Buying a car on the island is not difficult, but the rules are Spanish, the taxes are Canarian and the paperwork is in Spanish. This is what you need, what it costs and what to check before you sign, explained by someone who has spent years in workshops and at an ITV station.
First: the NIE
To register a car in your name in Spain you need an NIE, the identification number for foreigners. Without it, the change of ownership cannot be completed. If you live here only part of the year, the requirements for address and tax residence depend on your situation, so it is worth checking before you start looking.
Dealer or private seller?
From a dealer, the Canarian sales tax (IGIC) is already included in the price, the dealer usually handles the paperwork, and a used car sold by a business must come with a legal guarantee of at least one year.
From a private seller, the price is often lower, but you pay the transfer tax yourself and there is no commercial guarantee. If a hidden defect appears, the claim has to be made within six months of delivery, and proving it is not always easy. That is why the checks before buying matter even more.
What it costs on top of the price
- Transfer tax (ITP), only when buying from a private seller: 5.5% of the car's value according to the tax authority's tables, which may be higher than the price you agreed.
- Cars over ten years old with an engine of up to 2,000 cc pay a fixed amount instead: €40 up to 1,000 cc, €70 up to 1,500 cc and €115 up to 2,000 cc.
- DGT fee for the change of ownership: €55.70.
- Insurance from the first day you drive the car.
Deadlines
The transfer tax is paid within one month with form 620 at the Agencia Tributaria Canaria. The change of ownership must be requested at the DGT within 30 days of signing the contract. Until it is done, fines and responsibilities can end up in the wrong name, so do not leave it for later.
What to check before you sign
- A DGT vehicle report: it shows the registered owner, debts, charges and seizures that could pass to you, and the mileage recorded at each ITV.
- That the ITV is valid and that the road tax for the year has been paid.
- The service history, ideally with stamps or invoices from a workshop, and that it matches the mileage.
- An independent inspection at a workshop before paying. A test drive tells you how the car feels; an inspection tells you what it hides.
- A written sales contract with both parties' details, the price, the date and time of the handover, and the car's mileage.
ITV and insurance
The car must be insured before it is driven, even for the journey home. A private car has its first ITV at four years, then every two years until it is ten, and every year after that. Check the date on the ITV card when you buy, so the first surprise is not a failed inspection.
The mistakes we see most often
- Trusting a clean-looking car without a report or an inspection.
- Paying a deposit before seeing the DGT report.
- Signing a contract that does not state the time of the handover, which matters if there is a fine that day.
- Leaving the change of ownership for later.
If you would rather not do it yourself
With our Signature service we look for the car for you, have it inspected at a franchised workshop with a written report, check its history and paperwork, negotiate the price and take care of the contract, the transfer tax and the change of ownership. You agree the car and sign; we handle the rest. The price is on request.
By Efrén Suárez MartínFounder, Gran Canaria Premium Car