Buying a used car privately and transferring ownership

Terms used

• ITP — The ITP is the regional transfer tax you pay when you buy a used car from a private seller.
• DGT — The DGT is Spain's traffic authority, which keeps the vehicle register and issues registration permits.
• IVTM — The IVTM is the yearly vehicle circulation tax paid to the town hall.
• ITV — The ITV is Spain's mandatory periodic roadworthiness inspection for vehicles.
• Gestoría — A gestoría is a paperwork agency that files tax and DGT forms for you for a fee.
• Permiso de circulación — The permiso de circulación is the car's registration permit, issued in the owner's name.

Key rules

• ITP deadline: Pay the ITP to your region's tax agency within 30 working days of the purchase contract.
• DGT deadline: Register the change of ownership with the DGT within 30 days of buying.
• Check first: Get the DGT vehicle report before paying, because charges and embargos stay with the car.
• ITP rate: The rate depends on your region, and on the car's engine power and age.
• Notice of sale: Ask the seller to notify the DGT of the sale, which is normally free.

The order that protects you

Do four things, in this order: check the car, sign the contract and pay, pay the ITP, then register the change of ownership with the DGT. The two deadlines run from the purchase, so start the tax and DGT steps soon after you sign. The timeline below shows the sequence, the documents list shows what to bring, and the checklist covers each step.

Before you pay: check the car

Ask for the DGT vehicle report (informe de vehículo) before you hand over any money. It shows whether the car has charges or embargos, which are debts or seizures recorded on the car. These stay with the car, so they become your problem if you buy it.

Also check that the ITV (the roadworthiness inspection) is up to date. Ask the seller to prove the vehicle tax (IVTM) is paid. You can also ask the town hall whether anything is owed. Unpaid vehicle tax can lead the town hall to block the transfer.

Sign the contract and pay

Sign a written purchase contract (contrato de compraventa). Both of you keep a signed copy. It proves the date of sale, which protects the seller from later fines and protects you if the dates are disputed. A template with the essentials is below. Take the permiso de circulación (the car's registration permit) from the seller when you pay.

Pay the ITP within 30 working days

The ITP is a transfer tax on used cars bought from a private person. You pay it to your region's tax agency within 30 working days of the purchase contract. You file it with modelo 621 or your region's equivalent, online with a digital certificate or Cl@ve, or in person at the regional tax office, often by appointment. Keep the receipt, because the DGT needs it.

The rate is set by each region and depends on the car's engine power and age. The Basque Country and Navarra have their own systems. Rates change, so ask your regional tax agency for the current rate before you budget.

The tax is charged on the higher of the price you declare and the minimum value Hacienda publishes each year for that make, model and age. If you declare less than the table value, the tax office will normally use the table value. Buying from a dealer who charges VAT works differently.

Register the change with the DGT within 30 days

You have 30 days to register the change of ownership with the DGT. Pay the DGT transfer fee, which changes each year, and send your application. You can do this online, through a gestor or at a Jefatura de Tráfico office, usually by appointment. Bring your ID, the signed contract, the permiso de circulación and the ITP receipt. You then receive the permiso de circulación in your name.

Ask the seller to send the DGT a notice of sale. It is normally free, and it moves responsibility for new fines away from them.

Do you need a gestoría?

You can do it yourself. A gestoría is worth paying if you have no digital certificate, you do not know the process, or the case is complicated, for example embargos, a foreign car, an inheritance or a company seller. Fees for a simple transfer are typically 50 to 150 euros, on top of the DGT fee and the ITP.

What goes wrong if you wait

Fines belong to whoever owned or drove the car on the day of the offence. Once you are the registered owner or the sale has been notified, new fines come to you. A late transfer leaves you exposed and can bring a penalty. Vehicle tax is charged for the full year to whoever is the owner on 1 January, but local rules vary, and the debt can follow the car. Ask your town hall how it handles this.

Timeline and deadlines

• Check the car's DGT report, charges, ITV and unpaid taxes, then sign the contract and pay: before you hand over the money

• Register the change of ownership with the DGT: within 30 days of buying

• Pay any pending vehicle tax (IVTM) to the town hall: before the transfer, since unpaid debts can make the town hall block it

Documents you need

• Your ID, to be shown with the transfer application to the DGT.

• The signed purchase contract (contrato de compraventa) between you and the seller.

• The car's permiso de circulación (registration permit), handed over by the seller.

• Proof you paid the ITP transfer tax, the receipt from your regional tax agency for modelo 621 or its regional equivalent.

