Vehicle tax in Spain: what you pay and when
11/05/2025 
Reading time: 4 min Vehicle tax in Spain: IVTM, registration tax, VAT and exemptions
If you own a car in Spain, you deal with several different vehicle taxes — some annual, some one-off. The one everyone pays every year is the IVTM (road tax), set by your municipality and typically €20–140. On top of that come one-time taxes when you first register or import a car, based mostly on its CO₂ emissions. Bicycles are the only motor-free exception. Here's what you actually pay and when.
- Every yearIVTM ≈ €20–140Municipal road tax, depends on engine power and location.
- On first registration/importMatriculación (0–14.75%)By CO₂; exempt up to 120 g/km.
- Buying a new carIVA 21%Reduced to 4% for people with disabilities.
- Electric / low-CO₂discountsMany municipalities cut IVTM by up to 75%.
- Not paying+50% finePlus interest; in severe cases, asset seizure.
The four vehicle taxes
| Tax | When | How much |
|---|---|---|
| IVTM (road tax) | Annually | ≈ €20–140, set by the municipality (engine power, location) |
| Impuesto de Matriculación | Once, at first registration or import | 0–14.75% of value, by CO₂ (exempt ≤ 120 g/km) |
| IVA (VAT) | Buying a new vehicle | 21% (4% for people with disabilities) |
| IEDMT | Certain/collectible vehicles | Special tax on specific transport (e.g. historic cars) |
IVTM — the annual road tax
Levied by municipalities, so the amount varies by location, plus engine power. Paid only in the municipality where the vehicle is registered — on average €20–140 a year. Exempt: ambulances, public transport, vintage cars, vehicles adapted for people with disabilities, registered agricultural vehicles, and diplomatic vehicles. Everyone else pays.
Registration tax (Matriculación)
A one-time fee on first registration, whether the car is bought new or imported, calculated on CO₂ emissions: vehicles emitting up to 120 g/km are exempt, and the more they emit, the higher the rate — up to 14.75% of net value. Exemptions apply to vehicles adapted for people with disabilities (if not sold or transferred within 4 years), driving-school cars and taxis. Large families get a 50% discount. If you're bringing a car from abroad, see how to import and legalise your car in Spain.
VAT and the special tax
IVA (VAT) applies when buying a new vehicle — standard 21%, reduced to 4% for people with disabilities; autónomos can include VAT on commercial vehicles in their quarterly returns. IEDMT is a special tax on certain vehicles, such as historic or collectible cars.
Discounts and exemptions
Many municipalities cut IVTM by up to 75% for greener vehicles:
- fully electric;
- running on biofuel, methane, LPG or hydrogen;
- hybrids with minimal CO₂ emissions.
Petrol vehicles often get a 25% discount for the first five years after registration. To claim any discount or exemption, submit documents proving your status and the vehicle's CO₂ level and fuel type.
Penalties for non-payment
Every non-exempt owner must pay. Missing it means a fine of 50% of the unpaid amount — and you still owe the tax in full, plus possible interest. In severe cases it can lead to legal action and asset seizure. Set reminders: municipal IVTM has a fixed annual payment window.
Frequently asked questions
Official sources:
• Agencia Tributaria — registration tax and VAT
• DGT — vehicle registration
