Buying a Car in Spain as an Expat: The Complete Guide

Moving to Spain is an exciting adventure, and having your own car can make exploring this beautiful country even more enjoyable. When we made the big move from the USA to Spain, we decided to sell our car back home and buy a used one here instead. 

Sounds simple enough, right? Well, let me tell you, navigating Spanish bureaucracy without a guide was a journey all on its own. From figuring out the requirements and paperwork to choosing between new and used cars, it was a steep learning curve.

If you’re feeling overwhelmed with all the paperwork involved in moving abroad, check out my How to Move Abroad e-book to help you make the right decisions and make your transition as smooth as possible.

That’s exactly why I’ve written this guide—to save you the time, confusion, and occasional frustration we experienced. This step-by-step guide will cover everything you need to know about the basics of documentation and costs as well as deciding where to buy your car or even whether to import one instead.  Lets get started! 

What are the requirements to buy a car in Spain?

You can buy a car in Spain as a resident or a non-resident, including expats. The Spanish government allows foreign nationals to own vehicles, provided they meet specific criteria. 

Here’s what you need to know:

Who Can Buy a Car in Spain?

• Residents: If you hold a valid residence permit in Spain, you can purchase and register a vehicle.
• Non-Residents: Even without residency, you can buy a car in Spain. However, you’ll need to provide proof of a local address, such as property ownership documents, a long-term rental agreement, or a certificate of registration with the local town hall (empadronamiento).

What Will I Need?

• NIE (Número de Identificación de Extranjero): This is your foreigner’s identification number in Spain, required for various legal transactions, including buying a car. You can get one through the local police station or Spanish consulate.
• Proof of Address: Documents like property deeds, a rental contract, or an empadronamiento certificate serve as evidence of your address in Spain.
• Identification: A valid passport or national identity card is necessary to verify your identity.

Considerations for Non-Residents:

• Tax Implications: Be aware of the 183-day rule; staying and living in Spain for more than 183 days in a calendar year may classify you as a tax resident, which means you need to pay taxes to Spain.
• Vehicle Registration: Non-residents can register a vehicle in Spain, but it’s very important to comply with local regulations and make sure all documentation is in order.

Should I buy a used car or a new car?

Ah, the age-old question: new or used? When we started looking into buying a car in Spain, we thought this would be the easy part. Spoiler alert: it wasn’t. Both options have their pros and cons, and what works best for you will depend on your budget, lifestyle, and patience for paperwork.

Buying a New Car in Spain

If you’re all about that “new car smell” and prefer a vehicle with zero mileage, buying new might be the way to go. New cars come with the latest technology, warranties, and fewer maintenance headaches. But here’s the catch: cars in Spain can be pricey compared to what you might be used to in the U.S. Add in taxes, registration fees, and insurance, and that shiny new ride might stretch your budget more than expected.

Advantages:

• Peace of mind: No worrying about hidden issues or dodgy repairs.
• Warranty: Most new cars come with warranties of 2 to 5 years.
• Customization: Choose your preferred model, color, and features.
• Pay in instalments: You can easily get your car financed as long as you have a monthly salary.

Downsides:

• Higher costs upfront: New cars are significantly more expensive, and VAT (IVA in Spain) adds 21% to the sticker price.
• Depreciation: Just like anywhere, a new car loses value quickly the moment you drive it off the lot.

Buying a Used Car in Spain

Used cars can be a fantastic option, especially if you’re trying to save a few euros and don’t mind a little wear and tear. The used car market in Spain is huge, so you’ll have plenty of options, from private sellers to dealerships. But, buyer beware! It’s crucial to do your homework and check the car’s history before signing anything.

Advantages:

• Lower costs: Used cars are much cheaper than new ones, both in terms of purchase price and taxes.
• Slower depreciation: Someone else already took that big hit in value.
• Availability: You can often find cars that are ready to drive away immediately.

Downsides:

• Unknown history: Unless you get a trusted mechanic to inspect the car, you might end up with surprises.
• Shorter warranties: Most used cars don’t come with a lengthy warranty, though dealers might offer a basic one for peace of mind.

Which Should You Choose?

If you’re planning to stay in Spain long-term and can afford it, a new car could be a solid investment. On the other hand, if you’re here temporarily or prefer not to break the bank, a well-maintained used car is a smart choice. Either way, take your time, compare options, and don’t rush the process—you want to find a car that fits your needs, not just your parking space.

It’s important to remember that the market for used cars goes up and down depending on car availability. That means that in parts of Spain like the Balear Islands, the relatively small number of used cars means that prices are bumped up and they end up being much more expensive than a new car. In these cases, if you’re finding prices too steep, it’s worth looking into buying a car on the main land and driving it back on the ferry.

Where can I find the car I want?

So, you’ve decided between new and used—great! Now, where do you actually find this car in Spain? Let’s break down your options, from traditional dealerships to online platforms, and how each can assist with the often-daunting paperwork.

New Car Dealerships

If you’re leaning towards a brand-new vehicle, official dealerships are your go-to. These authorized sellers offer the latest models and typically provide comprehensive assistance with the purchasing process, including handling most of the paperwork. They’ll guide you through registration, taxes, and even financing options. However, this convenience often comes at a premium price.

