How do you buy a used car in the Canary Islands?
By MotorCanarias team Last reviewed: 22 October 2026 5 min read
In short
Compare prices on the Canary market, get the DGT vehicle report, check the ITV, mileage and service history, and test-drive the car in person on the island. Sign a written sale contract, pay by bank transfer and, when buying privately, pay transfer tax (ITP) to the Canary Islands Tax Agency and apply to the DGT for the change of ownership.
Where to look and how to judge the price
The Canary used-car market behaves like seven separate markets. What is for sale in Gran Canaria or Tenerife may not be available in Lanzarote, Fuerteventura or the smaller islands, and bringing a car from another island means a ferry crossing and extra paperwork. Start on your own island and widen the search only if you need to.
- Filter by island in all cars for sale, or go straight to Gran Canaria or Tenerife.
- Check the Canary market page for real asking prices of similar models by year and mileage.
- Check the market prices so you have a benchmark before you negotiate.
Prices on the islands do not always match what you would pay in the UK or mainland Europe. Be wary of anything well below the local market: it usually means a mechanical fault, a legal charge on the car or a scam.
What to check before you pay
Never pay, or leave a deposit, before you have seen the car and its documents. The essential checks are:
- DGT vehicle report (Informe de vehículo): available on the DGT's online portal using the number plate. It shows the number of previous owners (not who they were), ITV inspections, mileage recorded at each ITV, embargoes, finance reservations of title and whether the car has been deregistered.
- ITV (the Spanish MOT): check on the tarjeta ITV (technical card) that the inspection is current. If it has expired, the transfer cannot be processed until the car passes.
- Mileage: compare the odometer with the DGT report and garage invoices. A drop in mileage between records is a red flag.
- Service history: ask for the service book and receipts. On coastal cars, check the underside and mounting points for rust caused by salt air.
- Paperwork: the seller's name should match the owner on the permiso de circulación (registration certificate). If it doesn't, ask why before going any further.
- Test drive: drive in town, uphill and on a dual carriageway if possible. On steep islands such as Tenerife or La Palma, pay attention to the clutch, brakes and engine temperature.
If you are not mechanically minded, have an independent garage inspect the car before you buy.
Buying from a private seller or a dealer
Private seller: usually cheaper, but you handle the transfer tax, the change of ownership and all the checks yourself. Legal protection is generally limited to hidden defects, so a pre-purchase inspection matters more.
Dealer: the price generally already includes IGIC (the Canary Islands' equivalent of VAT) or the dealer uses the special second-hand goods scheme (REBU), and as a rule the buyer does not pay ITP. Dealers normally handle the transfer for you and must provide the statutory minimum warranty on used goods. You can browse the verified dealers directory.
Whoever you buy from, get an invoice or contract in writing and read exactly what the warranty covers. If your Spanish is limited, ask for a copy in advance so you can have it checked.
Step by step: buying a used car in the Canaries
- Set a total budget covering the price, taxes, transfer, insurance and a reserve for maintenance.
- Search on your island and compare prices with the market page.
- Ask for the number plate and download the vehicle report from the DGT portal.
- Meet the seller on the island, inspect the car in daylight and take it for a test drive.
- Check that the seller's DNI or NIE matches the owner shown on the registration certificate.
- Agree the price and sign a sale contract stating the date and time of handover.
- Pay by bank transfer or another traceable method and collect the registration certificate, ITV card and keys.
- Arrange insurance before you drive the car away.
- If you bought privately, file the ITP self-assessment with the ATC and apply to the DGT for the change of ownership within 30 days of the purchase.
The contract, safe payment and common scams
The sale contract (contrato de compraventa) should include both parties' names, DNI or NIE and addresses, the number plate, chassis number (VIN), mileage, price, payment method, date and time of handover, and a statement that the car is free of charges. Sign two copies and keep a photocopy of the seller's ID.
A bank transfer leaves a clear record. Cash leaves no trace, and when one party is a business or self-employed professional Spanish law caps how much can be paid in cash (there is no such cap between private individuals). Watch out for these patterns:
- Sellers who claim to be off the island or abroad and ask for a deposit to “reserve” or ship the car.
- So-called delivery or escrow services that handle the payment for you.
- Pressure to close quickly without letting you see the original documents.
- Prices far below the market with generic photos.
The rule is simple: see the car in person, in the Canaries, before paying anything.
Taxes and costs: who pays what
General information. Taxes, fees and amounts change and depend on each case. Always check the current figures with the official sources linked here or ask a gestoría (licensed paperwork agent).
Amounts change and depend on the vehicle, so always check the current figure with the official source. For the paperwork in detail, see our guide to transferring ownership.
| Item | Who pays | Where it is paid or managed | Official source |
|---|---|---|---|
| DGT vehicle report (current fee on the DGT portal) | Whoever requests it, usually the buyer | DGT online portal | DGT |
| ITP on a private purchase (based on the price and official values) | Buyer | Canary Islands Tax Agency (ATC), self-assessment online | ATC |
| IGIC or REBU on a dealer purchase | Generally included in the price | Handled by the dealer | ATC |
| Change of ownership fee (current fee on the DGT portal) | Buyer, unless agreed otherwise | Provincial Traffic Office or DGT online portal | DGT |
| Road tax (IVTM) | Registered keeper | Town hall where the owner is registered | Local town hall |
| Compulsory insurance | Buyer | Insurer of your choice | Spanish law |
| Gestoría fees (optional) | Whoever hires it | Gestoría (licensed paperwork agent) | Gestoría quote |
Insurance and a realistic timeline
Third-party insurance is compulsory in Spain. Don't assume the seller's policy covers you: take out your own cover, using the number plate and chassis number, before you drive off. A UK or other foreign policy will not normally cover a Spanish-registered car.
A rough timeline, depending on appointment availability and your circumstances:
- Searching and comparing: a few days to several weeks.
- DGT report: available online straight away.
- Viewing, test drive and garage check: one or more days, depending on the garage.
- Contract, payment and handover: the same day if everything is in order.
- ITP and transfer: quick online with a digital certificate or Cl@ve; allow more time for in-person appointments or a gestoría.
As a foreigner, you need an NIE and an address in Spain to put a car in your name. Read our guide to buying a car as a foreigner before you start.
Frequently asked questions
Who pays transfer tax when buying a used car privately in the Canaries?
The buyer normally pays ITP through a self-assessment with the Canary Islands Tax Agency (ATC). The amount depends on the vehicle, so check it on the ATC website.
Do I pay ITP if I buy from a dealer?
Generally not, because the price already includes IGIC or the dealer applies the special second-hand goods scheme (REBU). Ask for an invoice and confirm how the sale was taxed.
How can I tell if a car has debts or charges on it?
Request the vehicle report (Informe de vehículo) on the DGT online portal using the number plate. It shows embargoes, finance reservations of title, the number of previous owners and the ITV history.
Can I buy a car with an expired ITV?
You can agree the sale, but the DGT will not process the transfer until the car has a valid ITV. Usually the seller gets it inspected before selling.
Can I buy a car in Spain without an NIE?
To register a car in your name you need an NIE and a Spanish address, usually proven with empadronamiento. Rules for non-residents depend on your situation, so check with the DGT or a gestoría.
Official sources
- Dirección General de Tráfico (DGT)
- DGT online portal (sede electrónica)
- Canary Islands Tax Agency (ATC)
- ATC online portal (sede electrónica)
This guide is general information, not legal or tax advice. We review it regularly; if you spot something out of date, let us know through the contact form.