Vehicles, which will be registered in Spain, must pay a so-called registration tax on the current value of the vehicle. Its current value is determined as per an internal list of the revenue office (IRS). This list is based on the original value of the model and does not take into account any extra equipment. Therefore the taxable value is often lower than the real value.
In case of an owner change, a transfer tax of 4 or 8 % on the current value is due, depending on the Spanish tax schedule (caballos fiscales). This tax is not applicable if an official invoice was provided when the car was acquired from car dealer or a company. The invoice must show the VAT identification number (VAT No.) of the seller!
Apart from the taxes payable to the tax office, you will have to pay the local road tax, measured by the municipalities, and pay there. The municipalities have different ways of assessment. At present (January 2009) the road tax is still calculated based on capacity and fuel. The CO2- emission values are not taken into account. According to this system, an old jeep does not pay more than a new car with the same cubic capacity and fuel. An example: In Palma city an old jeep Cherokee built in 1987 with 4 l cubic capacity is charged approx. €230 per year.
Vehicles over 25 years may be exempt from road tax in (nearly) all municipalities. To this end, a special request must be presented to the municipality. We will be pleased to assist you in filling in this request and present it to your municipality.
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