• Renault España: Offers a wide range of new vehicles with various financing options.
• Volkswagen España: Known for their reliable cars and extensive dealer network across Spain.
• Audi España: Parts are easy to get and finding a dealer across Spain is easy.

New Car Brokers

Car brokers act as intermediaries between you and the dealerships, often getting you a better deal because of their industry connections. They can help with negotiating the price and may even offer trade-ins. While a brokers can simplify the whole process, you need to make sure they are reputable and transparent about their fees. If you go this route, get a recommendation from a parent at the school or the real estate agent you’ve rented through.

• Coches.com: A platform that connects buyers with dealers, offering discounts on new cars.
• Carwow España: Allows you to compare offers from multiple dealers to find the best price.

Buying a New Car Online

In today’s digital age, purchasing a car online is becoming more common. Some manufacturers and dealers offer online buying options, allowing you to configure your car, arrange financing, and even schedule delivery—all from your computer. If you know which car you want specifically, most manufacturers will allow you to order online. Using an aggregator like Motor.es will allow you to search new cars by price or manufacturer.
 

Used Car Dealerships

Opting for a used car? Dealerships specializing in second hand vehicles can be a great choice. They often provide certified used cars that have undergone inspections and usually come with a limited warranty. These dealerships typically handle all of the paperwork, including ownership transfer and registration, making the process a lot easier for you. Visiting some of these in person will give you an idea of what they have available and what you can get for your budget.

• Canalcar: Based in Madrid, Canalcar offers a wide selection of used vehicles with transparent pricing.
• Coches.net: A comprehensive platform listing used cars from various dealerships across Spain.
• Clicars: A very user friendly platform with used cars from different dealerships across Spain.

Private Owners

Purchasing directly from a private seller can sometimes get you a better price, but it comes with added headaches. You’ll need to handle all the paperwork yourself, including the transfer of ownership (Tráfico), payment of transfer tax, and ensuring there are no outstanding debts on the vehicle. Make sure you have the car inspected by a trusted mechanic before finalizing the purchase.

Where to Find Private Listings:

• Milanuncios: A popular classifieds website in Spain where individuals list cars for sale.
  
• Wallapop: An app-based platform where you can find local private sellers offering vehicles.

Researching Car Prices

Before making any decisions, research current market prices for the car you’re interested in. This will give you a hand up during negotiations and get you a fair deal.

• Autocasion: Provides listings for new and used cars, along with price comparisons.
  
• Coches.com: Offers a price comparison tool to help you gauge the market value of different models.
  

What documentation do I need to buy a car in Spain?

Here’s a breakdown of what you’ll need:

1. NIE (Número de Identificación de Extranjero)

2. Proof of Identity like a valid passport or national identity card

3. Proof of Address

• Empadronamiento Certificate: This is a registration with your local town hall, indicating your residence in a specific municipality.
• Utility Bills or Rental Agreement: Recent utility bills or a rental contract in your name can also serve as proof of address.

4. Valid Driver’s License recognized within the EU

If your license is from outside the EU, you may need an International Driving Permit or consider exchanging it for a Spanish license, depending on your country of origin.

5. Proof of Payment for the car

6. Insurance Documentation

7. Vehicle Documents (When Buying Used)

• Permiso de Circulación: The vehicle’s registration certificate.
• Ficha Técnica (ITV Card): The technical inspection card, confirming the car has passed its roadworthiness tests.
• Proof of Road Tax Payment: Evidence that the Impuesto sobre Vehículos de Tracción Mecánica (IVTM) has been paid.
• Transfer of Ownership Form: Both buyer and seller must sign this form to officially transfer ownership.

Costs

Here are some of the costs you’ll need to think about when buying a car in Spain:

1. Value Added Tax (IVA)

• New Cars: Subject to a 21% IVA on the purchase price.
• Used Cars: If bought from a dealer, IVA is included in the price. Purchases from private sellers are exempt from IVA.

2. Registration Tax (Impuesto de Matriculación)

This one-time tax applies when registering a brand new vehicle for the first time and is based on CO₂ emissions:

• 0%: For vehicles emitting up to 120 g/km.
• 4.75%: For emissions between 121 and 159 g/km.
• 9.75%: For emissions between 160 and 199 g/km.
• 14.75%: For emissions over 200 g/km.

Electric vehicles are usually exempt.

3. Trafico Fee

An administrative tax of 55 Euros

4. Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP)

Applicable when buying a used car from a private seller, typically around 4% to 8% of the vehicle’s official value, depending on the region

5. Insurance

Mandatory third-party liability insurance is required before you drive away with your car. Costs depend on factors like vehicle type, driver age, and coverage level, typically ranging from €300 to €1,000 annually.

If you decide to hire a gestor (administrative agent) to handle paperwork, it can cost between €100 and €300.

How long will it take?

If you’re buying from a dealership, they usually take care of most of the paperwork, and you can expect the transfer and registration process to be completed within 1 to 2 weeks. For private sales, the timeline depends on how quickly you and the seller can gather and submit the required documents. 

