Spain for Migrants: All the Secrets of Car Buying!

Many migrants, when planning a move to Spain or already residing there, sooner or later consider buying a car. Certainly, having your own vehicle provides greater freedom of movement, saves time, and makes life easier—especially if you live in remote areas or plan active travel around the country. However, many questions arise: where to start, what documents are needed, how to avoid unnecessary tax expenses, and where to find the right car? This article will help clarify the topic and provide answers to the main issues migrants face when buying a car in Spain.

Main Difficulties When Buying a Car in Spain

1. Document Processing and Buyer Status. For a migrant who is not a Spanish citizen, it is necessary to consider the nuances of their legal status. First of all, this involves obtaining the NIE (Número de Identificación de Extranjero) – the foreigner’s identification number, which is key to all financial transactions and official procedures.

2. Taxes and Additional Expenses. Purchasing a car is not only about the cost of the vehicle but also involves mandatory payments: registration tax, road tax, insurance payments, and annual fees for technical inspections.

3. Debts and Fines Associated with the Car. Many are concerned about buying a car that has outstanding debts for road taxes, fines, or seizures. If the previous owner’s debts are not settled, the new owner’s registration may be rejected.

4. Differences in Price and Vehicle Condition. In large cities (Madrid, Barcelona) cars are often more expensive than in smaller towns. Moreover, climatic conditions, frequent scratches, and inadequate maintenance by previous owners can affect the condition of a used car.

5. Language Barriers and Finding Reliable Information. Not all migrants are fluent in Spanish, so when signing contracts, verifying documents, or undergoing the registration process, difficulties may arise. It is important not to overlook any details and to follow all established rules.

How to Solve These Problems and What You Need to Know

1. Obtaining the NIE (Número de Identificación de Extranjero)

For any major purchase, whether it is real estate or a car, Spain requires the NIE (Número de Identificación de Extranjero). This number is necessary so that the authorities can identify you in fiscal and legal matters. Without the NIE, buying a car—especially one above a certain value—becomes difficult or even impossible.

• Where to obtain it: usually at the local police station based on your registration (empadronamiento) or at the relevant government offices.
• Required documents: a valid passport, a completed application form, payment of the applicable fee, and proof of legal residence in the country.
• Processing time: the procedure may take several days or weeks, depending on the region and the workload of the authorities.

2. Choosing the Car: New or Used?

Before making a final decision, it is important to assess your financial capabilities and the requirements for the car. There are several options:

• New Car. This guarantees factory specifications, no previous owners, and immediate readiness for use without major repair expenses. However, the price is significantly higher, and when buying a new car in Spain you must pay the IVA (Impuesto sobre el Valor Añadido), that is, VAT, which amounts to 21%.
• Used Car. In Spain, there is a well-developed market for second-hand vehicles. They are much cheaper, but there is a risk of purchasing a car with debts, fines, or technical issues. Therefore, always check the car’s history through the DGT (Dirección General de Tráfico) or request a full report on its condition (mileage, technical inspections via the ITV (Inspección Técnica de Vehículos), any encumbrances, etc.).

3. Documents Required for a Migrant When Buying a Car

To ensure the car purchase proceeds smoothly, prepare the essential documents in advance:

• NIE (Número de Identificación de Extranjero). Without this identification number, carrying out legal financial transactions is virtually impossible.
• Passport. It must be valid at the time of purchase.
• Proof of residence (original and copy). This could be a rental contract in Spain or a document proving property ownership.
• Empadronamiento, if available. It is generally required to confirm your address.
• Certificate of resident/non-resident status. If you are a non-resident, you must confirm the legality of your stay in the country.

4. Checking the Car Before Purchase

One of the main concerns for migrants is buying a car with “surprises.” To avoid problems, you need to ensure that the car does not have any unpaid fines, seizures, or taxes. It is recommended to:

• Request a report from the DGT (Dirección General de Tráfico). This report details the vehicle’s history, including any unpaid fines or taxes.
• Check the validity of the ITV (Inspección Técnica de Vehículos). Without a valid ITV, the car is not permitted to be on the road.
• Ensure that the seller has paid the road tax for the current year.
• When buying from a private seller, sign a sale contract (Contrato de compraventa) that includes all the seller’s and buyer’s details, the technical specifications of the car, and the transaction amount.

5. Taxes, Fees, and Charges

Spain imposes several main taxes related to the acquisition and maintenance of a car:

• Registration Tax (Impuesto de Matriculación). This tax is applied based on the car’s CO2 emission levels. The higher the emissions, the higher the rate.
• Road Tax (Impuesto sobre Vehículos de Tracción Mecánica). This is an annual tax whose amount depends on the type and power of the car, as well as the municipality where it is registered.
• ITV (Inspección Técnica de Vehículos). This is the technical inspection that must be carried out every 1–2 years (depending on the car’s age) for which a state fee is paid.
• Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP). When buying a used car, a tax of between 4% and 8% of the contract amount is charged. The exact percentage depends on the region and the characteristics of the car.

6. Insurance (Seguro)

Car insurance in Spain is mandatory. At a minimum, a liability policy covering third-party damages is required. However, many choose a more comprehensive coverage (full casco) to protect against theft, accidents, and unforeseen events.

• Types of policies: from basic (only liability) to comprehensive (covering own damages, theft, vandalism, etc.).
• What companies consider: the driver's age, driving experience, the type and value of the car, and the region of residence.
• Indicative cost: for budget cars with low mileage, it can start from 200–300 euros per year, while for expensive cars, it can exceed 1000 euros.

7. Registration Procedure for the New Owner

After signing the sale contract, it is necessary to formalize the transfer of ownership. To do this:

• Prepare all the documents (contract, tax payment receipts, NIE (Número de Identificación de Extranjero), passport).
• Pay the registration fees (at the Dirección General de Tráfico or via the electronic system, depending on the region).
• Obtain the new registration certificate in your name (Permiso de Circulación).

It is important to complete this within 30 days from signing the contract. Otherwise, complications may arise, including penalties.

8. Payment Methods

Most sellers prefer to receive payment via bank transfer or check. A Spanish bank may require justification for the source of funds, so if you are a non-resident, be prepared to prove the legality of your income.

Generally, paying large sums in cash is complicated, as Spanish law requires that any transaction above a certain limit be conducted through banking institutions.

Summary and Tips

Buying a car for a migrant in Spain can seem complicated due to the abundance of documents, taxes, and potential risks. The main issues are related to not knowing the proper procedures, language barriers, and difficulties in verifying the vehicle. However, with a well-planned approach and careful attention to detail, each step becomes predictable and logical.

The most important thing is to obtain the NIE (Número de Identificación de Extranjero) and to have all your documentation in order. Be sure to verify that the car has no debts, fines, and that it has a valid ITV (Inspección Técnica de Vehículos). Also, consider all the expenses in advance: the registration tax, road tax, insurance premium, and any technical inspections. If necessary, you can seek help from specialists (lawyers or experienced intermediaries) who can assist with processing and verification.

Following these recommendations will help you avoid unpleasant surprises and make the car purchase in Spain as transparent and secure as possible. As a result, you will obtain a reliable vehicle, save time and money, and confidently enjoy traveling throughout the country.