What a new car in Spain costs beyond the sticker price

Terms used

• IVA — IVA is Spain's value-added tax, charged at 21% on most goods including new cars.
• IGIC — IGIC is the Canary Islands' own sales tax, used instead of IVA.
• Impuesto de matriculación — The impuesto de matriculación is a one-off registration tax on new cars, based on CO2 emissions.
• Gestoría — A gestoría is an administrative agency that files paperwork such as vehicle registration for a fee.
• IRPF — IRPF is Spain's personal income tax.
• Modelo 576 — The modelo 576 is the tax form used to pay the registration tax.

Key rules

• IVA: A new car carries 21% IVA on the mainland and in the Balearic Islands.
• Registration tax: The registration tax is 0% up to 120 g/km of CO2 and rises to 14.75% from 200 g/km.
• Electric cars: Zero-emission cars pay no registration tax.
• Incentives: Purchase aid for electric cars varies by region and changes often, so confirm it before you sign.

Tax bands, the DGT fee and electric-car incentives change often, so confirm current figures with the dealer, the tax agency (Agencia Tributaria) and your region before you pay.

The on-the-road price is higher than the sticker price

Expect to pay the listed price plus 21% IVA, plus a registration tax that depends on CO2 emissions, plus a small fee for plates and registration. Incentives can bring the total down, but only some buyers qualify.

Always ask the dealer for a price "con todos los impuestos y matriculación incluida" so you see the full figure before you pay a deposit.

IVA: 21% on a new car

The general IVA rate of 21% applies to a new car on the mainland and in the Balearic Islands. Cars adapted for people with reduced mobility can be taxed at 4% in some cases. Ask the dealer what proof you need.

The Canary Islands, Ceuta and Melilla do not use IVA. The Canary Islands charge IGIC instead, with a general rate of 7%. Ceuta and Melilla have their own taxes.

Impuesto de matriculación: depends on CO2

The impuesto de matriculación is paid once, before the car can be registered. It is based on the car's official WLTP CO2 figure, shown in g/km on the spec sheet. On the mainland and in the Balearic Islands:

• Up to 120 g/km: 0%
• 121 to 159 g/km: 4.75%
• 160 to 199 g/km: 9.75%
• 200 g/km and above: 14.75%

The tax is calculated on the price after discounts and after IVA. Electric cars and other zero-emission cars pay 0%. The Canary Islands use their own, locally set tiers. Reductions can apply to vans, large families and people with disabilities.

A quick example: a 140 g/km car priced at €20,000 after discounts would pay IVA on top, then 4.75% on that total. The dealer will do this sum for you, but it shows why a higher-CO2 model can cost much more than its sticker price suggests.

The tax is filed with the tax agency (Agencia Tributaria) on a form called modelo 576. The dealer or gestoría normally does this for you.

Plates and registration fees

Registering a new car involves a traffic authority (DGT) fee and a pair of plates. The plates cost a modest amount. The dealer or a gestoría normally handles both and adds its own fee. Ask for each item on the quote separately, and confirm the current DGT fee with the dealer.

Incentives for electric and plug-in cars

Incentives change often, so treat any advert as a lead to check, not a promise. The national MOVES III purchase aid ended at the end of 2024. A replacement scheme, run through the regions and central government, was announced for 2025 and 2026. An income tax (IRPF) deduction for buying an electric or plug-in car has also existed.

Whether an aid is open now, and how much it pays, depends on your region. Some town halls also discount the annual circulation tax. Before you buy, ask the dealer which aid they already deduct, then check with your regional energy agency or the national energy agency (IDAE).

Work out your own total

Use the cost calculator on this page to add these items up. The questions below cover the Canary Islands, reduced-mobility VAT, electric cars and who handles the plates.

Total cost calculator for buying a used or new car

Work it out

What you enter

• Sticker price of the new car, with 21% VAT included (EUR): The price on the dealer's offer or purchase contract.
• Discount the dealer gives you, VAT included (EUR): The dealer's offer; enter 0 if there is none.
• Registration tax rate for the car's CO2 band (%): Enter 0 up to 120 g/km, 4.75 from 121 to 159, 9.75 from 160 to 199, or 14.75 from 200 g/km.
• Dealer or gestoría fee plus DGT fee and plates (EUR): Ask the dealer or gestoría for a written quote covering the DGT fee, the plates and their own fee.
• First-year insurance premium (EUR): Quotes from several insurers or brokers for the cover you want, for example third-party or comprehensive.

Figures used

• General VAT (IVA) rate on a new car in the Peninsula and Balearics: 21 % (as of 2025)

Worked example (with Sticker price of the new car, with 21% VAT included 25,000 EUR, Discount the dealer gives you, VAT included 1,000 EUR, Registration tax rate for the car's CO2 band 4.75 %, Dealer or gestoría fee plus DGT fee and plates 400 EUR, First-year insurance premium 800 EUR)

When the sum misleads

• In the Canary Islands, Ceuta and Melilla, VAT does not apply and the tax bands differ, so this sum will not fit.
• Electric and other zero-emission cars pay 0% registration tax: enter 0 as the rate.
• Reductions may apply for large families and people with disabilities; ask the tax agency before relying on the result.
• If the dealer already includes registration tax in the sticker price, enter 0 as the rate to avoid counting it twice.

Frequently asked questions

Do the same taxes apply if I buy a new car in the Canary Islands?

No, the Canary Islands, Ceuta and Melilla use different taxes from the mainland. The usual 21% VAT (IVA) does not apply there. The Canary Islands charge their own tax, IGIC, with a general rate of 7%, and their registration tax bands are set differently. Ask a local dealer for the final price.

Can I pay less VAT on a new car if I have reduced mobility?

Yes, a car for a person with reduced mobility can be taxed at 4% VAT instead of 21%, and certain adapted vehicles are also treated differently. Reductions to the registration tax may also apply for people with disabilities, large families and vans. Ask the dealer to confirm which reductions fit your case before you sign.

Do electric cars pay registration tax in Spain?

No, electric cars and other zero-emission cars pay 0% registration tax. The tax is based on the car's official CO2 figure, and cars up to 120 g/km also pay 0%. Purchase grants and an income tax deduction for electric cars have changed often, so ask your region and the dealer what is live now.

Who handles the plates and registration fees on a new car?

The dealer or a gestoría, an agency that handles paperwork for you, normally handles the traffic office registration fee and the plates. They charge their own fee on top. Ask for these costs to be itemised in the offer so you can compare the final on-the-road price.