Buying a Car in Spain as a Foreign National

Your step by step guide to buying a car in Spain

Buying a Car in Spain as a Foreign National

Spain, with its vibrant culture and beautiful landscapes, is a popular destination for many people around the world. It also has a great network of free and paid highways to speed you on your car journey as you explore Spain’s wonderful cities and countryside.  Whether you are a resident or a non-resident, the Spanish law allows foreign nationals to purchase a car.  In 2021 alone, about 861,000 cars were sold in Spain.  The market is full of dealers and traders offering various, new and used cars.

In 2022, 1050,000 cars (yep, well over a million) were sold to residents and non-residents, so there is plenty of choice.

Spain is a wonderful country to explore, and it is obvious that a car is the more convenient way to get around the countryside. Yes, it might be a little trickier in the city, but the freedom private car ownership brings will be appreciated as you move outside your new home, and start to explore wonderful, vibrant Spain. 

If you are used to driving on the left-hand side of the road, learning how to drive on the right-hand side of the road comes with a little practice and patience.  A simple rule of thumb being that if you are driving a Spanish car the driver must be on the side close to the road marking in the middle of the road. Same as in the UK and Ireland when driving on the left. The driver hugs the middle of the road marking!!  Roundabouts are a little trickier but comes easily with a little practice.

The good news is that Diesel and Petrol will be cheaper too!! Even at times of high oil prices, the average price of diesel is €1.50/litre and add 5- 10 cents for Petrol. In 2021 prices for Diesel were as low as €1.10/Liter. So much cheaper than Ireland and the UK, and that is a good thing, since there is so much more to explore, in a wonderful colourful and vibrant landscape drenched in lovely warm sunshine!!

Should I buy a new or a used car in Spain?

It all depends on how comfortable you are with owning a previously owned and loved vehicle, versus paying a higher price for a brand-new car. Spain is the eighth largest producer of motor vehicles in the world and the second largest in Europe although 80% of the cars produced in Spain are exported across Europe.  SEAT is a well known Spanish brand, now part of the VW German Car group. The SEAT Ibiza is the most popular car in Spain, and SEAT dealers are easy to locate, and parts are easily available and at reasonable prices.

Buying a new car from a reputable dealer is the least risky option for a new resident in Spain.

A good option to look out for is the ‘KM 0’ car. These are cars which have been registered by the car showroom/dealer but used only for test drives. They are practically new but technically pre-owned and much cheaper than an officially new car.

The second-hand car market in Spain is slightly different from the UK. Prices are higher because people have tended to buy new cars and hang on to them for a long time so there are fewer of them available. As a guide, a five-year-old car will probably cost you about half of its original showroom price.

Should I buy from a dealer or a private seller?

If you decide to buy a second-hand car, you might save €1,000 or more by buying from a private seller but you may not receive a proper warranty and you will have less comeback if anything goes wrong. Private sellers are obliged to provide you with a six-month guarantee covering any faults which turn out to have existed at the time of the sale. But when it comes down to it, it’s difficult to prove.

If you are determined to buy privately, consider getting help from a Gestor (Gestoria or Asesoria). The labyrinthine layers of bureaucracy in Spain have conspired to create this exclusively Spanish role. The Gestor is not a lawyer nor indeed any kind of qualified professional per se. Much more usefully, the Gestor is intimately acquainted with the form-filling and bureaucratic hurdles that need to be jumped wherever Spanish officialdom is involved. Gestors know the inner workings of every government department and every piece of paperwork. They have runners to do the legwork and they know how to avoid queues and short-cut processes. A good Gestor is worth every cent, especially if you are not super-fluent in Spanish.

Car Insurance

After buying a car in Spain, it is necessary to insure it. To Register for Insurance, you will need the following documents:

• Driver’s license

• NIE and or residents’ card (though being a full-time resident is not a requirement to own a car in Spain), many new homeowners spend less than 180 days of the year in Spain and find a car worth the investment.

• Vehicle passport

• Technical passport (included with the vehicle).  This is also important when going to trafico, or getting your ITV done. Your ITV is your vehicle roadworthy inspection test, a requirement throughout Europe, though known under different names. The first inspection is due after 4 years for every vehicle and every two years thereafter.

• Car purchase receipt/proof of ownership

• Technical inspection (ITV), if over 4 years old.

There are an abundance of brokers and direct insurance companies in every Spanish town. Some brokers may well work exclusively for one Insurance company and bear the name of that insurance company over the office or place of business, but they are in fact an independent operator.

To Clarify, Trafico, The Directorate-General for Traffic (Dirección General de Tráfico – DGT) is responsible for Spain’s road transport network.  They oversee all vehicle and road safety issues, including annual road tax, issues to do with the ITV, vehicle recalls, and of course the issuance and collection of monies due in the event of speeding fines or other road traffic violations. More about this later.

The Process of Buying a Car in Spain

Credit Check

Check for outstanding fines and ITV status. The current year’s road tax is charged to the seller. If the ITV is not valid (in the case of much older cars), the car may be sold but not driven.  The seller must inspect the car and fix any problems.  When the vehicle is sold it cannot have any fines, leans or administrative or judicial burdens.  You can request a report through Trafico to make sure there are none. Once again, your Gestor can assist with the official burden of dealing with Trafico.

