Buying a car in Spain? Here’s what you need to think about!
Buying a car in Spain, how does it work? And what do you actually need to pay attention to? It is useful to be well prepared when buying a car in Spain, so we would like to help you on your way in this blog. That way, you’ll be tearing around the Spanish roads in no time!
- Why buy a car in Spain?
- Roadmap: how to buy a car in Spain
- Insuring your Spanish bolide
- Importing a car to Spain
WHY BUY A CAR IN SPAIN?
Buying a car in Spain has several advantages. Of course, one of the biggest advantages is the freedom you get to explore the country or travel around Spain. Indeed, many beautiful locations in Spain are best reached by car. Also, owning a car in Spain provides a piece of convenience and comfort. Whether it is for weekly shopping, planning trips or navigating the cities.
For foreigners and expats (an expat lives temporarily in another country for work), free and comfortable travel has a positive impact on the experience of living in Spain. Should you as a foreigner or expat wish to buy a car in Spain, it is essential to obtain a (necessary) NIE (Número de Identificación de Extranjero) number. Furthermore, it is useful to understand the ins and outs of Spanish vehicle registration and insurance requirements. Check out our roadmap for this:
ROADMAP: HOW TO BUY A CAR IN SPAIN
STEP 1: UNDERSTAND THE SPANISH CAR MARKET
If you are getting your bearings in buying a car in Spain, it is good to understand the car market in Spain. What are popular models? And what are the differences in price with the Netherlands, new and second-hand?
Should you want to buy a new car in Spain, you will generally be cheaper than in the Netherlands. Because of lower taxes, car dealers in Spain can offer lower prices than Dutch car dealers.
If you choose to buy a used car in Spain, you will not be cheaper than in the Netherlands. This is because of the large supply of used car in our country.
NOTE: Make sure all taxes have been paid when you buy a used car in Spain, otherwise you can take on these debts.
STEP 2: LEGAL REQUIREMENTS AND DOCUMENTATION
NIE Number (Número de Identificación de Extranjero): This is a tax identification number for foreigners living in Spain or wanting to buy property, including cars. It is indispensable for registration and tax purposes. The NIE number is crucial for almost any official transaction in Spain that requires you to prove your tax identity.
DNI (Documento Nacional de Identidad) or Passport: Whereas Spanish citizens must identify themselves with their DNI, foreigners do so using their passports.
Proof of Address (Empadronamiento): A recent document proving your residential address in Spain. This may be needed to prove that you are a resident in the region where you are buying the car.
Driving licence: Of course, you must have a valid driving licence in Spain too. If you obtained your driving licence in the Netherlands, there is no problem. Should you have obtained your driving licence outside the European Union, you may have to produce additional documentation or an international driving licence.
Purchase contract: When buying a used car, a purchase contract between the buyer and the seller is required. This document should contain details of both the buyer and seller, as well as the vehicle details and purchase price.
Vehicle documentation: The vehicle’s registration document (Permiso de Circulación) and recent MOT (ITV, similar to the MOT in the UK or the TÜV in Germany) must also be submitted.
STEP 3: LOOKING FOR THE RIGHT CAR
Buying a car in Spain naturally requires good preparation, so you can make sure everything goes well. For example, consider whether to look for a car online or physically. Online, for instance, you can more easily compare prices and read reviews, while physically you can see the cars immediately with the naked eye, which can create a good or bad feeling. Not much different from buying a car in the Netherlands.
Reliable websites for buying a car are: Coches.net, Autoscout24.es, and Milanuncios. These websites are popular in Spain and offer both new and used cars.
STEP 4: REGISTRATION AND TAXES
IVA (VAT): The VAT you pay to buy a new car is 21% in Spain.
Registration tax (Impuesto de Matriculación): The amount of registration tax depends on the CO2 emissions the car has. It ranges from 0% to 14.75% (percentage on the price of the vehicle). It happens that vehicles, especially those with low emissions, are exempted from this tax.
Transfer tax: For used cars, this tax varies by region.
Annual Motor Vehicle Tax (Impuesto sobre Vehículos de Motor): This annual tax depends on the municipality where you live. The characteristics of your car, such as its power and environmental impact, are also influential.
INSURING YOUR SPANISH CAR
Insuring your car in Spain is not so different from insuring your car in the Netherlands. For instance, you need at least third-party insurance according to the law, Options for financing in Spain. What you do need to pay attention to in Spain is Policy Registration. When you have chosen an insurance policy, the insurance company will register your policy and provide you with an insurance certificate (Carta Verde). You keep this in the car itself.
Renewal: Car insurance policies in Spain are renewed annually. You will receive a renewal notification from your insurer with details for the coming year.
IMPORTING A CAR TO SPAIN
If you are going to live in Spain, it may be interesting to take your current car with you. Are you staying in Spain for more than 6 months? Then you have to register your car in Spain.
Registering your car is done at Jefatura Provincial de Tráfico. The car is then inspected (similar to a MOT). You will also have to pay some taxes, such as road tax, and apply for two number plates.
