2024-04-03 19:23:43
On the border between the provinces of Madrid and Ávila is the idyllic town of Rozas de Puerto Real. Population: 578. Last year, 21,464 vehicles were registered in the town, enough for each neighbor to have 37 of them in their garage.
This municipality is, along with 26 others, one of those that offer one of the lowest circulation taxes in Spain. The amount to be paid is determined by the Local Treasury Regulatory Law, taking into account the power of the engine, expressed in fiscal horsepower (CVF). In the formula, variables such as the number of pistons, their diameter or stroke are taken into consideration to determine the tax bracket to apply – there are five – but, roughly speaking, the larger an engine is, the more it has to pay the anus.
The legal ranges range from 12.62 to 112 euros, but each city council can decide whether to apply discounts or tax more, depending on the environmental impact of the vehicles or, for example, the fuel they use.
Tax havens for corporate vehicles
Tax havens for corporate vehicles
Passenger car tax per fiscal horse / in euros
Rozas de Puerto Real is what Associated European Motorists (AEA) call a tax haven. In fact, it is one of the 10 towns that together account for 40% of the company car registrations that were registered last year: 208,125 out of 528,762. In relation to the Spanish total, these ten municipalities, all with less than 15,000 inhabitants, registered 21.9% of the operations.
The reason is simple, the amount paid for a vehicle in Madrid and in one of the nine paradises located in the community is seven times higher. This, linked to operations of tens of thousands of vehicles, makes leasing companies choose to establish offices in them.
In 2023, it is estimated that some 3.9 billion euros will be deposited into local treasuries as a result of the Mechanical Traction Vehicle Tax (IVTM), as the road tax is technically known. In Rozas de Puerto Real the exact figure is not available, but it is estimated that they may exceed 300,000 euros, one sixth of its annual budget. When dealing with magnitudes such as 45,000 vehicles, registering them in Navacerrada would cost 450,000 euros, while doing so in Madrid would exceed three million.
Attracting companies with tax credits is not something new, especially when they can represent a considerable part of income. The change to the road tax occurred 24 years ago, when in 2000 the provincial code was eliminated from license plates.
While it is true that Madrid brings together the largest number of tax havens, other provinces linked to the tourism and rental sector, such as Valencia, Castellón, Málaga, Barcelona or Mallorca also have options.
The differences are considerable even when comparing provincial capitals. The city that taxes its vehicles the most is San Sebastián, where a vehicle with 11.99 CVF is taxed 87.93 euros per year. In Barcelona, 68.16; in Madrid, 59 and in Santa Cruz de Tenerife, 34.08 euros. The difference between the first and the last is 158%.
The most expensive provincial capitals are San Sebastián, Vitoria, Bilbao, Barcelona, Tarragona, Lleida, Palma, Ciudad Real, Valladolid, Huelva, Granada and Murcia.
In contrast, Santa Cruz de Tenerife, Melilla, Ceuta, Zamora, Palencia, Badajoz, Cáceres and Jaén could be considered almost tax havens for the IVTM.
Compared to last year, A Coruña, Logroño, Murcia, Bilbao and San Sebastián have increased their rates. On the other hand, Valencia, Córdoba, Seville, Zaragoza and Segovia have lowered them.
There are certain exemptions to paying the circulation tax, such as if the vehicle is an official car, of the diplomatic corps, of the health service, of public transport – with more than nine seats – or if its user has reduced mobility to a greater degree. at 33%. Motorcycles are also subject to this tax, but they do so based on displacement and not power.
The deadline to pay this tax begins on April 1 and lasts until June 30, coinciding with the Income campaign. You can pay in person or electronically after receiving a letter.
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