Index
What is ITP and why it matters in the sale of used cars
When ITP applies and when it does not
Who pays ITP and how it is calculated
How ITP is paid: form 620, form 621 and deadlines
The role of the dealership in transactions with ITP
Common mistakes made by dealerships with ITP
Frequently Asked Questions
What is ITP and why it matters in the sale of used cars
The ITP (Property Transfer Tax) is a regional tax regulated by Royal Legislative Decree 1/1993 that taxes the transfer of assets between individuals when the transaction is not subject to VAT. In the case of vehicles, this means that every time an individual sells a used car to another individual, the buyer must settle this tax before they can complete the transfer of ownership at the DGT (Traffic Authority).
It is a tax delegated to the autonomous communities, which means that both the tax rate and the exemptions and procedures vary depending on the region where the buyer resides. Rates range from 4% to 8%, and some communities like Catalonia exempt payment under certain conditions.
For dealerships, the ITP does not entail a direct obligation in most of their sales (which are subject to VAT). However, it does appear in their daily operations: purchases from individuals, vehicle trade-ins, and customers needing advice on the process. Understanding it well makes the difference between closing a clean deal and having documentation issues.
When ITP applies and when it does not
The general rule is simple: if there is no VAT, there is ITP. VAT and ITP are mutually exclusive in the same transaction.
ITP applies when:
An individual sells a used car to another individual. There is no invoice with VAT, only a private sales contract. The seller does not have an associated economic activity: if someone sells their personal car, the buyer pays ITP.
ITP does not apply when:
The seller is a dealership or professional business that issues an invoice with VAT, whether under the general scheme (21%) or under the REBU (Special Scheme for Used Goods). In both cases, the buyer is exempt from ITP. It also does not apply to inheritances or donations (which are governed by the Inheritance and Gift Tax), nor when the buyer is an entrepreneur regularly dedicated to buying and selling vehicles and acquires them for resale. This exemption is particularly relevant for dealerships purchasing stock from individuals.
A case that raises doubts: trade-ins. If a customer hands in their car as part of the payment, there are two simultaneous transactions. The sale from the dealership to the customer is subject to VAT. The trade-in of the car from the customer to the dealership can be exempt from ITP if the dealership correctly documents that it is acquiring it for its commercial activity. The documentation here is what makes the difference. To understand the full tax treatment of these transactions, you can consult the guide on how a vehicle trade-in is taxed.
Who pays ITP and how it is calculated
The ITP is always paid by the buyer. No exceptions. The individual seller has no obligation regarding this tax.
The taxable base is not necessarily the price in the contract. The Spanish Tax Office uses official valuation tables published every year in the BOE (for 2026, Order HAC/1501/2025). These tables assign a fiscal value to each model according to make, version, and power, to which a depreciation coefficient for age is applied:
Age of the vehicle | Coefficient |
|---|---|
Up to 1 year | 100% |
1 to 2 years | 84% |
2 to 3 years | 67% |
3 to 4 years | 56% |
4 to 5 years | 47% |
5 to 6 years | 39% |
6 to 7 years | 34% |
7 to 8 years | 28% |
8 to 9 years | 24% |
9 to 10 years | 19% |
10 to 11 years | 17% |
11 to 12 years | 13% |
More than 12 years | 10% |
The final taxable base is the higher of these two amounts: the depreciated fiscal value or the actual price declared in the contract. If a buyer pays €8,000 for a car whose depreciated fiscal value is €6,500, they pay tax on €8,000. If they pay €5,000 but the fiscal value is €6,500, they pay tax on €6,500.
