You are purchasing a second-hand car from a private individual in Spain on March 15th. Regarding the required taxes, which of the following statements correctly identifies who is responsible for paying the Property Transfer Tax (ITP) for the sale, and who must pay the annual Municipal Road Tax (IVTM) for that current calendar year?
A)The seller must pay the ITP to finalize the contract, while the buyer is solely responsible for that year's annual IVTM since they will be driving the car for the majority of the year.
B)The buyer must pay the ITP before the DGT will register the vehicle in their name, while the seller is legally responsible for the current year's annual IVTM because they were the registered owner on January 1st.Correct
C)Both the ITP and the annual IVTM are automatically split 50/50 between the buyer and the seller, and the DGT will calculate the exact pro-rated amounts at the time of transfer.
Property Transfer Tax (ITP): In a private second-hand sale, the buyer is always the taxpayer responsible for settling this regional tax (Form 620/621) before the DGT updates the ownership.
Annual Road Tax (IVTM): By Spanish law, the annual municipal tax cannot be divided or pro-rated by the DGT; the full amount belongs entirely to whoever was the official owner of the vehicle on January 1st of that year. Therefore, the seller must ensure it is settled.