If you’re considering selling your car in Spain, there are several things to consider, particularly when it comes to the taxes and other fees you have to pay.
You may be selling it because you want to upgrade to a better or bigger one, or perhaps you’re moving abroad and it’s not worth taking with you. Either way, there are charges that you have to pay that you might not have considered before.
Personal income tax
The first to take into account is Personal Income Tax (IRPF) in case you make a profit when selling your vehicle. This could be the case if you restored an old one.
For this you will have to pay tax on the profit. This tax is usually around 20 percent of what you make on it.
If you are self-employed or have a company and the vehicle is for commercial use, you can also deduct the VAT.
In most cases, though you will sell it for less than what you bought it for, so you won't need to worry about this.
READ ALSO: 9 questions to ask when buying a second-hand car in Spain
Change of ownership fees
The change of ownership is mandatory for a new owner to be recognised. This procedure is carried out at the Traffic Headquarters and costs around €55 for vehicles.
You can work out with the buyer who will be in charge of paying this, but usually it will be them as they will have to put it into their name.
ITV test
Spain’s ITV test is similar to the MOT in the UK and shows that a car is road worthy. It’s not obligatory when you sell it for your car to pass, but you’ll be much more likely to get a buyer if you do.
This costs an average of €47 but depends on the type of vehicle you have, as well as where you live in the country as it varies between regions.
Q&A: What to know before taking Spain's ITV roadworthiness test
Transfer taxes
Transfer taxes known as ITP must be paid when you sell your vehicle to an individual. But, it’s important to note that this again is paid by the buyer, not you as the seller.
This tax varies between four and eight percent of the value of the vehicle, depending on the region you live in.
For example, if you sell your car for €10,000, the buyer will pay between €400 and €800 in transfer taxes.
Of course if you’re a professional and selling cars is part of your business, this is a whole different ball game and you will likely have many more taxes and fees to pay. It’s best to speak with your gestor or accountant as to the details on this.
Overall, in most cases, selling a car or van does not involve very high costs for the seller, as long as there are no significant capital gains.
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