Tax rates by autonomous community (general rates for standard passenger cars):
Autonomous Community | General rate |
|---|---|
Madrid | 4% |
Andalusia | 4% (8% for over 15 fiscal horsepower) |
Catalonia | 5% (exemption for vehicles >10 years and <€40,000) |
Valencian Community | 6% |
Castile-La Mancha | 6% |
Castile and León | 5% (8% for over 15 fiscal horsepower) |
Galicia | 8% |
Asturias | 4% (8% for over 15 fiscal horsepower) |
Balearic Islands | 4% (8% for over 15 fiscal horsepower) |
Canary Islands | 5.5% |
Murcia | 4% |
Navarre | 4% |
Basque Country | 4% (varies by provincial territory) |
Practical example. A buyer residing in the Valencian Community purchases a 2020 Seat León 1.5 TSI from an individual. The value in the Treasury tables for that model is €18,000. With 6 years of age, the coefficient is 34%, giving a fiscal value of €6,120. The agreed price is €12,000. As the actual price (€12,000) is higher than the fiscal value (€6,120), the taxable base is €12,000. With a rate of 6%, the ITP to pay is €720.
Some regions offer specific discounts: large families, people with disabilities, ECO or zero-emission vehicles. It is advisable to consult the regional regulations in force before paying. Since June 2025, in Catalonia, vehicles with a 0-emissions badge pay 0% tax.
How ITP is paid: form 620, form 621 and deadlines
The process has two parts: settling the tax electronically or in person with the regional Tax Office and presenting the proof of payment to the DGT to process the transfer.
Form 620 (in person): the traditional paper form. It is completed, paid at a collaborating bank, and presented at the tax office of the autonomous community.
Form 621 (online): the digital version, available on the electronic office of most regions. It allows you to pay online and obtain proof of payment immediately. It is the fastest route and the one that more regions are promoting.
The documentation required to settle the ITP includes the completed form, the sales contract signed by both parties, a photocopy of the registration certificate, a photocopy of the technical data sheet, and the buyer's ID (DNI).
The deadline to pay is 30 business days from the date the contract is signed. If this is exceeded, the administration applies surcharges of 5% to 20% depending on the delay, plus late payment interest. Without the proof of payment, the DGT will not process the transfer of ownership.
The role of the dealership in transactions with ITP
Although the dealership is not the taxable person for ITP on its sales (because it invoices with VAT), it does intervene in several situations where this tax comes into play.
Purchases from individuals. When a dealership buys a vehicle from an individual to add to its stock, the transaction can be exempt from ITP if the dealership proves that it is acquiring it for resale within its standard business activity. To do this, it must document the transaction correctly: sales contract, proof of payment, identification of the seller, and entry in the purchase register. To see how to declare these transactions correctly, you can consult the guide on how to declare the purchase of used vehicles.
Trade-ins. The relationship between the REBU and ITP in trade-ins requires attention: if the car was bought from an individual, the dealership can apply the REBU when reselling it, and the original transaction is exempt from ITP. To know when to apply each scheme, consult the guide on when to invoice with VAT and when to apply REBU.
Intermediation between individuals. If the dealership acts as an intermediary between two individuals without actually buying the vehicle, it must make it very clear in the documentation that it is not the seller. Otherwise, it could assume tax responsibilities that do not belong to it.
Customer advice. In all sales where the dealership issues an invoice with VAT (or REBU), it is advisable to inform the customer that they do not have to pay ITP. This avoids confusion, especially with buyers who come from previous experiences with individuals and assume they always have to pay the tax.
Common mistakes made by dealerships with ITP
Failing to inform the customer about the tax scheme of the transaction. When a buyer is not clear about whether they should pay ITP or if it is already covered by the VAT on the invoice, subsequent complaints may arise. This is particularly important in sales under the REBU scheme, where VAT is not itemised and can cause confusion.
Not properly documenting purchases from individuals. If the dealership buys a car from an individual and does not keep the signed contract, proof of payment, and the seller's identification, it loses the basis to qualify for the ITP exemption for resale and complicates the subsequent application of the REBU. To avoid documentation problems, review the guide on mandatory documentation in each sale and purchase transaction.
Confusing REBU with a total exemption from tax obligations. The REBU exempts the buyer from paying ITP, but it generates its own obligations for the dealership: registry book, legal mention on the invoice, correct calculation of the margin. For the most common mistakes with this scheme, consult the article on common mistakes when applying the REBU in dealerships.
