How to buy a used car in Spain like a professional!
The used car market in Spain is very active. And many foreigners are also interested to buy a used car in Spain.
If you have also decided to acquire a used vehicle, such as a car or motorbike, then follow the instructions below and you will find it easy to make a successful sale.
I will explain in detail the steps and formalities required to purchase a used vehicle or second-hand car (“coche usado o de segunda mano”) in Spain.
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Where can I buy a used car in Spain?
You can buy a used car from a private seller (“vendedores particulares”), e.g. via “Milanuncios”, “Wallapop” or from a professional car dealer (“concesionario o compraventa de segunda mano”).
When buying a vehicle from a professional dealer, the dealer normally takes care of the necessary formalities for re-registration. This means that you will receive the registration certificate of the vehicle (“permiso de circulación”) and the technical inspection card (“tarjeta de la ITV”) in your name and do not have to deal with any further administrative formalities.
What steps are required to purchase a second-hand car?
Basically, 6 steps are necessary to buy a used car in Spain:
- 1. checks before the purchase or conclusion of the contract
- 2. conclusion of the purchase contract (“contrato de compra venta”)
- 3. payment of the property transfer tax (“impuesto de transmisiones patrimoniales”) via Modelo 620/ 621
- 4. re-registration of the vehicle at the provincial traffic authority (“Jefatura provincial de Tráfico” – Tráfico for short)
- 5. taking out motor vehicle insurance in the buyer’s name from the date of purchase
- 6. payment of the municipal road tax from the following 1st January
What checks are important before buying?
First and foremost, it must be checked whether the vehicle is transferable at all (i.e. whether it can be re-registered to the buyer at the Tráfico).
In order to be able to re-register a motor vehicle, the following requirements must be met:
- It must be administratively registered.
- The motor vehicle tax (“Impuesto de Circulación”) for the previous year must have been paid to the municipality.
- All fines imposed for vehicle offences must have been paid (registered in the “Registro de Vehículo de la Dirección General de Tráfico – DGT”)
- It must be free of any restriction on disposal (reservation of title – “reserva de dominio” ) registered in the “Registro de Bienes Muebles” (unless there is express authorisation from the finance company or subrogation by the buyer)
- It must be free of seizure and sealing (“embargo o precinto”) or there is a document signed by the buyer confirming that he is aware of the situation of seizure or sealing of the vehicle.
You can carry out these checks using the so-called vehicle report (“informe del vehículo“), which can be requested from the “Dirección General de Tráfico (DGT)”.
If everything is correct, a green tick will appear on the report.
You should also check the following:
- the existence of a valid technical inspection of the vehicle (“Inspección Técnica de Vehículos” – ITV for short)
- the general condition of the vehicle by a specialist
- It also makes sense to ask for the maintenance book (“libro de mantenimiento”), the invoices for maintenance or service and repairs, and to check the mileage and age.
Note
All major modifications to the vehicle (such as accessories after the original purchase) should be indicated on the “tarjeta de ITV”.
What should I look out for when concluding a contract?
Once you have decided to buy, you must sign a used vehicle purchase contract (“contrato de compra venta de vehículos usados”) with the seller, specifying the details of the vehicle, the purchase price, the date and time of signing the contract.
The contract must be signed by both the buyer and the seller on each of the sheets that make it up.
The seller should at least make a declaration to this effect in the purchase contract:
- Whether the vehicle being transferred is free of charges and taxes (“cargas y gravámenes o impuestos”) and
- Whether it has valid insurance and ITV up to a certain date.
Here you can find a suitable car insurance policy for your vehicle:
International insurance for all your needs:
If you buy a used car in Spain from a professional dealer, the dealer should clearly state the vehicle warranty (see below) in the contract. This is important for claiming the warranty.
Once payment has been confirmed, the seller hands over the keys and the vehicle to its new owner.
Is there a warranty when buying a used vehicle in Spain?
Yes, there is. The duration of the warranty period varies depending on whether you buy the used vehicle from a private seller or a professional specialised company:
- Sale between private individuals (“entre particulares”):
The mandatory warranty period for a used car, which must be met, is at least 6 months. This means that private individuals must also accept responsibility for certain defects in the vehicle they sell for this period of time.
- Purchase from a car dealer: Here the warranty period is set at a minimum of 1 year.
In both cases, the seller is obliged to deliver the vehicle as specified in the contract, without hidden defects or faults (“vicios o defectos ocultados”).
