After spending a lot of time in Spain, many people think about buying a car. Spanish law allows foreign nationals, both residents and non-residents, to purchase a car in the country. According to the General Directorate of Traffic, about 861,000 cars were sold in Spain between January and December 2021. The market is full of dealers offering various new and used cars.
Although buying personal transport in Spain is a quick and easy procedure, there are some nuances. This article will help you learn more about the features of buying, insuring, and registering a car in Spain.
Content:
- How to buy a car in Spain
- The process of buying a car in Spain
- Buying a new car in Spain
- Buying a used car in Spain
- Importing a car with foreign license plates to Spain
- Driving rules in Spain
- Expenses when buying a car in Spain
- Tips for economical car maintenance
- We’ll help you choose a property in Spain
How to buy a car in Spain
If a foreigner decides to buy a car in Spain, they must provide the following documents:
- An official resident document;
- A title deed in Spain;
- A rental agreement for an apartment in Spain;
- NIE;
- Municipal registration.
Car insurance
After buying a car in Spain, it’s necessary to insure it.
To register for insurance you’ll need the following documents:
- ID card or green card;
- Driver's license;
- Vehicle passport;
- Technical passport;
- Car purchase receipt;
- Technical inspection (ITV).
The process of buying a car in Spain
Stages of purchasing a car:
1. Credit check
Check outstanding fines and ITV. The current year’s road tax is charged to the seller.
If the ITV is not valid, the car can be sold but not driven. The seller must inspect the car and fix any problems.
When a vehicle is sold, it cannot have any fines, arrests, administrative or judicial burdens. You can request a vehicle report from the Main Traffic Department to make sure there are none. You can do this via the Internet, by phone, or by a personal visit.
2. Purchase and sale agreement
The sales contract is mandatory and must be signed in duplicate on each page by the seller and the buyer. Each of them receives a copy of the contract.
The contract must contain the following information:
- First and last name of the seller and the buyer;
- Identity or green card and address of the seller and the buyer;
- Information about the vehicle (make, model, license plate, mileage);
- Terms of sale (final price, vehicle delivery, and payment method).
A copy of the identity card or residence permit of the buyer and seller, the technical passport of the vehicle, and proof of payment of road tax are attached to the contract.
3. Property transfer tax
The amount of tax is based on the sale price, make, model, and age of the car. Each autonomous community applies a tax rate ranging from 4% to 8%. The buyer pays it within 30 working days from the date of signing the contract.
4. Change of ownership
Registration of a car to a new owner involves registration of changes in the legal status within 30 days. After the procedure is completed, a new PTC will be issued.
Before contacting the Traffic Department or implementing an online transfer procedure (only for persons with a digital certificate or electronic identity card), it’s necessary to confirm the payment of the tax in the autonomous community where the buyer is a tax resident.
After completing this step, you can contact the Traffic Department (buyer or seller), pay the fees, and provide the documentation necessary to change the ownership of the vehicle.
Requirements for the change of legal status
The car owner must pay all local taxes and fines. Otherwise, the process may be rejected if the vehicle is transferred.
Documents required for a change of ownership
- An application completed and signed by the buyer. The seller submits it to the General Directorate of Road Safety (DGT) or it can be uploaded on the official website.
- An official document confirming the identity and address of the interested parties (buyer and seller).
- Confirmation of payment of the DGT transfer fee.
- Confirmation of payment/exemption/absence of property transfer tax.
5. Notice of Sale
The seller must give notice of the sale. This exempts the seller from liability for the vehicle if there are violations after the sale.
Buying a new car in Spain
Buying a new car is not an easy task. First, you need to decide which car to buy, explore the advantages and disadvantages of each model, review your budget, decide to take a loan or not and make sure that all the necessary documents are available for the purchase.
If choosing and purchasing a car in Spain requires obtaining a loan, you need to be sure of your financial stability.
Documentation required for a new car loan:
- Identity card;
- NIE;
- Job reference;
- A copy of the latest income declaration;
- Statement of salaries.
Buying a used car in Spain
There are several aspects to consider before purchasing a used car to reduce the risks.
A lower price, an opportunity to negotiate a discount, and conclude a deal with the car owner are the main arguments that sway individuals to buy a vehicle.
Checking the car before buying includes inspection of the following components:
- General condition (interior and exterior, paint, tire wear, exhaust pipe, headlights, seats, windows, mats, pedals, the clutch).
- Engine (oil leak, dirty or clean mechanics, brake discs).
- Electronics (windscreen wipers, air conditioning, heating, power windows).
