Contents
Before you start: what you need ready
The 10 procedures in order
Realistic timeframes: how long the whole process takes
The 3 registration mistakes that cost the most money
Conclusion
Frequently asked questions
If you have already decided to set up a used car dealership and you are clear on the business model (premises, investment, type of stock), what you need now is a concrete list of procedures. No fluff, no extra theory: what to do, where, with which form and in what order.
This article is exactly that. A checklist you can follow from top to bottom until everything is in order for you to operate as a professional. If what you are looking for is the full picture of the business (how much to invest, how to source stock, where to sell), we cover that in our guide on how to open a car dealership in Spain.
Before you start: what you need ready
Before starting the paperwork, make sure you have these items ready. Without them, you'll get stuck halfway through the process:
Digital certificate. You need it for almost everything: the tax office, Social Security, the DGT. You can obtain it free of charge from the FNMT (National Mint and Stamp Factory). If you set up a limited company, you will also need the company's representative certificate.
Decision on legal structure. Sole trader or limited company. Quick rule: alone, with little stock and little investment = sole trader. With a partner, heavy investment or expected profits above 40,000-50,000 euros a year = limited company.
Location of the premises decided. You need the address for tax registration and for the opening licence. If you do not yet have premises, you cannot complete some procedures.
The 10 procedures in order
1. Set up the company (only if it's a limited company)
What: public deed before a notary and registration in the Mercantile Registry.
Where: notary + Mercantile Registry of your province.
Cost: between 400 and 800 euros (notary + registry + accountant if you use one).
Timeframe: between 5 and 15 working days.
Result: you obtain the company's provisional tax ID number.
If you're self-employed, skip this step.
2. Register with the tax office
What: register in the census of businesses and report your economic activity. Form: model 036 (companies) or 037 (self-employed, simplified version). Where: AEAT electronic office (with digital certificate) or in person at your tax office. Codes you must indicate:
CNAE: 4511 (sale of motor cars and light motor vehicles).
IAE: category 612.3 (retail trade in vehicles) if you mainly sell to private individuals. Category 615.1 (wholesale trade) if you mainly work with other professionals.
Activate the REBU box (Special Scheme for Used Goods). If you don't tick it, the tax office assumes the standard VAT scheme. If you want a deeper understanding of REBU, we explain it in our complete guide to REBU in used car buying and selling.
Cost: free. Timeframe: immediate (registration takes effect on the spot).
3. Register with Social Security
What: register as a self-employed worker. Where: Social Security electronic office or in person (by appointment).
If you are an individual self-employed worker: register in the RETA. Flat rate of 80 euros/month for the first 12 months. After that, contribution according to actual income.
If you are a company director of a limited company with more than 25% of the share capital: register as a self-employed company director. Minimum contribution around 310-320 euros/month (2026). Also, obtain the company's contribution account code (CCC).
Timeframe: before starting the activity or on the same day. Invoicing without registration carries a penalty.
4. Obtain the definitive NIF (only for limited companies)
What: change the provisional CIF for the definitive one. Form: model 036. Timeframe: within 6 months following incorporation.
5. Apply for an opening licence
What: municipal authorisation to carry out the activity at your premises. Where: town hall of your municipality. Usual documentation: premises plan, urban planning compatibility certificate, technical project (if it exceeds a certain surface area), payment of the municipal fee. Timeframe: between 2 weeks and 2 months.
Shortcut: many municipalities accept the responsible opening declaration, which allows you to start the activity immediately while the final licence is processed. Check whether your town hall offers it.
6. Register as a professional operator with the DGT
What: access to the online system to carry out transfers, deregistrations and notifications as a professional. Where: DGT electronic office. Requirements: digital certificate, registration for Electronic Notifications (DEV), data protection declaration, being registered with the tax office as a dealer. Timeframe: between 1 and 3 weeks.
Alternative: outsource it to a vehicle administration agency. Cost per transfer: between 30 and 80 euros.
7. Take out public liability insurance
What: policy that covers third-party damage at your premises. When: before opening the premises to the public. Cost: between 300 and 800 euros/year.
