Buying a car in Spain (new or old) is a significant expense and a highly personal choice. Your specific car needs — make, model, new/used, petrol/diesel/hybrid/electric, and so on — are influenced by many factors unique to you. But we’ll share our experience to make your car purchase in Spain simple.
The good news is that Expat residents and non-residents can buy cars in Spain, though additional documentation may be required for non-residents. And the process is not so very different from buying a car in the US or any European country. However, there are some specific nuances and paperwork to be aware of.
Key Points to Remember
- As the buyer, you are responsible for making the change of ownership transfer
- In Spain, it is the car that is insured, not the driver
- Road Tax (IVTM)
- Is the responsibility of the registered owner as of 01 January
- Is charged on 01 January and relates to the previous year (except for new cars when it is charged on the day of purchase)
- Is payable between 01 April and 30 June
- Unpaid Road Tax prevents you from transferring a car into your name
- For non-residents or those new to Spain, leasing or short-term rental options may be the best options initially
This article guides you through the options and nuances of buying a car in Spain. It is designed to take you through them logically, enabling you to drill down to the right choice for you.
Required Paperwork to Buy a Car in Spain
No matter your choice of car and financing, as an Expat you will need:
- Proof of identity (passport)
- NIE number
- TIE card
- Proof of address in Spain (Certificado de Empadronamiento (Padrón)
When buying a secondhand car, you will need additional documentation:
- Change of ownership application form
- Original vehicle registration certificate
- Invoice or sales contract
- Proof of identity of the seller
And if you are financing your purchase with a lease or loan, you will need also:
- Bank certificate proving you have a Spanish bank account (a bank statement is not enough)
- Telephone or internet bill in your name
- EU-valid driving license
- Proof of Income:
- If you are employed:
- Last three months’ payslips (nóminas)
- If you are self-employed (autónomo):
- The last nine months of IRPF certificates or IVA
- Latest Declaración de la Renta
- A ‘Vida laboral’ showing your work history
- If you are employed:
Vehicle Documentation and Terms Glossary
Here is a glossary of the vehicle-related documents and terms you will come across when buying a car in Spain. UK and US equivalents are given where appropriate:
| Document or Term | US Equivalent | UK Equivalent |
|---|---|---|
| Ficha Técnica Technical inspection card with detailed vehicle specifications and modifications | Title or Registration Document | Vehicle Registration Document Logbook V5C |
| Permiso de Circulación Confirms legal ownership and allows the vehicle to be driven on public roads | Similar to the vehicle registration card | Part of the Logbook |
| ITV – Inspección Técnica de Vehículos The Spanish roadworthiness test | Vehicle safety inspections in parts of the US | MoT |
| IVTM – Impuesto Sobre Vehículos de Tracción Mecánica Annual road tax based on vehicle’s power and emissions | Similar to property tax on cars in some US states | Vehicle Excise Duty (VED) Road Tax |
| IEDMT – Impuesto Especial sobre Determinados Medios de Transporte Registration tax on new or imported vehicles based on CO2 emissions | There is no direct equivalent in the UK or US, but it is similar to certain environmental or luxury taxes. | |
| Informe de Vehículo A vehicle report from the DGT providing history and status details | Similar to a Carfax report | Similar to an HPI Check |
Know Your Car Categories
New
Generally speaking, new cars are more expensive in Spain, averaging between €23,000-35,000, rising steeply for high-end makes and models. But most car dealerships (concesionarios) will offer discounts, and all will happily discuss finance options.
The usual advantages of buying new from a dealership apply: the manufacturer’s full warranty, various options and extras, and the dealership handles all the paperwork, including registering the car.
Drawbacks include higher initial costs, immediate depreciation (the size of which has always puzzled me), and higher insurance premiums.
Kilómetro Cero (km 0)
These new cars have been registered (nearly always by a dealership) but with very low mileage (more accurate would be ‘close to km 0’). They are often used as demonstration vehicles or as showroom models. They are also a way for dealerships to reach sales targets.
But you can achieve significant discounts (17-25% off the new price) and have your car available immediately.
