The annual circulation tax (IVTM) and why it differs by town

Terms used

• IVTM — IVTM is the yearly municipal tax on owning a vehicle, paid to the town council.
• Caballos fiscales — Caballos fiscales are the fiscal horsepower rating of a car, used to set the tax band.
• Calendario fiscal — The calendario fiscal is the council's calendar of tax payment periods.
• Ordenanza fiscal — The ordenanza fiscal is the town's local tax rule setting its IVTM rates and bonuses.
• Sede electrónica — The sede electrónica is the council's official online portal for tax and other procedures.
• Cl@ve — Cl@ve is Spain's electronic identification system for online procedures with public bodies.
• Domiciliación — Domiciliación is direct debit: the council takes the tax from your bank account automatically.
• DGT — The DGT is Spain's traffic authority, which keeps the vehicle register.

Key rules

• Who pays: The registered owner on 1 January owes the tax for the full year, and each town sets its own payment period.
• Bills: Councils usually send no bill, so you must check your town's payment dates yourself.
• Rates: The amount depends on fiscal horsepower and the town's own coefficient, so it differs between towns.
• Late payment: Paying late adds surcharges that rise from 1% to 20%, and unpaid debt can block DGT procedures.

What IVTM is and why it differs by town

IVTM is a yearly tax on owning a vehicle, paid to your town council, not to the state. The amount depends on the town you are registered in.

For cars, the base amount depends on fiscal horsepower (caballos fiscales). There are five bands: under 8, 8 to 11.99, 12 to 15.99, 16 to 19.99, and 20 or more. Each band has a minimum amount. Each council may multiply that amount by a coefficient of up to 2, and larger towns can go higher in some bands. So the same car can cost different amounts in two towns.

Navarre and the Basque Country run their own systems, so this page does not apply there.

Who pays and for which year

The tax covers the whole year and is owed by whoever is the registered owner on 1 January. Each town sets its own payment period.

Councils usually do not mail a bill. Find your town's calendar (calendario fiscal) and check when the period opens.

When and how to pay

Many towns use a two-month window in spring, such as March to May. Others use different months, and many offer instalment plans. Confirm the dates with your council.

To find your rate and your bill:

• Read the IVTM rules (ordenanza fiscal) on the council website or in the provincial bulletin.
• Look up your bill in the council's online tax portal (sede electrónica). In some provinces a provincial collection agency handles it instead.

You can pay online with a card or Cl@ve, at a partner bank with the payment slip, or at the tax office. You can also ask the council for direct debit (domiciliación). It often earns a small discount.

Discounts and exemptions

Exemptions and bonuses vary a lot by town, so ask your town hall what you qualify for.

• Exempt by law: vehicles for disabled people (up to 14 fiscal horsepower, for their own use), ambulances, public transport and farm vehicles.
• Vehicles over 25 years old can be exempt where the council allows it.
• Councils may give bonuses of up to 75% for eco or electric vehicles and up to 50% for classic cars.
• Direct debit often gives about 1% to 5% off.

Buying, selling, moving, registering

The person listed as holder with the DGT (traffic authority) on the accrual date is liable. Most councils do not split the tax between buyer and seller, so agree any split privately.

If you move, you pay the town of the address recorded with the DGT. The new town charges you only once the address is updated. Your old town keeps the year already charged.

For a first registration, the tax runs from the registration date and is charged by quarters, counting the quarter you registered in. If you permanently deregister the vehicle (baja definitiva), you can claim a refund for the full quarters left. Practice varies by town.

If you pay late

If you pay after the period but before any council demand, you owe a surcharge of 1% plus 1% for each full month of delay, up to 12 months, with no late interest. After 12 months it is 15% plus late interest.

Once the council issues a demand, the surcharge is 5% if you pay before the enforcement order is notified. It is 10% if you pay within the period in that notice, and 20% plus late interest after that. The council can then seize bank accounts, wages or assets, and the debt can block DGT procedures such as transfers.

Choosing between options

Who pays IVTM, and to which town, when your situation changes?

• You bought or sold the car: Most councils do not split the tax between buyer and seller, so the holder in the DGT register on the charge date pays the whole year and you settle any share privately.

• You registered a new car or scrapped one: A first registration is charged by quarters, counting the quarter of registration, and a permanent deregistration (baja definitiva) lets you claim a refund for the remaining full quarters.

The registered holder at the DGT, at the address recorded there, owes the tax. Quarters only matter when the car is first registered or permanently deregistered.

Timeline and deadlines

• The tax is charged for the year to the registered owner: on 1 January each year

• Look up your town's fiscal calendar to see when the payment period opens: before spring

• Pay in the voluntary period set by your council, often a two-month window in spring such as March to May, though some towns run two to three months in spring or summer: during the voluntary payment period

• If you miss the period and no demand has arrived, pay as soon as you can: the surcharge is 1% plus 1% for each full month of delay, with no late interest: up to 12 months after the period ends

• After 12 months, the surcharge rises to 15% plus late interest: more than 12 months late

• Once the council issues a demand, pay at a 5% surcharge before the enforcement order is notified, or 10% within the period given in that notice: after the voluntary period ends and a demand is issued

• Any payment after that period carries a 20% surcharge plus late interest, and the council can seize bank accounts, wages or assets: after the period in the enforcement notice

Checklist

• Find your town's IVTM fiscal ordinance (ordenanza fiscal) on the council website or the provincial bulletin to see your rate.

• Check the council's fiscal calendar (calendario fiscal) for the payment period, because councils usually do not mail a bill.

• Ask your town hall which bonuses or exemptions you qualify for, such as eco or electric vehicle, classic car or disability.

What to watch out for

• Late payment adds surcharges: If you pay after the voluntary period without a council demand, you owe 1% plus 1% for each full month of delay, up to 12 months. After 12 months it becomes 15% plus late interest. Pay as soon as you notice the miss, and note the payment period in your calendar each year.

• A council demand costs more: Once a demand is issued, you pay 5% extra before the enforcement order is notified, 10% within the period in that notice, and 20% plus late interest afterwards. Pay the moment a demand arrives, because the cheapest rate only applies before the enforcement order is notified.

• Unpaid tax can freeze your assets and DGT paperwork: The council can seize bank accounts, wages or assets, and the debt can block DGT procedures such as a transfer of the car. Settle any debt before selling the car, and ask the council or its provincial collection agency for a statement of what you owe.

Frequently asked questions

Do I pay IVTM in the year I first register a car?

Yes, you pay IVTM in the year of first registration, but only for the part of the year left. The tax counts by quarters, including the quarter in which you register the car.

Can I get a refund if I scrap my car during the year?

Yes, if you permanently deregister the car (baja definitiva), you can claim a refund for the full quarters that remain in the year. Ask your town hall how to submit the claim.

If I sell my car, do I get some IVTM back from the buyer?

Usually not through the council, because most towns do not split the tax between buyer and seller. The person listed as holder in the DGT register at the start of the year owes it, so agree any split privately in the sale.