• The DGT vehicle report (informe de vehículo), to check for charges and embargos before you pay.

Checklist

• Get the DGT vehicle report and check for charges, embargos, ITV and unpaid taxes.

• Work out the taxable value using the higher of your declared price and Hacienda's yearly minimum value.

• Pay the DGT transfer fee and file the application within 30 days of buying.

• Ask the town hall whether any vehicle tax (IVTM) is still owed on the car.

What to watch out for

• Debts that stay with the car: Liens and embargos recorded on the vehicle stay with it, and unpaid vehicle tax debts can lead the town hall to block your transfer. Get the DGT vehicle report before paying and ask the town hall for proof the vehicle tax is paid.

• Fines after a late transfer: If you file late, you can be fined, and once the sale is notified to the DGT, or after 10 days from the sale, you become responsible for new fines. File the transfer promptly and well inside 30 days of buying.

• Vehicle tax charged for the full year: The yearly vehicle tax (IVTM) is charged to whoever is the owner on 1 January, so the seller may be billed for a car you now drive. Agree in the contract who pays the year's bill and keep the receipt.

Private car sale contract (contrato de compraventa) essentials

No notary or witnesses are needed. A contract signed by both of you is valid, and a notary only adds extra proof. Fill in every blank, print two copies, and sign both. Each of you keeps one signed copy.

Contract text

PRIVATE CAR SALE CONTRACT

Place and date: [city], [day/month/year], at [hour:minutes]

1. Parties

Seller: [full name], ID/NIE number [], address []. Buyer: [full name], ID/NIE number [], address [].

2. The car

Make and model: []. Plate: []. VIN (chassis number): []. Mileage at signing: [] km. First registration date: [____].

3. Price and payment

The price is [amount] euros. The buyer pays it by [bank transfer / cash / other] on [date]. The seller confirms receipt by signing this contract. A bank transfer leaves a record, so use one if you can.

4. Delivery

The seller hands over the car, its keys, its documents and [service book / second key / other] on [date] at [hour] in [place].

5. Condition of the car

The car is sold as seen and tried by the buyer. The seller states that the car has these known defects: [list them, or write "none known"]. The seller has not hidden any defect they know of. The buyer has had the chance to inspect the car and test-drive it.

6. Warranty

[Choose one:]

• The seller gives a warranty of [__] months for [engine / gearbox / other].
• The seller gives no extra warranty.

7. Fines, tax and charges

The seller is responsible for all fines, road tax and other charges for the period up to the date and time of delivery in clause 4. The buyer is responsible for everything after that. If a fine arrives for the wrong period, the person responsible for that period pays it, or repays the other party within [__] days of receiving proof.

8. Change of ownership

The buyer will complete the change of ownership (cambio de titularidad) at Tráfico, normally within 30 days of delivery, and pays the transfer tax. The buyer sends the seller a copy of the completed transfer. The seller will sign any document needed for this.

9. Hidden defects

Both parties know that Spanish law gives the buyer rights over serious hidden defects (vicios ocultos) that make the car unfit for use. Nothing in this contract removes those rights.

10. Signatures

Two copies are signed, one for each party.

Seller: ____________________ Buyer: ____________________

Before you sign

• Check that the ID, name and address match the documents.
• Check that the plate and VIN on the car match the contract and the registration papers.
• Write down the known defects. This protects the seller from later claims, and it protects the buyer because the seller has stated the car's condition.
• Use the exact hour of delivery. It decides who pays a fine issued that day.
• Transfer tax rates differ by region, so check the current rate with your regional tax office before you agree the final cost.

Frequently asked questions

How is the taxable value for ITP on a used car worked out?

The tax is calculated on the higher of the price you declare and the minimum value Hacienda, Spain's tax agency, publishes each year by make, model and age. If your price is lower than that table value, the regional tax office normally uses the table value. You can only avoid this by showing evidence of a lower real value.

Does the ITP rate depend on where I live?

Yes, the ITP rate is set by each autonomous community, based on the engine power and age of the car. The Basque Country and Navarra have their own regimes.

Do I need a gestoría to transfer a car?

No, you can do the transfer yourself online or at the DGT with an appointment. A gestoría, a private agency that files paperwork for you, is worth it if you have no digital certificate, are new to the process, or the car has embargos or is foreign. A simple transfer usually costs roughly 50 to 150 euros on top of the DGT fee and the ITP.

Do I pay a DGT fee for the seller's notice of sale?

No, the notice of sale is normally free of charge. The change of ownership itself carries a DGT fee, which is set in an annual schedule. Check the current amount with the DGT.