Madrid, Barcelona and Valencia want to end the car tax havens in Spain

In Spain there is a group of small towns that concentrate a large number of vehicles registered in the municipality. This is strange, since the cars registered in these urban centres far exceed the number of inhabitants. So much so that in some villages there are up to 37 vehicles per inhabitant. These are the so-called car tax havens, places where the registration tax is significantly lower than in medium-sized or large cities.

This situation has led the city councils of Madrid, Barcelona and Valencia to protest to the DGT over the loss of revenue this entails. Their aim is for the actual circulation of vehicles to be regulated and for each one to pay tax where it truly belongs. For companies with large fleets and private owners this would mean an increase in vehicle maintenance costs.

This is no joke, since the difference in the vehicle circulation tax (IVTM) can be considerable between a city like Madrid and a small town like those that host many of these vehicles. To achieve this, companies open a headquarters or an office in one of these small towns and register the vehicles at that address. This means that, officially, the vehicles pay the tax corresponding to the town, but they move around the big capitals.

According to a publication by Elmundo.es, Barcelona stops collecting around 2.7 million euros for this reason. In cities such as Madrid or Valencia the figures are similar, so the three city councils have asked the DGT to put an end to these car tax havens in Spain. They demand control at these locations and verification of whether the vehicles really have their base established there, since many of them never even circulate there.

As a curiosity, we are going to show you the 10 main car tax havens in Spain. The difference in the circulation tax amount between some of these villages and the large cities can reach as much as 365%, which explains why vehicles are registered there.

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