8. Take out stock insurance (floating policy)
What: framework policy that covers all vehicles in stock against theft, fire, damage and test drives. It allows each car to be added and removed as you buy and sell. When: before you have the first car in stock. Cost: between 700 and 2,500 euros/year depending on volume and cover.
You can find all the information on cover and common mistakes in our guide on stock insurance for dealerships.
9. Set up an invoicing system
What: have a system ready that issues REBU invoices (without VAT breakdown, with the mandatory legal wording) and standard VAT invoices when applicable. When: before the first transaction.
It can be invoicing software configured for REBU, a platform specifically for dealerships, or templates reviewed by your accountant. The important thing is that the format is correct from the very first invoice. If you want to see when to apply each type, we explain it in our article on when to use a VAT invoice and when to use REBU.
10. Open record books
What: prepare the mandatory accounting books before the first transaction.
Mandatory books:
REBU operations record book (separate from the general book). It must include: date, seller details, vehicle description, registration number, purchase price, sale price and margin.
Record book of issued and received invoices.
Investment assets register (if you have business assets worth more than 300 euros).
Commercial accounting if you operate as a limited company (journal + annual accounts for the Mercantile Registry).
If you want to understand the full tax picture, we explain it in our guide on how to be taxed correctly as a dealer.
Realistic timeframes: how long the whole process takes
Procedure | Estimated time |
|---|---|
Setting up a limited company (notary + registry) | 5-15 days |
Tax office registration (036/037) | Immediate |
Social Security registration | Immediate |
Definitive NIF for limited company | 1-2 weeks |
Opening licence | 2-8 weeks |
DGT registration | 1-3 weeks |
Insurance | 1-3 days |
Invoicing and books | 1-2 days |
As a sole trader: everything ready (except the opening licence) in 1-2 weeks. With a responsible declaration, you can operate while it is being processed.
As a limited company: complete process in 3-6 weeks, including incorporation and licence.
The 3 registration mistakes that cost the most money
Not ticking REBU when registering with the tax office. The tax office assumes the standard scheme. You pay 21% on the total price instead of on the margin. On a car sold for 12,000 euros with a 2,000-euro margin, the difference is more than 1,700 euros in VAT. Per transaction.
Invoicing before completing registration. Penalties from 1% to 100% of the undeclared contributions. Also, expenses incurred before registration may not be deductible.
Not registering with the DGT as an operator. Each transfer has to go through an agency (30-80 euros) or in person. With 10-20 transactions per month, the extra cost and lost time add up quickly.
Conclusion
Registering as a dealer is a process with several steps, but all of them are specific and follow a logical order. If you follow this checklist from top to bottom, in 2-6 weeks you can have everything ready to operate legally. The three points where you cannot afford mistakes: activating REBU with the tax office, not invoicing before registration, and registering with the DGT as a professional.
More than 750 dealerships use Dealcar from day one.
From the platform you can generate REBU and VAT invoices automatically, keep the record book up to date and track the margin of each transaction. If you want to see how it works, you can book a free demo at dealcar.io.
Frequently asked questions
Can I start selling cars before completing all the paperwork?
No. If you invoice without being registered with the tax office, the penalty can be considerable. If you carry out transfers without DGT registration, the procedures are blocked. Complete the registration before your first transaction.
Do I need an agency to register?
It is not mandatory, but it is advisable if you do not have tax experience. A mistake in the category or in activating REBU costs more than the fees of a good agency with experience in the sector.
What happens if I choose the wrong IAE category?
It is not serious, but it creates inconsistencies. You can correct it with a new 036/037 form. For dealerships selling to private individuals, 612.3 is usually the right one.
Can I register as self-employed and later switch to a limited company?
Yes. It is a common evolution. When profits exceed 40,000-50,000 euros a year, setting up a limited company usually makes tax sense. It involves new paperwork, but it is a well-documented process.
Can I apply REBU and the standard scheme at the same time?
Yes. That is normal: REBU for cars bought from private individuals, standard VAT for cars bought from companies with an invoice. The important thing is to classify each transaction from the purchase and keep the records separate. To know when to apply each one, consult our guide on when to use a VAT invoice and when to use REBU.
