Buying, Owning and Selling a Car in Mallorca: The Complete Guide for Foreigners

Buying a car in Mallorca is one of the most practical decisions anyone living on or spending extended time on the island will make. Public transport covers the main routes between Palma and the larger towns, but southwest Mallorca — the area most relevant to the international residential community around Santa Ponsa, Portals Nous and Calvia — is a place where a car makes the difference between convenience and constant logistical calculation. The good news is that the process of buying, owning and eventually selling a car here is straightforward once you understand the Spanish system, and foreign nationals — residents and non-residents alike — can own a vehicle on the island with few complications. This guide covers the complete picture: finding and buying a car, registration, the ITV inspection, insurance, road tax, bringing a foreign-plated vehicle to Mallorca, and the process for selling when the time comes.

Can Foreigners Buy a Car in Mallorca?

Yes — both residents and non-residents can legally buy and own a car in Spain, including Mallorca. The key requirement for any purchase is a Spanish NIE number (Número de Identificación de Extranjero), which is the foreigner identification number issued by the Spanish authorities. An NIE is required to register a vehicle in your name with the DGT (Dirección General de Tráfico, the Spanish traffic authority). If you own property in Mallorca, you almost certainly already have an NIE from the purchase process. If not, an NIE can be obtained at the National Police station in Palma or through a Spanish consulate in your home country. A gestoría — a Spanish administrative agency — can manage the application on your behalf for a relatively modest fee and is the most efficient approach for most buyers.

In addition to your NIE, you will need proof of address. Residents present a copy of their certificado de empadronamiento (proof of registration on the local census), which must have been issued within the last three months. Non-residents can use property title deeds or a tenancy agreement as proof of their Mallorca address. The key point for non-residents is that you do not need to spend six months a year in Spain to own a car here — you simply need to demonstrate a genuine connection to an address on the island.

Buying a New Car

Buying a new car from a dealership in Mallorca follows the same process as buying new anywhere in Spain. The main dealerships for all major brands — Volkswagen, BMW, Mercedes, Audi, Toyota, Seat, Kia, Hyundai and others — have operations in or around Palma, and most have experience dealing with international buyers. The purchase price includes IVA (VAT) at 21% on new vehicles. On top of the purchase price, a registration tax called IEDMT (Impuesto Especial sobre Determinados Medios de Transporte) applies based on the vehicle's CO2 emissions: 0% for vehicles emitting under 120g/km, 4.75% for 120–160g/km, 9.75% for 160–200g/km and 14.75% for above 200g/km. Electric vehicles are fully exempt from IEDMT. The dealership typically handles the DGT registration, the plates and the technical card (ficha técnica) as part of the purchase process, which simplifies things considerably for the buyer.

Buying a Second-Hand Car

The second-hand car market in Mallorca is active, and prices are generally competitive with the mainland. The main platforms used are Coches.net, Milanuncios, Wallapop and AutoScout24, alongside dealership forecourts. Private sales are common. When buying second-hand, the key checks to carry out before agreeing to purchase are:

Verify ownership — the seller's ID (passport or DNI/NIE) must match the name on the vehicle's permiso de circulación (logbook). Check for outstanding debts — in Spain, unpaid road tax (IVTM), fines and loans stay with the car, not the seller. Outstanding debts on a vehicle block the change of ownership, so confirm with the DGT that the car is clear before handing over any money. Confirm ITV status — any car four years old or more must have a valid ITV certificate (Spain's equivalent of the MOT). Check the ITV sticker on the windscreen and ask for the certificate. Verify the chassis number matches the registration document. Check the service history and that recorded mileage matches the odometer.

Once a private sale is agreed, both buyer and seller sign a contrato de compraventa — a purchase and sale contract — and the buyer takes responsibility for completing the change of ownership with the DGT. This must be done within 30 days of the sale. The transfer tax (ITP — Impuesto de Transmisiones Patrimoniales) is paid by the buyer on a second-hand purchase. In the Balearic Islands, ITP on vehicle transfers is calculated on the vehicle's fiscal value (not necessarily the sale price) using a sliding scale based on age and engine size, typically ranging from 4% to 8%. A gestoría will handle the DGT paperwork and ITP payment for a fee of around 100 to 200 euros, which is money well spent for the time it saves.

Registering the Car in Your Name

Whether buying new or second-hand, the vehicle must be registered in your name with the DGT. For a new vehicle, the dealership handles this. For a second-hand purchase, the buyer is responsible. The documents required for registration are: the completed change of ownership form (Modelo 576 for ITP payment, plus the DGT transfer form), the original permiso de circulación, the ficha técnica, proof of ITP payment, your NIE and passport, and proof of address. Once submitted — either directly at the Jefatura Provincial de Tráfico in Palma or through a gestoría — the new permiso de circulación is issued, typically within one to two weeks. A gestoría handling this on your behalf will charge around 100 to 200 euros for the service.

