Importing a car to the Canary Islands correctly: Steps & taxes

If you want to permanently import a vehicle from an EU country or third country to the Canary Islands, customs formalities must be completed, among other things. In addition, import taxes must be paid, as the Canary Islands have a special status under tax law.

Thorough preparation is therefore required when importing a car to the Canary Islands.

It is advantageous to know which specific steps need to be taken when importing a vehicle before registering it, how the customs declaration is made and which import duties are payable and in what amounts.

It is particularly interesting to know when an exemption from customs duties and the Canary Islands tax (IGIC) is granted due to a change of residence (relocation) and which documents must be submitted to customs as proof.

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I am only travelling to the Canary Islands temporarily. What do I need to do?

If you are travelling to the Canary Islands in a private vehicle (from mainland Spain, the Balearic Islands or another EU country), no customs formalities are required.

The maximum period of stay of the vehicle in Spain must not exceed 6 consecutive months. At the end of this period, it must be re-exported.

During your stay in Spain, the vehicle must be used privately and may not be lent, hired out or transferred.

If your stay in the Canary Islands is longer than 6 months, you must submit a final import declaration or apply for a temporary import permit.

Special status Canary Islands

The Canary Islands (e.g. Tenerife, Gran Canaria, Fuerteventura, La Palma, Lanzarote) have a special status within Spain and the EU. Although they belong to the customs territory of the European Union, they do not belong to the tax territory for excise duties and value added tax (VAT).

Consequently, the Canary Islands have a different value added tax to mainland Spain, the so-called general indirect Canary Islands tax (‘Impuesto General Indirecto Canario’ – IGIC for short) – also known as island tax.

This local tax on consumption has different tax rates and must also be taken into account when importing goods.

What counts as an import to the Canary Islands?

The entry of goods from third territories into the Canary Islands is considered an import, regardless of the intended use or the status of the importer.

For the purposes of the IGIC, third territories are defined in Article 8.1 of the Canary Islands Tax Law as

• mainland Spain, the Balearic Islands, Ceuta, Melilla,
• any other Member State of the European Union or
• third countries.

This means that the transfer of a vehicle from an EU country to the Canary Islands, for example, is also considered an import and is therefore subject to import VAT (IGIC).

What do I have to do when I permanently import a vehicle to the Canary Islands?

When importing a car to the Canary Islands definitively, the following 2 main steps are generally required:

Step 1: customs declaration and payment of import duties, if applicable:

You must submit an import customs declaration (DUA) for the import clearance of your vehicle.

The DUA (‘Documento Único Administrativo’) is a central customs document used to declare goods to the customs authorities when importing or exporting to or from a customs territory.

It serves as the basis for customs clearance and calculation of the import duties to be paid (such as customs duties and import VAT).

Step 2: Registering the vehicle on the Canary Islands

After importation (customs clearance), you must register or re-register the vehicle you are bringing from abroad or have purchased there with a Spanish provincial traffic authority (‘Jefatura provincial de tráfico’).

You will usually have to complete the following formalities beforehand:

• Take the vehicle for a roadworthiness test (ITV)

• Payment of the municipal road tax (‘Impuesto de circulación’ – IVTM) and

• Payment of the registration tax (‘Impuesto de matriculación’ – IEDMT) – Exemption possible due to change of residence (relocation)

• When buying a used vehicle from a private individual, the regional transfer tax (‘Impuesto de Transmisiones Patrimoniales’ – ITP) applies in the Canary Islands.

You can find out more about registering a car in Spain in my specialist article – Register a car in Spain: The ultimate guide!

In the following, I will concentrate on the customs formalities, in particular the payment of or exemption from import duties.

How is the DUA to be submitted?

The DUA or import declaration must in principle be submitted electronically in VEXCAN.

With VEXCAN, the State Tax Administration (AEAT) and the Canary Islands Tax Authority (ATC) have set up a single valid point for the submission of declarations electronically in order to carry out import customs clearance for both customs duties and IGIC.

Whereby the AEAT is responsible for customs duties and the ATC for IGIC.

