Moving to Spain? Bringing Your Car Tax-Free

If you are moving your home to Spain, you can usually bring your car without paying import duty, VAT or registration tax, provided you have owned and used it for at least six months. This relief, known as the transfer of residence exemption, is the single biggest saving available to people registering a UK car in Spain.

Is it easier if I am moving residence?

Yes, considerably. Someone importing a car without the exemption faces 10% customs duty, 21% VAT and a registration tax of up to 14.75%. Someone who qualifies still goes through the same paperwork, but the taxes fall away, leaving only the fees for the inspection, the registration and the plates.

The conditions for duty and VAT relief

The Agencia Tributaria sets out the conditions. You must have lived outside the EU for at least 12 months in a row before moving, and you must have used the car at your former home for at least six months. For the VAT exemption, the car must also have been bought with UK tax paid in the normal way, without any export exemption or refund.

Timing matters too. The car must be imported within 12 months of you setting up your normal residence in Spain. In exceptional cases you can import it before you move, if you commit to becoming resident within six months, although customs may ask for a guarantee.

Don't sell it too soon

For 12 months after customs accepts the import declaration, you must not lend, pledge, hire out or transfer the car, whether paid or free, without telling customs first. If you do, the taxes you were excused can become payable.

The registration tax exemption

A matching exemption applies to Spain's registration tax, under Article 66 of Spain's excise law. The car must have been used at your former home for at least six months before you left, and registration must be requested within the deadline, which is 60 days in these cases. The car must not then be transferred during the 12 months after registration. If you sell it within that year, the tax becomes payable.

What evidence will I need?

You will need to show when you moved and that you lived outside the EU beforehand. Useful documents include your padrón, residency documents, UK tenancy or property paperwork and a certificate from the consulate. To show how long you have had the car, your V5C and purchase invoice help.

The Canary Islands

The Canary Islands have their own sales tax, the IGIC, in place of VAT, and the regional tax authority applies its own transfer of residence rules. The broad logic is the same: at least six months of use and an import within a year of moving. We are happy to advise if you are heading to the islands.

Let us check whether you qualify

The rules are strict, and missing a deadline can cost you the exemption. Tell us when you are moving and how long you have had your car, and we will tell you whether you are likely to qualify. Email info@costa-cargo.com or call us in the UK on +44 7938 751 790 or in Spain on +34 711 022 816.

This guide is general guidance only and is not tax advice. The rules can change and depend on your circumstances, so please contact us for up-to-date advice.