Index
What the change of ownership of a car is
When the ownership change has to be done
Who must do the ownership change
Requirements to be able to transfer a car
Documents needed for the ownership change
How to do the ownership change step by step
How much it costs to change a car's ownership
What happens if the ownership change isn't done
Differences between change of ownership and notification of sale
How Dealcar helps you sell without complications
Frequently asked questions
What the change of ownership of a car is
The change of ownership of a car, also called vehicle transfer or change of name, is the administrative procedure by which a vehicle stops being in the seller's name and becomes in the buyer's name.
This procedure is registered with the Directorate-General for Traffic. Once completed, the new owner appears as the vehicle's owner and receives the updated registration certificate.
It is important because a car's ownership does not change just by signing a contract or handing over the keys. The sales contract proves that a transaction has taken place, but the DGT must update the Vehicle Register so that the new owner is officially listed as the owner.
Put simply: selling the car and completing the ownership change are not the same thing. The sale is the agreement between buyer and seller. The ownership change is the procedure that formalises that change with Traffic.
And yes, the bureaucracy has decided that both things are different. What a very Spanish surprise.
When the ownership change has to be done
It must be done whenever a vehicle legally changes owner.
The most common cases are:
Sale of a car between private individuals.
Buying a used car from a company.
Selling a car to a dealership.
Donation of a vehicle.
Inheritance of a car.
Change of owner through allocation.
Transfer of a company vehicle.
Buying a car from contract hire.
In a normal sale, the most common case is a private individual selling their car to another private individual. In that situation, the buyer must arrange the ownership change to put the car in their name.
The DGT states that, after the contract is signed, the buyer has a maximum of 30 days to complete the procedure. Once done, a new registration certificate is issued, valid provided the vehicle's MOT is in force when required.
Who must do the ownership change
In a sale of a used car, the buyer must do the ownership change. That is, the person acquiring the vehicle and who will appear as the new owner.
The DGT makes it clear: the transfer must be done by the buyer, the vehicle's new owner, within the set deadline.
Even so, in practice several situations can arise:
If a private individual buys
The private buyer can do the procedure online, in person or through an agency. They can also authorise someone else to do it on their behalf.
If a company buys
If the buyer is a company, it must also handle the transfer and provide the relevant documents.
If a dealership or car trader buys
When you sell the car to a professional, such as a dealership or car buying company, they can normally help you with the paperwork. Even so, it is worth checking that the transaction is correctly recorded and asking for proof.
If you sell your car
Even though the buyer is the one who must do the change, the seller should not completely wash their hands of it. If the buyer does not complete the procedure, the car may still appear in the seller's name and that can cause problems with fines, taxes or liabilities.
That is why there is the notification of sale, which we will see later.
Requirements to be able to transfer a car
Before completing the ownership change, the car must meet a series of requirements. If it does not, the transfer may be blocked.
The DGT states that, in order to transfer a vehicle, it must be in active administrative status, free of restrictions on disposal and with the road tax for the previous year and any related penalties paid.
The main requirements are these.
The car must be registered as active
A vehicle that is not in the correct administrative status cannot be transferred. If the car has been taken off the road, that situation will need to be resolved first.
It must not have restrictions that prevent it being sold
Some encumbrances or restrictions can prevent the transfer. For example:
Retention of title.
Seizure.
Immobilisation order.
Unregularised leasing or contract hire.
Administrative encumbrances.
If the car is financed, there may be a retention of title. In that case, selling it may require settling the debt or lifting the retention before completing the ownership change.
If this applies to you, read this guide first on how to sell a financed car.
It must have the previous year's road tax paid
To transfer the vehicle, the municipal road tax for the previous year must have been paid, as stated by the DGT.
This point is important because many sellers think signing the contract is enough. It isn't. The car must also be administratively clear in order to change owner.
It must be free of penalties that block the transfer
If there are outstanding penalties linked to the vehicle that prevent the transfer, they will need to be resolved first.
It is advisable to request a vehicle report
Before buying or selling, it is advisable to check the car's status. The DGT allows vehicle reports to be requested to find out relevant details such as encumbrances, restrictions or administrative status.
This avoids buying or selling a car that cannot then be transferred. A small check that saves huge doses of administrative drama, the favourite genre for Tuesday mornings.
