(24.05.06)
1. Cars With Foreign Licence Number Plates
A. Residents Within EU/EES
Vehicles
Registered Outside The Area
Residents of the European Union and the European Economical Space (meaning Norway,
Lichtenstein and Iceland) are not permitted to use, within the area of EU/EES, vehicles
registered outside the area. (This makes it illegal for EU/EES residents to use vehicles
registered in Gibraltar and Andorra). An EU/EES resident may only use a vehicle with licence
plates from an EU/EES state.
Vehicles Registered Within The Community
In the case of Spain, community residents (from now on, when we refer to the community or
EU, we also include Norway, Lichtenstein and Iceland) without a residence permit in this
country (unless they are fiscal residents due to their staying in Spain for more than 183
days per calendar year) may use a vehicle registered within the community without any
formalities, and may leave their car in Spain whilst they are away without the need to have
it sealed. They may then use the car again on their return visit.
Person With Residence Permit Or Who Is A Fiscal Resident
On the other hand, any person who has either a residence permit or is a fiscal resident in
Spain must register a car staying permanently in Spain with Spanish licence plates in
accordance with the stipulation of the first disposition of the Law 38/1992 which says that
"a means of transport, new or used, when acquired by a person or a legal entity with legal or fiscal residence in Spain must be registered in Spain".
Cars Registered Outside The Community Area May Not Be Used By Foreign Residents
It should be kept in mind that foreigners resident in Spain or in another EU state may not
use, within the community area, cars registered outside. Article 12 of the rules 1855/89 of
the European Council expressly prohibits vehicles registered outside the community area
being loaned, given or placed at the disposal of persons with permanent residence within the
area. (Certain exceptions exist to this general rule.)
B. Residents Outside The Community - Temporary Import
The System Of Temporary Importation
The system of temporary importation permits the importation of vehicles registered outside
the community area into it, free of import duties for periods of six months (continuous or
not) within periods of 12 months.
Conditions
This system is only applicable to persons resident outside the community area. To use this
system and thereby use the car within the area, the following conditions must be respected:
1) That the car be imported by a person resident outside the community area.
2) That the car be used by this person only for private purposes.
3) That the car be registered outside of the community and in the name of a person resident
outside.
Cases In Which Importation May Continue Beyond The Normal Time Limit
There are also three other cases in which cars on temporary importation may continue to stay
within the community beyond the normal time limit:
1) If you are regularly crossing community territory on the road to and from your work,
there is no time limit.
2) A student from a country outside the community area may use a car registered in his own
country for the duration of his full-time studies.
3) A person from outside the community area charged with a special mission for a limited
time period may use his car for that time period.
Use By Spouse, Parents And Children
Article 6,2 of Rules 2249/91 establishes that only the spouse, parents and children of a
person resident outside the community area may use a vehicle imported under the system of
temporary importation.
Vehicles For Private Use - General Rule
The general rule is that vehicles for private use may not be rented,
lent or placed at the disposal of any other person after their importation.
Private Car Registered Outside The Community - Use By Community Resident
On the other hand, a person resident within the community may rent or lease a car for private use that is
registered in the name of a person resident outside the community and bring it into the
community country in which he resides.
2. Tourist Plates In Spain
When referring to tourist plates, one must make the following distinctions:
A. Residents within the customs area of the community.
B. Residents outside the customs area of the community.
A. Residents Within The Customs Area
Persons With Habitual Residence Within The Community, But Outside Of Spain - Conditions
This system is applicable to all persons complying with the following conditions:
1) That they have their habitual residence within the community, but outside of Spain.
2) That they do not have any business activity in Spain.
3) That they (or spouse, parents or children complying with the same conditions) use the car
only for private purposes.
Keeping Car On Tourist Plated - Only Paying VAT (IVA)
Under this system any person residing within the community, but outside Spain, may continue
to keep their car on tourist plates only paying VAT (IVA) of 16%. These tourist plates may
be prolonged every year, without further payments other than the municipal car tax.
Circumstances In Which VAT (IVA) Is Not Payable
There are two exceptions whereby persons resident within the community area, but outside of
Spain, may qualify to have a car on tourist plates without having to pay the IVA:
1) Persons on the point of transferring their habitual residency to a country outside the
community. In this case three months are allowed for the transfer.
2) Correspondents for foreign newspapers in Spain, teachers in schools established by
foreign governments and employees without diplomatic status in embassies, consulates and
international organisations located in Spain. In such cases there is no limit on the use of
the vehicle.
B. Residents Outside The Customs Area Of The Community
Exemption From All Taxes
Persons resident outside the community area may have a car on tourist plates with total
exemption from all taxes (meaning they do not have to pay the IVA, nor the special
registration tax, nor the 10% customs if the car is produced outside the community).