Contents
Before you start: what you need ready
The 10 procedures in order
Realistic timeframes: how long the whole process takes
The 3 registration mistakes that cost the most money
Conclusion
Frequently asked questions
If you have already decided to set up a used car dealership and you are clear on the business model (premises, investment, type of stock), what you need now is a concrete list of procedures. No fluff, no extra theory: what to do, where, with which form and in what order.
This article is exactly that. A checklist you can follow from top to bottom until everything is in order for you to operate as a professional. If what you are looking for is the full picture of the business (how much to invest, how to source stock, where to sell), we cover that in our guide on how to open a car dealership in Spain.
Before you start: what you need ready
Before starting the paperwork, make sure you have these items ready. Without them, you'll get stuck halfway through the process:
Digital certificate. You need it for almost everything: the tax office, Social Security, the DGT. You can obtain it free of charge from the FNMT (National Mint and Stamp Factory). If you set up a limited company, you will also need the company's representative certificate.
Decision on legal structure. Sole trader or limited company. Quick rule: alone, with little stock and little investment = sole trader. With a partner, heavy investment or expected profits above 40,000-50,000 euros a year = limited company.
Location of the premises decided. You need the address for tax registration and for the opening licence. If you do not yet have premises, you cannot complete some procedures.
The 10 procedures in order
1. Set up the company (only if it's a limited company)
What: public deed before a notary and registration in the Mercantile Registry.
Where: notary + Mercantile Registry of your province.
Cost: between 400 and 800 euros (notary + registry + accountant if you use one).
Timeframe: between 5 and 15 working days.
Result: you obtain the company's provisional tax ID number.
If you're self-employed, skip this step.
2. Register with the tax office
What: register in the census of businesses and report your economic activity. Form: model 036 (companies) or 037 (self-employed, simplified version). Where: AEAT electronic office (with digital certificate) or in person at your tax office. Codes you must indicate:
CNAE: 4511 (sale of motor cars and light motor vehicles).
IAE: category 612.3 (retail trade in vehicles) if you mainly sell to private individuals. Category 615.1 (wholesale trade) if you mainly work with other professionals.
Activate the REBU box (Special Scheme for Used Goods). If you don't tick it, the tax office assumes the standard VAT scheme. If you want a deeper understanding of REBU, we explain it in our complete guide to REBU in used car buying and selling.
Cost: free. Timeframe: immediate (registration takes effect on the spot).
3. Register with Social Security
What: register as a self-employed worker. Where: Social Security electronic office or in person (by appointment).
If you are an individual self-employed worker: register in the RETA. Flat rate of 80 euros/month for the first 12 months. After that, contribution according to actual income.
If you are a company director of a limited company with more than 25% of the share capital: register as a self-employed company director. Minimum contribution around 310-320 euros/month (2026). Also, obtain the company's contribution account code (CCC).
Timeframe: before starting the activity or on the same day. Invoicing without registration carries a penalty.
4. Obtain the definitive NIF (only for limited companies)
What: change the provisional CIF for the definitive one. Form: model 036. Timeframe: within 6 months following incorporation.
5. Apply for an opening licence
What: municipal authorisation to carry out the activity at your premises. Where: town hall of your municipality. Usual documentation: premises plan, urban planning compatibility certificate, technical project (if it exceeds a certain surface area), payment of the municipal fee. Timeframe: between 2 weeks and 2 months.
Shortcut: many municipalities accept the responsible opening declaration, which allows you to start the activity immediately while the final licence is processed. Check whether your town hall offers it.
6. Register as a professional operator with the DGT
What: access to the online system to carry out transfers, deregistrations and notifications as a professional. Where: DGT electronic office. Requirements: digital certificate, registration for Electronic Notifications (DEV), data protection declaration, being registered with the tax office as a dealer. Timeframe: between 1 and 3 weeks.
Alternative: outsource it to a vehicle administration agency. Cost per transfer: between 30 and 80 euros.
7. Take out public liability insurance
What: policy that covers third-party damage at your premises. When: before opening the premises to the public. Cost: between 300 and 800 euros/year.