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 the receives a copy of the contract. The contract must contain:

• First and last name of the Seller and the Buyer
• Identity or passport/NIE number and address of the Seller and the Buyer
• Information about the vehicle (make, model, license plate, mileage)
• Terms of sale (purchase price, vehicle delivery, and payment method)
• Buyer’s NIE is also mandatory, as it is for most purchases in Spain.

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.

Property/CarTransfer Tax

The amount of tax ((impuesto sobre transmisiones patrimoniales y actos jurídicos documentados / ITP), is based on the sale price, make, model and age of the car. Each Autonomous community applies a tax rate, ranging from 4%-8%. The buyer pays it within 30 working days from the date of signing the contract.

Change of Ownership

Please note that Registration of a car to a new owner involves registration of changes in the legal status within 30 days.

Trafico DGT (General Directorate of Traffic) in Spain (more detailed information):

This is the government department responsible for all things to do with your car. Fortunately, or unfortunately, speeding fines, vehicle registration and all other matters to do with running your car legally in Spain must be run through this entity.  This includes all matters to do with obtaining or swapping a driving licence. Many new home buyers-new residents in Spain, choose to leave all this work to their lawyer or other local representative (Gestor), and this may well be an excellent choice.

You can go to a Trafico main office personally, but if you do, you need to schedule an appointment in advance. There is no point in just showing up, you will not get an appointment that way.

Here is the link for Trafico in English.

https://www.dgtinfo.es/ya-puedes-pedir-cita-previa-en-trafico-dgt/

1. Visit the Official page of the DGT (General Directorate of Traffic). 
2. After having accessed the "Request an Appointment at Headquarters" section from the Electronic Office, you must select the Office where you wish to conduct your procedures and click on "Continue."
3. You have to choose between 4 different areas depending on the procedure you have to carry out.
4. Once you have selected the type of procedure, the system will request the following information in order to make an appointment:
5. Now the free days and hours will appear to reserve the date you prefer in the DGT.
6. After having accessed the "Request an Appointment at Headquarters" section from the Electronic Office, you must select the Office where you wish to carry out your procedures and click on "Continue."
7. You have to choose between 4 different areas depending on the procedure you have to carry out
8. Once you have selected the type of procedure, the system will request the following information in order to make an appointment:
9.  Now the free days and hours will appear to reserve the date you prefer in the DGT.

Make your selection and confirm your appointment. Simple, but honestly speaking if you value your time by your new pool, or relaxing by the seaside, it might well be easier to give this kind of work to your local Gestor!

Costs, taxes, insurance

We have touched on some aspects of this already but here is a quick summary.

1. When buying from a dealer you will have to pay sales tax (normally included in the price but ask for clarity sake). If you are buying privately, you’ll have to pay a transfer tax (impuesto de transmisiones patrimoniales) which is calculated not on the price you pay, but on the official value of the car.  This is based on the age and model and set by the tax authorities.
2. The Spanish Road tax, impuesto sobre vehículos de tracción mecánica (IVTM), is payable annually. The cost depends on the vehicle, the fuel type, and the municipality in which the vehicle is registered. Expect to pay (€50-€150) or thereabouts.
3. ITV (inspección técnica de vehiculos): The Spanish equivalent of the MOT test has fixed prices. For a car, it ranges from around €33 to €48 depending on the size of the engine and whether the car is petrol or diesel. The ITV test in Spain is a little like a fun fair ride, where the owner drives the car from test station to test station.  Some operators speak English, ask to be directed to an English-speaking tester if available, when you check in at the test centre.
4. Insurance: It is illegal to drive a car without insurance in Spain. At the very least, you will need third party cover, and many people consider the cost of comprehensive insurance to outweigh the benefits.
5. Even when you have paid all this, there is just one more aspect to consider. You may need to pay a small toll to use many of the motorways(Autopistas) in Spain.  Whereas to be fair many of Spain’s road systems are completely free.  Consider paying the toll perhaps if you are in a hurry or going intercity.  Having said that much of Spain’s charm lies in exploring its vast network of secondary roads, which connect towns and villages and are completely free to use.

Things to keep in your car while motoring in Spain.

By law, you must have all these things in your car whenever you are using it and driving on a public road:

1. ITV (MOT certificate)
2. Permiso de circulación (log book)
3. Insurance policy document
4. European accident agreement form (to be completed by both parties in the event of an accident)
5. Driving licence
6. Two warning triangles
7. A fluorescent jacket for each person travelling in the car.
8. A child seat for each child
9. A spare tyre and the tools to change it.

So now you have bought your car, registered it, and insured it.  Well done you!! Contratulations.

Buying a car in Spain as a foreign national is a straightforward process, provided you have the necessary documents and understand the steps involved. Whether you are planning to stay in Spain for a brief period or the longer term, owning a car can provide you with the freedom to explore this beautiful country at your own pace.