Period Of Use
Such persons may use a car with tourist plates continuously or not for six months, per 12 month
period.
Application For An Extension
However, to be able to continue to use the vehicle for more than the first six
months, they must apply for an extension that will be granted by the customs authorities, if
the circumstances permit. Customs make the decision regarding extensions.
General Rule
The general rule is that after six months, the car should be imported into Spain on normal
Spanish plates as stipulated in Law 38/1992 on Special Taxes.
Special Circumstances
However, under special circumstances, this may be extended. The family of the car's owner who has a vacation
property in Spain and takes their holidays at intervals throughout the year may have a good
case for extension.
3. Final Importation
Residents
Residents of Spain (legal or fiscal) are obliged to register their cars on Spanish plates.
The Taxes To Be Paid On Such A Final Importation Are:
a) Value Added Tax (IVA)
This tax is payable on cars imported from outside the community or on cars registered on
tourist or tax-free export plates when imported. The basis of the calculation is on the
original market price of the vehicle with a reduction for each year of the vehicle's age.
This tax is not payable on cars registered on fully tax paid plates from a community
country. The IVA is at present 16%.
b) Special Registration Tax
This tax on registration, established in Law 38/1992, is intended to compensate for the
losses in tax income brought about by the reduction in IVA. It is generally 12%, but reduced
to 4% if your gasoline driven car has less than 1.600 cc, or a diesel car of less than 1.910
cc. (In the Canary Islands the corresponding tax is 11 or 6%.)
c) Import Duty
In the case of a vehicle registered in a country not belonging to the EU/EES, an import duty
of 10% is payable when the vehicle is imported to Spain. This duty is also calculated on the
original market price, with a reduction according to age.
The Intervals For Technical Inspection (ITV) In Spain Are:
a) five (5) years after first registration (in Spain or abroad)
b) after five (5) years, every two (2) years until nine (9) years
c) after nine (9) years, every year.
4. What About Importing a R.H.D. Car?
Two
Distinctions Have To Be Made
When you want to import a car with the steering wheel on the right hand side, two
distinctions have to be made:
1) Importation due to change of residency.
2) Normal importation.
If You Are Taking Up Residency In Spain
If you are taking up residency in Spain and want to bring your R.H.D. car with you, as this
is an importation due to change of residency, you should not have any problem in doing so.
If You Already Are Resident In Spain
But if you already are resident in Spain, and you buy a car with the steering wheel on the
right hand side and intend to put it on Spanish plates, you may be able to go through the
whole importation process, but have the ITV refuse to test the car.
We Recommend That You Ask The ITV
Before deciding to bring an R.H.D. vehicle to Spain, we recommend that you ask the ITV in
the place where you live if they will permit it.
5. Summing Up
Community Citizens Resident In Spain
They must have their cars registered on normal Spanish
plates. When bringing a car from their country of residency, to Spain for registration, they
will only have to pay the Registration Tax if IVA has been paid on purchase. There are no
limits for the use of such a car in Spain.
Citizens From Outside The Community Area, Residents In Spain
They must also have their car
on normal Spanish plates, but pay IVA and the Registration Tax on importation. They too,
must pay Import Duties when importing a car from outside the community area.
Residents In Community Countries
No, we are not making a mistake, it is really residents in
the community area, and not only citizens we are talking about in this group. This means
that a Chinese with legal residency in Denmark comes in this group.
Persons belonging to this group may use cars registered in their country of residence, in
Spain, without any time limits and without paying any taxes. The only condition is that they
may not be fiscal residents in Spain. Residents in community countries can also have a car
in Spain registered on Spanish tourist plates, valid for six months, renewable.
Residents Outside The Community
Such persons may use their foreign cars as tourists in
Spain for six months per calendar year, with a possible extension. They pay no taxes on
their car in Spain, but must not be fiscal residents.
The Practical Experience
The practical experience of the members of "FIPE" over the years since the new rules for importation
of cars came into effect, tells them the following:
Foreigners outside the Community area
For foreigners outside the community area, it almost never pays to register a
foreign-registered car on Spanish plates.
If you come from within the community area
If you come from within the community area and
want to register the car in Spain, it does not pay to bring in cars with a low value, only
cars of a significant value. To take Spanish tourist plates is such a cumbersome task,
filled with paperwork, that we cannot recommend it.
6. On Driving Licences
A Resident With A Driving Permit Issued In A EU/EES Country
A resident with a driving permit issued in a EU/EES country, may register this permit in the
"Registro de Conductores y Infractores" in the Jefatura de Trafico at the provincial
capitals, or exchange his driving permit for a Spanish one.
