Typical non spanish blog | Caser

A Guide to Car Taxes in Spain

Written by Mary Swick | Jul 30, 2024 7:15:00 AM

Spain is a big country and many people prefer to have a car of their own so they can get from point A to point B faster, or travel throughout this beautiful country at their own leisure. Having a car in Spain can be a gamechanger for families, commuters, or avid travelers, but you have to be aware of the costs, especially car taxes in Spain. In addition to car taxes, there are maintenance costs, car insurance, rising gas prices, etc.

To make sure you're paying the correct car taxes to the Spanish Tax Authorities,  below we walk you through different car-related taxes in Spain

 

VAT on Car Sales in Spain

When you decide to buy a new car in Spain, you will have to pay 21% of value added tax (VAT). Luckily, this amount is already included in the final price the dealer shows you.

When you buy a used car in Spain, you must pay what's called the Patrimonial Transfer Tax. The tax amount varies between 4-8%, depending on the region where you reside and the value of the car.

The name change with “Tráfico” for a car has a cost of around 55 euros for a car and 28 euros for a scooter.

Car Registration Taxes in Spain

When you buy a brand-new car, the car needs to get a license plate. You will have to pay registration taxes for this. This tax is only a one-time cost.

  • Cars with a gas emission of 120gr/km or less do not have to pay this tax.
  • 120-160gr/km pay a 4,75% taxes
  • 160-200gr/km pay 9,75% taxes
  • 200gr/km or more pay 14,75% taxes

Car Import Taxes in Spain

There are 3 taxes related to importing vehicles to Spain:

  • Import Duty or Customs Tax - known as IPSI, is based at 10% of the cars value.
  • Valued Added Tax (VAT) - see above
  • Registration Tax or IDEMT - Impuesto Especial sobre Determinados Medios de Transporte, which must be paid on the first definitive registration of new or used vehicles in Spain. The amount or IEDMT you pay is based on 2 aspects: the level of CO2 emissions and the average market value of the vehicle.

Toll Roads in Spain

The “Dirección General de Carreteras” is responsible for Spain’s road infrastructure. Spain has 26,466 kilometers of roads to make sure every person can travel quickly and safely to their destination. These roads are also especially important for commercial transport and tourism.

Most roads in Spain are free to use, but some are tolls roads, and for those you will have to pay taxes in the form of “peajes”. You will either have to pay when entering or leaving the toll road, but there are always signs warning you that you are entering a toll zone. If you do not want to pay, you always have the option to choose an alternative route to your destination, though this often involves a longer route or secondary roads. 

Circulation Taxes in Spain

Every owner of a car or motorbike in Spain must pay circulation taxes. So even if you already pay “peaje”, you also must pay general circulation taxes for all the other roads in Spain. This amount varies again a lot depending on the region. In Melilla, you will pay 5 times less than in San Sebastian, for example.

The taxes are always for a calendar year and normally must be paid in the last trimester of that year, but this can also vary by region. The amount of the tax depends on the type of fuel, registration date of the car, emissions , etc.

Vehicle Technical Inspection in Spain

When you buy a new car, you do not have to pass the vehicle technical inspection (ITV) test for the first four years. As of the fifth year, you have to do the mandatory vehicle inspection every year, where they will review that your car operates properly and give you a sticker to place on your windshield valid until the next year. 

The cost for ITV again depends on the region where you live and whether the car fuel is diesel or gasoline. The lowest prices are in Navarra and Extremadura (around 34 euros) and the highest are in Madrid and The Balearic Islands (50+ euros). A 21% tax rate is included here.

For more information please refer to the ITV website.

Fuel Taxes in Spain

You typically pay 21% tax on fuel in Spain, although the Spanish government has chosen to reduce this tax at times.

Parking Taxes in Spain

Some cities in Spain have even introduced specific parking taxes for vehicles. To find out about these taxes, consult the city where you live or are traveling to. 

Ways to Pay Car Taxes in Spain

To pay your car taxes in Spain, sometimes you have to go to a specific office or website, but many times, you are offered different ways to pay: 

  1. 1. At the town hall.
  2. 2. Paying in person at the bank.
  3. 3. Paying online via a website or adminstrative services portal. 

Car Insurance in Spain

As an expat in Spain, you can benefit from incredibly competitive prices for your car insurance with Caser Expat Insurance. With Caser, you'll have the entire range of mandatory minimum coverage all the way to comprehensive car insurance. Discover the details here or read more below: 

  • Basic Third-Party: The legal minimum car insurance to drive your car in Spain.
  • Third-Party with Winscreen Cover: Third-party car insurance that includes special cover for your windscreens, 
  • Extended Third-Party: Third-party insurance cover with full assistance.
  • Comprehensive: Our maximum protection car insurance. 
  • Car Replacement Insurance: Insurance that provides you with another car under ownership in the event of a total loss, can be added to any policy or insurer. 

 

Owning a car in Spain comes with a lot of associated costs, but the benefits can outweigh the costs if it's the right choice for your situation. Just make sure you're paying the correct car taxes in Spain! It's interesting to note that some electric cars offer taxes breaks or incentives, however their higher price point may offset these savings. 

If you're looking to find the right insurance for your car in Spain, discover our guide below to Caser's third-party car insurance options:

 

If you are searching for car insurance in Spain, Caser Expat Insurance has the right policy for you!