Pain in Spain

We own a property on Formentera, which is a small Spanish owned Island near to Ibiza. We pay Spanish local property tax (IBI) and for refuse collection in the same way Spanish residents pay their local taxes. We have local Spanish Bank accounts and house insurance. Generally speaking we spend about two months each year at our property on Formentera. We are UK residents and therefore pay income tax in the UK. Last June we researched on the internet the process for taking a car from the UK to Formentera and registering the vehicle in Spain. It looked to be a fairly straightforward process, albeit somewhat bureaucratic. So, in September 2008 we drove a 25 year old left-hand-drive UK registered, MOT'd, and insured Citroen 2CV to Formentera with the intention of registering the car at our Formentera property address. Earlier this year we discussed with a local Spanish solicitor getting the car registered in Spain, only to be told that the Spanish residency laws we tightened from 01 January 2009, disallowing non Spanish residents from registering or owning a Spanish registered vehicle. The local Council on Formentera has opted to enforce these regulations rigorously. We are advised by the local Council that in order to be able to register the car we would have to spend at least 6 months of each year in Spain to prove residency and declare Spain as our primary residency - thus paying Spanish income tax on any UK or Spanish generated income. Until we learned the above we were under the impression that alignment of European laws would have caused Euro states to have similar rules for vehicle ownership. How wrong it appears we are. Please can you guide us as to whether there is likely to be any way around this Spanish bureaucracy? We feel we are being discriminated against.

Asked on 15 August 2009 by

Answered by Honest John
You may find out more from "Motoring in Spain” THIRD EDITION (ISBN No. 978-84-611-9278-6), by Brian J Deller.
www.spainvia.com/motoringinspain.htm (you may be able to contact Brian Deller himself via the website). There are also new rules on drivers age.
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