If a hidden defect or fault occurs within 6 months or one year of delivery of the vehicle, the seller shall be liable to the consumer or user for any lack of conformity existing at the time of delivery. The consumer may request that the defect be remedied (repaired), the price reduced or the contract cancelled. In each of these cases, the consumer or user may also claim damages.
A necessary condition for you to be able to make a warranty claim on a used vehicle is that the defect was not obvious before the purchase. This means that if the car has an obvious malfunction before the transaction is finalised, you will not be able to make a claim later.
For this reason, it is necessary to request the relevant repairs before the purchase.
In the case of a car dealer, it is generally common for him not to refuse to accept his responsibility as long as it is within the legal conditions already mentioned. However, should they fail to do so, legal steps can be taken.
How do I pay the property transfer tax?
The transfer tax (“impuesto de transmisiones patrimoniales”) is a tax that must be paid instead of VAT (IVA) when property is transferred between private individuals.
This tax is paid on the purchase of used vehicles (cars, motorbikes, boats or aeroplanes) using form “Modelo 620 or 621”.
Modelo 620 must be presented physically and Modelo 621 electronically.
Who has to submit the Modelo 620/621, when and where?
This form must be presented by the buyer within 30 working days of signing the purchase contract.
The competent authority for submission is generally the autonomous community (“comunidad autónoma”) where you have your tax residence. In particular, the regional tax authorities (“Delegaciones de Agencia Tributaria”).
Each autonomous community has its own forms and almost all of them allow online payment. You should therefore check the website of the respective community for information on the type of submission and payment processing.
How high is the transfer tax?
The amount of the tax depends on the
- the real market value at the time of purchase of the used vehicle and
- the applicable tax rate, which can be between 4% and 8% depending on the autonomous community.
How is the vehicle re-registreted?
Once you have paid the vehicle transfer tax, the next step is to change the owner or keeper of the car in the vehicle register (“Registro de Vehículos”).
As the buyer of a used car in Spain, you have 30 days (from the signing of the purchase contract) to complete the transfer of the ownership.
There are 2 possibilities:
- In person, by presenting all documents to the relevant provincial traffic office (“Jefatura de Tráfico”) where you live. In this case, you must make an appointment online or by telephone on 060 (“cita previa”)
- via internet, using the online register (“asistente online”) from the Spanish traffic department (DGT). For this you will need your digital access data (“certificado digital, DNI electrónico o cl@ve-Pin”)
The application to change the ownership structure can be submitted by natural or legal persons, or their representatives with appropriate authorisation.
Entrepreneurs or legal entities can only complete their procedures online.
Recommendation for the seller:
As soon as the sale is completed, it is advisable to make a notice of sale (“notificación de venta”) with the Tráfico. Do not wait for the buyer to formalise the transfer, as sometimes buyers are too late, which can lead to problems.
Remember that fines for traffic offences and insurance premiums will continue to be charged to the previous vehicle owner as long as the change in the vehicle register has not taken place.
From the moment you give notice of the sale, the responsibility is no longer yours.
What documents do I need to submit for the transfer?
If you do the procedure in person, you must present:
- official application form (“cambio de titularidad”), completed and signed by both the buyer and the seller (also available from the Tráfico).
- Proof of payment of the fee purchased or a credit/debit card to make the payment on the spot
- Original registration certificate of the vehicle (“permiso de circulación”)
- Invoice or sales contract duly signed by the buyer and seller
- Proof of identity and address (passport/identity card, Spanish driving licence, residence card, passport plus registration certificate, empadronamiento). For legal entities: Tax identification card and proof of representation and identity of the signatory
- Document identifying the seller: A photocopy of the DNI (Spanish identity card) or one of the documents mentioned above is sufficient.
- Proof of payment or exemption of the aforementioned transfer tax (“impuesto de transmisiones patrimoniales -Modelo 620/621”), unless the seller is an entrepreneur in the exercise of his activity; in which case an invoice will be presented.
- In addition, further documents are required in special cases.
What does the re-registration cost?
Fee for the transfer of a vehicle in Spain: 55.70 € or 27.85 € for motorbikes (as of 2024)
If everything is in order, the transfer of the car will be carried out immediately. And you will receive a new registration certificate (“permiso de circulación”) for the vehicle on the spot, which is only valid if it has a valid ITV.
Taking out car insurance
What is still missing is the conclusion of a Spanish car insurance of your choice.
Note
Make sure that the vehicle you have purchased has valid insurance before using it on public roads. Driving without valid insurance leads to high fines.