In these cases, the process may take up to 3 weeks, especially if you’re doing it yourself or working with a gestor. Always allow for a bit of extra time, as Spanish bureaucracy can sometimes be slower than expected!

Is it better to buy or lease a car in Spain?

Deciding between buying and leasing a car in Spain can feel like choosing between tapas or a full meal—both have their perks, but it depends on your appetite and plans. Let’s break down the pros and cons to help you make the best choice for your Spanish adventure.

Buying a Car in Spain

Pros:

• Ownership: The car is yours to keep, modify, and sell whenever you like.
• No Mileage Limits: Drive as much as you want without worrying about penalties.
• Long-Term Savings: If you plan to stay in Spain for several years, buying can be more cost-effective in the long run.

Cons:

• Higher Upfront Costs: Purchasing a car requires a significant initial investment.
• Depreciation: Cars lose value over time, which can affect resale value.
• Maintenance Responsibilities: You’re on the hook for all maintenance and repair costs.

Leasing a Car in Spain

Leasing, known locally as “renting,” has gained popularity among expats and locals alike. It involves paying a fixed monthly fee to use a car for a set period, typically including maintenance, insurance, and taxes.

Pros:

• Lower Upfront Costs: Leasing usually requires little to no down payment.
• Inclusive Packages: Most leases in Spain cover maintenance, insurance, and taxes, simplifying budgeting and the headaches involved.
• Flexibility: At the end of the lease term, you can choose to upgrade to a new model.

Cons:

• Mileage Limits: Leases often come with annual mileage caps; exceeding them can lead to extra fees.
• No Ownership: You won’t own the car, so there’s no asset to sell later.
• Potential Penalties: Early termination or excessive wear and tear can result in additional charges.

Which Option Suits You Best?

• Short-Term Stay (1-3 years): Leasing might be more convenient and cost-effective, especially if you prefer driving newer models without the hassle of selling a car when you leave.
• Long-Term Stay (3+ years): Buying could be more economical over time, giving you the freedom to drive as much as you want and eventually recoup some costs through resale.

Can I import a car to Spain?

Thinking about bringing your trusty car along to Spain? It’s possible, but be prepared for a bit of a bureaucratic adventure. Importing a vehicle involves several steps, and it’s essential to understand the process to avoid unexpected hurdles.

Steps for importing your car

✔ Customs Clearance:

• EU Vehicles: If your car is registered in another EU country, you won’t face import duties but must handle the registration process in Spain.
• Non-EU Vehicles: Cars from outside the EU are subject to import duties and taxes. You’ll need to present the vehicle’s original documents, proof of ownership, and a purchase invoice.
  

✔ Technical Inspection (ITV):

• Your car must pass the Inspección Técnica de Vehículos (ITV), Spain’s roadworthiness test. This ensures the vehicle meets Spanish safety and environmental standards. Modifications, such as adjusting headlights or emissions systems, might be necessary.
  

✔ Registration:

• After passing the ITV, you’ll need to register the vehicle with the Dirección General de Tráfico (DGT). This involves submitting various documents, including proof of identity, NIE (Número de Identificación de Extranjero), proof of address, and the vehicle’s technical specifications.
  

✔ Taxes and Fees:

• Registration Tax (Impuesto de Matriculación): Based on the vehicle’s CO₂ emissions, this tax ranges from 0% to 14.75%.
  
• Value Added Tax (IVA): Typically 21% of the vehicle’s value, though certain exemptions may apply, especially if you’re relocating to Spain.
  
• Road Tax (Impuesto sobre Vehículos de Tracción Mecánica or IVTM): An annual tax varying by municipality and vehicle specifications.
  

Importing a car can be very expensive and time-consuming. Many times buying a vehicle locally might be more economical and less stressful. We decided against it, but if you are coming from a European country with an older car, you may decide this is the way to go for you. We have friends who went this route and they hired a gestor (administrative agent) who specialized in vehicle imports to help them through the process.

Buying a Car in Spain FAQ

What should I have in my car at all times?

When driving in Spain, it’s important to keep the following documents in your vehicle just in case you’re stopped by the police:

• Driver’s License
• Vehicle Registration (Permiso de Circulación)
• ITV Certificate
• Proof of Insurance

Can I buy a car in Spain as a foreigner?

Yes, foreigners can purchase cars in Spain. You’ll need a valid passport, an NIE (Número de Identificación de Extranjero), and proof of address.

Can I buy a car in Spain without a NIE number?

No, an NIE is required for significant transactions in Spain, including buying a car. It’s your tax identification number and is necessary for registration and legal processes.

Can a non-resident register a car in Spain?

Yes, non-residents can register a car in Spain. You’ll need an NIE, proof of address, and the necessary vehicle documents. Be careful of tax implications if you spend more than 183 days a year in Spain.

How much does it cost to transfer ownership of a car in Spain?

You’ll need to pay a Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP) of 4% to 8% of the vehicle’s official value, depending on the region as well as the traffic department fee of around €55.70.