Documents needed for the ownership change
To complete the ownership change of a car, you will need to prepare a series of documents. They may vary slightly depending on the case, but in a standard sale between private individuals, you will normally need the following.
Sales contract
The contract must be signed by buyer and seller. The DGT states that, if the procedure is carried out online, the signed contract must be provided on all pages by both parties, or an invoice if the seller is a company.
You can see here how to prepare the car sale contract.
ID, NIE or identification of the parties
The buyer and seller must be correctly identified. For in-person procedures, the DGT requires the buyer's identification, and in certain cases also documentation from the seller or a copy of their document.
Registration certificate
This is the document that proves the vehicle is authorised to be driven and who is listed as the owner.
Technical data sheet or ITV card
The technical data sheet contains the vehicle's specifications and its inspection history.
Proof of payment of the Property Transfer Tax
Before completing the ownership change, the buyer must prove payment, exemption or non-liability for the Property Transfer Tax, normally using form 620 or 621 depending on the autonomous community.
Proof of payment of the DGT fee
To process the ownership change, the corresponding fee must be paid. The DGT cites fee 1.5, which in its assistant appears as an amount of €55.70 for standard transfers.
Application for change of ownership
If you carry out the procedure in person, you will need to submit the official ownership change application completed and signed, as appropriate.
To avoid delays, prepare all the documents needed to sell a car.
How to do the ownership change step by step
The process can be done in several ways: online, in person, through an agency or via a professional if you sell to a dealership. The general logic is the same.
Step 1: Sign the sales contract
The first thing is to sign the sales contract between buyer and seller.
It must include, at a minimum:
Buyer details.
Seller details.
Vehicle details.
Registration plate.
VIN.
Mileage.
Sale price.
Payment method.
Date and time of handover.
Declaration regarding encumbrances or the car's condition.
Signature of both parties.
The DGT recommends including the exact time the vehicle is handed over in the contract. This can help avoid confusion if a fine or later issue arises.
Step 2: Pay the Property Transfer Tax
Before doing the transfer at Traffic, the buyer must pay the Property Transfer Tax, unless the transaction is exempt or not subject.
This tax depends on the autonomous community and the vehicle's fiscal value. It is normally processed with form 620 or 621.
Step 3: Pay the DGT fee
Then you must pay the fee corresponding to the ownership change. For online procedures, the DGT allows it to be paid within the form itself or the number of a fee paid previously to be entered.
Step 4: Submit the application
The buyer can submit the application:
Online, with a digital certificate, electronic ID or Cl@ve.
In person, with an appointment.
Through an agency.
Through an authorised representative.
The DGT states that the online procedure requires access with a digital certificate, electronic ID or Cl@ve credentials.
Step 5: Provide the documents
You will need to submit or attach the contract, proof of ITP payment, paid fee, identification and other documentation as appropriate.
If the seller is a company, an invoice is provided instead of a sales contract.
Step 6: Receive the new registration certificate
Once the ownership change has been processed, the DGT issues a new registration certificate in the buyer's name. That certificate will only be valid if the vehicle has a current MOT when it is due.
How much it costs to change a car's ownership
The cost of the ownership change usually includes two main items:
The DGT fee
The Property Transfer Tax
The standard DGT fee for the ownership change appears in its assistant as fee 1.5 of €55.70.
The Property Transfer Tax depends on the autonomous community and the value of the vehicle. That is why there is no single figure for all cases.
Also, if you carry out the procedure through an agency, their fees will need to be added.
In short:
Concept | Who usually pays it | Approximate amount |
|---|---|---|
DGT fee | Buyer | €55.70 according to DGT assistant |
ITP | Buyer | Depends on region and car value |
Agency | By agreement | Variable |
Notification of sale | Seller, if they do it | Specific fee if applicable |
What happens if the ownership change isn't done
Not completing the ownership change can cause problems for both buyer and seller.
Problems for the seller
If the car remains in your name, you may receive:
Fines.
Road tax.
Claims.
Liabilities associated with the vehicle.
Problems if the buyer does not complete the transfer.
That is why, even though the buyer has the obligation to do the change, the seller should protect themselves.
Problems for the buyer
If the buyer does not do the change, they will not officially appear as the vehicle's owner. That can complicate:
Later sale.
Taking out certain services.
Paperwork.
Proof of ownership.
Any future procedure with the DGT.
In addition, they fail to meet the 30-day deadline set for carrying out the transfer.
