Buying a Used Car in Mallorca as a Non-Resident

Why Buying Locally Beats Importing

Many non-residents initially consider bringing their car from home — a UK-registered right-hand-drive, or a German-registered vehicle — for use in Mallorca. In most cases, this is more trouble than it is worth:

• Import costs: importing a foreign vehicle and registering it in Spain requires paying Spanish registration tax (Impuesto de Matriculación) based on CO₂ emissions, plus IVA and administrative costs. For a standard petrol or diesel car, this can add 5–14.75% to the vehicle's value
• Right-hand drive: driving a UK right-hand drive on Spanish motorways and through Mallorcan town centres is legal but impractical — overtaking, toll booths, and parking are more awkward
• Insurance: insuring a foreign-plated vehicle you are using as a near-permanent local vehicle becomes complicated beyond a few months

By contrast, buying a Spanish-registered used car is straightforward: you pay the transfer tax, transfer the registration, and drive. And once registered in your name, insuring and servicing the car on the island is entirely routine.

Step 1: Inspect the Vehicle and Check Its Status

Before agreeing a price, carry out the standard checks:

ITV (Inspección Técnica de Vehículos): Spain's roadworthiness test (equivalent to the UK MOT or German TÜV). Check that the ITV is current — vehicles older than 10 years require an annual test. The seller should provide the most recent ITV certificate. If it has expired, factor in the cost and time to put it through the test before you can legally drive the vehicle.

DGT vehicle history: the Dirección General de Tráfico (DGT) offers a paid vehicle history report — the Informe de Vehículo — available through the DGT's Sede Electrónica or authorised agents. This shows:

• Previous owners
• Technical data
• Outstanding fines against the vehicle
• Whether it has been reported stolen
• Any registered charges or embargos

Outstanding charges: like property, vehicles can have debts registered against them. A clean DGT report is the equivalent of the nota simple for cars.

Step 2: Agree the Sale and Prepare the Paperwork

A used car sale in Spain requires a written purchase contract (contrato de compraventa de vehículo de segunda mano) signed by both buyer and seller. This is a simple document available as a template and should include:

• Details of both parties (full name, NIE/DNI, address)
• Vehicle details (make, model, registration plate, chassis number, engine number)
• Agreed sale price
• Date of transfer
• Declaration that the vehicle is free of debts and charges

Both parties sign the contract; each keeps a copy. The seller also provides:

• The permiso de circulación (vehicle registration certificate)
• The ficha técnica (technical data sheet)
• The last ITV certificate

Step 3: Pay the Transfer Tax (ITP)

The purchase of a used vehicle is subject to Impuesto sobre Transmisiones Patrimoniales (ITP) — the same tax as property transfers, but at a flat rate for vehicles.

In the Balearic Islands, ITP on used vehicle transfers is set at 4% of the vehicle's fiscal value. The fiscal value is not the purchase price — it is the value published annually in the ATIB's official vehicle valuation tables, based on make, model, year, and engine size. In practice, this means:

• If you buy a five-year-old Volkswagen Golf for €12,000, the ATIB table may assign it a fiscal value of, say, €13,500 — and ITP is calculated at 4% of €13,500 = €540
• If the purchase price is lower than the fiscal value, the ATIB uses the higher fiscal value
• If the purchase price is higher, the ATIB uses the higher of the two

ITP is declared and paid to the ATIB using Modelo 620 within 30 working days of the transfer.

Step 4: Register the Transfer at the DGT

Once ITP is paid, you register the change of ownership at the DGT (Jefatura Provincial de Tráfico de Baleares) in Palma. Required documents:

• Completed solicitud de transferencia de vehículo (transfer application form, available from the DGT or your gestoría)
• Original signed purchase contract
• Stamped Modelo 620 (proof of ITP payment)
• Both parties' NIE/DNI documents
• Vehicle's permiso de circulación and ficha técnica

A gestoría can handle the full transfer process for a fee of approximately €60–€120 — strongly recommended as the DGT office can involve queuing and navigating Spanish-language forms.

Processing time: the new permiso de circulación in your name typically arrives by post within one to three weeks.

Step 5: Insurance

Before driving the vehicle, you need at minimum third-party liability insurance (seguro obligatorio de responsabilidad civil). See our dedicated guide on car insurance in Spain for full details, including options for non-residents with foreign driving licences. You can take out insurance online or via a local broker; major Spanish insurers include Mapfre, Mutua Madrileña, Allianz, and AXA.

Selling the Car When You Leave

When you eventually sell or no longer want the car in Spain:

• Go through the same transfer process in reverse — buyer pays ITP and registers the transfer
• Alternatively, de-register the vehicle (dar de baja del vehículo) if it is being taken out of Spain or scrapped
• Ensure you retain proof of the transfer to avoid future fines or liabilities in your name