copies of the other party's ID. Additionally, you cannot truly be sure what you are buying unless you bring a qualified mechanic with you to inspect the car before your purchase.

Such transactions do take place in Spain, however, especially between trusted friends and family members, so you need to be aware of what is involved.

How to arrange transfer of ownership

You must transfer the vehicle into your own name within 30 days of purchase. Doing so normally requires an in-person visit to your nearest DGT headquarters, which are based in large towns and provincial capital cities. This could mean travelling some distance. DGT or Tráfico centres are typically only open on weekday mornings, and you may need to book an appointment online. Centres which do not offer appointments require visitors to take a ticket and queue – but if your ticket number does not come up before closing time, you will have to return another day.

For this reason, most people appoint a gestor or asesor (legal and financial advisor) to handle the transfer for them. Their charges vary, depending upon location and workload, so you should expect to pay anything from around €50 to €300 on top of the other fees required.

What other fees do you need to pay to put my car in your name?

You will need to pay the asset transfer tax (Impuesto sobre Transmisiones Patrimoniales, or ITP), which is set by your regional government. It ranges from 4% to 8% of either the 'book value' of your vehicle or the purchase price, whichever is higher.

As well as the ITP and gestor fee if applicable, you need to pay a one-off admin charge for ownership transfer, which is currently €55.70. You must complete the DGT's Form 1.5 to accompany your payment, which is made at any branch of the banks indicated on this form.

What paperwork do you need to put the car in your name?

In addition to Form 1.5 and proof of ITP tax payment, you will need:

• The original legal document confirming the sale, signed by you and the seller
• Your ID: Either your TIE if you are a non-EU citizen, your 'green certificate' accompanied by your passport or home-country photo ID card if you are an EU citizen, or your NIE and passport if you are not a resident in Spain
• Copy of the seller's ID: As above, if they are a foreign national, or their DNI (national identity document) if they are Spanish
• The original log book, or permiso de circulación
• The original technical details card, or ficha técnica
• Form 620, from the tax authorities (Agencia Tributaria), completed with details of the vehicle, the buyer and the seller, and signed by both buyer and seller

Buying a car as a non-resident

Even if you are not living permanently in Spain, you can still, legally, buy a car. This is a popular option for holiday-home owners who do not want to bear the costs of hiring a vehicle, or of driving their own car from their home country, when they visit Spain.

The process involved in buying – whether from a dealer, dealership or private individual – is the same for a non-resident as it is for a resident, but the paperwork you need to produce is slightly different:

• Your NIE number
• Your passport or certificate of nationality (if you are a non-EU citizen), or
• Your national ID card from your country of origin (if you are an EU citizen)
• Proof of your address in Spain, which can be one of the following:

  - Certificado de empadronamiento (padrón or census inclusion certificate) if your address is intended to be permanent, but you have not yet applied for residence in Spain.

  - Title deeds to your property

  - Tenancy agreement

If you are seriously considering buying a car to use in Spain, you will also want to be clear on national laws covering driving and motoring. To clarify any doubts you may have, you may like to read our article What are the legal requirements for my car if I drive in Spain?