IVTM Impuesto sobre Vehículos de Tracción Mecánica is Spanish vehicle tax, the equivalent of what we refer to in the UK as road tax.
Almost all cars registered in Spain are subject to this vehicle tax, and it’s administered and collect locally by the Town Hall. If you aren’t familiar with the vehicle tax system in Spain, you’ll find the following useful, to understand it, if not to flag issues, get them resolved and avoid problems in the future.
If you own a Spanish registered vehicle, and by mid May haven’t received a bill for vehicle tax, or notification of payment, this could be an indication of a problem relating to details held by the DGT (Direccion General de Trafico) about the registered owner of the vehicle.
The following are some of the things we hear and questions we get asked about Spanish vehicle tax.
When you own or register a vehicle in Spain, you almost always have to pay some form of vehicle tax. The type and amount that applies depends on the vehicle.
Local Vehicle Tax
IVTM Impuesto sobre Vehículos de Tracción Mecánica is the Spanish equivalent of what we refer to in the UK as road tax. Almost all vehicles driven on public roads in Spain, are subject to this tax, which is administered and collected locally by the Town Hall.
The tax is set by the municipal authorities, and varies from area to the next. IVTM is paid to the local authority and can be paid in person at the relevant Town Hall office (Ayuntamiento), at a bank or by direct debit.
Vehicle Tax When Registering a Vehicle in Spain
When you register a vehicle in Spain, either new or used, in all cases locally collected road tax‘ – IVTM (Impuesto Sobre Vehículos de Tracción Mecánica), must be up to date.
There are 3 main circumstances and taxes that apply when registering a vehicle in Spain. These are:
- Purchase of a new vehicle
- Buying a second hand vehicle or changing ownership
- Importing or registering of a foreign vehicle
Tax – New Vehicle Purchase
New vehicle purchases in Spain are subject to IVA (Impuesto sobre el Valor Añadido), Spanish VAT – currently 21% of purchase value.
In addition, when a vehicle is first registered in Spain, it may be subject to an additional registration tax.
This vehicle tax is based on the new value of the vehicle and it’s CO2 emissions. Vehicles with CO2 emissions below 120g/km are exempt from the tax, and the rate increases with the level of emissions as follows:
- 121g/km – 159g/km = 4.75%
- 160g/km – 199g/km = 9.75%
- 200g/km or higher = 16.75%
Completing the vehicle transfer of ownership documentation correctly, when you buy a car in Spain is very important. If the transfer is not done, or not done properly, the seller of the vehicle could end up responsible for ongoing costs on the vehicle – taxes and fines, and/or the buyer could end up having to pay costs left unpaid by the previous owner.
You can complete the vehicle transfer of ownership yourself at the DGT (Direcion General de Trafico), ‘trafico’ offices, and to do so, in addition to your buyers documents you need the following:
- The sellers documents
- Completed vehicle transfer of ownership application form from Trafico (DGT) office, signed by the seller
- Receipt of paid municipal tax
- Receipt of vehicle transfer tax paid to Hacienda office.
- A photocopy of the Ficha Tecnica with in date ITV (Inspección Tecnica de Vehiculos) stamp.
- Original Permiso de Circulacion
- The fee, (approx €40)
- A stamped addressed envelope (if you want the new car documents posted to you)
- A full morning, basic Spanish and lots of patience
Many people use a Gestoria to manage the transfer of ownership and whilst they do usually get the job done, they are often slow, with little concept of customer service. So if you do go to one, don’t expect efficiency and do expect to have to do some chasing.
If you need a hand with a vehicle change of ownership, we’ll be glad to help. Come in and see us, or give us a call on (+34) 951 77 55 44 / (+44) 033 0001 0777.
Click here to find out more about our vehicle change of ownership service.