If you want to buy a car in Spain, you must complete several administrative steps. This guide explains how to buy a new or second-hand car, the paperwork required, and how to transfer ownership.
You should prepare all documents carefully to avoid DGT registry issues.
Decide between new and second-hand cars
You must choose whether to buy a new vehicle from a dealership or a used vehicle. The registration process is different for each.
New cars
Buying a new car from a dealership is simple. The dealer will handle the vehicle registration with the traffic authority.
They will also process the number plates. You must pay 21% VAT (IVA) and the registration tax (Impuesto de Matriculación).
Second-hand cars
Used cars are cheaper but involve more paperwork. If you buy from a private seller, you must handle the transfer yourself.
You do not pay VAT on used cars from private sellers. Instead, you pay a property transfer tax.
This tax is called the Impuesto de Transmisiones Patrimoniales (ITP). You must register the change of ownership at the traffic office.
Document checklist for the buyer
You must show proof of identity and residence to buy a car in Spain. You cannot register a vehicle without these documents.
Required buyer documents
Ensure you have these items before buying a vehicle:
- NIE or TIE card : Your Spanish foreigner identity card is mandatory. NIE guide
- Empadronamiento certificate : Your proof of registration at a Spanish address. empadronamiento guide
- Valid driving licence : A Spanish driving licence or a recognized foreign licence. driving licence guide
- Sales contract : The signed agreement between the buyer and the seller.
Required seller documents
You must also collect specific documents from the seller:
- Seller identification : A copy of the seller’s passport, TIE, or DNI.
- Circulation permit : The original Permiso de Circulación showing the seller is the owner.
- ITV card : The original technical sheet (Ficha Técnica) showing safety inspection history.
- IVTM receipt : Proof of payment for the current year’s municipal road tax.
Step-by-step process for second-hand purchases
Buying a used car from a private seller requires caution. Follow these steps to complete the purchase safely.
1. Find a vehicle and inspect it
Look for cars on popular websites like Coches.net, Autoscout24, or Wallapop.
Always test drive the car. You can pay a mechanic to inspect the engine and electronics before buying.
2. Request a vehicle history report
Before signing any contract, request a vehicle history report. This report is called the informe de tráfico.
You can request it online through the official portal of the Dirección General de Tráfico (DGT).
The report will show if the car has unpaid road taxes or outstanding fines. It also shows if the car has unpaid debt (embargo).
3. Sign the contract and pay
Sign a bilingual or Spanish sales contract (contrato de compraventa) in duplicate. Both the buyer and seller must sign every page.
Pay the seller using a bank transfer. Avoid cash payments for large amounts.
4. Pay the transfer tax (ITP)
The buyer must pay the ITP tax to the regional government.
In Madrid, the ITP rate is a flat 4% of the vehicle value. The value is calculated using official tax tables.
Fill out and pay Form 620 (Modelo 620) online or at a regional tax office.
5. Transfer ownership at the DGT
Book a transfer appointment online at the DGT. This process is called the cambio de titularidad.
Bring the signed contract, proof of ITP payment, and the vehicle documents to the traffic office.
Pay the DGT transfer fee of €55.70. The officer will print the new registration permit in your name.
Understanding the vehicle history report
You must never buy a used car without checking its registry status.
A detailed DGT history report costs €8.67. You need a digital certificate or a Cl@ve account to request it online.
The report lists all previous owners of the vehicle. It also shows the history of safety inspections (ITV).
Most importantly, the report will tell you if the car is legally blocked. If there is a block, you cannot transfer the title.
How to pay the transfer tax (ITP)
The tax rate depends on where you live. In Madrid, it is cheaper than in other regions.
The regional tax authority uses a tables list to value your car based on its age and model.
Example: You buy a five-year-old car for €8,000. The official tax table values the car at €6,000. You pay a 4% tax on the €6,000 value, which is €240.00.
You must pay this tax within 30 days of signing the sales contract.
Online vs offline payment
You can pay Form 620 online through the tax portal of the Comunidad de Madrid.
To pay online, you must have a digital certificate. You must also upload a copy of the sales contract.
If you pay offline, you must book an appointment at the regional tax office.
You must bring the physical contract and pay the tax at a collaborating bank.
Legal warranty for used cars
Private second-hand sales in Spain are protected by a limited legal warranty.
Under the Spanish Civil Code, the seller is responsible for hidden defects (vicios ocultos).
This warranty lasts for six months from the purchase date. The defect must have existed before the sale.
Proving a hidden defect in court can be difficult and expensive. You must hire a forensic mechanic to write a report.
For this reason, a professional inspection before buying is the best protection.
Required car insurance and inspections
You cannot drive your car on Spanish roads without proper insurance and safety checks.
Insurance requirements
You must buy third-party liability insurance before driving your new car.
Keep the insurance policy and proof of payment in the glove box.
Technical inspections (ITV)
All cars over four years old must pass the Inspección Técnica de Vehículos (ITV) regularly.
If your car is between 4 and 10 years old, you must pass the ITV every two years. Cars older than 10 years must pass it annually.
The inspector will place a colored sticker on your windshield showing the expiration date.
Questions and answers
Can I buy a car with a tourist visa?
No. You must have a NIE and a resident address registered in Spain. You must show a recent empadronamiento certificate to register a car.
Who pays the annual road tax in the year of sale?
The seller. The annual road tax is called the Impuesto de Vehículos de Tracción Mecánica (IVTM). The person who owns the car on January 1st must pay for that full year.
Can I use a gestor to handle the paperwork?
Yes. You can hire a professional gestor to handle the tax payment and DGT transfer. They usually charge between €100.00 and €150.00 for this service.
What is the environmental badge?
A sticker showing emissions levels. The distintivo ambiental is required to enter low-emission zones in Madrid. You can buy the sticker at any post office for €5.00.
What happens if the car has a unpaid debt?
The DGT will block the transfer. The seller must pay off all debts or bank embargoes before you can register the car. Always check the history report first.
How much does it cost to transfer a second-hand car?
It varies by car value. You pay the DGT fee of €55.70, the 4% regional ITP tax, and optional gestor fees. The total cost is usually between €200.00 and €600.00.
What if the ITV is expired when I buy the car?
You can still transfer the ownership. However, the DGT will not issue the new circulation permit until the car passes the ITV. You cannot legally drive the car to the ITV station.