Acting as an intermediary without a clear contract. If you facilitate the sale between two individuals without defining your role in writing, the Tax Office could interpret that you are the seller, implying VAT obligations that do not correspond.
Failing to check for IVTM (annual road tax) debts before a purchase from an individual. Pending municipal road tax can block the transfer at the DGT. Before closing a purchase from an individual, verifying that there are no unpaid receipts is a basic precaution.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar allows you to register purchases from individuals with all associated documentation, classify transactions according to whether they are taxable under VAT or REBU, generate correct contracts and invoices, and maintain a trackable history for each vehicle. With each transaction correctly documented, the ITP exemption for resale activity is always justified.
If you want to see how it works, you can book a free demo at dealcar.io.
Frequently Asked Questions
Who pays ITP when buying a car from an individual?
Always the buyer. It is a personal and non-transferable obligation: they must self-assess the tax with the Treasury of their autonomous community within 30 business days from signing the contract. Without the proof of payment, the DGT will not process the change of name.
Do I pay ITP if I buy the car at a dealership?
No. When the seller is a professional, the transaction is taxed under VAT, either under the general scheme or under REBU. ITP only applies to transactions between individuals where no VAT invoice is involved.
How does the Tax Office know how much my car is worth for ITP purposes?
The Ministry of Finance publishes valuation tables for used vehicles every year in the BOE. These tables assign a base value according to make, model, and version, which is reduced by a depreciation coefficient for age. The taxable base for the ITP will be the higher of that fiscal value and the actual price declared in the contract.
Are there communities where you do not pay ITP on a used car?
Yes, with some exceptions. In Catalonia, vehicles over 10 years old and valued at less than €40,000 are exempt. Navarre has a similar exemption. In addition, some communities apply discounts for large families, people with disabilities, or vehicles with an ECO or 0-emissions sticker.
What happens if the buyer does not pay the ITP on time?
The administration applies surcharges between 5% and 20% depending on the length of the delay, plus interest for late payment. The DGT does not process the transfer until proof of payment is submitted. If the statute of limitations (4 years) has not expired, the Tax Office can claim the payment at any time.
Index
What is ITP and why it matters in the sale of used cars
When ITP applies and when it does not
Who pays ITP and how it is calculated
How ITP is paid: form 620, form 621 and deadlines
The role of the dealership in transactions with ITP
Common mistakes made by dealerships with ITP
Frequently Asked Questions
What is ITP and why it matters in the sale of used cars
The ITP (Property Transfer Tax) is a regional tax regulated by Royal Legislative Decree 1/1993 that taxes the transfer of assets between individuals when the transaction is not subject to VAT. In the case of vehicles, this means that every time an individual sells a used car to another individual, the buyer must settle this tax before they can complete the transfer of ownership at the DGT (Traffic Authority).
It is a tax delegated to the autonomous communities, which means that both the tax rate and the exemptions and procedures vary depending on the region where the buyer resides. Rates range from 4% to 8%, and some communities like Catalonia exempt payment under certain conditions.
For dealerships, the ITP does not entail a direct obligation in most of their sales (which are subject to VAT). However, it does appear in their daily operations: purchases from individuals, vehicle trade-ins, and customers needing advice on the process. Understanding it well makes the difference between closing a clean deal and having documentation issues.
When ITP applies and when it does not
The general rule is simple: if there is no VAT, there is ITP. VAT and ITP are mutually exclusive in the same transaction.
ITP applies when:
An individual sells a used car to another individual. There is no invoice with VAT, only a private sales contract. The seller does not have an associated economic activity: if someone sells their personal car, the buyer pays ITP.
ITP does not apply when:
The seller is a dealership or professional business that issues an invoice with VAT, whether under the general scheme (21%) or under the REBU (Special Scheme for Used Goods). In both cases, the buyer is exempt from ITP. It also does not apply to inheritances or donations (which are governed by the Inheritance and Gift Tax), nor when the buyer is an entrepreneur regularly dedicated to buying and selling vehicles and acquires them for resale. This exemption is particularly relevant for dealerships purchasing stock from individuals.
