Is an annual which is paid to the municipality in which the vehicle is registered
The vehicle owner must inform the Provincial Traffic Office (Jefatura Provincial de Trafico) of any change of address since initial registration of the vehicle
Liable person is the vehicle owner on 1st of January. It is paid annually. Each town hall sets a voluntary payment period (período voluntario), which lasts two months. Vehicle owners will receive a notice of required payment by post.
Online payments are already organized in some municipalities but generally, payments are made in person at the town hall and at certain banks, or through a direct debit arrangement.
Following documentation is needed:
- Identity card
- Car registration document (Permiso de Circulación)
- Technical certificate (Certificado de Características Técnicas)
The rate of IVTM is set by the municipality within the Spanish government's minimum and maximum amounts; this considers the horsepower (potentia fiscal) of the vehicle and type of vehicle.
Electric or hybrid fuel vehicles receive a discount of up to 75 percent on this tax. Vehicles with eco-friendly adaptations may also receive a discount.
Penalties
Initial charge for late payment is 5 percent. If the payment is not made within one year, the charges are increased to 20 percent.