Spain has a significant disparity in vehicle tax rates, depending on the municipality. In some cities, mandatory payments reach the highest levels, while in others they remain minimal. The difference between individual localities can be as much as 900 percent.
This situation has led many car owners and companies, especially those involved in car rentals, to actively take advantage of these differences in tax policy. Some small towns report unusually high numbers of registered vehicles per resident—in some cases, up to 17 vehicles per person.
To register a car in a municipality with a low tax rate, it is enough to have a residential address in that area. Most often, the address of rented housing or acquaintances is used. Once registered at the new address, it becomes possible to register vehicles there and pay a lower tax.
Companies that own vehicle fleets also move their legal addresses to such towns. This allows them to save significant amounts annually by using legal mechanisms. The procedure for changing a vehicle’s address requires updating the owner’s place of residence information. This change can be processed online, by phone, or in person at an office.
To apply online, you will need an electronic certificate, an e-passport, or registration in the Cl@ve system. When applying by phone, a special number is used. In both cases, you must provide identification, a valid driver’s license, and complete the required form.
According to recent data, the highest vehicle tax rates are found in cities such as Vitoria, San Sebastián, Bilbao, Barcelona, Girona, Tarragona, Lleida, Ciudad Real, Salamanca, Valladolid, Huelva, Granada, and Santander. Meanwhile, in Santa Cruz de Tenerife, Melilla, Ceuta, Zamora, Palencia, Badajoz, Cáceres, and Jaén, tax rates remain among the lowest.
These differences are actively used by companies and owners of older vehicles. Statistics show that nearly 40 percent of corporate cars in the country are registered in just ten small municipalities, each with populations ranging from 600 to 15,000 residents.