A case that raises doubts: trade-ins. If a customer hands in their car as part of the payment, there are two simultaneous transactions. The sale from the dealership to the customer is subject to VAT. The trade-in of the car from the customer to the dealership can be exempt from ITP if the dealership correctly documents that it is acquiring it for its commercial activity. The documentation here is what makes the difference. To understand the full tax treatment of these transactions, you can consult the guide on how a vehicle trade-in is taxed.
Who pays ITP and how it is calculated
The ITP is always paid by the buyer. No exceptions. The individual seller has no obligation regarding this tax.
The taxable base is not necessarily the price in the contract. The Spanish Tax Office uses official valuation tables published every year in the BOE (for 2026, Order HAC/1501/2025). These tables assign a fiscal value to each model according to make, version, and power, to which a depreciation coefficient for age is applied:
Age of the vehicle | Coefficient |
|---|---|
Up to 1 year | 100% |
1 to 2 years | 84% |
2 to 3 years | 67% |
3 to 4 years | 56% |
4 to 5 years | 47% |
5 to 6 years | 39% |
6 to 7 years | 34% |
7 to 8 years | 28% |
8 to 9 years | 24% |
9 to 10 years | 19% |
10 to 11 years | 17% |
11 to 12 years | 13% |
More than 12 years | 10% |
The final taxable base is the higher of these two amounts: the depreciated fiscal value or the actual price declared in the contract. If a buyer pays €8,000 for a car whose depreciated fiscal value is €6,500, they pay tax on €8,000. If they pay €5,000 but the fiscal value is €6,500, they pay tax on €6,500.
Tax rates by autonomous community (general rates for standard passenger cars):
Autonomous Community | General rate |
|---|---|
Madrid | 4% |
Andalusia | 4% (8% for over 15 fiscal horsepower) |
Catalonia | 5% (exemption for vehicles >10 years and <€40,000) |
Valencian Community | 6% |
Castile-La Mancha | 6% |
Castile and León | 5% (8% for over 15 fiscal horsepower) |
Galicia | 8% |
Asturias | 4% (8% for over 15 fiscal horsepower) |
Balearic Islands | 4% (8% for over 15 fiscal horsepower) |
Canary Islands | 5.5% |
Murcia | 4% |
Navarre | 4% |
Basque Country | 4% (varies by provincial territory) |
Practical example. A buyer residing in the Valencian Community purchases a 2020 Seat León 1.5 TSI from an individual. The value in the Treasury tables for that model is €18,000. With 6 years of age, the coefficient is 34%, giving a fiscal value of €6,120. The agreed price is €12,000. As the actual price (€12,000) is higher than the fiscal value (€6,120), the taxable base is €12,000. With a rate of 6%, the ITP to pay is €720.
Some regions offer specific discounts: large families, people with disabilities, ECO or zero-emission vehicles. It is advisable to consult the regional regulations in force before paying. Since June 2025, in Catalonia, vehicles with a 0-emissions badge pay 0% tax.
How ITP is paid: form 620, form 621 and deadlines
The process has two parts: settling the tax electronically or in person with the regional Tax Office and presenting the proof of payment to the DGT to process the transfer.
Form 620 (in person): the traditional paper form. It is completed, paid at a collaborating bank, and presented at the tax office of the autonomous community.
Form 621 (online): the digital version, available on the electronic office of most regions. It allows you to pay online and obtain proof of payment immediately. It is the fastest route and the one that more regions are promoting.
The documentation required to settle the ITP includes the completed form, the sales contract signed by both parties, a photocopy of the registration certificate, a photocopy of the technical data sheet, and the buyer's ID (DNI).
The deadline to pay is 30 business days from the date the contract is signed. If this is exceeded, the administration applies surcharges of 5% to 20% depending on the delay, plus late payment interest. Without the proof of payment, the DGT will not process the transfer of ownership.
The role of the dealership in transactions with ITP
Although the dealership is not the taxable person for ITP on its sales (because it invoices with VAT), it does intervene in several situations where this tax comes into play.
