2023-06-06 13:17:32
The Tax on Mechanical Traction Vehicles (IVTM) created in Spain thirty-four years ago to replace the vehicle circulation tax (also known as “el numerito”), generates annual income of 3,900 million euros for local treasuries.
The tax is paid based on the fiscal power of the vehicle, in the case of passenger cars; depending on the displacement, in the case of motorcycles; and the weight and number of seats, in the case of trucks and buses, respectively, in accordance with a minimum rate established for the entire national territory, with the exception of the historical territories of the Basque Country and Navarra.
The law allows city councils to increase said fees at their discretion, being able to charge up to twice the minimum rate, a situation that occurs in 12 of the 52 Spanish provincial capitals, according to the report of AEA Associated European Motorists.
The law also allows applying bonuses of up to 75 percent depending on the fuel and the characteristics of the engines, and even exonerating the payment of the tax in the case of historic vehicles and those over 25 years old, thanks to the modification that AEA managed to introduce it in 1999 in the Local Treasury Law. Since then, hundreds of thousands of motorists have saved themselves from paying this tax in exchange for preserving heritage that is part of a certain period of automobile production.
“But it is this discretionary power of the municipalities -AEA points out in its report- which has distorted the purpose of the tax system and has led to the creation in Spain of true “tax havens” in relation to the payment of a tax to which more than 37 million taxpayers are obliged ».
Thus, a driver from San Sebastian pays 49% more for the municipal tax on his car than one from Madrid, or 158% more than one domiciled in Tenerife. But if compared with a motorist registered in one of the “25 tax havens” that exist in Spain, the differences can reach up to 900%.
For example, a medium-sized vehicle, with 11.99 fiscal horsepower -AEA points out in its report- pays 34.08 euros at the Santa Cruz de Tenerife City Council; in Madrid 59 euros, in Barcelona 68.16 euros, and in San Sebastián 87.93. In other words, 158% more expensive in San Sebastián than in Tenerife.
Among the most expensive Spanish municipalities, in addition to San Sebastián, AEA cites in its report those of Vitoria, Bilbao, San Sebastián, Tarragona, Barcelona, Lleida, Palma, Ciudad Real, Valladolid, Huelva and Granada.
On the contrary, among the capitals that could be considered “a tax haven” would be Santa Cruz de Tenerife, Melilla, Ceuta, Zamora, Cáceres, Palencia, Jaén, and Badajoz.
Regarding motorcycles, the differences are also notable. A motorcycle of 600 cubic centimeters pays in Melilla 15.15 euros. However, in San Sebastián this same vehicle pays 79.32 euros. 423% more expensive!
But according to the report, the differences in rates not only occur between the provincial capitals of different autonomous communities but also between municipalities of the same province. Thus, for example, the rate charged by the mountain municipality of Colmenar de Arroyo or Robledo de Chavela, in the Community of Madrid, is seven times cheaper than that charged in the capital of Madrid; or within Catalonia, the one charged by the municipality of Rajadell or Aguilar de Segarra is eight times less than what is charged in Barcelona.
This fact has led to the fact that many rental and leasing companies have concentrated the registration of their fleets in small municipalities where they have opened branches due to their favorable tax treatment. In return, each year they win the “little number” lottery for the income they receive from a tax on vehicles that do not even circulate, nor will they ever circulate, through that population.
Eight Spanish municipalities (Colmenar de Arroyo, Robledo de Chavela, Venturada, Moralzarzal, Navacerrada, Las Rozas de Puerto Real and Patones, in Madrid; and Tejeda, in Las Palmas) -with a population of between 500 and 14,000 inhabitants- in which 40% of all company cars in all of Spain are registered due to its privileged tax treatment. That is, 183,604 passenger cars out of a national total of 461,257 units.
The case of Benidoleig, a small Alicante municipality in which, despite having increased its population by only 66 residents, has multiplied by ten the number of company vehicles registered in 2022 compared to the previous year, AEA points out in its report. , going from 344 to 3,383 units.
In the «Study on municipal automobile taxation», AEA includes a list of 25 municipalities in which the number of newly registered vehicles exceeds the number of registered inhabitants, reaching motorization rates much higher than those of the US. or Japan, as is the case of the Madrid municipality of Las Rozas de Puerto Real, with 577 inhabitants, where last year 31 vehicles per inhabitant were registered.
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