Tax regulation mechanism (Tax rates adjusted by environmental elements)

• Law 38/1992
• Law 34/2007

Law 38 of 1992 introduced the Special Tax on Certain Means of Transport, which is levied on the first definitive registration of new or used motor vehicles to circulate in Spain. Law 34/2007 introduced an environmental modification: the tax rate is based on the CO2 emissions per kilometre. Although biofuels are taxed, different rates may apply based on the CO2 emissions.

The Autonomous Communities have the competence to determine the tax rate for the Special Tax on Certain Means of Transport, based on the official CO2 emissions of the vehicle. Hence, the amount depends on the specific regional regulation.

The Special Tax on Certain Means of Transport is levied on the first definitive registration in Spain of vehicles, new or used, fitted with an engine for their propulsion (Eighth additional provision, Law 34/2007). Motorbikes and three-wheeled vehicles are exempted from the tax.

Depends on the regional authorities.

• Autonomous Communities
• Municipalities