Buying a Car in Spain >> The Complete Expat Guide 2025

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 buying a car in Spain as a foreigner is possible, though additional documentation may be required for non-residents. The process is not very different from buying a car in the US or any European country; however, there are some specific nuances and paperwork.

Key Points to Remember When Buying a Car in Spain as a Foreigner

• 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 determine 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

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 vehicles. 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 drive growth. EV sales rose by 7.4% in 2024, and there are now nearly 40,000 charging points (10,000 were added in 2024 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.

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 Used Car in Spain – Step-by-Step Checklist

Many Expats are nervous about scams, hidden debts, and paperwork when buying a used car. Adding a clear step-by-step checklist will increase user trust and engagement.

📌 Used Car Purchase Checklist for Expats
✔ Verify Ownership – Ask for the seller’s ID (DNI/NIE) and ensure they match the vehicle’s registration documents.
✔ Check for Outstanding Debts – In Spain, unpaid fines, road tax, and loans stay with the car, not the owner. Check with the DGT (Dirección General de Tráfico) before purchasing.
✔ Review the ITV (Vehicle Inspection) – Ensure the car has a valid ITV certificate and review any advisories.
✔ Request a Full-Service History – Ask for maintenance records to confirm the car has been properly serviced.
✔ Sign a Private Sale Agreement (Contrato de Compraventa) – This document is essential for transferring ownership.
✔ Complete the Transfer at the DGT – You must officially change ownership within 30 days of purchase.

👉 Pro Tip: Use a gestoría (administrative agency) to handle the paperwork, especially if your Spanish isn’t strong.

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 a Car in Spain: A Flexible Alternative to Buying

easing is an increasingly popular option for expats looking for a new or nearly new vehicle without the long-term commitment of ownership. It allows you to drive a car for a fixed period—typically two to five years—while making monthly payments that cover the vehicle’s depreciation. At the end of the lease, you usually have three options:

1. Pay the remaining balance to own the car outright.
2. Return the car and start a new lease with a different vehicle.
3. Return the car and walk away with no further obligations.

Many leasing agreements include road tax and insurance, and some even cover ITV inspections for cars over four years old. However, maintenance costs are typically separate unless specified in the contract.

Pros of Leasing a Car in Spain

✔ Lower Initial Investment – Leasing requires less upfront cash compared to buying. Some companies even offer zero down payment options.
✔ Predictable Monthly Costs – Most lease agreements bundle road tax, insurance, and some maintenance, making budgeting easier.
✔ Drive a Newer Model – Leasing allows you to upgrade to the latest models every few years, ensuring you always have a modern vehicle.
✔ No Depreciation Concerns – Since you don’t own the car, its resale value isn’t your problem.
✔ Great for Expats – If you’re not planning to stay in Spain permanently, leasing avoids the hassle of buying and later reselling a car.

Cons of Leasing a Car in Spain

❌ Mileage Restrictions – Most contracts come with an annual mileage cap (10,000–20,000 km). Exceeding it leads to additional charges.
❌ No Equity – Unlike buying, you won’t build ownership value in the vehicle.
❌ End-of-Lease Fees – If the car has excessive wear or damage, you may be charged additional costs when returning it.
❌ Contract Commitments – Early termination fees can be steep if you need to end the lease early.

Insider Tips for Expats

🚗 Check the Lease Inclusions – Not all agreements include maintenance or insurance, so clarify what’s covered.
🚗 Short-Term Leasing Options – If you don’t want a multi-year commitment, some companies like OK Mobility offer short-term leases (3–6 months) without requiring Spanish residency.
🚗 Negotiate the Deposit – Some leases require a large upfront deposit, while others allow low or no down payments with slightly higher monthly rates.
🚗 Consider Early Termination Clauses – If your plans in Spain are uncertain, check the contract’s early exit policy to avoid hefty fees.
🚗 Kilómetro Cero Leasing – Many dealers lease nearly new “kilómetro cero” cars, offering better rates than brand-new models with minimal mileage.

Best Car Leasing Companies in Spain for Expats

There are several expat-friendly leasing companies in Spain offering flexible terms:

LeasePlan España – One of the biggest leasing providers, with a variety of cars and service packages.
OK Mobility – Offers flexible monthly car subscriptions (Alquiler Flexible) with no long-term commitment. Great for short stays or uncertain plans.
Northgate Renting Flexible – Specializes in short-term leasing, perfect for those needing a car for a few months.
ALD Automotive – A trusted name in long-term leasing, with options for personal and business use.
ExpatRide – Tailored for foreigners, offering lease options without requiring a local credit history.

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:

1. Create a written sales contract with the seller, including the date and time of ownership transfer.
2. Obtain a DGT Check to ensure the car can be legally sold
3. Pay the transfer tax by submitting a completed Modelo 620 at your local tax office (Hacienda)
4. 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)
5. 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
6. Receive the new logbook (Permiso de Circulación) showing you as the owner
7. 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 purchasing 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. 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. Drivers other than the named driver may drive the car provided they meet the minimum age requirement (25, 26, or 28 years, depending on the insurance company) and have held a license for at least two years. This is irrespective of the other drivers’ no-claims bonuses and other history. If you have a driver under the minimum age, you must add them to the policy and pay a little extra.

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)!

Total Cost of Car Ownership in Spain

Here’s a quick guide to the total cost of ownership of a car in Spain.

🚗 Total Cost of Owning a Car in Spain (Per Year)

• Road Tax (IVTM) – €60 to €200 (varies by city and engine size)
• Insurance – €300 to €900 (depending on coverage and car model)
• ITV (Vehicle Inspection) – €35 to €55 for cars under 10 years old, €40–€100 for older cars
• Fuel Costs – Approx. €1.50–€2.00 per liter
• Maintenance & Repairs – €300 to €1,000 per year (varies by car age & brand)
• Parking Permits (if needed) – €30 to €100 per year in major cities

👉 Pro Tip: Diesel cars have higher ITV fees and road tax but may be cheaper for long-distance drivers.

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 relatively straightforward process for UK citizens does not require taking a Spanish driving test. However, US and other citizens (like Australians, Alison, and Alastair) must 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 an understanding of 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.

FAQ — Buying a Car in Spain