Private or professional: what the law says
Buying a car for yourself and selling it years later is normal. Buying and selling several cars a year to make money is an economic activity, and the tax office and Tráfico share data: they see how many cars go through your name.
If you do it as a business
- Register with the tax office (form 036 or 037) under the right vehicle trade heading (for example, 654.1 for retail vehicle trade), before you start.
- Register as self-employed: €80 a month in the first year with the flat rate; then between about €200 and €600 a month depending on what you earn.
- VAT: used cars are usually sold under REBU (the special scheme for second-hand goods): you pay 21% only on your margin, not on the whole price.
- Income tax (IRPF): you pay on your profit (sales minus expenses), with quarterly payments.
- EU VAT number (ROI): to buy from businesses in other EU countries as a professional, you need to be on the register of intra-community operators.
Advantages of being a professional
No ITP when buyingWhen you buy a used car from a private seller to resell it, as a professional dealer you’re exempt from transfer tax (ITP), on condition that you sell it within a set period (generally 1 year).
Deductible expensesTransport, agency, repairs, tools, insurance… all come off your profit.
More trustInvoice, guarantee and a business behind it: the buyer pays more calmly.
Buying from businessesWith an EU VAT number you can buy from dealers in other countries on professional terms.
Obligations to the buyer
- Guarantee: on a used car sold by a professional, at least 1 year.
- Honest information: real mileage, accidents, known faults. Hiding a fault is a legal problem, not just a reputation one.
- Invoice with all the details.
Doing it “off the books” with several cars a year is risky: Tráfico records every change of owner and the tax office can claim taxes, surcharges and fines. Talk to an agency (gestoría) before you start: many handle self-employed car dealers.