Tax surprises are the most common reason expat car imports go over budget. This guide maps each charge and clarifies when each applies.
Customs duty
Applies only to vehicles from outside the EU. Standard rate for passenger cars: 6.5% of the customs value (price + freight + insurance). UK vehicles registered before 1 January 2021 may keep EU origin.
Import VAT
Also non-EU only. 21% on customs value plus duty. Paid at customs together with the duty.
IEDMT (registration tax)
Applies to all registrations in Spain, EU or non-EU origin. Rate based on CO₂ emissions: 0%, 4.75%, 9.75%, 14.75%. Applied to the vehicle's reference value published by the Spanish tax authority.
IVTM (municipal road tax)
Annual tax collected by the city council based on fiscal horsepower. Typical range €5–€220.
Transfer-of-residence exemption
The franquicia eliminates customs duty, VAT and IEDMT when:
- The owner has resided outside the EU for 12+ months.
- The vehicle was owned and used for 6+ months prior to relocation.
- The vehicle is for personal use.
It must be filed before customs clearance and before DGT registration. Doing it in the wrong order forfeits the exemption.
Electric and hybrid bonuses
Pure electrics are IEDMT-exempt and often discounted on IVTM. Plug-in hybrids generally pay 0% IEDMT given their low CO₂.