People who purchase a property in Ibiza often bring their car or other vehicle that is registered in their home country. However, anyone driving around Ibiza in that situation should strongly consider getting their vehicle registered in Spain. The law says that vehicles with foreign licence plates are only permitted to drive in EU countries for a temporary stay, such as a holiday or business trip. The reason for this is obvious: there is neither a legal regulation for cross-border insurance coverage, nor a standardised vehicle tax system in the EU. The rule in all EU countries is that only vehicles that are registered and insured in that country may be driven on a long term basis. Those who do not comply with this rule can expect fines or even forced immobilisation of the vehicle.

 

But when exactly do you have to re-register the car? For those who are tax residents in Ibiza, it is prohibited by law to drive vehicles with foreign licence plates in Spain (Art. 68 Real Decreto Legislativo 6/2015, 30.10.2015). So all tax residents must re-register their vehicles in Spain. Determining who is a tax resident is not limited to formal criteria (such as registration in the municipality), but by the actual circumstances. For instance, a mother whose children go to school in Ibiza cannot credibly demonstrate that her life is still centred in Germany. This is why Spanish authorities often to carry out vehicle checks in front of international schools. For non-residents, the permissibility of driving a vehicle with a foreign licence plate is governed by the EU Council Directives. They declare that, a vehicle registered in the home country may be temporarily imported and used in other member states for a maximum of 6 months. During that period, it is advisable to keep a certificate that can prove you are a tax resident in your home country. After 6 months, the obligation for non-residents to re-register the car begins. 

 

For both tax residents and non-residents who need to re-register, the following documents are required for the Spanish registration of their foreign vehicle: Vehicle registration certificate, vehicle title and the EU certificate of conformity (“certificado de conformidad”). Personal requirements for the owner of the vehicle include having a Spanish tax number (NIE). They also must show either a purchase contract for their Spanish residential property (proof = nota simple), or proof of registration in the municipality on the basis of a rental contract (proof = “empadronamiento”). If the applicant is not registered as the owner of the vehicle in the original documents, then a transfer tax (“Impuestos des Transmisiones Patrimoniales”) of 4 to 8% of the legal current value must be paid. This value is the original price when new, minus the depreciation of the vehicle depending on its age.

 

If the vehicle receives the technical inspection, all taxes must be paid and the certificates issued there. The registration tax (“Impuesto de matriculación”), which is paid using the modelo 576 form, is a major cost factor in the re-registration process. It is determined using a vehicle value set by the state, taking into account the tax value (“CO2 emissions”). Electric cars are exempt from this. Furthermore, an annual vehicle tax (“Impuesto municipal”) must be paid, which varies from municipality to municipality.

 

Once all this has been done, you can apply for the final vehicle document at the regional traffic authority (“trafico”) with the documents issued previously. The licence plates must then be purchased at the number plate shop near the authority. Only then can the vehicle be insured. The entire registration procedure takes five to six months on Ibiza. Therefore, our recommendation is that if you want all of this to go smoothly, and in less time, and with less visits to the authorities (and perhaps even costing less money) it is best to work with a professional. Ms Andrea Lais (e-mail: andrea.l.ibiza@gmail.com) has been reliably re-registering foreign vehicles for our clients for many years.