Problems When Buying a Used Car in Spain

We have recently had many clients that have had trouble transferring car ownership.
The Spanish car registration system is much more complicated than in many other countries.

So… I thought I would write this post to highlight a couple of the key problems people face when they have bought a car in Spain and want to change ownership into their name.

PROBLEM 1 - DODGY CAR DEALERS

dodgy car dealers in Spain

Buying from dodgy (or not even always dodgy) car dealers. It is very common for car dealers to sell a car and not transfer registration. Either they don’t want the expense or hassle of registering the car in the buyer’s name or they don’t have the correct documentation.
And so, the car is still in the previous owner’s name. Or, even the owner before that!

They usually tell the buyer that they will transfer it, and maybe even add a little extra on but car ownership transfer in Spain is the buyer’s responsibility. Many have found when they have a problem or come to sell the car that the car dealer didn’t do the transfer and they are not the legal owner.  By that time it is very difficult (if not impossible) to get the previous owner’s ID. You are then stuck with a car that you cannot legally sell.

Private Sellers

This also applies to buying from a private seller. People sometimes sell cars that are not legally in their name. If they never changed ownership, the car is in the previous owner’s name and you won’t be able to transfer it into your name. It’s always best to get a DGT vehicle report before buying a used vehicle. 

THE SOLUTION

You can insist on doing the car transfer yourself if you buy a car from a dealer. Make sure that they give you valid ID for the person whose name is on the Permiso de Circulacion (log book). You can go to the Jefatura de Trafico and do it yourself (car ownership transfer guide here), or use our car registration service for €60. If you let the car dealer do it, tell them you want the permiso in your name before you take the car.

I recommend that you get a car report done before buying a second-hand car. You can get this done on the DGT website or we can do it for €15. This report will show you the legal owner of the car and whether it has any fines or embargoes etc. It will also show you the ITV history so you can check if there are/were any serious problems with it.

For private sellers – Make sure that the sellers’ ID matches up with the name on the permiso de circulacion. If it doesn’t, either don’t buy the car or get valid ID of the previous owner from the seller before buying.

PROBLEM 2 - OUTSTANDING IVTM

IVTM proof of payment

IVTM (Impuesto Sobre Vehículos de Tracción Mecánica) or vehicle road tax hasn’t been paid for the previous year.
The tax is charged on the 1st of January, except for the first purchase of vehicles, when it will coincide with the day the purchase is made. It is due between April 1st and June 30th.

The tax is the responsibility of the registered owner on the 1st of January.
The tax must have been paid for the previous year to be able to transfer a car into your name.

THE SOLUTION

When buying a car always get proof of the IVTM payment from the seller. This could be in the form of an online receipt or a bank statement. Make sure that it clearly shows the ‘concept’ of the payment. Road tax is paid at the local town hall, by direct debit or even online now.

Therefore, if you buy a car after 1st January 2023, the seller must have paid the IVTM for 2022, 2023 tax is the responsibility of the previous owner and 2024 tax is your responsibility. If the seller can’t provide proof, we again recommend getting a DGT vehicle check done first.

CONCLUSION

1. If buying from a car dealer. Either you do the car ownership transfer,
or make sure you have the permiso de circulacion in your name before taking the vehicle.
2. Make sure the IVTM has been paid for the previous year before buying a used car.

I hope this article helps if you are looking to buy a used car in the future.
You must take your time when buying a car in Spain and make sure all the documentation is valid and up-to-date. This will save a lot of headaches and heartache further down the road.
If you want us to register a car in your name then contact us today.

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F.A.Q.

FAQ about buying and selling a car in Spain

Yes, you must have a NIE or residency document to put a car in your name. 

Yes, you must have one of the following to transfer ownership of a vehicle in Spain.

• Empadronamiento (updated)
• or property deeds/nota simple
• or rental contract. (Minimum 6-12 months)

No, the previous years’ road tax must be paid before you can legally own the vehicle. 

Yes, as long as you inform the buyer of the outstanding fines. It is still the seller’s responsibility to pay these fines. Depending on the debt, it may have to be paid before the vehicle can be transferred. 

Yes, many buyer’s have bought cars with embargoes to then find they cannot transfer ownership. Always get a DGT vehicle check done before buying a second-hand vehicle. 

You can request a detailed report from the Dirección General de Tráfico (DGT), called “Informe del Vehículo,” which shows any outstanding debts or fines. 

The Modelo 621 (ITP) tax is the responsibility of the buyer. This tax can be very high depending on the value of the car and it’s worth trying to calculate it before buying a vehicle. You may then be able to negotiate a lower price with the seller. 

Yes, we have transferred vehicles up to 2 years after the actual sale. As long as you have all the necessary documents and the previous years road tax is paid, it’s possible. 

Yes, but if the last ITV test was a failure (unfavourable), you will not be able to put it in your name. The test must be favourable first before you can transfer the title. If the ITV is due or the date has passed, we recommend you ask the seller to pass the test before you buy it. 

If the car has hidden defects not disclosed by the seller, you may have legal recourse. Under Spanish law, the seller is responsible for hidden defects (vicios ocultos) for six months from the date of sale. You can request a repair, price reduction, or even cancel the sale, depending on the severity.

You remain liable for fines and taxes until the car is registered in the new owner’s name. To protect yourself, notify the DGT of the sale using the “Notificación de Venta” form. To do this you must have the buyer’s details, NIE and a sales contract. 

Yes, but you need to grant power of attorney (poder notarial) to a representative in Spain who can handle the transaction on your behalf. Or we can do it, of course.

No. The finance company must provide consent for the sale. The outstanding loan needs to be paid of first.

Be careful – even when a financed vehicle has been paid off it still can’t be transferred until the register has been cleared. The car will have placed a block against it called a “reserva de domino”.

This reserva de domino is registered in the “Registro de Bienes Muebles (register for movable goods)” and has to be cleared from there.

 

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