If considering a km 0 car, look out for:
- The warranty begins at registration, not the purchase date
- The odometer should be very low, ideally well under 100km
- km 0 cars may need searching for at specific dealerships
January is often the best month to find a km 0 car as dealerships register vehicles in December to make year-end sales targets.
We bought a Kilómetro Cero Kia from a dealership near us; it was a significant saving vs the new price. The car had 100km on the clock and was spotless. The dealer was great to deal with, and we’ve had the car serviced with them for the last five years. Alastair Johnson, Barcelona
Used
The Spanish used car market is divided into two areas:
- Nearly New (Seminuevo)
- Used/Second hand (Segunda Mano)
Nearly New (Seminuevo)
Despite the name, these cars are still used cars. However, they tend to be under two years old and usually have less than 30,000km on the clock. Sometimes, they are ex-demonstration models that dealerships have used. Depending on the make, model, age, and kilometers, average costs can range from €15,000-25,000.
Used/Secondhand (Segunda Mano)
These older vehicles will vary in condition and kilometers. Naturally, prices range widely from a few hundred to several thousand euros.
There are various channels to find a used car. Authorized car dealerships will have several cars from their manufacturer and other makes that people have part-exchanged for new cars. Independent dealers will cover most makes and models, and online car traders such as AutoScout24 and Coches.net are available. Finally, private sellers advertise locally.
The used car market in Spain doesn’t seem to have the same level of disounting as the US or UK. Cars do seem to hold their value and you may have to search for a bargin. We set out to buy a secondhand car and ended up buying a KM0 as the price difference was tiny. Alastair Johnson, Barcelona
Electric Vehicles (EVs)
While Spain lags behind some European countries in EV adoption, increased government initiatives and environmental concerns are driving growth. EV sales rose 8.9% to April 2024, and there are now nearly 30,000 charging points (11,000 were added in 2023 alone). Bureaucratic complexities and higher initial costs remain challenges, but the Spanish EV market is growing.
Note: EVs often pay cheaper tolls, parking, and registrations in Spain. Regional and national subsidies for new EVs and installing charging infrastructure in your home also exist. These are updated often, so it is best to ask the dealer if you qualify for any of these subsidies.
Need Car or Moto Insurance?
When searching for our own car insurance, we approached multiple brokers as regular customers to ensure we got an authentic experience without any special treatment or insider perks. From this process, we’ve identified a great broker to help you find the best policy.
Buying a Car in Spain — Process and Top Tips
With your documentation in place, your options are buying a new or used car and paying outright or financing through a lease or loan.
New Cars
If buying a new car, once you have agreed on the price and delivery times, the next step is payment.
Used Cars
For other cars, however, there are some essential steps to take before arranging payment.
DGT Check
Spain is not immune to shady car trade operators. Before committing to purchasing a used car, obtaining a car check (Informe de Vehículo) from the Dirección General de Tráfico (DGT) is recommended.
There are two levels of DGT check, a free standard one (informe reducido) and a detailed one (informe detallado) that costs €8.67 (you need a Clave or Digital Certificate for access). Both reports can be obtained from the DGT site.
The detailed DGT vehicle check looks at a vehicle’s:
- Technical Data
- Registered Owner
- ITV History
- Accidents and Damage
- Outstanding Fines and Charges
Unpaid road tax (IVTM) is a typical showstopper when buying a secondhand car in Spain. If IVTM payments are not up to date, a change of ownership cannot take place. - Mileage Verification
Other things to look out for/do when buying a used car from a dealer:
- Warranty not included in the price
- Ownership transfer cost not included in the price
- Is the price offered dependent on you taking a finance package?
- Make a mechanical inspection
- Have a professional check the car over
- Review maintenance records
- Is the Service Book up-to-date?
- Ensure there are no significant gaps in servicing and that recorded kms match the odometer.