- Trunk (carpet wear, condition of spare wheel and tools).
- Corrosion (body, gaskets, bottom).
- Bodywork (rust, dents, scratches, gaps between panels, paint, incorrect locking of doors, hood, trunk, chips, defects or cracks on windows and headlights, etc.).
- Mechanics (chassis, bumper brackets, engine, timing belt, condition of engine oil, coolant, and transmission fluid).
- Suspension.
- Tires.
- Headlights.
- Exhaust system.
- Interior (steering wheel, pedals, gear lever, floor mats and upholstery, seats, door moldings, dashboard, air conditioning, mileage).
Testing a car before buying is the best way to check the vehicle.
Importing a car with foreign license plates to Spain
The conditions to import a car with foreign license plates to Spain and its registration are a procedure that includes many nuances:
- Passing the inspection (ITV): A car with foreign license plates purchased in any country of the European Union has no problems with passing ITV in Spain.
- Payment of excise duty on the types of transport.
- Payment of registration tax.
- Payment of VAT. If the car is used and was purchased from a private individual from the European Union, a property transfer tax must be paid.
- Payment of road tax.
- Payment for translation services.
- Submission of all documentation to the Traffic Department and payment of the registration fee.
Driving rules in Spain
- Throughout Spain, it is mandatory to fasten seat belts in all vehicles including buses and tourist minibusses.
- Child safety is mandatory in cars, trucks, and other vehicles.
- Using a mobile phone while driving without a hands-free device is prohibited.
- The alcohol limit in Spain is 0.25 mg/l in exhaled air or 0.5 g/l of alcohol in the blood.
- Speed limits vary by the types of roads and vehicles.
- Cars and cyclists must have various safety devices.
Expenses when buying a car in Spain
When buying a new car, it’s also important to calculate how much car maintenance costs in Spain.
Buying a new car involves paying a large amount of money. The average price in 2020 was 20,647 euro including registration tax. This is a significant increase compared to 2019 when a new car cost about 18,000 euro on average.
It’s necessary to pay attention to the selling price and the other expenses that will arise during the service life of the vehicle.
The number of kilometers per year is the main factor to consider regarding vehicle maintenance costs.
Fuel cost
Fuel consumption is a major additional cost. Although prices are not the same at all gas stations and there may be differences of up to 20%, the average amount is 1.48 euro per liter of gasoline and 1.36 euro per liter of diesel. If the average consumption of a car is 5 liters/100 km, each kilometer traveled costs 0.068 euro or about 11,500 euro for 165,000 km.
A car comes with parking costs.
As for maintenance, each kilometer costs about 0.06 euro for repairs. For the 13 years of a car's service life, you’ll have to pay 9900 euro to workshops.
Insurance
Other expenses are related to insurance. Insurance in Spain is mandatory by law. The average price is 400 euro per year. This means that during the 13 years of a car's life, each driver spends an average of about 5,200 euro on car insurance.
Taxes
It’s also necessary to pay road tax every year. Since this is a municipal fee, it must be approved by the council of the city where the car owner lives.
Thus, the average cost of the fuel bill (11,500 euro), maintenance (9,900 euro), insurance (5,200 euro), and taxes (1,000 euro) is 27,600 euro over 13 years of a car's service life. In addition to these expenses, you need to add parking fees and motorway tolls.
Tips for economical car maintenance
Comparing prices
When buying a car, you can visit various dealerships and think about whether you need to buy a new car. Used cars and outdated models are much cheaper.
Motorization and fuel
Electric cars are more expensive but cheaper to maintain so it is important to calculate whether this will offset the higher initial investment.
Discounts and bonuses
It is important to keep an eye on the promotions that dealers offer. There’s currently a Moves plan in Spain that offers a bonus when purchasing an electric vehicle.
Refill
The fuel price can vary up to 20% depending on the sales outlet. Specialized applications allow you to find the cheapest gas stations.
Maintenance
Monitoring contributes to the good condition of the car and prevents unexpected breakdowns. If preventive maintenance is not performed, the manufacturer's warranty is lost.
Driving
Driving at a constant speed without accelerating and not braking suddenly helps to save fuel. Using the air-conditioning also affects fuel consumption, so you should park in the shade in summer and the sun in winter.
We’ll help you choose a property in Spain
If you want to invest your savings in real estate in Spain, please contact our company Spain-Real.Estate. Our specialists will hand-pick several options for you, from apartments to commercial property, and help you prepare the documents you need to purchase.
Start searching for a house in Spain today!