Differences between change of ownership and notification of sale
This point is key, because many sellers confuse them.
Transfer of ownership
This is the procedure the buyer carries out to put the car in their name. It officially changes the vehicle's owner in the DGT Vehicle Register.
Notification of sale
This is a procedure the seller can complete to inform the DGT that they have sold the vehicle.
The DGT recommends that the seller carry out the notification of sale as soon as the transaction is made in order to be exempt from liabilities related to possible penalties if the ownership change has still not been completed.
In practical terms:
The buyer must do the ownership change.
The seller can do the notification of sale to protect themselves.
If you sell to a private individual and do not know the buyer well, making the notification of sale is a sensible way to cover yourself. It is not paranoia, it is having seen how the administration works and preferring to sleep.
Change of ownership if you sell to a dealership
If you sell your car to a dealership or car buying professional, the process can be more convenient.
Normally, the professional buyer can help you with:
Contract or purchase document.
Vehicle collection.
Payment handling.
Documentation.
Subsequent processing.
Change of ownership or handling as a car trader.
Even so, you should not hand over the car without documentation. Always ask for proof of the transaction and keep a copy of all the documents.
If you are considering selling to a professional, you can also read this guide on companies that buy cars in Spain.
How to avoid problems when changing ownership
To avoid mistakes, follow these recommendations.
Do not hand over the car without a contract
The contract must be signed before handing over the vehicle. Include the date and time of handover.
Check that the car can be transferred
Before selling, check whether there are encumbrances, retention of title, attachment orders or outstanding taxes.
Do not accept unclear payments
Prioritise secure, documented payment methods. A bank transfer is more traceable than improvised payments.
Keep copies of everything
Keep the contract, payment receipts, copies of documents, communications and any proof of the transaction.
Make the notification of sale if you sell to a private individual
If the buyer takes time to complete the ownership change, the notification of sale protects you against possible later problems.
Do not wait until the last day
The buyer has 30 days, but the sooner the procedure is done, the better. Bureaucracy does not improve with waiting, it only ferments.
How Dealcar helps you sell without complications
The ownership change is one of the procedures that raises the most questions when selling a car. And it is no wonder: contract, fees, taxes, DGT, paperwork, deadlines, encumbrances, receipts... a small administrative party with no music.
With Dealcar you can sell your car while avoiding many of the usual complications of a private sale.
Instead of posting adverts, taking calls, meeting strangers and handling negotiations, you can receive offers from professional dealerships. More than 1,000 dealerships can compete for your car, allowing you to compare proposals and sell with more confidence.
Dealcar helps you to:
Avoid calls and haggling from private individuals.
Compare real offers from professionals.
Sell without posting adverts on several portals.
Save time.
Reduce risk in the transaction.
Have a simpler process.
You can receive offers from dealerships for your car and decide whether any of them interest you.
Frequently asked questions about change of ownership of a car
Who has to do the ownership change of a car?
In a sale of a used car, the ownership change must be done by the buyer, who will be the vehicle's new owner. The DGT stipulates that it must be carried out within a maximum of 30 days from the signing of the contract.
How long do you have to change the ownership of a car?
The buyer has a maximum of 30 days from the signing of the sales contract to carry out the ownership change with the DGT.
How much does the ownership change of a car cost?
The cost includes the DGT fee and the Property Transfer Tax. The DGT shows for standard transfers fee 1.5 of 55.70 €. The ITP depends on the autonomous community and the value of the vehicle.
Can the ownership change be done online?
Yes. It can be done online if you have a digital certificate, electronic ID or Cl@ve credentials. It can also be done in person or through an agency.
What documents do I need to change ownership?
Normally you will need the sales contract or invoice, identification, proof of payment or exemption from the ITP, proof of DGT fee payment and the ownership change application, among other documents depending on the case.
What happens if the buyer does not change the car into their name?
The car may remain in the seller's name, which can cause problems with fines, taxes or liabilities. That is why the seller can make a notification of sale to protect themselves.
Can I sell a car without changing the ownership?
You can sign a sales contract, but the transaction is not fully updated with the DGT until the ownership change is completed. The correct thing is to complete the procedure as soon as possible.
Is it mandatory to make a notification of sale?
Not always mandatory, but it is highly recommended for the seller if the buyer does not immediately complete the ownership change. The DGT recommends doing it as soon as possible after the sale to avoid later liabilities.
