|
Government offer of 600 euros off
If you are already a resident and you are running a Spanish car that is ten years old, you can take advantage of a government offer that will give you a discount of €600 when you buy a new Spanish car. You must junk your old car in order to take advantage of this scheme, which is designed to stimulate automobile sales.
The €600 comes to the buyer as a discount against the special registration tax of 12 per cent. This means that, if you buy a car for €12,000, your special tax will be €1440 less €600, making it only €840.
You will usually find that the dealer can handle all the necessary paperwork for you, as well as sell you your car insurance. Full coverage is usually required if you buy your car on the instalment plan.
Municipal vehicle tax
You pay your vehicle tax each year at the town hall. If you are not paid up, you will not be able to sell or trade in the car later.
This is the impuesto municipal sobre vehIculos de tracción mecánica, a municipal tax on vehicles registered in each town. Formerly this tax was charged at a single rate all over Spain, but now each municipality is free to charge whatever rate it sees fit, so the tax varies from town to town.
It is based on the potencia fiscal of the car, its horsepower as rated for tax purposes. Small cars pay something around €50 and large cars €100 and even more. Motor-cycles also pay this tax each year.
Your car will go on the books of the town where you live as soon as you are registered as the owner of the car with the traffic authorities in the provinciai capital.
You pay the tax by going into the town hail and asking for the appropriate window. April and May are the usual times to pay it, but this varies from town to town. You will not necessarily receive an individual notification, but announcements will appear in banks, in the newspaper and on the municipal notice-board. It’s best to ask when the tax is due. Late payment will draw a fine of 5 per cent during the first month and 20 per cent thereafter.
Many municipalities are now offering local taxpayers a carrot and stick progamme, in which those who pay their taxes early get a discount.
You can aiso arrange to have the tax paid by standing order at your bank.
This vehicle circulation tax receipt is one of the papers you should keep with you in your car, along with the car’s official registration papers and insurance receipt, as the police may ask to see it at any time.
|