Period Of Validity
When exchanging your national driving licence for a Spanish one, the Spanish will be made valid for as many years as your
national one is.
Persons Over 70 Years Of Age
However, after having passed 70 years of age, you will be asked to present
a medical certificate whenever the driving licence needs to be renewed. Then, from this
moment on, you will be asked to produce similar certificates every year.
Non-Residents
Non-residents may drive in Spain with their normal national driving licence.
Language
In such cases where the national driving licence is in a language, difficult for a Spanish policeman to understand (like
Arabic or Russian), or where the format of the licence is different, the driver should also
have an international driving licence or an official translation into Spanish of his
national one.
Small 4 Wheel Vehicles (Less Than 50 cm3)
In Spain at present, there are small vehicles for sale with 4 wheels, but with
a motorisation of less than 50 cm3, that can be driven with just the same kind of a driving
permit you need for a moped.
7. Insurance
Make Sure You Are Covered!
Make sure that you are covered at all times! If you buy a second-hand car, you may take over
the insurance of the previous owner, but walk to the insurance company and make the transfer
before using the car.
Some Insurance Companies Refuse Third-Party Cover In Certain Cases
Some insurance companies refuse third-party cover for cars more than
eight (8) years old and full-risk coverage for used cars over two (2) years old.
In other insurance companies the limit for insuring a car is 15 years for third party and six (6) years for full-risk
Buying An Older Car
You may find it wise to ask your insurance company (where you may have
accumulated a bonus) before buying an older car.
Third Party Insurance Cover
Third party cover in Spain is called Responsibilidad Civil Obligatoria and you may be heavily fined and have your driving permit suspended for driving without it. Such insurance gives a coverage of up to almost 10.000 Euro for each person you may harm, and almost 3.000 in material damages on the car of the other party per accident.
Full-Cover Insurance
Full-cover insurance is called Responsibilidad Civil Voluntario or Complementario, and
insures both yourself and your vehicle.
Companies You Can Insure With
You can insure a Spanish-registered car with any insurance company within the European
community.
8. The Paper Work On Buying a Used Car
There are three ways of buying a second-hand car:
Buying From A Dealer
You can buy from the dealer a car that has been traded in on a new purchase. Such a car will
normally have been repaired and is sold with a guarantee.
Buying From Garages Or Used-Car Dealers
Or you go to one of the garages or used-car dealers. Here as well the cars may be repaired
(sometimes only cosmetically brushed-up). In the better garages you may also get a
guarantee.
Buying Privately
The third way is to buy privately. If you know the owner and the car, nothing is better. If
you are reacting to an ad, be very careful. Study the documentation and bring an expert, or
take the car to a garage where they can check it. On a private purchase you may make the
best deal.
You Must Have These Documents
Whether you yourself do the transfer of the used car to your own name, or you leave it to a
gestor, you must have the following documents:
a) The private purchasing contract signed by both parties and original and photocopies of
their identification documents and NIF cards.
b) Permiso de Circulación for the car, signed on the back by the vendor, with a witness to
the signature, for instance, by a bank.
c) Tarjeta de Inspección Tecnica for the car, with the stamps for the last technical
inspection from the ITV.
d) Receipt for payment of Vehicle Tax for last year.
e) Solicitud de Transferencia, a grey form from Jefatura de Trafico, signed by the vendor,
and his signature witnessed by the bank (It is better to go to the Jefatura together with
the vendor).
f) Transferencia, a green document for the transfer of the municipal Vehicle Tax, signed by
vendor.
g) The form 565 for the Impuesto Especial sobre Medios de Transporte, to be signed by the
buyer or his representative and submitted to Hacienda (if the special registration tax is
applicable).
9. The Transfer Tax On Private Sale
First Registration
The first registration of a vehicle in Spain is taxed by the Impuesto Especial sobre Medios
de Transporte (registration tax).
Tax Depends On Age And Type Of Car
The tax depends on the age and type of car. You must first
find the price for the car in question, determined by Hacienda for this tax, prices
different from the sales-purchasing price.
Then you can reduce this price in accordance with
a scale for the age of the car, where you end up with only 10% if the car is more than 10
years old.
Rate Of Tax
On the real value you have arrived at by using this scale, you pay 4% tax.
Vehicle Already Registered In Spain
This tax is not applicable on sale of a vehicle that has already been registered in Spain.
The information contained in this website is general in nature and is not intended to address the circumstances of any particular individual or entity. Although every effort is made to provide accurate information, you should not act upon such information without appropriate professional advice.
