Spain has long been a haven for expats in search of a new way of life, and this doesn’t seem likely to shift any time soon. In fact, according to government figures, the number of foreign residents in Spain exceeded 5.8 million for the first time ever in 2021. These statistics account for residents who live permanently in the country, but not necessarily those who spend less than 180 days a year here (non-residents). Lots of nationalities come here regularly for shorter stints, whether for work, to take advantage of holiday homes, or to explore Spain’s rich culture, excellent climate, and quality of life, and therefore do not qualify for residency. This makes Spain not only a top destination for long-term living but also a hotspot for seasonal visitors looking to enjoy its vibrant cities, picturesque coasts, and relaxed Mediterranean lifestyle.
Many individuals travel to Spain regularly for work, holidays, or to enjoy second homes. For non-residents who spend significant time in Spain, owning a car becomes both a convenient and practical solution. Spain’s well-developed infrastructure, extensive road networks, and beautiful regions to explore make having a personal vehicle essential. But can non-residents buy cars in Spain? What are the challenges and steps involved? Let’s break down the process of how non-residents can buy cars in Spain, both new and second-hand, while understanding the paperwork, taxes, and requirements. Click here to find out more about the steps to follow when buying a car in Spain.
According to the Geneva Agreement, residents who stay in the country for less than 6 months can drive with an international licence or a national licence from their country of origin, but what happens if they want to buy a car? In Spain alone, according to the General Directorate of Traffic, there are just shy of 25 million cars on the road. It makes sense, considering the road network is considered one of the best worldwide, so all the more natural for a part-time resident to want to take advantage of them. The million-dollar question is; however, are there extra hurdles they need to overcome or perhaps more red tape? Let’s delve further into how to buy a car in Spain as a non-resident in this article.
The short answer is yes: Spanish law allows foreign citizens from EU and other countries to own a car in Spain. The good news is that you don’t need to be a resident in Spain to buy a vehicle, whether it’s a new car from a dealership or a second-hand car from a private seller. However, as a non-resident, you will need to provide specific documents to prove your eligibility. Spanish law states that foreigners who do not hold a residency card must present: proof of address, even if this address is for less than 6 months of the year (bear in mind that the 6 months do not need to spent in Spain consecutively). With regard to registering a Spanish car in your name, the BOE officially states that foreigners who do not hold a residency card must present an identity document from their country of origin, if they are citizens of member states of the Agreement on the European Economic Area (EEA), or a passport or certificate of nationality if they are citizens of third-party countries.
First, it's important to understand the pros and cons of owning a car in Spain. There are plenty of benefits to buying a new car, especially with state-of-the-art technology and newer eco-friendly and electric models becoming more and more popular, but it’s especially important to bear in mind that the requirements, process and necessary paperwork may differ, and may well not be within the reach of non-residents. If you are considering going down this route through a car dealership with a financing option, don’t forget that you will need to provide various payslips to prove source of income and financial stability in the country.
In addition to these advantages, sourcing a new vehicle through a dealership comes with its own pros. They will handle the car registration process, cutting out what for plenty of people (particularly non-residents) may seem like a bit of a bureaucratic pain. They are also legally obligated to provide you with a warranty, so you will be covered in the event of manufacturing defects or damage caused during normal use that cannot be considered general wear and tear. Peace of mind and a brand-new set of wheels. Oh, and a major plus of going down this route if you are a non-resident is that you will be exempt from paying the mandatory IVTM (road tax). For all the ins and outs on this tax, check out this article by El Economista. Don’t forget that the dealer must supply the following documents:
If you intend to finance the car purchase through the dealership, be aware that you will need to provide payslips or proof of income. For non-residents, this requirement can be tricky since income must often be verifiable in Spain.
For many non-residents, buying a second-hand car in Spain is a more practical option. Not only does it offer significant savings, but the process is generally less complicated. Here is a list of the advantages of opting for a second-hand car instead of buying a new one:
When purchasing a used car, verify the following documents to ensure the car is legal and roadworthy:
In case you are unclear, here is more information on buying used cars versus new cars.
Before finalizing a purchase, inspect the car thoroughly. Follow these tips:
Understanding the "buying a car in Spain tax" structure is crucial for non-residents. Bureaucracy can be chaotic and frustrating. But don't worry, at Caser we are here to help. The first thing to understand is that the taxes vary depending on whether you purchase a new or second-hand car:
When registering a vehicle in any European Union (EU) country, by law you must make sure it is insured to cover the civil liability of the owner or driver, even if it remains parked in your garage, believe it or not - this is known as "third-party insurance". In fact, the fine for not holding this mandatory insurance can range from €600 to around €3,000. Check out the car insurance options available at Caser. And if you have any questions, don't hesitate to call us. At Caser we speak your language and, more importantly, we understand you.
The issue of insuring your vehicle is not only mandatory, but also necessary. Think of a car as an expensive object in which, in addition, the most valuable thing you have is travelling: your family. Therefore, it is important that you look for an insurance policy that offers you the best coverage for a reasonable price and, above all, one that you can count on in the event of any type of accident.
Now you know how to buy a car in Spain. It's a huge step, wherever you are, and involves a lot of paperwork and a rigorous process, like most bureaucratic procedures in Spain. It gets even more complicated if you spend less than 6 months a year living here. But, we assure you, it's worth it. Spain is a country with so much to see, and a car offers you the freedom and autonomy to make sure you don't miss anything. From winding coastal roads with breathtaking sea views to small villages tucked away in the mountains, a vehicle allows you to explore Spain’s hidden gems at your own pace. Public transportation, while reliable in larger cities, can be limited in rural areas, making a car not just a convenience but often a necessity.
The key, as we have seen, is to make sure you can prove your residency with one of the documents listed above, such as an empadronamiento or rental contract. However, don’t underestimate the importance of checking with the DGT (Dirección General de Tráfico) for updates on vehicle ownership rules, tax obligations, and other requirements specific to non-residents. The DGT website often provides helpful information, including guidelines for registering your car and understanding any associated fees. Staying informed will help you avoid potential fines or legal issues down the road.
Additionally, if you are buying a second-hand car, remember to verify its history and technical condition thoroughly. Request the Permiso de Circulación and the Ficha Técnica to ensure the car is properly registered and roadworthy. A quick inspection by a mechanic can save you from costly surprises later.
With all the paperwork and checks completed, you’ll be ready to hit the road. Whether you’re planning scenic drives through Andalusia, weekend getaways to coastal towns, or road trips across Spain’s diverse regions, owning a car will provide you with unmatched flexibility and enjoyment. So buckle up, plan your route, and enjoy your new wheels! 🚗
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If you are searching for car insurance in Spain, Caser Expat Insurance has the right policy for you! |