Purchases from individuals. When a dealership buys a vehicle from an individual to add to its stock, the transaction can be exempt from ITP if the dealership proves that it is acquiring it for resale within its standard business activity. To do this, it must document the transaction correctly: sales contract, proof of payment, identification of the seller, and entry in the purchase register. To see how to declare these transactions correctly, you can consult the guide on how to declare the purchase of used vehicles.
Trade-ins. The relationship between the REBU and ITP in trade-ins requires attention: if the car was bought from an individual, the dealership can apply the REBU when reselling it, and the original transaction is exempt from ITP. To know when to apply each scheme, consult the guide on when to invoice with VAT and when to apply REBU.
Intermediation between individuals. If the dealership acts as an intermediary between two individuals without actually buying the vehicle, it must make it very clear in the documentation that it is not the seller. Otherwise, it could assume tax responsibilities that do not belong to it.
Customer advice. In all sales where the dealership issues an invoice with VAT (or REBU), it is advisable to inform the customer that they do not have to pay ITP. This avoids confusion, especially with buyers who come from previous experiences with individuals and assume they always have to pay the tax.
Common mistakes made by dealerships with ITP
Failing to inform the customer about the tax scheme of the transaction. When a buyer is not clear about whether they should pay ITP or if it is already covered by the VAT on the invoice, subsequent complaints may arise. This is particularly important in sales under the REBU scheme, where VAT is not itemised and can cause confusion.
Not properly documenting purchases from individuals. If the dealership buys a car from an individual and does not keep the signed contract, proof of payment, and the seller's identification, it loses the basis to qualify for the ITP exemption for resale and complicates the subsequent application of the REBU. To avoid documentation problems, review the guide on mandatory documentation in each sale and purchase transaction.
Confusing REBU with a total exemption from tax obligations. The REBU exempts the buyer from paying ITP, but it generates its own obligations for the dealership: registry book, legal mention on the invoice, correct calculation of the margin. For the most common mistakes with this scheme, consult the article on common mistakes when applying the REBU in dealerships.
Acting as an intermediary without a clear contract. If you facilitate the sale between two individuals without defining your role in writing, the Tax Office could interpret that you are the seller, implying VAT obligations that do not correspond.
Failing to check for IVTM (annual road tax) debts before a purchase from an individual. Pending municipal road tax can block the transfer at the DGT. Before closing a purchase from an individual, verifying that there are no unpaid receipts is a basic precaution.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar allows you to register purchases from individuals with all associated documentation, classify transactions according to whether they are taxable under VAT or REBU, generate correct contracts and invoices, and maintain a trackable history for each vehicle. With each transaction correctly documented, the ITP exemption for resale activity is always justified.
If you want to see how it works, you can book a free demo at dealcar.io.
Frequently Asked Questions
Who pays ITP when buying a car from an individual?
Always the buyer. It is a personal and non-transferable obligation: they must self-assess the tax with the Treasury of their autonomous community within 30 business days from signing the contract. Without the proof of payment, the DGT will not process the change of name.
Do I pay ITP if I buy the car at a dealership?
No. When the seller is a professional, the transaction is taxed under VAT, either under the general scheme or under REBU. ITP only applies to transactions between individuals where no VAT invoice is involved.
How does the Tax Office know how much my car is worth for ITP purposes?
The Ministry of Finance publishes valuation tables for used vehicles every year in the BOE. These tables assign a base value according to make, model, and version, which is reduced by a depreciation coefficient for age. The taxable base for the ITP will be the higher of that fiscal value and the actual price declared in the contract.
Are there communities where you do not pay ITP on a used car?
Yes, with some exceptions. In Catalonia, vehicles over 10 years old and valued at less than €40,000 are exempt. Navarre has a similar exemption. In addition, some communities apply discounts for large families, people with disabilities, or vehicles with an ECO or 0-emissions sticker.
What happens if the buyer does not pay the ITP on time?
The administration applies surcharges between 5% and 20% depending on the length of the delay, plus interest for late payment. The DGT does not process the transfer until proof of payment is submitted. If the statute of limitations (4 years) has not expired, the Tax Office can claim the payment at any time.