The preparation and submission of the customs declaration is usually delegated to customs agents (‘agentes de aduana’) or customs representatives, as the actual completion of this document is complex and requires some specialised knowledge.

Customs agents usually work for customs agencies (‘Agencia aduana’), which can be found in larger towns and harbours in the Canary Islands.

What taxes are incurred when importing a car to the Canary Islands?

Depending on which country (EU country or non-EU country) the vehicle comes from, the following import duties must be paid at customs using the import declaration mentioned above. Unless there is an exemption due to relocation (see below):

1) For vehicles from the EU, mainland Spain or the Balearic Islands:

• General Indirect Canary Islands Tax (IGIC)

2) For vehicles from non-EU countries (e.g. Switzerland, UK, USA):

• Customs duties

• General Indirect Canary Islands Tax (IGIC)

How high are the customs duties?

Currently, the following customs duties generally apply to non-EU vehicles:

• Cars: general: 10 %

• Motorcycles with an engine capacity of 250 cm³ or less: 8 %

• Motorcycles over 250 cm³: 6 %

What is the Canary Islands import tax for vehicles?

Deliveries or imports of motor vehicles to the Canary Islands are generally subject to IGIC at the following rates (except in the case of relocation under certain conditions): Art. 59 Ley 4/2012

Tax rate of 0 %:

• Hybrid electric vehicles whose emissions do not exceed 110 grams of carbon dioxide per kilometre driven

• Electric vehicles, with the exception of vehicles intended for sports or leisure purposes

• Bicycles, pedal-assisted bicycles, scooters and electric scooters

• Vehicles powered by fuel cells

Reduced tax rate of 3 %:

The following vehicles, provided they are not taxed at zero rate:

• Vehicles for persons with reduced mobility as defined in the Spanish General Vehicle Regulation

• Taxis or cars intended either directly or after adaptation for the regular transport of persons with disabilities in wheelchairs or with reduced mobility.

This reduction is subject to the prior recognition of the origin of the vehicle by the Canary Islands Tax Agency.

To this end, the buyer or importer must submit an application to the authorities, justifying the intended use of the vehicle.

Depending on the case, further conditions must also be met,

General tax rate of 7 %:

The following vehicles, among others, which are not subject to the 0 % or 3 % tax rate:

• Motor vehicles which, by their objective nature, are used only for the transport of goods or exclusively for industrial, commercial, agricultural, clinical or scientific purposes

• Adaptable mixed vehicles under certain conditions

• Two-, three- and four-wheeled vehicles that meet the legal definition of mopeds

• Buses or taxis

Increased tax rate of 9.5 %

• Motor vehicles with a power of up to 11 taxable horsepower (‘CV fiscales’) and other vehicles that are not taxed at the zero, reduced, general or increased rate of 15%.

Increased tax rate of 15 %:

• Vehicle with a power of more than 11 tax horsepower that is not subject to the zero rate, the reduced rate or the general rate.

• Caravans and motorhomes

• QUAD/ATV vehicles, regardless of their power

What value is used for the tax base?

The taxable basis for customs duties and IGIC on imports to the Canary Islands is the customs value of the vehicle.

This value is primarily determined according to the transaction value (purchase price paid according to the invoice, if applicable after adjustments) if the import is the result of a purchase transaction.

If there is no transaction value (e.g. in the case of used vehicles brought in), the customs value can be estimated on the basis of the customs value regulations.

In this case, the market value of the vehicle at the time of import is often used in accordance with the Ministry of Finance regulation on average selling prices.

When am I exempt from customs duties and IGIC?

The conditions for exemption from customs duties under the EU Regulation and for exemption from IGIC under the Canary Islands tax regulations are largely identical and can be summarised as follows:

• Import of vehicles for personal/private use. This includes motorcycles, private motor vehicles and their trailers, camping caravans, pleasure craft and private aeroplanes.

• Transfer of habitual residence (or intention to transfer) to the Canary Islands by a natural person

• Habitual residence outside the customs territory of the European Union (for the duty exemption) or outside the Autonomous Community of the Canary Islands (for the IGIC exemption) for at least 12 consecutive months.

