The importation and registration of a vehicle can be a complicated and costly business, as permanent residents must register their car in Spain .
To import a car from the UK , the following requirements must be met:
- The vehicle's registration documents must be surrendered to the DVLA in the UK , in exchange for a certificate of permanent export (V561).
- Provision of a standardisation certificate for a right-hand drive car, which states that the vehicle complies with Spanish safety standards. This can be acquired from any Spanish ITV centre, which will perform an ITV test (equivalent to a MOT).
- Payment of a Special Registration Tax ( impuesto sobre circulación de vehículos ) of 12% calculated on the vehicle's value; VAT ( IVA ) of 16% if the vehicle is less than six months old (and therefore hasn't already had this tax paid on it); and an Import Duty of 10%. Note that the Special Registration Tax can be avoided if a certificate of non-residence in the UK is produced, which can be provided by a UK embassy - applications for this exemption must be made within one month of the start date of your residence permit.
- You need also to include a certificate from the Dirección de la Seguridad del Estado showing the date of issue of your resident's permit, and apply for an import license from the Ministry of Economics and Finance: Ministerio de Economía Hacienda, Castellana, 162, 28046 Madrid Tel 915 837 400 or 913 493 500 ( www.mineco.es site currently only in Spanish)
- Once imported, the car cannot be driven until your local provincial traffic department has issued a temporary green registration plate, which is valid for ten days, allowing you to complete an ITV test and receive a permanent registration number.
For more information, contact the Directorate-General of Customs in Madrid: Dirección General de Aduanas en Madrid, C/ Guzmán el Bueno 137, 28003 Madrid. Tel. (+34) 915 530 200.
Don't despair, however! In certain circumstances, most of these complications can be avoided. In the past it was possible to run a car tax-free; for their first six months in Spain new residents were classed as tourists, and able to simply use tourist plates. Once this expired, they would take the car back to the UK , return with the vehicle to Spain and apply for a tourist registration plate for a further six months. Unfortunately this is no longer possible, as citizens of the EU are no longer classified as tourists within the EU.
As a non resident, you are legitimately allowed to drive a UK registered car in Spain for a maximum period of three months initially. Once this expires, there are two options: to register the car in Spain ; or, if you can prove you are subject to very special (and undefined) circumstances, it may be extended by another three months.
It is possible, however, to only pay IVA of 16% on your vehicle. You must maintain a permanent residence inside the EU but outside of Spain , have no business activities in Spain , and use the car only for private purposes. This would entitle you to use annually renewable tourist plates, on which you would only pay IVA and municipal car tax. (Note: You can avoid paying IVA if you are on the point of transferring habitual residence to Spain , in which case there is a three-month grace period. Foreign newspaper correspondents, teachers in international schools, and employees with diplomatic status are exempt from IVA and suffer no restrictions on the use of their vehicle).
Another alternative is to buy a car in Spain . This also entails paying IVA of 16% on a new car. Furthermore, selling a car in Spain requires payment of a Transference Tax (impuesto de transmisiones) of 4%. Once again, the IVA can be avoided if a new resident buys a car with tourist plates, which will be valid for six months.