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Importing your car into Spain

Car importation is a topical subject among expatriates (and the expatriate press) in Spain, particularly as the rules and regulations have been changed much in the last decade. Importing a car into Spain involves a lot of paperwork and even though it has been much reduced in the last few years, many people still find the red tape forbidding and employ a (gestor)   to do it for them. In the past, the authorities tried to discourage the personal import of vehicles by erecting an almost impenetrable barrier of paperwork and taxes. However, under threats from the EU, the process has been simplified, although it still involves mountains of forms and can take a number of months (and costs around €750 in fees plus any taxes due!). The regulations vary depending on whether you're an EU resident or not. The procedure for the importation of a caravan or motorcycle with an engine capacity over 49cc is the same as for a car, although mopeds with engines below 49cc can be freely imported as part of your personal possessions and require no special paperwork.

Residents: A permanent resident of Spain isn't permitted to operate a car on foreign registration plates and must import it and operate it on Spanish plates. Vehicles registered outside the EU cannot generally be operated in Spain or any other EU country by EU residents (although there are a few exceptions). A vehicle imported tax and duty-free into Spain mustn't be sold, rented or transferred within one year of its registration. The importation of right-hand drive (RHD) cars was prohibited in 1991, but this was subsequently reversed after protests from British residents to the European Commission. However, registration of a RHD vehicle in Spain applies only to new residents already owning a RHD vehicle, and doesn't apply to residents of Spain who aren't permitted to purchase a RHD vehicle abroad and register it in Spain. However, many resident foreigners continue to illegally drive foreign-registered cars long after they have become residents without any apparent problems.

Homologation: Homologation (homologación) is the name given to the procedure whereby vehicles must comply with certain safety and other requirements before they can be registered. It's no longer necessary for vehicles previously registered in an EU country, although a standardisation certificate (ficha reducida) is required, which can be issued by any licensed Spanish engineer. However, a vehicle imported from a country outside the EU must still undergo homologation and must be certified by the manufacturer or an officially recognised laboratory and undergo a test before it can be registered in Spain. This costs between €120 and €375, depending on the make of car. It's a long and annoying process and the information demanded by the local authorities often varies depending on the province or region of Spain.

Taxes: The following taxes and duty must be paid when importing a vehicle into Spain:

Value added tax (IVA) at 16 per cent is payable on cars imported from outside the EU, or on a tax-free car (on which VAT hasn't previously paid) imported from an EU country.

A special registration tax (impuesto municipal sobre circulación de vehículos) of 12 per cent (11 per cent in the Canaries) is payable on vehicles imported into Spain, and is calculated on the vehicle's current value (based on the original market price in Spain). The exception is petrol-engined vehicles with a capacity of less than 1,600cc and diesel-engined vehicles under 2,000cc, on which the tax is 7 per cent (6 per cent in the Canaries). The tax also includes four-wheel drive vehicles, which were previously taxed at a lower rate. However, from Ist   January 1997 EU residents coming to live permanently in Spain and importing a car (on which they have previously paid VAT) they have owned for at least six months are no longer required to pay this tax. An application for exemption must be made with one month of the date of your residence permit.

.Import duty of 10 per cent is payable on vehicles imported from outside the EU.

The amount payable for each of the above taxes is based on the original price of the vehicle with a reduction for each year of its age up to ten years, e.g. 80 per cent after the first year, 70 per cent after two years, 50 per cent after four years, reducing to 20 per cent after ten years. Anyone wishing to import a vehicle into Spain must be a permanent resident, own property in Spain or have a rental agreement for a minimum of one year. For residents, the application must be accompanied by a certificate from the Dirección de la Seguridad del Estado showing the date of issue of the applicant's first residence card and stating that he has continuously lived in Spain from the date of issue. An application to import a car should be made as soon as possible after receipt of the residence card (residencia). During this period you must apply for an import licence to the Ministry of Economy and Finance (Ministerio de Economía y Hacienda), Castellana, 162, Madrid.

After you have completed the importation procedure you mustn't drive your car until the Ministry of Transport has issued temporary (green) registration plates. These are valid for a limited period and allow you to drive to the nearest testing station for an ITV test, which must be passed before you receive a permanent registration number.

Persons Resident Outside the EU: A person resident outside the EU may temporarily import a vehicle registered outside the EU for a total period of six months in any one year.