Hi All, Apologies if this question has been asked many times before but can anyone please advise on the current ‘Non resident’ rules for buying a Spanish car as we are fed up paying inflated car hire prices! We have a holiday home and pay the normal non resident taxes ( in case we let out our property out which we dont) and we have an NIE number. Would our tax status need to change (from non resident tax ) and would we need a spanish driving licence? I understand that as in UK MOT/Road Tax and Insurance are required but are there any other costs / regulations / loops to jump through that we may not be aware of? Many Thanks Angela
Buying a Spanish registered car would not change your tax status.
You would not need a Spanish driving licence.
Posted: Thu Jul 22, 2021 3:16am
Very helpful member
Angela001 wrote on Wed Jul 21, 2021 8:53pm:
Hi All, Apologies if this question has been asked many times before but can anyone please advise on the current ‘Non resident’ rules for buying a Spanish car as we are fed up paying inflated car hire prices! We have a holiday home and pay the normal non resident taxes ( in case we let o...
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...ut our property out which we dont) and we have an NIE number. Would our tax status need to change (from non resident tax ) and would we need a spanish driving licence? I understand that as in UK MOT/Road Tax and Insurance are required but are there any other costs / regulations / loops to jump through that we may not be aware of? Many Thanks Angela
No to all of those questions! I've just completed on the sale of a second hand car to a non-resident British citizen and all he needed was a copy of his house deeds showing his name and the address of the property that he owns here and a copy of his NIE and passport.
Posted: Thu Jul 22, 2021 9:04am
Roland wrote on Wed Jul 21, 2021 10:07pm:
Buying a Spanish registered car would not change your tax status.
You would not need a Spanish driving licence.
Thanks Roland
Posted: Thu Jul 22, 2021 9:08am
Mags44 wrote on Thu Jul 22, 2021 3:16am:
No to all of those questions! I've just completed on the sale of a second hand car to a non-resident British citizen and all he needed was a copy of his house deeds showing his name and the address of the property that he owns here and a copy of his NIE and passport.
Thanks Mags
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Posted: Thu Jul 22, 2021 3:14pm
Super helpful member
Roland wrote on Wed Jul 21, 2021 10:07pm:
Buying a Spanish registered car would not change your tax status.
You would not need a Spanish driving licence.
I am not completely confident of this answer but owning a Spanish registered vehicle would make you libel for the payment of Spanish Tax on this. Therefore the tax office may say "you are a resident" I would advise you to or ask for advise from your gestor and not rely on an open forum. Although I belive it may not be a problem.
The tax system in some of the offices this country sometimes make up there own rules, I just received a tax demand for 6000 euros plus, sent to a property I sold in 2011.
Obviously I contested this and had an apology.
Posted: Thu Jul 22, 2021 3:15pm
Super helpful member
Roland wrote on Wed Jul 21, 2021 10:07pm:
Buying a Spanish registered car would not change your tax status.
You would not need a Spanish driving licence.
I am not completely confident of this answer but owning a Spanish registered vehicle would make you libel for the payment of Spanish Tax on this. Therefore the tax office may say "you are a resident" I would advise you to or ask for advise from your gestor and not rely on an open forum. Although I belive it may not be a problem.
The tax system in some of the offices this country sometimes make up there own rules, I just received a tax demand for 6000 euros plus, sent to a property I sold in 2011.
Obviously I contested this and had an apology.
Posted: Thu Jul 22, 2021 5:09pm
Very helpful member
eduardo3332 wrote on Thu Jul 22, 2021 3:15pm:
I am not completely confident of this answer but owning a Spanish registered vehicle would make you libel for the payment of Spanish Tax on this. Therefore the tax office may say "you are a resident" I would advise you to or ask for advise from your gestor and not rely on an open forum. Alt...
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...hough I belive it may not be a problem.
The tax system in some of the offices this country sometimes make up there own rules, I just received a tax demand for 6000 euros plus, sent to a property I sold in 2011.
Obviously I contested this and had an apology.
Yes, you are liable for the tax payable on the car, it's called the IVTM (impuesto sobre vehículos de tracción mecánica). Both my cars paid 38.40€ last year! Non-residents can buy cars as well as they can buy property - and they are not considered as residents when buying a property, if they are not resident. When the car title has been transferred to the new owner, the following January, the car will be registered in that person's municipio, along with his/her IBI payments. There are no other taxes for vehicles and they do not figure on your annual tax return.
Posted: Thu Jul 22, 2021 7:18pm
Super helpful member
Mags44 wrote on Thu Jul 22, 2021 5:09pm:
Yes, you are liable for the tax payable on the car, it's called the IVTM (impuesto sobre vehículos de tracción mecánica). Both my cars paid 38.40€ last year! Non-residents can buy cars as well as they can buy property - and they are not considered as residents when buying a property, if they...
Read more...
... are not resident. When the car title has been transferred to the new owner, the following January, the car will be registered in that person's municipio, along with his/her IBI payments. There are no other taxes for vehicles and they do not figure on your annual tax return.
I am fully aware of the tax law regarding vehicles and it is obvious you have to pay the IVTM I have been doing this for 20+years.
Unfortunately over the years many people have been flying under the radar and the Hacienda in Murcia/Cartagena region, are very quick to pick up new registrations without checking the persons history.
Posted: Mon Jul 26, 2021 7:04pm
Super helpful member
“but owning a Spanish registered vehicle would make you libel for the payment of Spanish Tax ”
Sorry Eduardo but your paranoia is making you spout rubbish. You just pay the road tax.
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