8. Take out stock insurance (floating policy)
What: framework policy that covers all vehicles in stock against theft, fire, damage and test drives. It allows each car to be added and removed as you buy and sell. When: before you have the first car in stock. Cost: between 700 and 2,500 euros/year depending on volume and cover.
You can find all the information on cover and common mistakes in our guide on stock insurance for dealerships.
9. Set up an invoicing system
What: have a system ready that issues REBU invoices (without VAT breakdown, with the mandatory legal wording) and standard VAT invoices when applicable. When: before the first transaction.
It can be invoicing software configured for REBU, a platform specifically for dealerships, or templates reviewed by your accountant. The important thing is that the format is correct from the very first invoice. If you want to see when to apply each type, we explain it in our article on when to use a VAT invoice and when to use REBU.
10. Open record books
What: prepare the mandatory accounting books before the first transaction.
Mandatory books:
REBU operations record book (separate from the general book). It must include: date, seller details, vehicle description, registration number, purchase price, sale price and margin.
Record book of issued and received invoices.
Investment assets register (if you have business assets worth more than 300 euros).
Commercial accounting if you operate as a limited company (journal + annual accounts for the Mercantile Registry).
If you want to understand the full tax picture, we explain it in our guide on how to be taxed correctly as a dealer.
Realistic timeframes: how long the whole process takes
Procedure | Estimated time |
|---|---|
Setting up a limited company (notary + registry) | 5-15 days |
Tax office registration (036/037) | Immediate |
Social Security registration | Immediate |
Definitive NIF for limited company | 1-2 weeks |
Opening licence | 2-8 weeks |
DGT registration | 1-3 weeks |
Insurance | 1-3 days |
Invoicing and books | 1-2 days |
As a sole trader: everything ready (except the opening licence) in 1-2 weeks. With a responsible declaration, you can operate while it is being processed.
As a limited company: complete process in 3-6 weeks, including incorporation and licence.
The 3 registration mistakes that cost the most money
Not ticking REBU when registering with the tax office. The tax office assumes the standard scheme. You pay 21% on the total price instead of on the margin. On a car sold for 12,000 euros with a 2,000-euro margin, the difference is more than 1,700 euros in VAT. Per transaction.
Invoicing before completing registration. Penalties from 1% to 100% of the undeclared contributions. Also, expenses incurred before registration may not be deductible.
Not registering with the DGT as an operator. Each transfer has to go through an agency (30-80 euros) or in person. With 10-20 transactions per month, the extra cost and lost time add up quickly.
Conclusion
Registering as a dealer is a process with several steps, but all of them are specific and follow a logical order. If you follow this checklist from top to bottom, in 2-6 weeks you can have everything ready to operate legally. The three points where you cannot afford mistakes: activating REBU with the tax office, not invoicing before registration, and registering with the DGT as a professional.
More than 750 dealerships use Dealcar from day one.
From the platform you can generate REBU and VAT invoices automatically, keep the record book up to date and track the margin of each transaction. If you want to see how it works, you can book a free demo at dealcar.io.
Frequently asked questions
Can I start selling cars before completing all the paperwork?
No. If you invoice without being registered with the tax office, the penalty can be considerable. If you carry out transfers without DGT registration, the procedures are blocked. Complete the registration before your first transaction.
Do I need an agency to register?
It is not mandatory, but it is advisable if you do not have tax experience. A mistake in the category or in activating REBU costs more than the fees of a good agency with experience in the sector.
What happens if I choose the wrong IAE category?
It is not serious, but it creates inconsistencies. You can correct it with a new 036/037 form. For dealerships selling to private individuals, 612.3 is usually the right one.
Can I register as self-employed and later switch to a limited company?
Yes. It is a common evolution. When profits exceed 40,000-50,000 euros a year, setting up a limited company usually makes tax sense. It involves new paperwork, but it is a well-documented process.
Can I apply REBU and the standard scheme at the same time?
Yes. That is normal: REBU for cars bought from private individuals, standard VAT for cars bought from companies with an invoice. The important thing is to classify each transaction from the purchase and keep the records separate. To know when to apply each one, consult our guide on when to use a VAT invoice and when to use REBU.
