Buying A Car In Spain In 2025: What Expats Need To Know About Taxes And Incentives

If you’re an expat successful Spain and reasoning astir buying a car this year, you’ll want to brace yourself for much than conscionable nan showroom sticker price.

From VAT and registration tax to a raft of caller eco-incentives, nan rules person shifted successful 2025 and could person a large effect connected your budget. The bully news? Spain is offering immoderate of its astir generous subsidies yet for greener vehicles. The bad news? The paperwork tin consciousness for illustration a maze if you’re not prepared.

So, let’s break it down successful plain English, looking astatine nan main taxes, what expats should expect if they’re importing a car, and wherever nan biggest savings tin beryllium found.

Taxes that drawback galore newcomers out

For astir buyers, nan first taxation that bites is VAT, aliases IVA successful Spanish. On caller cars, it’s group astatine 21 per cent and already included successful nan dealer’s value tag. There are exceptions, though. Families pinch 3 aliases much children and drivers pinch disabilities tin suffice for a overmuch little rate, sometimes conscionable 4 per cent.

Second-hand cars are taxed differently. If you bargain from a backstage seller alternatively than a dealership, you’ll look nan Patrimonial Transfer Tax (ITP), which ranges from 4 to 8 per cent depending connected nan region. Some areas are much generous than others—Cataluña, for example, often exempts cars much than 10 years aged from this tax.

Then comes nan one-off registration taxation (IEDMT), and this is wherever emissions matter. If your car is cleanable and efficient, producing nether 120 grams of CO₂ per kilometre, you’ll salary nothing. But nan much polluting nan car, nan higher nan bill, rising successful bands from 4.75 per cent to astir 15 per cent for nan biggest polluters. Hybrids and electrical cars tin flight this completely, which is portion of Spain’s push to get much drivers to ditch fossil fuels.

Importing a car erstwhile moving to Spain

Plenty of expats get successful Spain pinch their car successful tow, only to observe nan rules tin sting. If your conveyance comes from extracurricular nan European Union, expect to salary 10 per cent import work positive 21 per cent VAT. Even utilized cars pull these charges, and registering them requires a hefty battalion of paperwork.

If your car is from wrong nan EU, it’s a spot easier. No import work applies arsenic agelong arsenic it was already taxed successful different personnel state. That said, VAT tin still beryllium owed if nan car is classed arsenic ‘new’ – which intends little than six months aged aliases pinch nether 6,000 km connected nan clock.

There are exemptions, peculiarly for those relocating permanently who’ve owned their conveyance overseas for a while. In those cases, immoderate import taxes tin beryllium waived, though navigating nan good people usually requires thief from a gestor, 1 of Spain’s master paperwork fixers.

Why going electrical makes consciousness successful 2025

The existent communicative this twelvemonth is Spain’s renewed push for electrical vehicles. The MOVES III programme, now extended until nan extremity of 2025, offers hefty subsidies that make EVs acold much appealing than successful nan past.

Buyers tin sound up to €7,000 disconnected nan value of a caller electric car worthy nether €45,000. Plug-in hybrids tin suffice for up to €5,000, while electrical vans and commercialized vehicles travel pinch subsidies arsenic precocious arsenic €9,000. Families connected debased incomes aliases anyone scrapping an aged petrol aliases diesel car get moreover more—an other €1,000.

There’s besides a brand-new inducement tucked into Spain’s taxation code. Anyone buying an EV this twelvemonth tin declare a 15 per cent income taxation conclusion connected 1 eligible car, up to a guidelines of €20,000. The rules are flexible, too: you tin use it erstwhile you’ve registered nan car aliases moreover if you’ve only paid a 25 per cent deposit by nan extremity of December.

Charging points besides travel pinch perks. Install 1 astatine location aliases successful your building’s garage, and you tin deduct 15 per cent of nan costs – up to €4,000 per twelvemonth – while nan MOVES strategy tin screen a ample chunk of nan measure arsenic well.

The mundane costs you can’t escape

Taxes don’t extremity erstwhile you’ve bought your car. Every year, Spanish municipalities complaint a roadworthy taxation known arsenic IVTM. It’s based connected nan size and powerfulness of your engine, pinch large SUVs and sports cars paying nan most. In ample cities it tin tally from conscionable complete €20 to good supra €200. The metallic lining? Electric vehicles often get discounts of up to 75 per cent.

Then there’s nan ITV, Spain’s type of nan MOT. New cars don’t request an inspection for their first 4 years, aft which they must beryllium checked each 2 years until they scope a decade connected nan road. Beyond that, it’s annual. Imported cars must acquisition ITV moreover if they’re marque new.

Insurance is different non-negotiable. Comprehensive screen must beryllium successful spot earlier you tin thrust your car away, and while costs alteration wildly, it’s a measure that often catches expats by astonishment if they’ve underestimated Spanish rates.

Scrappage bonuses and eco-schemes

Spain besides runs smaller location programmes that reward drivers for scrapping aged vehicles. Known arsenic ‘Plan Renove’ successful galore areas, these tin beryllium stacked pinch nan nationalist MOVES grants, making it moreover cheaper to move to thing greener. In immoderate cities, incentives now widen beyond cars to see electric scooters and e-bikes, portion of a broader push to trim municipality emissions.

So what should expats return from this?

The main connection is simple: buying a car successful Spain isn’t conscionable astir nan dealer’s price. Taxes tin push nan last costs up importantly if you’re not prepared, particularly for imported aliases high-emission cars. But connected nan flip side, 2025 is simply a aureate twelvemonth for anyone consenting to spell electric, pinch subsidies and deductions that tin prevention thousands of euros.

If you’re moving present permanently, it’s worthy weighing whether bringing your ain car makes consciousness aliases if buying locally pinch nan caller incentives will time off you amended off. And immoderate way you choose, getting proposal from a gestor earlier signing paperwork tin prevention a batch of frustration—and perchance a batch of money.

Spain’s connection is clear: greener cars are nan future. For expats settling successful nan country, knowing nan taxation scenery tin move a daunting acquisition into a smart investment.

Stay tuned pinch Euro Weekly News for much news from Spain