When a used car is sold between private parties in Spain, the transfer involves three costs: the DGT fee for the change of ownership, the transfer tax (ITP) and, if you use one, the gestoría. Each falls to someone, and it pays to know who before signing the contract.
The short answer: the buyer pays
The transfer tax (ITP) is always paid by the buyer: the law names the buyer as liable because they acquire the asset. The DGT fee is paid by whoever applies for the change of ownership, in practice also the buyer. And the gestoría is paid by whoever hires it, usually the buyer.
Buyer and seller can agree in the contract that the seller covers some or all of the costs, for example to close the sale. That is valid between them, but for the tax office the person liable for ITP is still the buyer: if nobody pays, the tax office will claim it from them.
What each item covers
DGT fee. A fixed amount for the change-of-ownership procedure, updated every year. It is lower for mopeds.
ITP. Filed with the Valencian Tax Agency on form 620. It is not calculated on the contract price, but on the higher of that price and the value set by the tax authorities in their average-price tables, adjusted for the vehicle's age. Special rules may apply depending on the type and age of the vehicle. Step by step in how to transfer a car between private parties.
Gestoría. Optional, but it saves trips and mistakes in the contract and the tax.
What the seller must do even without paying
The seller does not pay for the transfer, but has one important obligation: notify the DGT of the sale within ten days. This notice of sale means that, from that moment, fines, road tax and liability for the car stop going to the seller even if the buyer is slow to transfer.
Without it, if the buyer does not transfer, the seller remains the owner for all purposes. It is one of the most frequent problems we see; see I sold my car and the buyer never transferred it.
"The buyer pays for the transfer, but the one with most to lose if it is not done is the seller. That is why the notice of sale is not optional."
Deadlines
The buyer has 30 days from the purchase to apply for the change of ownership at the DGT, with the ITP already settled. The seller has ten days to notify the sale. If everything is done at once through a gestoría, both deadlines are covered the same day.
What if you buy from a dealer?
If the seller is a business selling with VAT, no ITP is due, because the sale is already taxed with VAT. Dealers also usually include the transfer in the price. Get it confirmed in writing before paying.
Summary
| Item | Who pays | Deadline |
|---|---|---|
| ITP (form 620) | Buyer | Before the transfer |
| DGT fee | The applicant, usually the buyer | 30 days from purchase |
| Notice of sale | Seller, no tax cost | 10 days from sale |
| Agency | Whoever hires it | Same day, if it handles everything |
| Purchase from a VAT dealer | No ITP; transfer often included | Per the dealer |
Frequently asked questions
Who pays the transfer tax on a used car?
The buyer. The law names the buyer as liable, even if the parties agree otherwise between themselves.
Can we agree that the seller pays?
Yes, it is valid between you and can go in the contract. But if the tax is not paid, the tax office claims it from the buyer.
What is the deadline for the transfer?
30 days from the purchase for the buyer, and 10 days for the seller to notify the DGT of the sale.
What if the buyer never transfers the car?
The car stays in the seller's name, with its fines and taxes. If the seller notified the sale, they are protected from that date.
Is ITP due if I buy from a dealer?
No, if the dealer sells with VAT. In that case the sale is already taxed with VAT and no ITP is due.