If you own a car in Spain, you must budget for several ongoing costs. This guide breaks down the annual and monthly costs of owning and running a vehicle, from taxes to fuel.
You must calculate these numbers before buying a car to ensure you can afford the maintenance.
Initial purchasing costs
The purchase price of the vehicle is only the first expense. You must pay registration fees and taxes to DGT before you can drive.
Registration and transfer fees
If you buy a second-hand car, you must pay the property transfer tax (ITP).
In Madrid, this is 4% of the vehicle tax value. You must also pay the DGT transfer fee of €55.70.
If you buy a new car, you must pay 21% VAT (IVA) and registration tax.
Annual road tax (IVTM)
Every car owner must pay the municipal road tax.
This tax is called the Impuesto de Vehículos de Tracción Mecánica (IVTM).
The price depends on the municipality where your vehicle is registered. The tax is calculated based on the fiscal horsepower (caballos fiscales) of the car.
Madrid road tax rates
The Ayuntamiento de Madrid sets the local tax rates.
Here are the standard annual rates for passenger cars:
- Under 8 fiscal HP : €20.00 per year.
- 8 to 11.99 fiscal HP : €59.00 per year.
- 12 to 15.99 fiscal HP : €129.00 per year.
- 16 to 19.99 fiscal HP : €179.00 per year.
- Over 20 fiscal HP : €224.00 per year.
Electric vehicles get a 75% discount on this tax in Madrid.
Mandatory insurance costs
You must have active car insurance by law. The price varies depending on the coverage type and your driving history.
Average annual insurance costs
Here are the typical price ranges for an experienced driver over 25:
- Third-party only : €150.00 to €300.00 per year.
- Extended third-party : €250.00 to €450.00 per year.
- Full coverage : €500.00 to €1,000.00 per year.
If you are under 25, expect your rates to double or triple.
Technical inspection costs (ITV)
You must pay for regular safety inspections at an authorized station.
This inspection is called the Inspección Técnica de Vehículos (ITV).
Unlike other regions in Spain, Madrid has a deregulated ITV market. This means individual stations set their own prices.
Average ITV costs in Madrid
You should shop around to find the best rates.
These are the typical prices:
- Petrol cars : €35.00 to €45.00 per inspection.
- Diesel cars : €50.00 to €60.00 per inspection.
- Electric cars : €30.00 to €40.00 per inspection.
If your car fails the test, you must repair it and return within two months. The re-test is free if you use the same station.
Parking and toll fees
Parking in the center of Madrid can be very expensive. You must budget for parking permits or private garage rental.
Residential parking (SER)
If you live in a controlled parking zone, you can apply for a resident parking permit. This zone is called the Servicio de Estacionamiento Regulado (SER).
The resident permit is very cheap. It costs €24.60 per year.
This allows you to park in your designated neighborhood zone without time limits.
Private garage rental
If you do not have a resident permit, street parking is limited and expensive.
Renting a private garage space in the city center costs between €90.00 and €150.00 per month.
Highway tolls
Spain has a large network of free motorways called autovías.
However, some routes use toll highways. These highways are marked with the letters AP.
The tolls vary from €2.00 to €25.00 depending on the distance and vehicle class.
Fuel and charging costs
Fuel prices fluctuate regularly. Spain charges high taxes on petrol and diesel.
Petrol and diesel
An average driver covers 12,000 kilometres per year.
If your car consumes 6 litres per 100 kilometres, you will need 720 litres of fuel annually.
At average fuel prices, this costs around €1,100.00 to €1,300.00 per year.
Electric vehicle charging
Charging an electric car at home using a night tariff is cheap.
It costs around €2.00 to €3.00 per 100 kilometres.
Public fast charging stations are more expensive, costing €6.00 to €10.00 per 100 kilometres.
Worked example of monthly costs
This example shows the monthly budget for a medium used car in Madrid.
Example: You drive a used petrol car with 11 fiscal HP. You have extended third-party insurance and a residential parking permit.
Your monthly costs:
- Road tax: €5.00
- Insurance: €30.00
- ITV fee: €4.00 (annualized)
- Fuel: €100.00
- SER parking permit: €2.05
- Annual maintenance: €20.00
- Total monthly cost : €161.05
This total does not include the vehicle purchase price or private garage rental.
Questions and answers
Is parking free for electric cars in Madrid?
Yes. Vehicles with the blue Cero Emisiones sticker from the DGT can park for free in all SER green and blue zones. There is no time limit for these cars.
What happens if I do not pay the road tax?
You will receive a surcharge. The town hall will add a 5% to 20% penalty fee. If you still do not pay, the tax agency can freeze the money in your bank account.
How much does a basic car service cost?
Between €150.00 and €300.00. A basic annual service includes changing the engine oil, oil filter, and air filter. It also includes checking the brake pads and fluids.
How much do tyres cost in Spain?
Between €60.00 and €150.00 per tyre. The price depends on the brand and tyre size. Budget an additional €15.00 to €20.00 per wheel for mounting and balancing.
Are toll roads common around Madrid?
No. Most major highways leading out of Madrid are free. You only pay tolls if you use specific radial highways like the R-2, R-3, R-4, or R-5 to avoid traffic.
Do I pay more tax for a diesel car?
Yes. The municipal road tax tables list higher rates for diesel cars because they have higher fiscal horsepower calculations than similar petrol models.
