Every year you must pay a municipally imposed vehicle
tax at your local town Hall. This tax "impuesto municipal
sobre vehiculos de traccion mecanica" varies from municipality
to municipality. As a general rule it is cheaper in rural areas,
which
sometimes leads Andalusian businesses with fleets of company vehicles
to use a rural address for the official headquarters of their business.
Small cars pay about 50 euros a year and larger ones 100 euros.
You should receive a postal notification but it
is best to stop by your town hall in order to find out when the
tax is due. Late payment will incur a fine of 5% in the first month
and 20% thereafter.
There is no tax disc to display as in many other
eurosspean Countries. Make sure when you sell or scrap a car that
the transfer papers have been done correctly as the tax will continue
to accrue for years to come.
It is common to pay this fee by standing order at
the bank, but it is also possible to pay in cash.
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