Second hand cars in Spain are known as ‘vehiculos de ocasión’. When researching used cars in Spain don’t expect the prices to be similar to their UK counterparts. Used cars in Spain hold their value for much longer and can appear to be somewhat expensive. This is largely due to the climate in Spain; lack of rain results in cars not falling prey to rusting, and consequently lasting much longer.

Vehicles can be bought privately or through a dealer. Regardless of where you buy a car, you should check that its documentation is correct. The same can be said if you are the seller of a vehicle. In this instance, the procedure will run more smoothly if you ensure that the documentation for the car you are selling is in order.

What documents should a car have?

Permiso de Circulación - This is the Spanish equivalent to the UK Log Book. It states the car’s make and model details, registration number, chassis number, the year of first registration, along with the name and address of the current owner. The Permiso de Circulación is valid if the name and address are correct and the details correspond to the car.

Certificado del Inspección Técnica – This is also known as the ITV, the Spanish equivalent to a UK MOT certificate. It states the car details, and is stamped and dated with the last ITV inspection passed, along with when the next inspection is due. The expiry of the ITV is also shown on a sticker displayed on the front windscreen of the vehicle.

The ITV may well be out of date, or nearing its renewal date. If this is the case, you would be well advised to ask the owner to obtain a new ITV before buying the vehicle as the car may be for sale because the owner knows about an ITV problem that is not immediately obvious to a prospective buyer.

Impuesto municipal sobre vehiculos de tracción mecánica - This is the road licence fee. It is payable annually to the town hall of the municipality where the owner of the car is registered. It is possible that the Impuesto Sobre Vehiculos is out of date by one or more years. This is because the onus is on the owner to ensure that the payments are made each year. If you buy a second hand car in Spain, and there are taxes outstanding, you automatically become liable to pay the back dated taxes and these have to be paid before the vehicle can be registered in your name.

From a buyer’s perspective

If you are buying a car privately you should ask to see the original of all these documents before proceeding. Check that the names correspond on all the documentation. Also ask to see the seller’s ID too. If anything does not match, be wary.

When you are satisfied with the documentation and wish to go ahead with the purchase you will need to visit your local ‘Jefatura de Tráfico’. This is so that the car may be transferred into your name. This can take up most of a day as there are always long queues. It is best if both you and the seller can go together as you both will be asked for proof of identity. It is always a good idea to photocopy all the documents for the car and yourselves, as they are frequently, though not always, asked for.

How does the transfer process work?

1. Initially you need to get the ‘Solicitud’. This is the official form to request the transfer of ownership. You can pick up this form from the Jefatura de Tráfico, or download it by following this link and complete it in advance, preferably with the seller, as you both need to enter details.

2. At the Jefatura de Tráfico you will have to queue up to pay the transfer fee. It currently costs less than €50; cash is the best way to pay, as it avoids any problems of cards not working. You will be given a numbered receipt and directed to another window for the next part of the process.

3. At the next window you and the seller have to produce all the documents listed above for the car, along with the completed and signed Solicitud, the receipt for the payment you just made, your ID documents, the seller’s ID documents and any photocopies of these documents that the assistant may ask for.

4. Depending on the time of year of purchase, you, as the buyer, may be asked to pay for the upcoming Impuesto Sobre Vehiculos. If this is the case, keep the receipt to show at the town hall when you register the car there.

5. Very occasionally there is another payment to make covering the transfer fee from one community to another, or because there is a deferred Impuesto de Matriculación (registration tax). In this instance, you need to agree with the seller which of you is responsible for the payment. A deferred tax would normally be the responsibility of the seller, with the change of community tax normally being paid by the buyer.

6. There will also be a tax due of 4% of the market value of the car. This is the seller’s responsibility and has normally been included within the asking price of the car. Do check though that the seller is not expecting you to pay this amount on top of the agreed asking price.

Once you have completed the paperwork at the Jefatura de Tráfico, the car is now in your name and you can go to the town hall to ensure the road tax is in their system and paid up. Don’t forget to arrange insurance for the vehicle from the date of transfer. Within a couple of weeks the new Permiso de Circulación will arrive showing you as the new owner.

What problems can occur at the Jefatura de Tráfico?

1. What if the local tax is not paid up to date?
The clerk will tell you go to the town hall to sort this out and return. It is extremely likely that you will have to return another day.

2. What if the documents are not in order?
You will have to find out what needs to be done to put things straight, and do it. If it is an inconsistency in the car’s documents, it might be better to cancel the deal.

3. What if there is an embargo or other financial lien on the car?
If something like this is flagged up on the computer at the Jefatura de Tráfico the transfer can not go ahead and the deal effectively falls through. The seller cannot sell the car until he clears this problem, which will probably take a long time. Ask him to return any deposit you have paid and start looking for another car.

4. What if there is an unpaid traffic fine?
The seller is responsible for this and you must get him to go to the office where fines are paid, which is usually in the same building, and clear the outstanding amount. Again it might mean using up so much time that you will have to return another day to complete the transfer.

If this sounds all too daunting, you may wish to employ the services of a ‘gestor’. A gestor is somebody who deals with all administrative duties. To employ him to do the necessary paperwork to transfer vehicle details into your name should cost less than €100 and may turn out to be money well spent.

Alternatively you may prefer to buy a car from a reputable dealer. In this instance they will take care of all of the paperwork for you. You will be asked for a form of official identification, i.e.  Passport, certificado de residencia, proof of NIE or certificado de empandronamiento.

From a seller’s perspective

The procedure described above is equally applicable to the seller of a vehicle. As a seller of a used car in Spain, you would be well advised to familiarise yourself with the procedure, along with double checking that all your documentation is in order to expedite the deal as and when you have a buyer for your ‘vehiculo de ocasión’.

Again, however, if you are trading in your vehicle at a reputable dealer, they will handle all the necessary paperwork for you.