- Ensure the chassis number matches the registration document
Buying a Car in Spain — Payment
The five standard payment methods for buying a car in Spain are:
Cash Purchase
Due to anti-money laundering laws, cash payments over €2,500 are usually restricted for non-private sellers such as dealerships. It’s advisable to confirm the seller’s acceptance of cash before proceeding. If the car is only a few hundred euros, cash is gratefully accepted (as an exception, I once briefly carried €17,000 in 34 x €500 notes in my pocket after selling a reasonably new VW Golf to a private buyer!).
Bank Transfer
Bank transfers are a secure method and are preferred over cash by dealerships. When using this method with other types of sellers, it’s best to confirm they accept bank transfers. Ensure funds are available in advance to avoid delays in the transaction.
Dealer Financing
Many dealerships offer financing options directly to buyers. It’s convenient, but comparing interest rates with other financing options ensures you get the best deal before committing.
Bank Loan
This frees you from taking any dealer finance offer and allows you to shop for competitive interest rates and favorable terms. Check our list of the best banks in Spain for options.
Leasing
Leasing is a good and popular option for obtaining new or nearly new vehicles, particularly with Finance Leasing. After paying a deposit, you finance the car’s depreciation over a fixed time (typically two to four years) in monthly payments. At the end of this period, your options are:
- Pay the outstanding balance and own the car outright
- Return the car and re-finance the lease to buy another car
- Return the car and walk away
Maintenance costs are almost always separate. This option suits those who want potential ownership and are willing to handle maintenance independently. Advantages include lower initial investment, predictable costs, and straightforward vehicle replacement. The ITV is usually covered in leasing agreements. However, mileage restrictions and potential end-of-contract charges are possible drawbacks. Many banks and dealerships offer leasing options, and kilómetro cero cars are often available.
Top Tip: If you choose to return the car, it will be closely inspected by the leasing company. It is essential to clean and valet it thoroughly and ensure that as much minor damage as possible is repaired.
Top Tip: Some companies like Okmobility offer short-term leases (3-6 months) without requiring a Spanish license or residence permit
Online Auto Loan
Some banks offer online auto loans, providing a quick application process. This method can lead to faster approvals, but thoroughly reviewing terms and interest rates is essential before proceeding with the loan.
Always compare different payment methods and their requirements to find the best option for your situation.
Buying a Car in Spain — Ongoing Responsibilities
Change of Ownership
Whether buying new or used, the dealer may offer to change ownership for you. If they do so, all is well and good. But remember, this part of the car buying process is your responsibility. If you accept the dealer’s offer to change the ownership, follow up to ensure they do so. The transfer must be completed within 30 days of your purchase.
The process to transfer ownership is:
- Create a written sales contract with the seller, including the date and time of ownership transfer.
- Obtain a DGT Check to ensure the car can be legally sold
- Pay the transfer tax by submitting a completed Modelo 620 at your local tax office (Hacienda)
- Gather the following documents:
- Application form Trámites de Vehículos
- Your NIE number, passport, and proof of address
- If the car is more than four years old, you need its ITV document (Ficha Técnica) and original registration certificates
- Proof of tax payment (from step 3)
- Make and attend an appointment with all documents at the local Jefatura de Tráfico office within 30 days of purchase and pay the fee (€53). Your nearest office can be found here
- Receive the new logbook (Permiso de Circulación) showing you as the owner
- Provide the seller with a copy of the new logbook within 15 days
Also, don’t forget to inform your insurance company about the change of ownership.
All of this can be done online if you have a digital certificate, cl@ve or the miDGT app. However, some regions (like Valencia and the Canary Islands) have specific restrictions on online transfers.
If you are unsure, it’s advisable to consult a professional advisor (gestor) for assistance with the purchasing and registration process. Alternatively, If you don’t want to do this process yourself — neither in person nor online — there are specialist companies that will do it for a management fee of around €60.
Taxes on Purchase
If you are buying a new car, you will pay 21% VAT (IVA) and possibly a registration tax (Impuesto Especial sobre Determinados Medios de Transporte (IEDMT)), depending on the vehicle’s CO2 emissions. These taxes are typically included in the purchase price quoted by the dealership.
