What Is ITP When Buying a Car in Spain? Complete Guide (2026)

The core definition

ITP taxes the transfer of ownership of a used asset when the seller is a private individual acting outside any business or professional activity. For cars, this means: you bought a used vehicle directly from its private owner, not from a dealership, and not from a company selling as part of its trade. That single condition — private seller — is what switches ITP on.

If the seller is a professional (a car dealer, a leasing company disposing of a fleet vehicle, a business selling a company car), the transaction falls under VAT instead, and ITP simply does not apply. VAT and ITP are mutually exclusive on the same sale — you never pay both.

Where the tax lives: your region, not the seller's

A detail that surprises many importers: ITP is governed by the autonomous region where the buyer registers the car, not by where the contract was signed or where the seller is based. Buying a used car in Munich and bringing it to Spain has nothing to do with German tax law for this purpose — once it is a private-to-private sale being registered in Spain, Spanish ITP applies, at the rate set by the buyer's own region.

Regional ITP rates

• 4%: Madrid, Navarre, Andalusia, Galicia
• 5%: Catalonia
• 6%: Castilla-La Mancha
• 6% to 8%: Extremadura
• Up to 8%: Valencia, the Balearic Islands

Because the rate depends on your region of residence and registration, the same private-party purchase can cost noticeably more or less in ITP depending on where you live in Spain — a real consideration when comparing total import costs.

How ITP is calculated and filed

Like IEDMT, ITP is not simply a percentage of the price you agreed with the seller. Spain's tax authorities maintain official reference tables of vehicle values by make, model and age, and ITP is generally assessed on the higher of that table value or the declared purchase price. The buyer self-assesses the tax using modelo 620 (or modelo 621 in certain regions that use a slightly different form), filed with the regional tax office, not with AEAT.

Worked example

A private seller in the Netherlands sells you a five-year-old hatchback for 12,000 EUR. You register it in Andalusia, where ITP is 4% and the region's own table value for that car is 12,800 EUR. Since the table value is higher than the price paid, ITP is calculated on 12,800 EUR, giving a bill of 512 EUR.

When ITP does not apply

• The seller is a registered car dealer or professional trader — VAT applies instead
• You bought new from a manufacturer or authorized dealer — VAT applies instead
• The vehicle is a company asset sold by a business with VAT itemized on the invoice — VAT applies instead

Private seller, no VAT on the invoice: that is the single test for whether ITP applies.

Frequently asked questions

Is ITP the same everywhere in Spain?

No. Each autonomous region sets its own rate within a range approved at national level, so the same private-party car purchase can cost you 4% in Madrid and up to 8% in some Valencian or Balearic scenarios.

Do I still owe IEDMT if I already paid ITP?

Yes. ITP and IEDMT are two separate, cumulative taxes. Paying ITP on a private purchase does not exempt you from IEDMT on first registration in Spain — both are due, calculated independently, and filed on different forms.