Buying a used car in Spain: checks, transferencia, taxes

Pre-purchase checks: informe DGT and inspection

The first rule of the Spanish used market: report first, emotions later. Given the car's plate (matricula), the DGT issues two kinds of report:

• Informe reducido - free: the basic status of the car and a yes/no answer on encumbrances.
• Informe completo - 8.67 euro (tasa 4.1; check the current fee at sede.dgt.gob.es): the number of owners, seizures (embargos), a car loan lien (reserva de dominio), the ITV status with the odometer history, the region of registration and any arrears on the IVTM tax.

Red flags in the report: a change of owner shortly before the sale, an odometer that jumps between ITV inspections, an active encumbrance, the baja status (the car has been deregistered). Any one of them is a reason either to walk away or to demand it is cleared before the deal.

A physical inspection still matters: the VIN on the body must match the ficha tecnica, the car must come with both documents - permiso de circulacion and tarjeta ITV (ficha tecnica) - and the ITV must be valid. For cars older than 4 years the roadworthiness test is compulsory, and buying one with an expired ITV means you cannot legally drive it away.

The sale contract

A deal between private individuals is documented with a written contract (contrato de compraventa) in two copies. The minimum content:

• full details of both parties (DNI/NIE, addresses);
• the car's details: make, model, matricula, VIN, mileage on the date of sale;
• the price and the method of payment;
• the condition of the car and a clause on hidden defects;
• who pays the taxes and the re-registration;
• the date, the time and the signatures (the time matters: from that moment liability for fines passes to the buyer).

Along with the contract the seller hands over: the permiso de circulacion, the ficha tecnica, the latest receipt for the IVTM tax (impuesto de circulacion) and the keys. It is worth taking a copy of the seller's DNI/NIE - you will need it for the transferencia.

Buying from a dealer or a company works differently: the price includes IVA instead of ITP, and the seller usually handles the re-registration. This article is about a deal between private individuals.

ITP tax and modelo 620

Buying a used car is subject to ITP (Impuesto sobre Transmisiones Patrimoniales). Three things you need to know:

1. The rate is set by the autonomous region, the standard range being 4-8% (many regions charge 4-6%, a few charge more). Some regions apply fixed amounts for older cars.
2. The base is not the price in the contract but the official value from the Ministry of Finance tables (valor venal): the model's base price multiplied by an age coefficient. Understating the price in the contract is pointless - the tax will still be calculated from the table.
3. The procedure is a self-assessment on modelo 620 (in some regions the electronic modelo 621) filed with the tax authority of the buyer's region, before you submit documents to the DGT. The standard deadline is 30 days from the date of the deal.

The ITP payment receipt is a mandatory document for the transferencia: without it the DGT will not re-register the car.

Transferencia: re-registration at the DGT

The final step is the change of owner (cambio de titularidad) at the DGT. It has to be done within 30 days of the purchase date. Ways to file:

• Online - at sede.dgt.gob.es with a digital certificate or Cl@ve;
• In person - at a Jefatura de Trafico with a cita previa;
• Through a gestoria - a professional intermediary handles everything for you, for a fee.

The set of papers: the application, the sale contract, the permiso de circulacion, the ficha tecnica, the paid ITP (modelo 620/621), your NIE/TIE, proof of address and payment of the state fee tasa 1.5 - 55.70 euro (27.85 euro for mopeds). The result is a new permiso de circulacion in your name; until it arrives you are given a temporary confirmation.

In parallel the seller should file a notificacion de venta (notice of sale, tasa 8.67 euro): from that moment fines and taxes stop arriving in their name, even if the buyer drags out the re-registration.

The full purchase budget

Do not forget: the insurance must already be in force on the day you drive the car away, and the IVTM tax for the current year is usually left paid by the seller (it is charged to whoever owns the car on 1 January).

How Krepko does this for you

Buying a car in a foreign country means the language, the tax tables, a cita at the DGT and the ability to read an informe between the lines. Within our Cars practice Krepko takes the process on:

• we check the car: full informe DGT, ITV history, encumbrances, whether the price is realistic;
• we draw up the sale contract with protective wording;
• we calculate and file the ITP (modelo 620/621) for your region;
• we run the transferencia and obtain the new permiso de circulacion;
• we find insurance that takes your driving record into account.

Legally significant steps are performed by licensed specialists - lawyers, gestores and sworn translators. Found a car you like? Leave a request - the review is free, and we will check it before you pay any deposit.

Sources

• Sede DGT: informe de un vehiculo (fees and ordering)
• Sede DGT: vehicle procedures
• Agencia Tributaria Valenciana: ITP and modelo 620