Vehicle Tax in Spain

Vehicle tax in Spain applies to all owners of cars and other motorized vehicles (mopeds, motorcycles, trucks, tractors, etc.), with the exception of bicycles. It is divided into several types—some are one-time payments, while others are recurring. This tax is intended to fund road infrastructure and support environmental initiatives.

Types of Vehicle Taxes in Spain

Several types of mandatory payments are in force in the country:

Impuesto sobre Vehículos de Tracción Mecánica (IVTM)

This is levied by municipalities, so the amount varies depending on the location. It also depends on fuel volume and engine power. The tax is paid only in the municipality where the vehicle is registered. The average annual cost ranges from €20 to €140. Exempt from payment are:

1. Ambulances
2. Public transportation vehicles
3. Vintage cars
4. Vehicles adapted for people with disabilities
5. Agricultural vehicles registered in the official registry
6. Diplomatic vehicles and those covered by international agreements

All other vehicle owners are required to pay this tax.

Impuesto de Matriculación

This is a one-time registration fee paid upon the initial registration of a vehicle. It applies whether the car is bought new or imported. The tax is calculated based on the vehicle’s CO2 emissions. Vehicles that emit up to 120 g of CO2 per kilometer are exempt. The higher the emission, the higher the tax. The maximum rate is 14.75% of the vehicle's net value at the time of registration. Exemptions apply to:

1. Vehicles adapted for people with disabilities, as long as they are not sold or transferred to relatives within 4 years
2. Driving school cars
3. Taxis

Large families receive a 50% discount.

Impuesto sobre el Valor Añadido (IVA)

This is VAT applied when purchasing a new vehicle. The standard rate is 21%. For individuals with disabilities, it is reduced to 4%. Sole traders and self-employed individuals may include VAT on commercial vehicles in their quarterly tax reports submitted to the tax office.

Impuesto Especial sobre Determinados Medios de Transporte (IEDMT)

This is a special tax on certain types of vehicles, such as historic or collectible cars and used vehicles over 30 years old that are of cultural or historical value but still in use.

Vehicle Tax Calculation

The key factors affecting the tax amount are:

1. Engine power
2. Environmental classification
3. Vehicle age

The calculation is based on multiplying the car’s base net value by a coefficient that reflects these factors. The resulting amount is then multiplied by the applicable tax rate, which also depends on fuel type. Depreciation rates based on vehicle age are as follows:

1. Up to 1 year – 100%
2. 1–2 years – 84%
3. 2–3 years – 67%

CO2 emission tax rates (in g/km) are:

1. Up to 120 – 0%
2. 121–159 – 4.75%
3. 160–199 – 9.75%
4. Over 200 – 14.75%

Engine power has a significant effect on the tax amount. For example, in Alicante, a passenger car with 143 hp is taxed at €172. To simplify the calculation, online calculators can be used—some for used vehicles, others for various types (cars, trucks, motorcycles, quad bikes, motorhomes).

How to Pay Vehicle Tax

This mandatory tax is paid in the municipality where the vehicle is registered, either in person, at a bank, or via the tax authority’s website. It is collected during the last quarter of the year for the period from January 1 to December 31. Automatic payment from a bank account grants a 2% discount. Specific payment deadlines are outlined in the so-called taxpayer calendar. To pay, you need the vehicle registration certificate and the tax notice. Late payment results in fines.

Discounts and Exemptions

Partial or full exemptions may be granted to:

1. People with disabilities
2. Pensioners
3. Large families

A formal application must be submitted, and a response is typically given within 15–30 days. Additional exemptions apply to:

1. Electric vehicles
2. Hybrid vehicles
3. Historic cars

For example, if a vehicle is over 25 years old, the owner may be fully exempt, provided the car is restored and displayed in exhibitions. In Barcelona, accreditation is required to qualify as a historic vehicle. A 75% discount is offered to vehicles meeting at least one of the following criteria:

1. Electric
2. Uses biofuel, methane, LPG, or hydrogen
3. Hybrid with minimal CO2 emissions

For the first five years after registration, owners of petrol-powered vehicles are entitled to a 25% discount. Families that include a person with disabilities or are involved in social initiatives may be eligible for subsidies to help cover the tax. To claim a discount or exemption, documentation must be submitted proving the owner's status, as well as documents showing the vehicle’s CO2 emission level and fuel type.

Penalties for Non-Payment

In Spain, all vehicle owners (unless exempt) must pay the vehicle tax. Failure to do so results in a fine of 50% of the unpaid amount. The tax itself must still be paid in full, and additional interest may apply. In severe cases, legal action may be taken, and assets may be seized. To avoid missing a payment, it’s wise to set reminders. Timely payment helps avoid unnecessary expenses.

Conclusion

There are several types of vehicle taxes in Spain—some are annual, others one-time or periodic. Their rates are regulated regionally. When calculating the tax, authorities take into account the car’s age, CO2 emissions, fuel type, and engine power. To avoid limitations on using your vehicle, make sure to pay the taxes on time. The El Relocator team can help you understand applicable taxes and rates, claim exemptions, and correctly fill out all necessary forms. We work with qualified gestores.