Buying a Second-Hand Car in Spain: Registration, Taxes and Insurance
Spain has a lively used-car market, from small city runabouts to imported SUVs. For expats, buying second-hand can be a smart way to avoid the steep depreciation on new vehicles. At the same time, there are extra checks to make: paperwork, taxes, ITV (MOT equivalent) and of course insurance.
Key Takeaways
What you need to know before buying a used car in Spain
- Always check the car's DGT report, ITV status and outstanding debts before handing over money
- Factor in transfer tax (Impuesto de Transmisiones Patrimoniales) and any registration or number-plate changes
- You must have at least third-party liability insurance in place once you start driving the car
- Many expats choose extended third-party cover for second-hand cars to combine theft, glass and breakdown protection
- A broker familiar with expat drivers can help you insure a used car quickly
Before you buy: paperwork and checks
Permiso de Circulación
Vehicle registration certificate – confirms legal ownership
Ficha Técnica
Technical card with ITV (MOT) inspection details
Seller's ID
DNI, NIE or passport to verify identity
DGT Report
Check for fines, finance flags or transfer blocks
Check ITV (MOT equivalent)
Used cars in Spain must pass regular ITV inspections (more frequent as the car ages). Check:
- When the next ITV is due
- Whether there are any advisory notes
A car with a very recent ITV and clean history is usually a safer bet than one approaching inspection with unknown issues.
Costs beyond the sticker price
Transfer tax and fees
When you buy from a private seller, you normally pay Impuesto de Transmisiones Patrimoniales (ITP), a transfer tax based on the vehicle's administrative value and your region. When buying from a dealer, the tax may already be handled via VAT in the purchase price.
Also budget for:
- Transfer fees at the Jefatura de Tráfico or through a gestor
- New plates if the registration changes or if you're moving from foreign plates to Spanish ones later
Insurance costs for second-hand cars
Insurance for used cars is often cheaper than for new ones, but that depends on:
- Car value and age
- Your age and driving history
- Where you live and park the car
Many expats insure older vehicles with extended third-party cover, adding theft, glass and sometimes breakdown, which often offers good value for the risk level.
Insurance: when and how to arrange it
Important
Driving uninsured, even "just home from the seller", is illegal and risky. Arrange cover to start on the day you take possession.
Timing your policy
Ideally, you should:
- Collect quotes before committing to a car, especially if you're young or the vehicle is powerful
- Arrange cover to start on the day you take possession of the car
Choosing the right cover level
Very old, low-value car
Third-party may be enough
Mid-value daily car
Extended third-party with glass and theft – often the best balance
High-value or financed car
Comprehensive cover may still be sensible
A broker can show you quotes for each cover level so you can see the price difference instead of guessing.
Special points for expats
Foreign licences and no-claims
If you have a foreign licence or a strong no-claims history abroad, tell your broker or insurer from the start. Many Spanish insurers accept foreign no-claims certificates and can reflect that in the premium, but they need clearly worded proof.
Registration and address details
Make sure the policy:
- Uses your correct Spanish address
- Matches the details on the Permiso de Circulación once the car is in your name
If you later change plates or move house, update both Traffic and your insurer so claims are not delayed over simple admin issues.
Next steps
Buying a second-hand car in Spain as an expat is straightforward if you do the checks upfront. Verify ownership, check for debts, confirm ITV status, and budget for transfer tax. Most importantly, make sure you have insurance in place before you drive the car away – a broker can help you compare options quickly and find cover that fits both your budget and the car's value.
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German
Frequently asked questions
Still have questions? Check these answers or get in touch.
Is it better to buy a used car from a dealer or a private seller in Spain?
Both can work, but there are trade-offs. Dealers usually offer some form of warranty and can handle paperwork for you, which is reassuring if your Spanish is limited. Prices may be higher than private sales. Private purchases can be cheaper, but you must handle checks, taxes and Tráfico paperwork yourself or through a gestor. In either case, always verify the car's history, confirm that there are no outstanding debts and organise insurance before you drive away.
How far in advance should I get insurance quotes for a second-hand car?
You can start getting quotes as soon as you have a realistic idea of the car you'll buy – brand, model, engine size, year and likely purchase date. Some expats request example quotes while still browsing, then update the details once they choose a specific vehicle. Having indicative prices in advance helps you avoid surprises and means you can activate cover very quickly once the sale is confirmed and the registration is in your name.
Is extended third-party cover enough for an older car?
For many older cars, extended third-party cover is a good compromise. It includes the legal third-party liability and can add glass, theft, fire and often breakdown, without the full cost of comprehensive insurance. If the market value of the car is low and you could afford to replace it yourself after a total loss, this level of cover often makes more sense than paying high premiums for full own-damage protection.
What happens to insurance when I change a car from foreign plates to Spanish plates?
Your insurer must be informed when the registration number changes. Some insurers are used to this process and can simply endorse the policy with the new plate once the car is re-registered. Others may re-issue the policy. If you know in advance that you'll be matriculating a foreign-plated car, mention this when arranging cover; a broker can point you toward insurers who handle these transitions smoothly and explain any cost or paperwork implications.
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