There is no VAT on the purchase of secondhand cars, but there is a transfer tax (Impuesto de Transmisiones Patrimoniales (ITP)). This varies across Spain’s autonomous communities. It ranges from 4-8% of the car’s official value. A curious exception is if the vehicle is more than 10 years old and you are registered in Cataluña, you are exempt from ITP.
Legal Requirements
- Mandatory insurance
Note on automatic renewal - Regular ITV inspections
New cars are exempt for 4 years, then require testing every 2 years until age ten and annually thereafter. - Road tax payments
- Emissions compliance
- Traffic law compliance
Regular Costs
- Insurance (€500-1,000 annually)
- Road tax (€40-200 annually)
- ITV inspections (every 2-4 years)
Driving without a valid ITV can result in fines starting at €200 - Fuel and Maintenance
Insurance
Car insurance is a legal requirement, although it is essential to note that in Spain, the car itself is insured rather than the driver. Drivers other than the named driver may drive the car provided they are at least 25 years old and have held a license for at least two years. This is irrespective of the other drivers’ no-claims bonuses and other history. This can help to keep costs down, as there is no need to take out a multi-driver policy for a car in many cases.
READ ALSO >> Car Insurance in Spain – A Guide for Expats
Top Tip: Always check the fuel level before you drive away from the dealership in your shiny new or used car. After picking up my car, I was just a few kilometers along the freeway when the low fuel light came on. I then spent 15 very nerve-wracking minutes searching for the nearest fuel station (gasolinera)!
US and UK Specific Guidelines
Driving Licenses
Non-EU citizens may use their national driving license in Spain for six months after arrival. At this point, you must obtain a Spanish driving license. This is a relatively straightforward process for UK citizens that does not require taking a Spanish driving test. However, US and other citizens (like Australians, Alison, and Alastair) will have to take the test. See our explanation of how to obtain a Spanish driving license.
Financial Considerations
New and secondhand cars are generally more expensive than in the US and UK, with higher registration taxes to consider.
If you use non-euro accounts to buy the car, be aware of fluctuating exchange rates. See our guide to transferring money to Spain if you plan a significant transaction like a car purchase.
US nationals: remember that your US credit history may not be transferred. This means you may need additional proof of creditworthiness. Also, financing arrangements may differ, and you will likely need a larger down payment than in the US.
Insurance
Remember, it is the car that is insured, not the driver. And it’s a legal requirement to have at least third-party liability coverage (Seguro Obligatorio) for your vehicle. Additional coverage options and how premiums are calculated do vary. See our list of approved car insurance brokers to obtain a quote.
Vehicle Differences
Manual transmission and diesel cars are much more common than in the US. Different size classifications apply, and stricter emissions standards are applied nationwide with no exceptions.
Eco Stickers (Distintivo Ambiental)
The DGT issues these color-coded stickers on the lower right-hand corner of the windshield inside your vehicle. They categorize vehicles based on emissions into four groups:
- 0 (Blue)
Most efficient vehicles, including electric and plug-in hybrids
Unrestricted access to city centers and free parking in most regulated areas - ECO (Blue and Green)
Hybrid and gas-powered vehicles
Fewer restrictions than B and C stickers - C (Green)
Newer gasoline and diesel vehicles meeting higher Euro standards
Unrestricted access to city centers and free parking in most regulated areas - B (Yellow)
Older gasoline and diesel vehicles meeting lower Euro standards
More restrictions in low emission zones compared to C stickers
They are mandatory for accessing low-emission zones (Zona de Bajas Emisiones (ZBE)) in cities like Madrid and Barcelona, with restrictions varying based on the sticker type.
To obtain an eco-sticker, first check your vehicle’s classification on the DGT website. Then, visit a post office (Correos) with your driver’s license, ID, and vehicle documents. You will be charged €5 for your sticker. Alternatively, you can purchase it online through the DGT website for €6.50.
Summary
Buying a car in Spain as an Expat requires careful planning and understanding local requirements. Whether you buy new, used, or lease, ensure you have all the necessary documentation and understand the ongoing costs.
UK and US expats should pay special attention to license requirements and financing options. Consider working with a gestor to help you through the process of buying a car in Spain.