If you come from mainland Spain, the Balearic Islands, Ceuta, Melilla or another EU member state, you must have stayed at your previous place of residence for 185 days per calendar year to qualify for the IGIC exemption.

• Use of the vehicle for at least 6 months prior to the relocation by the person concerned

• Import of the vehicle to the Canary Islands within 12 months of the relocation.

If the owner of the vehicle is not a resident of the Canary Islands, he/she must register the address with the municipality (‘empadronamiento’) there within a maximum of 6 months after the arrival of the vehicle. The certificate of registration of residence must then be submitted to the competent authority within this six-month period.

• After importation, the vehicle may not be lent, pledged, hired out, sold or transferred free of charge for a period of 12 months, unless there is a justified reason. The customs authority must be informed of this in advance.

If expressly requested by customs, proof must also be provided that the following conditions are met:

• The vehicle must be used for the same purposes at the new place of residence as at the previous one.

• Exemption from IGIC requires that the goods have been acquired or imported under the normal taxation conditions of the country of origin and that no exemption or refund of the tax due on leaving the country of origin has been granted.

How do I apply for exemption from import duties?

The customs and IGIC exemption when importing a car to the Canary Islands is applied for directly in the import declaration (DUA), without the need for a prior application.

Private individuals importing vehicles with Spanish licence plates can request that the Canary Islands Tax Authority (ATC) process the DUA for them.

What documents must be presented to customs?

As a rule, the following documents must be attached to the import declaration (DUA):

• Proof of identity and contact details or authorisation for customs clearance if customs clearance was carried out by a customs agent. You should have a NIE number as well.

• Vehicle documents (registration certificates and technical documents)

• Original invoice or purchase contract, if applicable

• Declaration of the value and date of purchase of the vehicle

• Ferry ticket for the vehicle

What proof is required for the exemption?

When applying for customs or IGIC exemption due to a change of residence, the following documents can be presented as proof of fulfilment of the above requirements:

1.) Proof of the date of establishment of residence

• Certificate of registration of your address (‘empadronamiento’) with the new municipality in the Canary Islands, showing the date of registration.

2) Proof of transfer of residence (deregistration of former residence):

a) Persons resident in Spain who transfer their residence to the Canary Islands:

• Registration of the new residence address with a municipality in the Canary Islands.

b) Persons not resident in Spain who transfer their residence to the Canary Islands:

• A document from the competent consulate confirming the deregistration of habitual residence in the country of origin or an

• equivalent document notifying or requesting the transfer of residence to a local authority in the country of origin and

• the application or registration in the Central Register of Foreigners in the case of EU citizens (registration certificate) or

• the application or the Foreigner’s Identity Document (TIE) in the case of third-country nationals

3.) Proof of habitual residence outside the EU customs territory or Canary Islands

This can be done by any means of proof. Some examples of possible proof are listed below:

• Proof of tax residence,
• Employment contracts indicating the habitual residence,
• Proof of electricity consumption showing permanent use of the home,
• Insurance contracts for the habitual residence

4.) Proof of the duration of use of the vehicle

Proof of ownership of the vehicle stating the date of purchase.

• vehicle documents in which the vehicle is registered in the name of the person importing the motor vehicle or, for example, a
• vehicle insurance contract in the name of the importer or a bank certificate of payment of the vehicle’s insurance premiums

Registration at the vehicle registration authority

After customs clearance and receipt of the customs documents, you must have your vehicle with foreign licence plates technically checked at an ITV station, pay the necessary taxes (road tax, registration tax), unless an exemption is possible, and finally register or re-register it at the Provincial Traffic Department for a Spanish licence plate.

The registration tax for cars on the Canary Islands is lower than on the Spanish mainland or Balearic Islands:

CO2-Emission	Steuersatz
unter 120 g/km	0,00 %
zwischen 120 u. 160 g/km	3,75 %
zwischen160 u. 200 g/km	8,75 %
über 200 g/km	13,75 %

You can find out all the necessary steps and formalities in this regard in my specialist articles under the topic ‘Vehicle’.

In order to be able to drive legally on public roads, you must also take out Spanish car insurance.

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