CAR IMPORT AND EXPORT

Six-month temporary stay

Genuine tourists and visitors are permitted to bring a foreign registered car to Spain, but it is not permitted to stay for longer than six months in any one year. Driving a foreign registered car temporarily in Spain requires appropriate insurance, a national identity sticker on the back of the car, two red triangles, spare bulbs, a reflective vest and a first-aid kit. The headlights need to be adjusted. In the case of an accident the insurance certificate, the drivers’ licence and a passport need to be kept handy. Permanently driving a right-hand drive car in Spain is not a good idea but if kept for more than six months in any year it should be tested and re-registered as a Spanish car.

This six-month period is based on the stay of the person rather than the stay of the car. The six months is the length a tourist can stay. A car can remain in Spain more than six months, but it cannot be legally driven. It is of course common knowledge that many citizens of other EU countries live full-time in Spain without obtaining a residence card and still operate their cars with foreign plates. While the police may turn a blind eye to the movement of EU citizens, foreign plated cars are viewed as a safety hazard since they have no regular MOT.

Spanish residents importing a car

There is a bewildering and ever-changing set of regulations covering the importation of cars. The motorist is seeking cost advantage by using cross-border purchasing and conversely European governments are seeking to block tax loopholes by equalising European law. A simplified approach to the issue goes like this.

• A new resident of Spain wishing to import a vehicle bought six months previously, with taxes paid in another EU country, can do so without any further tax charges.
• A vehicle bought tax-free in another EU country will require the payment of 16 per cent IVA on arrival in Spain plus the appropriate registration tax.
• A vehicle bought tax-free outside the EU will require the payment of 16 per cent IVA, the appropriate registration tax and a further import duty of ten per cent making a whacking 38 per cent for a car over 2000 cc.

It is a costly and complex procedure to import a car, involving proof of tax payment or otherwise and the cost of re-registering the vehicle in Spain. But for a new resident it brings the legislation for importing cars broadly in line with the regulations for importing household effects.

For those seeking commercial advantage, the price of cheaper premium cars available in Holland, Belgium and Germany requires to be balanced against a Spanish re-registration cost of around 700€. In the UK the vehicle’s registration document should be surrendered to the DVLA and a Certificate of Permanent Export obtained from them for presentation in Spain. The Spanish authorities will need a certificate (Certificado de Baja), issued by the British Consulate, to the effect that the owner has left the UK and intends to reside permanently in Spain.

Homologation is a name given to a procedure where imported vehicles must comply with Spanish safety standards before they can be registered. This is not necessary for vehicles manufactured in the EU. However, a vehicle imported from outside the EU must still undergo homologation and be certified by the manufacturer before it can be registered in Spain.

Non-EU citizens ‘sealing’ a car

Non-EU citizens can avail themselves of the strange practice of ‘sealing’ where they can keep a foreign registered car permanently in Spain but only use it for six months in any year, having it sealed by customs officials for the other six months. The sealing is done by the Guardia Civil who put tape across the steering wheel designed to ensure it is not used. It is a useful procedure for people who wish to keep their foreign registered car in Spain all year for use during short regular visits.

Non-resident, non-EU citizens with tourist plates

A tourist can purchase a new car just as easily as purchasing a new shirt. An exact definition is a non-resident, purchasing a car on tourist plates, which is an export registration available in a number of countries. It is called Matricula Turistica. The cost is less purchase taxes but not road taxes. The car can be driven for six months and then exported to the tourist’s home country of residence where appropriate taxes are then paid. This can only be beneficial if the purchase price in Spain and the tax regime back home are significantly lower than a total purchasing package back home.

It is also possible for non-residents to purchase a vehicle on tourist plates and renew them indefinitely. There is an annual fee for the renewal of tourist plates and of course the car can only be driven six months in a year.

Non-resident, EU citizens with tourist plates

A non-resident, EU citizen can also purchase a car on tourist plate. This time it is with IVA but no registration tax. It can be kept indefinitely in Spain but the six month rule applies. It’s bewildering!