The ITV — Spain's Vehicle Inspection

The ITV (Inspección Técnica de Vehículos) is Spain's equivalent of the UK MOT or German TÜV. It is a mandatory periodic technical inspection that checks the roadworthiness, safety systems and emissions of your vehicle. The first ITV is due when the car reaches four years old, then every two years until the car is ten years old, after which it is required annually. The cost is approximately 30 to 50 euros per inspection. ITV stations in Mallorca are operated by ATISAE and APPLUS+ among others, with multiple locations across the island. Appointments can be booked online or by phone. Arriving with a clean, well-maintained car significantly reduces the risk of a failure. Common failure points include tyre condition, lighting, emissions levels and brake performance. A failed ITV results in a defect notice with a defined period to repair and retest — the car can still be driven during this period if the defects are not classified as dangerous.

Car Insurance in Mallorca

In Spain, it is the car that is insured rather than the driver — a fundamental difference from the UK system. Third-party liability insurance (seguro a terceros) is the legal minimum and is compulsory. Comprehensive insurance (todo riesgo) covers damage to your own vehicle as well. The main Spanish insurers operating in Mallorca include Mapfre, Generali, Allianz, AXA and Mutua Madrileña, and several English-language brokers operate on the island specifically serving the international community. Insurance must be in place before the vehicle is driven. Proof of insurance must be kept in the vehicle at all times. Annual premiums for a standard family car in Mallorca typically range from around 400 euros for third-party to 800 to 1,200 euros for comprehensive cover, depending on the driver's age, claims history and vehicle value.

Road Tax — IVTM

The annual road tax in Spain is the IVTM (Impuesto sobre Vehículos de Tracción Mecánica). It is a municipal tax, paid to the local town hall where the vehicle is registered — in Santa Ponsa and Portals Nous this is the Ajuntament de Calvia. The IVTM is charged on 1 January each year for the preceding year (except for new cars, where it is charged on the day of purchase). The amount varies by engine capacity and municipality. For a standard family car (engine between 1,600cc and 1,999cc), the IVTM in the Calvia municipality is approximately 120 to 160 euros per year. Electric and hybrid vehicles benefit from significant discounts — Calvia offers a 75% reduction for zero-emission vehicles. The IVTM can be paid at the town hall, by direct debit or online. Unpaid IVTM blocks any change of ownership and can result in fines, so keeping it current is important.

Bringing a Foreign-Registered Car to Mallorca

This is one of the areas where the rules differ most significantly depending on your residency status, and it is worth understanding clearly.

Non-residents visiting Mallorca can drive a foreign-registered vehicle on the island for up to 90 days in any 180-day period under EU rules, provided the vehicle has a valid certificate of roadworthiness from its home country and valid insurance. For UK-registered vehicles after Brexit, a Green Card is required as proof of insurance cover in Spain. If the UK MOT expires while the vehicle is in Mallorca, it must return to the UK for the test — Spanish ITV stations do not issue MOT certificates for foreign-registered vehicles. UK-registered cars can be insured annually by some Spanish insurers for long-term stays, which resolves the insurance continuity issue.

Residents — anyone who has established tax residency or registered on the Spanish census (empadronamiento) — must re-register a foreign vehicle with Spanish plates within 30 days of becoming resident. The process involves an ITV inspection, payment of IEDMT registration tax (though a full exemption is available if you have owned the vehicle for at least six months in your previous country of residence before moving to Spain), DGT registration paperwork and issuance of Spanish plates. The registration process in Mallorca typically takes up to three months and is best handled by a gestoría experienced in vehicle re-registration.

Selling Your Car in Mallorca

Selling a car in Mallorca as a foreigner follows the same process as for Spanish nationals, with a few practical points worth noting. You must have the vehicle documents in your name and a valid NIE. To sell privately, you advertise on Coches.net, Wallapop or Milanuncios, agree a price, sign a contrato de compraventa with the buyer and hand over the vehicle documents. As the seller, you are responsible for notifying the DGT of the sale — this protects you from any fines or liabilities incurred by the new owner before they complete the change of ownership. You should inform your insurance company that the vehicle has been sold and cancel the policy or redirect it to a new vehicle.

The annual IVTM road tax must be paid and up to date for the change of ownership to proceed — buyers will check this. If you are not physically present in Mallorca to complete the sale, a notarised power of attorney granted to a local representative allows the process to be completed in your absence. Ask the buyer to provide a copy of the new permiso de circulación once registered, as final confirmation the car is out of your name.

Alternatively, selling to a dealership or a car buying service is quicker but typically returns a lower price than a private sale. Several services operate in Mallorca that purchase vehicles directly, inspect them on the spot and make an immediate offer — a practical option if you need a fast sale or are leaving the island.

Using a Gestoría

Throughout all of the above — buying, registering, re-registering a foreign vehicle, completing a transfer, paying ITP — the most consistently useful piece of advice is to use a gestoría. A gestoría is a licensed Spanish administrative agency that handles bureaucratic paperwork on behalf of individuals and businesses. For vehicle transactions, a good gestoría will manage the DGT paperwork, ITP payment, ITV appointment coordination and DGT registration filing, saving you multiple trips to government offices, queues and the risk of submitting incorrect or incomplete documentation. The fee for a standard vehicle transfer through a gestoría is typically 100 to 200 euros — money that buys a significant amount of time and stress relief, particularly if you are not a Spanish speaker or are unfamiliar with the system.

See all our properties for sale in Mallorca